Ofcom Starts Strategic Review of UK Fixed Wireless Links and Spectrum

The UK telecoms regulator has today fired the starting gun for their strategic review fixed wireless spectrum, which covers everything from high capacity wireless data capacity links (e.g. those that supply capacity to mobile operators) to wireless leased lines for end users.

Radio spectrum is of course a finite resource and thus Ofcom are constantly trying to make the most efficient use of it, which every few years requires them to examine the market and see whether improvements could be made over the medium to longer term (i.e. next 5-10 years). As such the first consultation is a ‘Call for Input‘ that does not prescribe any particular remedies.

The review is particularly mindful of ever rising data demands (e.g. mobile data traffic has been growing rapidly, at around 60% per year) and the future introduction of new 5G based Mobile Broadband technologies, which will significantly magnify the capacity requirements.

According to Ofcom, the “majority of fixed wireless links in the UK” (around 50% of the total fixed wireless links licences from Ofcom) are used to support mobile services (e.g. EE, Three UK, O2 and Vodafone) and therefore an increasing demand for Mobile Broadband will directly impact the Fixed Service sector. Some of this will be offset by fixed line operators building more fibre optic cables into the ground, but that won’t solve all of the capacity problems.

Ofcom Statement on Fixed Wireless Links and Mobile Operators

Fixed wireless links and fibre play a complementary role in the delivery of mobile backhaul traffic. As backhaul networks have evolved, fixed wireless links are now typically used at the edge of a mobile backhaul network to connect mobile base stations to fibre connected sites (or aggregation points) where fibre is used for onward transmission to core networks. Without adequate backhaul, mobile services cannot be delivered to consumers and businesses. Fixed wireless links are also used to provide backhaul in hard to reach and rural areas where there is no fibre presence.

Since the 2012 review, we have seen a reduction in the number of fixed wireless links in Ofcom managed bands used by MNOs who also have holdings in the 10 GHz, 28 GHz, 32 GHz and 42 GHz auctioned bands. The preference seems to be to use self-managed spectrum to provide mobile backhaul. However, there has also been around 30% overall increase in the total backhaul capacity used by MNOs in Ofcom managed bands since 2012, which reflects the increase in mobile data consumption driven by the evolution towards 4G.

Fibre is now the first choice for mobile backhaul where available and cost effective. In February 2016, Ofcom published its interim conclusion on the DCR and the next steps to implement our strategy. One of the strategies is to promote large-scale investment in more fibre by allowing BT’s competitors easier access to lay their own fibre cables in BT’s infrastructure of underground cable ducts and along its telegraph poles (“duct and pole access”). Improved access to fibre would increase attractiveness of fibre for future mobile backhaul solutions and reduce reliance on fixed wireless links.

Mobile technology continues to undergo rapid change with the current evolution towards 5G. It is envisaged that this will require very high capacity, low latency communication with greater traffic asymmetry. This will require evolution of end to end mobile network architecture to ensure future backhaul solutions are flexible, scalable and cost effective.

Dense small cells are likely to be a significant feature of 5G and will present both technical and economic challenges for backhaul. It is envisaged that a combination of fibre, where available, and fixed wireless links will be required to provide small cell backhaul solutions. The latter will need a combination of lower frequencies for non-line of sight (NLOS) or near line of sight (NLOS) paths and higher frequencies for capacity.

Overall Ofcom’s review appears to be focused on various bands between 1.4GHz and 70-80GHz, albeit excluding those used by Mobile Network Operators (e.g. 1800MHz, 2100MHz etc.) and WiFi (2.4GHz and 5GHz) for consumer applications; although some of the listed bands could still be used for 5G (6GHz, 28GHz etc.).

The review will also be considering “potential new spectrum” for the Fixed Service (e.g. specifically 8GHz and bands above 86GHz). Ofcom’s consultation will remain open for responses until 19th September 2016 and they will then aim to set out a concrete future plan before the end of 2016.