Frequency issues related to UMTS

The issue of spectrum pricing

Several industry contributors argued that high pricing of spectrum would distort the market and damage the uptake of UMTS services. Little support was expressed for the use of market mechanisms, in particular, auctions, since these tend to overprice spectrum, create uncertainty and undermine the development of a healthy industry. Some also felt that auctions risked favouring the entry of non-European players into the European market place. On the other hand, some Member States consider that spectrum pricing should reflect its economic value.

Estimates of how much spectrum is required

Industry players argued that the 2 x 40 MHz currently designated by the ERC[1] will prove to be insufficient for the needs of a competitive market place to start up. The UMTS Forum identified a minimum requirement of 2 x 40 MHz to be released now, together with another band of 20 MHz which will be needed for non-public, in-building, low mobility systems. In the longer term, the Forum considered current market forecasts justify a claim for the full 155 MHz identified for terrestrial mobile communications by WARC-92 to be available by the year 2005, with a further 185 MHz required for terrestrial services by the year 2010. It was suggested that steps should therefore be taken by the CEPT to place the subject of additional spectrum for IMT-2000 on the WRC-99 agenda.

Additionally, the ITU has identified 60 MHz for the satellite component of IMT-2000, with forecasts of a need for a further 30 MHz by the year 2010.
The idea of sharing a common pool of spectrum was rejected by industry who argued that it would be a significant disincentive for operators, whilst others doubt whether it would be technically possible or indicated that it would create monopoly structures.
In terms of the UMTS market, several comments stressed that the development of the UMTS market makes it necessary that sufficient spectrum is available to cover the needs of all operators seeking a license. This would also have an effect on the future development/evolution of the UMTS standard.

ERC Decision on the frequency bands for the introduction of Universal Mobile Telecommunications Systems (UMTS), ERC/DEC/(97)07, 30 June 1997

When and how should decisions on spectrum be taken?

The UMTS Forum called for a co-ordinated approach by all relevant authorities in Europe to ensure a timely approach to identifying, liberating and allocating UMTS spectrum. Nevertheless, some argue that the detailed planning of the spectrum can only be done at a later stage when a clearer picture of UMTS has emerged.