EU Commission Proposes New Rules for 700 MHz Spectrum Allocation

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The UK telecoms regulator Ofcom recently confirmed plans to free up the 700 MHz frequency band by 2022 so it can be used to carry data over long distances. Across Europe the band is currently used for television broadcasting and wireless microphones, while in regions such as the United States and parts of Asia it is already allocated to mobile broadband services like 4G.

Following that development, the European Commission has opened a consultation based on recommendations from former trade commissioner Pascal Lamy, who advised that the 700 MHz band should be made available for mobile broadband use by 2020. Industry stakeholders have been invited to submit their views on the proposed options until April.

The consultation outlines two main approaches. The first proposal would clear the 700 MHz range for exclusive use by mobile network operators, while providing television broadcasters with regulatory certainty and stability until 2030. The second, alternative proposal would permit mobile operators to use downlink-only capacity within the 470–694 MHz band where that spectrum is not being used for television broadcasting.

Mobile operators are highly interested in the 700 MHz band because its lower frequency enables long-range coverage and strong indoor penetration with relatively low signal loss. However, repurposing the band could cause disruption for some existing services. In the UK, for example, digital TV channels currently operating in the 700 MHz band might need to be shifted into the adjacent 600 MHz band, requiring viewers to retune their sets to continue receiving those broadcasts.

Despite the potential disruption and the costs of migration, independent analysis from consultancy Analysys Mason estimates that freeing the 700 MHz band for mobile broadband could lower the cost of delivering network performance improvements by an estimated £390 million to £480 million. Those savings reflect reduced infrastructure requirements and more efficient coverage when using lower-frequency spectrum.

The spectrum should be made available for mobile broadband use by 2020.

To understand why lower frequencies matter, it helps to compare existing mobile allocations. Many current mobile systems operate at higher frequencies: in the US, for instance, common allocations include the 850 MHz cellular band and the 1900 MHz Personal Communications Service band. When attempting to cover a given area with the minimum number of sites, it typically takes two to four times as many cell sites when operating at 1900 MHz compared with 850 MHz. Actual site counts depend on several variables, including the geography of the area, tower heights, path loss characteristics, and the link budget used in the network design.

Rolling out a network using 700 MHz spectrum is therefore more cost-efficient in many cases because fewer base stations are required to achieve the same coverage footprint. The 700 MHz band is particularly well suited as a long-distance “underlay” layer that provides wide-area coverage and strong indoor reception. Mobile operators can then bolster capacity by adding higher-frequency spectrum—such as the 2.3 GHz and 3.4 GHz bands—that support higher throughput and denser small-cell deployments. Ofcom is also preparing to auction spectrum in those higher bands in late 2015 and early 2016 to complement lower-frequency coverage.

In the United States, major operators are actively seeking additional 700 MHz spectrum to expand LTE coverage. For example, T‑Mobile has pursued several transactions with small license holders in recent months, as recorded in filings with the Federal Communications Commission. Those agreements include deals with regional licensees such as BEK Communications Cooperative, Dakota Central Telecommunications Cooperative, Big Wave Ventures and Vulcan Wireless, illustrating the market value of contiguous low-frequency blocks for nationwide operators.

The debate over how best to allocate the 700 MHz band in Europe balances the clear technical and economic advantages of lower-frequency mobile broadband against the disruption and transition costs for existing television and other services. Making the spectrum available to mobile operators could enable more efficient, far-reaching coverage and lower per-user network costs, while alternative approaches seek to preserve broadcast services where feasible.

Which EU proposal do you think is best for the 700 MHz spectrum? Share your view in the comments.