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To: Art Bechhoefer who wrote (29339)	5/6/1999 5:50:00 PM
From: quidditch	Respond to of 152472

Possible openings in UK or Germany for non-GSM 3G (or wishful thinking)? Clark, Walt, anything in the spectrum identification that would be a tip-off, or is this straight-down-the-middle-of-the-plate GSM? <U.K. Government Saves One 3G License for Newcomer By Vanessa Clark 06 May 1999 The U.K. government sketched in details today of the five third-generation mobile licenses that it expects to auction before next March. One special license will be reserved for a new entrant, giving the lucky company a bigger chunk of radio spectrum and the right to piggy-back on one of the incumbents networks while it is building out its own infrastructure. However, there are still no details about the auction procedures or dates so while potential bidders now know what their options are, they are left guessing how the auction will work. The U.K. spectrum allocations were announced by Michael Wills, Department of Trade and Industry Telecoms minister in parliament this morning. The spectrum will be auctioned off as follows: three licenses consisting of 2x10MHz of paired spectrum and 5MHz of unpaired spectrum; one license of 2x15MHz of paired spectrum. The newcomer will get 2x15MHz of paired spectrum and 5MHz. Paired spectrum is used typically for voice calls where traffic flows are symetrical in each direction. Unpaired spectrum can be used for proposed 3G applications such as web browsing and email downloads where the bulk of traffic moves in one direction - to the handset. By the time a new entrant enters the market the incumbents will have some high-speed data technologies like General Packet Radio Services (GPRS), Enhanced Data rate for GSM Evolution (EDGE) and high-speed circuit switched data (HSCSD) in place and the additional spectrum will provide the necessary leg-up, said a DTI spokeswoman. Industry response to the long-awaited announcement seems favorable - the entire auction has been delayed because the resignation last December of the DTI secretary of state, Peter Mandelson upset the process. A spokesman for Vodafone plc, the U.K.'s biggest mobile operator by subscribers, confirmed that the company will be bidding for one of the licenses. A spokesman for BT, which owns 60% of BT Cellnet, the U.K.'s second mobile operator, said that the company is still considering its options - in particular whether it will bid alone or with BT Cellnet. The U.K.'s smallest mobile operator seemed the least enthusiastic about the announcement. A spokesman for One 2 One said that until the government announces license amendments to enable roaming the company could not comment on its plans. Orange Plc, the UK's remaining operator could not be reached for comment. Industry supporters of the plan agree that this is the best solution for encouraging competition and innovation as well as allowing a new entrant a fighting chance in an established market. One analyst said that the variety of spectrum packages to be auctioned will test the value of something that nobody really knows the value of. The Radio Communications Agency has said that it hopes to earn $2.4 billion from the auction, which some analysts have dismissed as being unrealistic. Meanwhile the German telecoms has set initial conditions for its third generation license allocation. It has defined the provision of third generation services as a new market and is therefore open to all competitors, both existing mobile phone operators and possible new entrants. The regulator has also decided to auction off the licences at end-1999, with the highest bidders winning. All the available licences will be awarded at the same time to avoid conflict between operators. So far, 38 firms have expressed interest in 3G licences. The regulator will decide by mid-June 1999 how many licences to award. The available frequency can support 3-6 networks. > Regards. Liacos_samui