Comment: Forgotten, but not gone

By Paul Trotter

Posted on 22 Aug 2002 at 12:40

Broadband wireless remains on the agenda of operators, but how long until it's widespread?

With all the talk of satellite broadband and mesh radio as alternative high-speed Net-access technologies, it's easy to forget about broadband fixed wireless.

The technology uses radio links between an aerial located on the user's premises and a base station, and preceded the other access methods on the radar of broadband 'have nots' in the UK.

When licences to supply services on the 28GHz spectrum were up for grabs in the November 2000 auction, the government heralded the technology as a breakthrough for broadband delivery across the country, particularly in rural areas that wouldn't get access to ADSL.

But the auction floundered badly, with only 16 of the 42 UK licences sold. Those that bought licences were given a 30 June 2002 deadline for setting up services in 10 per cent of their licence region.

The date seemed a long way off when PC Pro reported the lack of progress being made by most licence holders last summer (see Horizons, issue 81, p50), but now, with only one company - Your Communications - offering 28GHz services, the whole process has been labelled a shambles.

The government has extended the so-called 'use it or lose it' clause until December 2003, giving licence holders more time to set up services.

'There'll be great jubilation from those who won the licences, but there'll also be a reaction from the companies that didn't, because the extended deadline has changed the value of the licences significantly,' said Stephen Lowe, chairman of the Broadband Wireless Association.

'Some of the companies that decided there was no business case given the initial timeframe may complain.'

But the DTI, which insists the business case for broadband fixed wireless remains strong, points to a clause in the original conditions for licence winners.

The original framework provides for the discretion of the secretary of state to extend the period for another 18 months,' said DTI spokesperson Nick Fearon. 'It was a level playing field.'

But those wanting wireless broadband services will be less concerned with the small print and more interested in whether companies can deliver on their early promises of providing high-speed Net access through the airwaves any time soon.

The high costs associated with setting the infrastructure up have dissuaded companies so far. Brian Perry, technical director at Eircom, which bought a 28GHz licence in Northern Ireland, told PC Pro his company had no plans to set up a broadband fixed wireless service.

But the falling cost of equipment may allow others to capitalise within the new timeframe.

Energis, which bought licences for six regions in November 2000 - more than any other company - said equipment price cuts in recent months had made the technology a more feasible option. The company is now trialling broadband fixed wireless for Internet, voice-over IP and television services, and claims to be encouraged by initial results.

Despite the delays, the performance of 28GHz over the next 18 months could hold the key to the government's plans for other parts of the radio spectrum. The Radiocommunications Agency is already in consultation over the 40GHz spectrum.

Yet in the long term, these powers could shift to Europe, with the European Union eyeing greater control over spectrum licensing. The EU has expressed concern over the enormous variations in the cost of various wireless licences across Europe. This concern is more directed at the ludicrous figures paid for 3G licences in some countries, but would affect all wireless activity. Bringing licensing conditions into line across Europe could eradicate uncertainty in the sector and make broadband fixed wireless a more attractive proposition for telecom firms on a wider scale.