Broadband News
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Government pushing mobile, Opposition to pull broadband tax
19 Oct 2009 | 19.59 Europe/London
As progress is made on one of the Digital Britain proposals, it's emerged that if the current Government loses the next election another will be abandoned "as soon as possible." With the promise of an "explosion in 3G and mobile broadband services," the Independent Spectrum Broker (IBS) has managed to sneak out a new report and given it the sort of title that means nobody will read it unless they're paid to: A Consultation on a Direction to Ofcom to Implement the Wireless Spectrum Modernisation Programme. At the same time, the Conservatives have declared they'll scrap the infamous 50p "tax" on fixed lines that's supposed to fund laying Britain's next generation network.
The IBS is known to his friends as Kip Meek - a name that means he could now move on to a career as a character in a fantasy novel - and he inherited the thankless task of wrestling with the UK's major mobile firms over plans to redivide the country's spectrum. While the Digital Britain report was able to incorporate some of his suggestions, delays that have been euphemistically described by minister Stephen Timms as "technical issues" have meant his own final proposals are only being published now. Here's an excerpt:
Mr Meek argues that 3G coverage can be increased to ninety per cent of the UK population, primarily by making the 3G licensing term indefinite to encourage greater investment in infrastructure (mobile operators would be charged an annual fee from 2021 onwards). He also wants to see a "refarming" of the 900MHz band so that it could support the 3G and 4G roll-out; it's currently utilised for 2G services in the main - i.e. mostly voice calls - and only used by O2 and Vodafone, neither of which are happy about giving it up. Henceforth, all existing 2G licences (900MHz and 1800MHz) could be made indefinite and tradable so that the frequencies involved could be converted for use with 3G. And that's not all:
The firms that end up in control of the 800MHz and 900MHz frequencies will be complied to deliver mobile broadband to hard-to-reach and rural areas. (It's worth noting that the 1.5Mbit/s downlink speed won't be guaranteed to all users under all traffic conditions, however.)
Meanwhile, the aforementioned 2.6GHz and 800MHz bands could be auctioned out to be used for next generation broadband technologies like mobile WiMAX, which is an alternative to 4G. However, various caps would be introduced to prevent any one operator gaining too much control of the spectrum at any one time while it's being carved up anew.
"This package will free up the airwaves for the expansion of wireless and 3G services, increasing their reach to consumers and businesses across as much as ninetey per cent of the country, including rural communities," said Digital Britain minister Stephen Timms. "The Government now intends to implement these proposals through a Direction to Ofcom. Before doing so, it is obliged to consult on the Direction and has published its consultation today. Stakeholders are invited to put forward their views ahead of the deadline of 8 January 2010."
While the Government will still be in Labour hands by January next year, the policies that are being drafted now may be under a new, Conservative stewardship by the end of 2010. And we've now got a glimpse into that possible future: the current shadow culture secretary Jeremy Hunt is saying the 50 pence levy on landlines - which hasn't even been implemented yet - will be scrapped as soon as the Tories have the chance.
While Digital Britain has been a painstaking collective effort, it's thought the 50p fixed line tax was the last minute brainchild of one man: Lord Stephen Carter. Ever since he's stepped down from the role as communications minister, it's seemed very vulnerable. Now it's emerged that even though Stephen Timms is apparently doing his damnedest to turn the levy into a law before the next election, it still might not survive.
The problem is that the 50p tax is seen by many as being the cornerstone of the Government's plans for a digital future - and David Cameron's party has yet to propose an alternative funding mechanism for rolling out next generation broadband across the UK. And if the Tories have their own vision for a Digital Britain, it's not known whether they will even listen to the Meek. The latest the next election can be held is June next year - how much could realistically be achieved by then, when there's still legal hurdles to overcome and the Digital Switchover is so far away?
The IBS is known to his friends as Kip Meek - a name that means he could now move on to a career as a character in a fantasy novel - and he inherited the thankless task of wrestling with the UK's major mobile firms over plans to redivide the country's spectrum. While the Digital Britain report was able to incorporate some of his suggestions, delays that have been euphemistically described by minister Stephen Timms as "technical issues" have meant his own final proposals are only being published now. Here's an excerpt:
At its simplest, the ambition [is] to deliver higher speeds to a rapidly increasing number of customers requires additional spectrum. There are two significant bands of spectrum that can meet this demand. The first is the 2.6GMHz band, currently available but whose release has been delayed due to legal challenges and the 800MHz band, part of spectrum released from the switchover of television from analogue to digital, known as the Digital Dividend. Ofcom are currently working towards the release of the latter as soon as possible. There are however a significant number of issues surrounding the release.
Mr Meek argues that 3G coverage can be increased to ninety per cent of the UK population, primarily by making the 3G licensing term indefinite to encourage greater investment in infrastructure (mobile operators would be charged an annual fee from 2021 onwards). He also wants to see a "refarming" of the 900MHz band so that it could support the 3G and 4G roll-out; it's currently utilised for 2G services in the main - i.e. mostly voice calls - and only used by O2 and Vodafone, neither of which are happy about giving it up. Henceforth, all existing 2G licences (900MHz and 1800MHz) could be made indefinite and tradable so that the frequencies involved could be converted for use with 3G. And that's not all:
800MHz and relinquished and re-awarded 900MHz licences ... will contain a retail service obligation to provide services to 99% of the population. Within this area, the licence holder must provide a service that would equate to a ninety-nine per cent probability that a user would see a downlink speed of 1.5Mbit/s.
The firms that end up in control of the 800MHz and 900MHz frequencies will be complied to deliver mobile broadband to hard-to-reach and rural areas. (It's worth noting that the 1.5Mbit/s downlink speed won't be guaranteed to all users under all traffic conditions, however.)
Meanwhile, the aforementioned 2.6GHz and 800MHz bands could be auctioned out to be used for next generation broadband technologies like mobile WiMAX, which is an alternative to 4G. However, various caps would be introduced to prevent any one operator gaining too much control of the spectrum at any one time while it's being carved up anew.
"This package will free up the airwaves for the expansion of wireless and 3G services, increasing their reach to consumers and businesses across as much as ninetey per cent of the country, including rural communities," said Digital Britain minister Stephen Timms. "The Government now intends to implement these proposals through a Direction to Ofcom. Before doing so, it is obliged to consult on the Direction and has published its consultation today. Stakeholders are invited to put forward their views ahead of the deadline of 8 January 2010."
While the Government will still be in Labour hands by January next year, the policies that are being drafted now may be under a new, Conservative stewardship by the end of 2010. And we've now got a glimpse into that possible future: the current shadow culture secretary Jeremy Hunt is saying the 50 pence levy on landlines - which hasn't even been implemented yet - will be scrapped as soon as the Tories have the chance.
While Digital Britain has been a painstaking collective effort, it's thought the 50p fixed line tax was the last minute brainchild of one man: Lord Stephen Carter. Ever since he's stepped down from the role as communications minister, it's seemed very vulnerable. Now it's emerged that even though Stephen Timms is apparently doing his damnedest to turn the levy into a law before the next election, it still might not survive.
The problem is that the 50p tax is seen by many as being the cornerstone of the Government's plans for a digital future - and David Cameron's party has yet to propose an alternative funding mechanism for rolling out next generation broadband across the UK. And if the Tories have their own vision for a Digital Britain, it's not known whether they will even listen to the Meek. The latest the next election can be held is June next year - how much could realistically be achieved by then, when there's still legal hurdles to overcome and the Digital Switchover is so far away?
You forget to mention that the auction is for the highest bidder, self evident but never the less, but I guess handing over all your cash in the form of a tax is a form of investment in a strange sort of way.
Under the 800Mhz, is 99% available and a 90% probability that .1% of the population in the cell area, if online can then get 1.5 Mbps, not exactly ambitious but ambition is to extract the auction fees.
20 Oct 2009 | 07.44 Europe/London