Posted: 20th Feb, 2003 By: MarkJ
Apparently auctions of wireless licenses could pose a serious threat to the growth of broadband Britain:
Telecoms companies wanting to sell bandwidth on radio frequencies require a licence, so the government plans to liberate new sections of the spectrum as part of its broadband strategy. The 3.4Ghz auction is about to start, and consultations about the use of 3.6Ghz and 5.8Ghz will also go ahead this year.
The idea sounds good in principle. But suppliers say splitting the country into 15 regions makes the model unworkable. Experts on broadband in Wales - where remote hills are often used as an example of the limitations of ADSL - claim that the model will stifle development.
The danger is that companies will only bid for licences covering areas with a high enough population to guarantee a return on their investment. Once the deal is signed, only high-return areas will be enabled because the original plans - for licences to include an obligation to serve more rural areas - were scrapped.We've heard this argument before from members of the Welsh Assembly, it remains to be seen how it would hold up in practical terms. More @
VNUNet.