Use of licence-exempt spectrum for the provision of public telecommunications services

BT Response to the Radiocommunications Agency's Consultation on the use of licence-exempt spectrum for the provision of public telecommunications services

Executive summary

BT welcomes the Radiocommunications Agencys consultation, "Use of the licence-exempt bands for the provision of public telecommunications services". For the reasons set out below, we believe a regulatory regime that permits "polite" technologies and which does not distinguish between public and private applications offers huge benefits to the UK economy.

Access to licence-exempt spectrum allows suppliers of systems and services to explore new technologies and new markets at low commercial risk. It has made possible a number of todays more attractive radio technologies, many of which would not otherwise have come into existence. Such spectrum now offers the significant potential for opening up popular wide-band IP access across the country using technologies such as WLANs, Bluetooth and compact and lightweight Fixed Wireless Access technology.

In particular, there is now a critical opportunity to permit use of licence-exempt spectrum for wide-band IP public access, using the same technologies that customers are increasingly using in their personal and working lives where the band is already available. Therefore, whilst the consultation addresses a broad range of issues associated with the licence-exempt spectrum, BTs response is primarily focused on resolving the pressing issue of spectrum for broadband tetherless communications. We believe is an essential element of the road-map to a truly "Broadband Britain".

We show that a telecommunications demand for cost-effective tetherless IP access already exists, and that this market is already developing rapidly in regions such as Scandinavia and in North America. We estimate that the UK has fallen some 18-24 months behind these economies by not having the regulatory framework that would allow UK players to participate in the provision and use of tetherless services. To illustrate the possible impact of further delay, we cite the recent report by consultants Mason Communications Ltd and DotEcon Ltd that effectively suggests that each year that public WLAN services are prohibited costs the economy in excess of 500m in lost consumer benefits. Such costs also illustrate why it is important to bring this consultation to a prompt close.

To capture such benefits, we do not believe that opening the market for public tetherless services only at 5GHz will suffice and that the focus for creating a successful UK tetherless market must be on a package that addresses the 2.4GHz and 5GHz bands together. In particular, quickly opening the 2.4GHz band for public access applications is necessary to allow the existing market to be addressed utilising the current, widely available, equipment. The 5GHz bands are important as a source of future opportunities for market growth, higher data rates and further innovation. BT believes that a flexible approach should be taken to meeting the regulatory requirements of ERC Decision (99)23 to allow technology choice and competitively priced 5GHz devices, and to encourage a global market and facilitate global roaming.

We do not consider that formal licensing is required. However, some form of base station registration may be prudent as this should help operators address any localised issues that might arise and enable the RA to monitor industry developments.

BT does not believe that congestion will be a major problem at 2.4GHz and we offer evidence to substantiate this. Nor is there any need to be pessimistic over the Quality of Service to be expected via tetherless access. The services offered will be predominantly data and users of IP services do not have the same Quality of Service expectations as they do of voice. In fact, users should have an excellent experience in terms of service responsiveness when viewed alongside comparable services currently available, particularly in the context of services offered under class licence terms.

BT would suggest that once the new regulatory regime is in place the RA could convene an independent industry group to prepare a lightweight Code of Practice for public access installations within licence-exempt bands. Such a code could be developed to embrace any issues arising during the early implementation of public access systems in the licence-exempt bands.

BT therefore urges the RA to introduce amending legislation governing both the 2.4GHz and the 5GHz licence-exempt bands by June 2002 at the latest to remove regulations that are suppressing demand, to the detriment of UK consumers and suppliers.

BT would welcome further discussion on the contents of this paper with interested parties. In the first instance comments, questions, requests for further details or points of clarification should be addressed to:

Miss Lorraine Flawn
Senior Regulatory Adviser
pp 4TH FLR
Dowgate Hill House
14-16 Dowgate Hill
London EC4R 2SU
Tel 020 7728 4189
Email: lorraine.flawn@bt.com