Spectrum is green for mobile operators
By : Anna Kocinska
Radio-wave spectrum has become a hot commodity among TV stations, radio broadcasters and mobile phone operators as additional bandwidth means greater customer reach and bigger profits.
But because the allocation of radio-wave spectrum is finite, the worldwide wireless industry has now turned to government institutions as a potential source of additional frequencies. These institutions have long used radio waves for national security and intelligence purposes, transportation, law enforcement and public safety.
The army holds key frequencies to be handed over to UMTS license holders in 2002.
In Poland, the army holds the frequencies required by third-generation (3G) mobile phone operators, which last year won licenses to operate their high-speed mobile networks as soon as the airwaves become available.
According to Adam Brodziak, director of the spectrum management department at the Office of Telecommunications Regulation (URT), the 3G mobile phone operators will get what they were promised, on time. "Poland, like the rest of Europe, committed itself to freeing up radio frequencies currently being used by the army for commercial use (by the 3G carriers)," he said. "At the beginning, the 3G phone operators will be able to use two 40 MHz bands of spectrum." The reallocation of these frequencies is scheduled to happen by next January.
Brodziak said the next stage of planning involves widening the available band of spectrum to 155 MHz by January 2005. "After 2005, the spectrum available for operators will be increased again and this might happen through the takeover of some GSM frequencies (the telecom system currently used by mobile operators)," he said. In accordance with European standards, 3G operators will eventually be granted spectrum bands of 1900MHz-1980MHz, 2010MHz-2025MHz and 2110MHz-2170MHz.
Brodziak said the URT will implement all plans regarding the allocation of spectrum specified in the universal mobile telecommunications system (UMTS) license agreement. It will also guarantee international coordination of airwaves used in telecommunications and internal coordination among operators in Poland.
However, whether the URT will be able to carry out its plans depends on the army receiving the necessary funding to modernize its navigation systems. If it doesn't, the army will not be able to switch to other frequencies. The sticking point is money.
While the communications and defense ministries signed an agreement concerning frequencies, Brodziak said the army is looking for a more substantial guarantee. "The problem is that it's difficult to direct the money from UMTS licenses to the army (because the government might spend that money on other purposes)," he said. "The army would feel better if the costs to convert its equipment were included, for instance, in the budget bill." The Defense Ministry estimated that it would need zl. 1 billion ($243 million) to modernize its navigation system.
Meanwhile, Poland's wireless industry is not alone in its radio-frequency struggle. "The problem with the army holding airwaves that could be used for commercial purposes exists everywhere in the world," Brodziak said.
As the U.S. wireless industry prepares to set up its own 3G mobile phone networks, the Pentagon, the headquarters of the U.S. department of defense and holder of many of the country's airwaves, already opposes the deal saying it will give up nothing. But some countries have successfully got around the problem, Brodziak said.
"In France, for instance, a special government agency transfers funds coming from UMTS licenses directly to the army," he said. In Poland, however, market insiders said the revenue from UMTS licenses will be used to help reduce the budget deficit. Many analysts said this is the main reason why mobile operators are confident the government will quickly implement the conditions of the 3G licenses.
"If somehow the lack of airwaves blocked the launch of the third-generation network, it would mean losses to the budget," said Bogdan Markiewicz, deputy press spokesman for Polska Telefonia Cyfrowa (Era). The Finance Ministry estimated it would receive up to zl. 14 billion ($3.4 billion) from the UMTS licenses in 2001 and 2002.
