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Mid Wales Partnership - Response to the Consultation Document: 3.4 and 10 GHz: Scenarios For Spectrum Packaging and Delivery |
Patricia Hewitt MP
Minister of State for Small Business and E-Commerce
Department of Trade and Industry
Room 865
1 Victoria Street
London, SW1H 0ET
25th January 2001
Dear Minister,
Re: Fixed Wireless Access - Rural Wales
I write on behalf of the Mid Wales Partnership (which consists of the organisations
shown on the attached sheet) in response to your consultation paper on the Government's
plans to make available spectrum license for FWA at 3.4 and 10GHz.s.
The Mid Wales Partnership (MWP) was encouraged and optimistic to read your announcement
following the award of licences in the 28GHz and 40GHz spectra. You stated in
November that…. "you will work with public and private sector stakeholders to
pull together various broadband initiatives that are being pursued at national,
regional and local level into an effective programme for getting broadband services
to every part of the UK."
In a later press release in December, you also mentioned the use of public money
to stimulate telecommunication investment to correct market failure, and gave
an example of the Llwybr.Pathway Project in rural Wales using ERDF monies to
upgrade 10 rural phone exchanges (in conjunction with BT and the Welsh Development
Agency).
A further highly innovative roll out of a broadband telecommunications backbone
(1.2Gb capacity) through the counties of Carmarthenshire, Ceredigion and Powys
has just been completed utilising microwave technology. This project is again
part of the Llwybr.Pathway ERDF funded Project and is known as MARAN (Multi
Agency Rural Area Network) and is a partnership of the three unitary authorities
and Llwybr.Pathway - a document explaining MARAN is attached. This network infrastructure
has been completed by MLL Telecom, which has also invested substantially in
the network's construction. The partners have purchased a managed network from
MLL, something that was previously regarded as too expensive and unaffordable.
The recent completion of this broadband microwave network and planned future
expansion into smaller settlements through seeking European Objective 1 and
2 funding means that up to 46% of the land mass of rural Wales will be well
placed to make use of both Broadband and Public Fixed Wireless Access spectra
by providing affordable bandwidth to micro enterprises, SME's and residential
users which they otherwise would be unlikely to be able to access. Planned roll
out of services such as ADSL through BT and local loop unbundling are likely
to exclude vast geographical tracts such as rural areas. The opportunity of
using wireless technology could close the digital divide in rural areas. There
is also, of course, the educational aspect. Many of our rural primary schools
are unable to receive ISDN services. We see the MARAN network as providing National
Grid for Learning materials to our schools to ensure they are included.
As you will know no bids were received for the licence for Wales at 28 and 40GHz.
We understand that discussions are taking place now with the Radiocommunications
Agency on how best the licences at 3.4 and 10GHz can be awarded for the best
advantage of all and in particular rural areas. It is this in mind that the
MWP wishes you to respectfully consider such arrangements that would assist
in the provision of affordable bandwidth and services to rural Wales.
The auction of such licences may be attractive in raising revenue for the Government
however, any fees paid must be recouped by the licensee through higher user
end costs. A rural area is already incurring higher costs to establish such
networks and cannot afford to pay the additional costs associated with auctioned
licences. We are of the opinion that for rural areas, licences should be awarded
on a "first come first served basis". As stated above the backbone MARAN microwave
network is already established in rural Wales. MLL Telecom is a carriers' carrier
and their business case and strategy is based on building a network on which
any operator or service provider can buy capacity. There is another matter that
precludes roll out of microwave networks in rural areas and that is spectra
licensing. We understand that each "hop" requires licensing. By definition a
rural area requires many more hops to obtain geographical coverage and subsequently
a network operator has to pay more fees. We consider that a review is needed
on payment for spectra to ensure affordability to assist the roll out of microwave
networks in rural areas.
We would be very pleased to discuss MARAN and how best it can be used to close
the digital divide in rural Wales with you or your officials and in particular
the best way that Broadband and Public Fixed Wireless Access in the various
spectra could be utilised.
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