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Radio Fixed Access Increasing The Choice |
Foreword by the Minister for Trade and Technology
I announced in March that the Government planned to make spectrum available so that additional competitive fixed radio based services could be provided nationally to small and medium sized businesses. This spectrum in the 10 GHz band is particularly suitable for businesses requiring fixed digital services and is intended to boost the development of Integrated Services Digital Network (ISDN) applications in the UK. Spectrum in the 2 GHz band has also been found to extend telecommunications services to customers living in certain remote rural areas. We expect these services will be particularly welcome to the increasing numbers of people teleworking from small villages and other remote locations in these areas who want better access to more advanced services in order to extend the scope of their work.
The Government is determined to spread the benefits of the information revolution throughout the UK using the most advanced and appropriate technologies. This document is an important step towards that objective, and fulfils the Government commitment to consult widely. Both these new services represent excellent news for the potential new customers, operators and equipment manufacturers. This initiative should assist UK companies planning to take advantage of the liberalisation of the wider European telecommunications market over the next few years. I hope they will take up the challenge now offered. Comments are invited on a number of issues, in preparation for launching competitions in the autumn.
Ian Taylor MBE MP
Table of Contents
2. Development of Radio Fixed Access to Date
3. Frequency Bands 2 GHz Band 10 GHz Band
5. Technical Requirements and System Features
6. The Position of British Telecom and Other Operators
9. Responses to the Consultation
Annex 2: Availability of this Consultation Paper via the Internet
1 .The Government is committed to ensuring that modern telecommunications networks are as widely available as possible across the UK. Efficient telecommunications services play a vital role in the modern economy. Business requires advanced communications to compete in the modern world. Individuals working from home are increasingly using advanced forms of telecommunications services including multi-media. Residential consumers in rural areas need affordable telephony services.
2. Over the last fifteen years the Government has taken a series of decisions to put in place a legislative and regulatory framework which allows competition to flourish in the telecommunications market. This has led to the UK enjoying one of the most open and dynamic telecommunications environments in the world. The Government is determined to continue the process of liberalisation to maintain the UK's competitive lead in this sector.
3 .Both BT and an increasing number of competitors are investing very heavily in modern telecommunications networks. An ever wider choice of exciting and innovative new services is becoming available. Such services include early developments in multimedia, which combine interactive transactions with information and entertainment. For example, a number of business television services including news, data, financial transactions and travel services are now available. Many others will follow. As regards entertainment, the introduction of digital television services over the next two years will make pay-per-view and near video-on-demand services widely available. Competitive telecommunications services from cable operators are now well established.
4. Two operators, Ionica and Liberty are preparing shortly to offer telecommunications services via radio fixed links. This consultative document considers further extensions of telecommunications services by radio to businesses and to the more remote rural parts of the United Kingdom. Radio offers the prospect of continuing the downward pressure on costs and prices for telecommunications services, since it removes the need to 'fly' wire across country or dig up roads to provide fixed telecommunication links.
5. The purpose of this consultative document is to present the Government's proposals on the extension of radio fixed access services in two frequency bands, 2 GHz and 10 GHz. The document reviews the development of radio fixed access before setting out the Government's proposals for two distinct radio fixed access systems serving different markets. The 2 GHz system is intended to provide improved access to telecommunications services to those living in remote rural areas. A schematic diagram of a 2 GHz system is shown at Figure 1. The 10 GHz system is intended to extend choice to those seeking advanced digital services, and may be particularly relevant to small and medium sized businesses, a schematic diagram of a 10 GHz system is shown at Figure 2. The document then sets out the Government's proposals to run two competitions in the latter half of this year, provided sufficient interest is shown, to select the operators in each band. It concludes by setting out the Government's views on a number of related telecommunication and spectrum issues.
6. The Government believes that this liberalisation of the radio fixed access market represents excellent news for customers, for telecommunications operators and for manufacturers of telecommunications equipment. Common frequency bands at 2 GHz and 10 GHz have already been identified with the CEPT (Conference of European Posts and Telecommunications) for use in European countries. These developments in the UK are planned to set a firm foundation for operators and manufacturers seeking to expand their radio fixed access services into Europe, given the opportunities becoming available when other major European countries liberalise their telecommunications markets around 1998.
7. The Government is seeking comments on the proposals in this consultation document from all interested parties, including customers, public network operators, manufacturers of telecommunication systems and service providers.
8. Links to homes and businesses in the UK have traditionally been by fixed copper wire. A number of competitors to BT and Mercury have emerged since the end of the BT/Mercury duopoly in 1991, particularly as a result of the decision to allow cable companies to offer telecommunication services in their own right. Cable telephony has proved popular with customers, and an important source of revenue for cable operators. The resulting networks are already available to 4 million homes, with 50,000 new telephony subscribers currently being added each month. Infrastructure competition is proving a most important competitive stimulus, with falling prices and improved services for many customers. However, this needs to be placed in context: successful as the competition is proving, BT still provides 95% of final telecommunications connections to homes in the UK, and cable operators will continue to have to invest billions ofpounds over the next few years to complete their networks.
9. Recently the Independent Television Commission (ITC) has started awarding Local Delivery Operator (LDO) licences under the Broadcasting Act 1990. These allow competing networks to be developed using a combination of cable and fixed radio networks. Spectrum for delivery of wideband entertainment services has been set aside at 40 GHz and the Radiocommunications Agency is currently working with equipment manufacturers and service providers to examine options for a return channel. In addition, the Government has been keen to see the development of innovative fixed radio services nationally. The licensing of Ionica and Liberty has reflected this policy. Both have been allocated spectrum in return for accepting obligations to roll out their networks to provide a high level of coverage of the UK population within a period defined in their licences.
10. The Government has identified two clear gaps in the market. First, small and medium sized businesses seeking multiple telephone lines and more advanced digital services. Second, those living in the more remote rural areas, generally some distance from the nearest telephone exchange, who require a range of services from basic voice telephony to some more advanced services.
11. The spectrum to be made available for fixed radio access within the paired band 2025 - 2110 MHz and 2200 - 2290 MHz. Any new operators in these bands will need to demonstrate how they can share with existing and new digital point to point fixed links migrated from the 1.5 GHz band; space sciences services who are also co-primary in this band; and any future NATO systems that may be introduced. Further information about the services with which the operators will have to share is available from the Radiocommunications Agency.
12. Spectrum will be made available in the paired band of 10.15 - 10.30 GHz and 10.50 - 10.65 GHz. This spectrum has been made available for civil use by the Ministry of Defence, but is subject to sharing with existing users who cannot readily be relocated, restricting the bands available to radio amateurs and moving some users to other bands. There are two geographic exclusion zones in the lower half of the band and all operators will be expected to contribute to the cost of relocating equipment currently used by the Home Office and Scottish Office. Further information about the services with which the operators will have to share is available from the Radiocommunications Agency.
13 .The Government has not reached final decisions on how many operators should be licensed to operate in the two bands. To provide competition and choice we would, however, expect that there should be sufficient capacity to allow at least two operators to compete in the 2 GHz band and three operators in the 10 GHz Band. It will be possible to license operators to operate either nationally or on a regional basis in either band. For example, some cable operators may wish to apply for areas coincident with their cable franchise areas.
The Government would welcome comments on the relative desirability of licensing operators to provide services on a national or a regional level, and expressions of interest from potential operators on either basis.
14. The 2 GHz band is predominantly intended to provide voice telephony to residents of remote rural areas where it is costly to provide a wireline link. Spectrum constraints will limit customers of this service to a maximum bit rate of 144 k bit/sec. Nevertheless, an increasing number of people are teleworking in rural areas and would like to be able to receive multi-media services with somewhat greater bandwidth than a single voice telephony line. The Government would therefore expect the system to be capable of accommodating such requirements. The equipment proposed for use in this band should meet the relevant CEPT channel plans and also the associated standards currently being developed within ETSI STC TM4. The current work programmes include systems using Code Division Multiple Access (CDMA) and Time Division Multiple Access (TDMA) technology. If it is perceived that another technology would be more suitable it will be necessary to initiate a new work programme within TM4 to ensure that a harmonised European standard is available in the future. Initially to allow rapid introduction of radio access systems, proprietary equipment will be considered provided that the operator undertakes to modify or replace the equipment when a stable draft European standard is available.
15. Proposals will also be assessed on the basis of optimising spectrum efficiency taking into consideration the service that will be provided to the customer. Importance will be placed on the facilities and services offered by the equipment, and in particular an ability to provide services ranging from basic analogue telephony to digital ISDN.
16. Given existing usage of spectrum in the 2 GHz bands, it will only be possible to licence operators to provide radio fixed access to customers located in more remote parts of the UK. The Government has established that it will be possible to offer spectrum for services in some 20% of the land area of the UK. This represents the areas which are the least densely populated. The precise definition of the premises to which these services can be offered will be made by reference to local authority boundaries. At Annex 1 is a list of the local authority areas covered by this definition, and an indicative map of the UK showing the areas covered.
17. The Government proposes that the 10 GHz system should provide more advanced digital services with a minimum bit rate of 144 k bit/sec (ie an ISDN service) per customer. As for the 2 GHz system, equipment proposed for use in this band will need to meet the channel plans which will be developed within CEPT and also the relevant standards being developed within ETSI STC TM4. The current work programme only considers TDMA technology but it is hoped to initiate a new activity for CDMA systems later in May this year. If it is perceived that another technology would be more suitable, it will be necessary to initiate a new work programme within TM4 to ensure that a harmonised European standard is available in the future. To allow rapid introduction of radio access systems initially, proprietary equipment will be considered provided that the operator undertakes to modify or replace the equipment when a stable draft European standard is available.
18. As in the case of equipment for the 2 GHz system, the equipment for the 10 GHz system should be highly spectrum efficient. Proposals for this band should be based on a digital service, with a minimum capacity of 144 k bit/sec between the individual customer locations and the base station. Whilst it would be possible for the operator to use some of the spectrum for higher capacity links to individual customers our first objective in making available this spectrum is to encourage the widespread availability of links of 144 k bits/sec to 2 M bits/sec. A further objective in offering this spectrum is to encourage innovative developments in digital technology and digital customers premises equipment. Proposals using analogue network technology or promoted for use only with analogue equipment will not be considered. Particular importance will be placed on the facilities and services offered by the equipment.
The Government would welcome comments on the proposed technical requirements, and expressions of interest from potential operators.
19.The Government considers that its first objective in offering spectrum for increased use of radio fixed access is the need to foster greater competition in telecommunications infrastructure. In addition the Government has a number of further objectives. These are:
reducing the cost of providing universal service to remote areas and increasing the range of services offered to those in these areas,
20. In the light of these criteria the Government is inviting views in this consultation on whether any existing operators should be restricted in applying for spectrum at 2 GHz and/or 10 GHz, and in particular whether the existing market power or spectrum allocation of any existing operator is relevant. The Government has not yet reached any decisions on these issues.
21. Subject to the views expressed as a result of this consultation exercise, and sufficient expressions of interest, the Government proposes to run two separate competitions this autumn with a view to issuing operating licences to the successful operators in early 1996. Those interested in applying for a licence are invited to express their interest when responding to this consultation paper.
22. We have stated our objectives in launching this competition in paragraph 19 above. These set the main criteria by which competing bids will be assessed. Notes for guidance in bidding for a licence will be issued at the time the competition is launched. However, the Government expects that these criteria will include the following main provisions:
23. A number of operators have expressed interest also in offering CT2 and DECT systems for radio fixed access in an urban environment. The Government considers that the use of such technologies would be premature at present, and plans to review this autumn whether to allow applications for some of this spectrum for local access systems, with a range of 200 metres or less, from the beginning of 1998. Such an approach might also involve permitting trials of such systems to be conducted a few months earlier.
24. Following a wide consultation exercise launched in October 1992, the Government announced in June 1993 that certain radio spectrum in the 1800 MHz band, which had been released by the merger of two PCN operators, Mercury PCN and Unitel, would not be allocated until at least April 1995. The Government has recently received a number of representations about whether this spectrum should now be considered for allocation, or continue to be held back for a further period until the two existing PCN operators may wish to use it as their customer base expands. The Government plans to make an announcement about this later this summer.
25. In some areas 2400 - 2483 MHz Low Power Devices band may be suitable for the provision of radio fixed access. This band is designated for wideband data transmission systems using a new European standard (ETS 300 328), which may cover certain radio fixed access applications subject to licensing under the Telecommunications and WT Acts. The band is also used for Industrial Scientific and Medical (ISM) purposes and for TV outside broadcast operations. The Government is now about to consult on the first licence for an operator relying on this band for services. The Government is only prepared to consider the deployment of such services (whether by new operators or existing operators) where it is clear that adequate capacity exists within the band in the area proposed to be served, and also when the system proposed is shown to be capable of providing a sufficient standard of service to meet customers' needs. The Government will look particularly closely at proposals where two competing ISM-band services might overlap.
26. The Government is prepared to consider applications for test and development trials of systems proposed for the 2 and 10 GHz bands. These trials would be on the basis that they would be entirely without prejudice to the outcome of subsequent competitions.
27. Comments on the above proposals to liberalise radio fixed
access, and expressions of interest in bidding for a licence, should be submitted to
Christopher Holmes, Telecommunications Division, Department of Trade and Industry, 2.85
Grey, 151 Buckingham palace Road, London SW1W 9SS, copied to Mr Graham Stemp, Radio
Communications Agency, Department of Trade and Industry,
Room 206, Waterloo Bridge House, Waterloo Road, London SE1 8UA.
28. The closing date for comments and expressions of interest is 30 June 1995. The purpose of seeking expressions of interest in bidding at this stage is to provide the Government with information about the likely level of interest. Such expressions need not involve any commitment and failure to come forward at this stage will not be a bar subsequently to bidding in any competition. 27.If you require additional copies of this document please telephone 020-7215 1785.
List of Local Authority Areas eligible for the 2 GHz Service
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Availability of this Consultation Paper Via the Internet
The Department of Trade and Industry has made arrangements for this Consultation Paper to be available electronically via the Internet, the world's largest network of computers and now available to millions of users, using the following URL:http://www.open.gov.uk/dti/radio.htm. This document is available via anonymous FTP from: ftp.open.gov.uk/dti/
May 1995 |
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