Rural mobile coverage continues to be an issue in the UK. While the latest Connected Nations report from Ofcom shows improvements compared to previous years, it also finds a significant part of the country is lacking sufficient coverage and will not be in a better place anytime soon, unless action is taken. For these reasons, the regulator is launching two complementary initiatives: one is the award of more spectrum to mobile operators, particularly in the 700MHz band, which is well suited to improve network coverage; the second is a plan to support spectrum sharing in the 3.8–4.2GHz band. This should equip operators with more airwaves for coverage, while at the same time making room for innovative approaches in which local operators and new businesses could play a role. Ofcom will seek input from stakeholders on both proposals until 12 March 2019.
Mobile coverage is improving, but there is still a way to go in rural areas
Ofcom’s long-standing focus on, and commitment to, improving mobile coverage in the UK is unlikely to waver in the years ahead. The newly published Connected Nations Report of 2018 shows that the issue is still an area of concern, and will not go away anytime soon, despite recent improvements. 77% of households are now covered by 4G signal from all four operators (up from 65% in 2017) and nearly all of them can get good indoor signal from at least one operator. Things have got better with regard to outdoor coverage too, with 78% of the UK getting call coverage from all four MNOs, compared to 69% one year ago; 91% has good 4G mobile internet from at least one operator (it was 80% in 2017) and 66% has 4G coverage from all four, up from 49% last year.
However, narrowing the view to rural areas, the picture is much less rosy. Here, patchy or unreliable signal is still the reality for most of the country: only 41% households there can get good signal, and some of them are not covered at all. For these reasons, Ofcom is attaching coverage obligations to the spectrum it aims to release in 2020; it is also proposing to share spectrum in certain bands to facilitate innovation and, in turn, improve coverage in local areas.
The regulator has drafted a plan to award the 700MHz and 3.6–3.8GHz spectrum bands
Ofcom aims to carry out a multiband auction across the 700MHz and the 3.6–3.8GHz bands in the first half of 2020. To this end, it has started a consultation on an initial proposal for the award of 200MHz of spectrum – 80MHz in the 700MHz band, and 120MHz in the 3.6–3.8GHz band; this will provide operators with spectrum for coverage, and with 5G-suitable spectrum. Ofcom is proposing a cap on how much spectrum can be acquired, so that no operator will hold more than 37% of mobile spectrum across all bands as a result of the auction, consistently with what they did in the 2.3–2.4GHz auction earlier in 2018; this means not more than 416MHz per operator, which will leave BT/EE able to obtain 120MHz from the auction.
As part of the consultation, Ofcom is proposing to attach coverage obligations to the 700MHz licences. Within four years of the award, operators will have to provide “good” outdoor coverage to at least 90% of the UK, covering at least 140,000 buildings currently not covered, and deploying at least 500 new mast stations in rural areas. Ofcom is minded to make roaming agreements count toward fulfilment of these obligations, providing the service onto which an operator roams is in turn meeting the obligation requirements. However, no roaming obligation will be imposed. In the 3.6–3.8GHz band, the regulator is refraining from imposing a use-it-or-lose-it clause, arguing such conditions are hardly workable in practice, and could distort or remove incentives to invest in the spectrum. However, could be opened to shared uses in the future, seeing as an adjacent band (3.8–4.2GHz) is already being considered by Ofcom for sharing.
A plan to support spectrum sharing will be finalised in 2019
Recognising the innovative potential in spectrum sharing, Ofcom is also looking at ways to make spectrum available in a range of bands on a shared basis, in order to support deployment of local networks across a wide range of sectors. To this end, Ofcom is opening a consultation to enable the shared use of the 3.8–4.2GHz band, as well as a portion of the 1800MHz band (1781.7–1785MHz paired with 1876.7–1880MHz) and of the 2.3GHz band (2390–2400MHz). This could foster IoT services, as well as help to improve coverage where it is currently lacking. In particular, it would facilitate rural broadband connectivity using fixed wireless access (FWA), especially in areas where rolling out fast fixed broadband may not be not commercially viable. This would add to existing spectrum options for FWA, and address the problem of urban and rural not-spots through services provided by third parties acquiring spectrum in specific locations
Ofcom’s initial approach is to use the 3.8–4.2GHz band to provide rural connectivity, as it is already suitable for some FWA equipment whose proprietary technology can be tuned into that band. Sharing in the 1800MHz and 2.3GHz could suit third parties seeking to extend mobile coverage in rural areas and in buildings, or local private mobile networks, as these bands can already be used by existing handsets. Ofcom is suggesting a common approach for all these bands. Companies will apply for a licence for a specific location; for each licence application, Ofcom will assess interference risks, and make assignments on a first come, first served basis. There will be two types of licence (low-power for local connectivity, and medium-power for longer-range connectivity); Ofcom’s suggested pricing is £80 per 10MHz in the 3.8–4.2GHz and 2.3GHz bands, and £80 per 2x3.3MHz in the 1800MHz band. Finally, Ofcom aims to allow shared access to awarded mobile spectrum, by engaging with existing licence holders and assessing whether this does not adversely impact the use of spectrum. These would be limited licences of three-year minimum duration, and cost £950 per licence. Ofcom is receiving feedback on these proposals until 12 March 2019, and intends to publish a final statement in Q2 2019.
