Mobile phone networks will be able to provide internet speeds up to 16 times faster than current technologies after Ofcom unveiled plans for 4G coverage.
The telecoms regulator has announced an auction for the right to provide high-speed services to consumers and businesses in a sale that could raise more than £10billion for the Treasury. It is envisaged that four companies would buy the right to offer 4G services – already available in the U.S. – from 2013.
Typically, they should offer speeds of 4 to 8 megabits per second (Mbps), compared with the 0.5 to 2 Mbps of most existing 3G services which currently connect hi-tech handsets such as the iPhone to mobile masts and the web.
The speedier system will allow people to smoothly stream high-definition TV and films on their smartphones, laptops and tablets on the go. However, rural areas may face a long wait for the mobile revolution, as successful bidders will have until 2017 to achieve coverage for 95 per cent of the country.
The auction of 3G licenses in 2000 raised £22.5billion for the Government, but analysts argue that the major networks paid far too much and, consequently, offers will be much lower this time around. Some suggest the total raised early next year could be around £4billion, while others are expecting more than £10billion.
The auction will cover two significant spectrum bands within the so-called ‘sweet spot’ which is most suitable for mobile communications – 800 MHz and 2.6 GHz – made available as a result of the Government’s decision to end analogue TV broadcasts in a switch to digital transmissions.
Ofcom chief executive Ed Richards said 4G offers ‘much better data services and therefore all the kind of things you can get on your broadband at home or in your office and that you aspire to do through your smartphone or tablet computer and so forth, that is exactly what 4G services will enable.
'The auction is not only critical to the future of the UK mobile telecommunications market, but it is also of significant importance to the wider economy.
‘It will support a wide range of data services that are fast becoming essential features of the modern world.’
Currently, a tenth of the country is not served by broadband and a digital divide is further enforced by slow connection speeds in many rural areas.
Mr Richards added: ‘It is the latest generation of mobile technology. It will offer services which offer more capacity and better coverage of mobile broadband services.
‘That is what we expect this spectrum to be used for, but we are preparing an auction that will offer it on a neutral basis.
'This is fantastically important spectrum for the future of our economy.
‘It is 80 per cent more spectrum than was offered in 3G in 2000 and it will be a crucial raw material for the future of the modern economy.’
Ofcom said 4G will be ideally suited for wide bandwidth data services such as video streaming, email, messenger services, GPS and mapping services and social networking sites.
The move to 4G is necessary because smartphones such as the iPhone, Google Android and tablet devices are squeezing what’s left of available bandwidth. Ofcom has even allowed mobile phone carriers such as Vodafone and O2 to use parts of the old 2G network until more of the spectrum is made available.
Also, Britain is falling behind of countries such as the U.S. and Japan, which already have 4G networks, though they work in different ways. The biggest American mobile phone companies - Verizon Wireless and AT&T - back a 4G network powered by Long Term Evolution (LTE) technology.
Verizon launched its LTE network in December, promising speeds up to 10 times faster than its current 3G network. It is planning full nationwide coverage by 2013. AT&T this week bought T-Mobile USA from Deutsche Telekom for $39billion (£24billion), creating the largest US wireless network.
Hopes that the British sale of 4G could raise similar sums to the 2000 auction could be misplaced, though, say experts. The German government raised 50billion euros (£43.6bn) at its 3G auction in 2000, but managed to raise only 4.3bn euros (£3.7billion) at its 4G auction last year.
Companies such as Vodafone, which made the biggest bid of £5.96billion for a slice of the 3G bandwidth, were also criticised after they failed to invest in infrastructure afterwards. It means telecoms firms will this time want to save some cash for installations to support the new network.
source : kompas.com
