In October, the future market for wireless broadband services in the European Union will be thrown open to question, with member states voting on whether to introduce a technology-neutral approach to spectrum previously earmarked for 3G systems.
According to a report published by Informa Telecoms & Media, European states have split into two camps, with one led by the UK and receiving strong backing from the EU, pushing to adopt a free-market approach to the 3G expansion bands. The other side, led by France and Finland, wants the EC to mandate use of IMT-2000 technologies only.
Paul Lambert, editor of Informa’s Global Mobile report explains: “In principle, the debate is about whether Europe eventually embraces a free market approach to spectrum management.”
He added: “However, in practice, the proponents claim a multitude of issues are at stake, not least of which is the future of Europe’s telecommunications manufacturing industry.”
The EC hopes that October’s vote will lead to the 2.5-2.69MHz spectrum bands, currently set aside for WCDMA, utilised by rival wireless broadband technologies such as WiMAX and OFDM based systems.
If an agreement cannot be reached within the European Commission-led Radio Spectrum Committee by December, the issue will move to the European Parliament.
A decision is expected to become law in individual member states by end-’07, while spectrum in the 2.5-2.69 MHz band is expected to be allocated across Europe by the beginning of 2008.
The global mobile market is expected to pass two billion subscribers by 2005 and is predicted to approach three billion by 2010 as the growth rate falls to single figures within a couple of years, according to Informa Telecoms & Media (see INSIGHTanalysis: Media Healthcheck – April 2005).
The latest edition of the Global Mobile Forecasts to 2010 report claims that almost half of new subscriptions will be in the Asia Pacific, with India and China accounting for over 30% of the region’s total.
Strong take-up for 3G is not predicted to happen until 2008 and even by 2010 less than a third of the total subscriptions globally will be for 3G.
Subscriptions to 3G mobile telephone services in the Asia-Pacific region are predicted to rise by over 130 million in the next four years, according to market intelligence firm, IDC (see Asia-Pacific 3G Penetration To Hit Over 140 Million By 2009).
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