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No "digital dividend" for license-free WLANs in the UK?

Ofcom has not yet launched their public consultation on how to reallocate the "digital dividend" frequencies after TV stations migrate from analog to digital.

They haven't even published their consultants' report on the "optimum framework for releasing [the] available spectrum," which was due in September.

But they are already hinting that none of the UK's "digital dividend" will go to license-exempt WLANs.

This is consistent with their decision last week not to authorise higher power for license exempt WLANs in rural areas, but it is in sharp contrast to the US Federal Communications Commission's decision to authorise license exempt use of empty TV channels after analog switch-off, to encourage wireless broadband's growth in low-density areas.

Ofcom's negative assessment of UHF for rural broadband can be found on pages 72 and 73 of their recent report on Research and Development at Ofcom 2005/06:

"In response to the Spectrum Framework Review consultation, some suggested that the Digital Dividend released by the Digital Switchover process would be suitable for last mile applications under a licence exempt regime, possibly using mesh technology. We have thus commissioned research to assess the use of wireless technologies to achieve competitive and ubiquitous access to last mile broadband communications whether in a licensed or licence exempt approach.

"The research has concluded that wireless will be unlikely to have a majority part to play in the Last Mile for the next 20 years, although it may feature in offering lower Last Mile rates to a minority of users.

"Spectrum below 1GHz such as that available from the Digital Dividend, has the potential to offer an economic case for wireless broadband provision because the favourable propagation conditions allow large operating ranges. This could be of advantage in areas where ADSL cannot offer broadband access, for example rural areas and also to reduce the number of base stations required. However there is limited spectrum availability in the DDR band, and it is concluded that while the bandwidth available could meet today's consumer requirements, in the future this is less likely, and so the ongoing business case for private ventures may become relatively weak...

"The research study has concluded that a wired approach remains the likely major technology for last mile provision... Hence, the provision of ubiquitous broadband is unlikely to be achieved through solely a wireless approach. Ubiquitous access could be better achieved by a joined-up broadband approach, allowing the peering of all forms of access, wired or wireless..."

Given the lower installation and maintainance costs of wireless in sparsely settled areas - an advantage that would be increased by access to the UHF band - Ofcom's researchers' conclusion seems contrived to protect the £1 billion which the UK Government has already invested in BT's rural DSL build-out - not to mention the value of UHF licenses at auction.

[Spectrum Politics - 27 November 2006]