§ The Earl of Northeskasked Her Majesty's Government:
How they justify the case for the forthcoming auction of 15 regional licences to use the 3.4GHz spectrum when the auction of licences for the 28GHz spectrum has been going on since 2000; and whether the structure of the auction will hinder rather than enhance the roll-out of broadband in rural areas. [HL1854]
§ Lord Sainsbury of TurvilleWe are awarding the licences through an auction process as this is the best way to deliver them into the hands of those who value them most and who we expect to deliver services to consumers. The 28GHz and 3.4GHz bands have different characteristics and the business cases for their development are different. Our market analysis and industry feedback for 3.4GHz indicates that there is demand for the licences we are offering.
The 3.4GHz licence packaging was designed to increase competition and availability of broadband services across the UK. The licence regions were drawn up following market and economic studies to be as 128WA economically viable and inclusive as possible, maximising the potential development of sustainable wireless services and broadband market throughout the UK.
To meet the Government's objectives for extensiveness and competition, networks must be deployed based on sound market principles and this is the basis for the licence regions specified. A number of business cases, including some for rural and sparsely populated regions of the UK, have recognised this and will make use of the spectrum of 2.4GHz, 5GHz and at 28GHz as well as 3.4GHz to broaden the business base. This is also why constraints that have appeared in earlier licensing processes have been removed in this instance. Recent analysis of the markets indicates that broadband in the 3.4GHz waveband is not the single panacea for rural services. Current technology at 3.4GHz does not easily lend itself to the mass market or for thinly populated regions.