Reding ignites battle for aerial superiority

The satellite communications and mobile broadcast industries are gearing up for a fight ahead of a European Commission decision on criteria for allocation of the airwaves - or ‘spectrum’ - which firms need to operate their new services.

Viviane Reding, the commissioner for information society and media, is set in mid-June to unveil rules on opening up frequency bands to new services as part of a general overhaul of EU telecoms rules dating from 2002.

Radio spectrum is a finite natural resource, which is why regulators intervene to make sure supply and demand are closely matched. Satellite communications and mobile broadcast firms will be monitoring closely rules on allocation of high-bandwidth 2GHz spectrum.

"There are two different applications being proposed for use of spectrum. One is mobile TV, the other is two-way communication [satellite communications]," said a London-based consultant, who has been monitoring EU spectrum policy. "There’s probably enough for them to co-exist, but each side wants to make sure it gets more."

Satellite communi-cations group Terrestar Networks, which aims to bid for a significant share of the ‘S-band’ 2GHz range, is worried that the rules will be biased in favour of the mobile television industry. French group Alcatel-Lucent, planning to launch a mobile broadcast network in S-band, is also jockeying for position ahead of any spectrum bidding war.

Robert Brumley, chief executive of US-based Terrestar, warned that the EU risked being left behind in the global wireless revolution should satellite communications be neglected in forthcoming rules. At stake, he said, was the interoperability of wireless networks allowing seamless mobile communication.

"We try to allocate to services that are functional and economically viable without having any preferences," said a Commission official. "Everyone would like an ideal situation where spectrum is allocated at beneficial rates to them. The policy is all about making sure spectrum is allocated in a more market-oriented way."

The rules on spectrum allocation are set to be adopted in 2008 and applied in 2009. Companies bidding for S-band would have to pledge €100 million as a potential forfeit should their respective projects fall through.

The satellite communications and mobile broadcast industries are gearing up for a fight ahead of a European Commission decision on criteria for allocation of the airwaves - or ‘spectrum’ - which firms need to operate their new services.