LONDON-State regulators in Europe are gearing up to promote the 40 GHz-43.5 GHz band for fixed-wireless telecom services, which will enable new entrants to compete against dominant operators such as British Telecommunications plc and Deutsche Telekom.
Commercial uncertainties remain, however, as to the viability of the 40 GHz frequency band, according to a new report released by The Strategis Group titled, “European Fixed Wireless Access: Regulation and Licensing.”
“Some national regulatory bodies may be overlooking the fact that FWA deployment in the 40 GHz band is not a cut-and-dry viable proposition,” said Jake Saunders, director of The Strategis Group Europe. “Furthermore, there are concerns that there may not be adequate hardware available to make commercial operations in the 40 GHz range a commercial success.”
Despite the risks, the 40.5-43.5 GHz band is proving to be very popular with European national regulators.
“Nearly 50 percent of the markets monitored by The Strategis Group are actively considering the possibility of licensing spectrum in this band in the near future,” said Diane de Polignac, consultant with The Strategis Group Europe.
As of November, in the 26 countries considered for the report, 85 nationwide fixed-wireless access licenses had been awarded, and a further 26 licenses are to be awarded in the near future. By the same time, 1,177 regional licenses had been awarded, and a further 182 licenses (not including the 160 regional licenses Germany is planning to award) are to be given out in the coming months, The Strategis Group said.
A majority of European governments-16 out of the 26 considered-awarded or are planning to award the licenses on a first-come, first-serve basis, rather than by auction. This aspect of the fixed-wireless marketplace might cause regulators to secure the less-expensive licenses first, and in retrospect, might explain why the United Kingdom’s auction was so disappointing, said The Strategis Group.
