US to show the way for 700MHz

FORTUITIOUSLY, BOTH the UK and USA have set out what will happen to bandwidth in the 700MHz spectrum in the near future. The UK says it's up for grabs for anybody, while the bidders in the US have just been declared.

Commenting on the recent statement by UK watchdog Ofcom, that the spectrum allocation will be 'market-led', Ovum senior analyst, Matthew Howett, said, "The spectrum being released by the digital switchover (also known as the digital dividend) is in the sweet spot of 700-800MHz.

"This spectrum is particularly valuable since the propagation characteristics mean it can cover large geographical areas, penetrate buildings well, and carry a large volume of data.
Essentially, this means lower opex and capex for operators since fewer base stations are required, which of course has added benefit for the environment."

He adds: "Two of the most obvious candidates (for the released spectrum) are DTT and mobile broadband. Certainly using the digital dividend offers a real opportunity to 'bridge the broadband gap' and make broadband more ubiquitous in rural areas."

Howett's view applies equally well to the States and it's interesting to see who's actually bid. In terms of cable/TV companies Cablevision and Cox Communications are taking part in the auction while Comcast and Time Warner Cable haven't bothered.

Amongst the heavyweight mobile network operators Verizon, AT&T and T-Mobile are taking part whilst Sprint has decided to sit it out. Given 700MHz abilities to cover wide areas, the INQ isn't surprised that the Vermont Telephone Company has bid as well.
Everybody knew that Google was going to bid and nobody would be astonished that several venture funds have decided to enter the race. However, oil company, Chevron's participation is a little strange.

Most observers think that Chevron wants the spectrum for remote monitoring.

The important thing in the UK is that – unlike what some observers would have you believe – freeing up spectrum from the old digital TV frequencies doesn't mean they'll automatically be handed over to broadcasting companies.

Since us Brits are going to have to wait for the spectrum until at least 2012, as Howett says, "The [US] auction could make for an interesting clash between traditional media (broadcasters) and telcos, and in this respect the auction of the 700MHz spectrum in the US in January could be a good test to see how much operators are willing to pay." µ

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