3G in 900MHz band can make 3G a winner

The widespread deployment of 3G networks in the 900MHz GSM spectrum band, as well as the 2100MHz band, could enable an additional 300 million people across Asia, Europe and Africa to enjoy mobile broadband services by 2012, according to a study by the analyst and consulting company Ovum for the GSMA.

Note: HSPA is already being deployed at 900MHz in Finland and trials are underway in a number of other countries, such as France and the Isle of Man. More about this is available here.

In 900MHz, the greater range of radio waves in the lower spectrum band and their ability to provide better coverage in buildings would enable operators to achieve much broader 3G coverage, particularly in rural areas. The study shows that a 3G network in the 900MHz band would achieve up to 40% greater coverage than a 3G network in the 2100MHz band for the same capital expenditure.

The cost-effectiveness of 3G at 900MHz would be of particular significance in developing countries, many of which are looking to HSPA, an evolution of the leading 3G technology, to provide high-speed Internet access in the many regions that lack fixed-line infrastructure. However, Ovum cautions that the level of success of 3G in the 900MHz band will depend on multiple countries making this spectrum band available in a harmonised way, so that equipment manufacturers have a large market to target and can quickly achieve economies of scale, particularly for handsets.

Ovum envisages that operators would use 900MHz to provide widespread 3G coverage, supplemented by 3G at 2100MHz in urban ‘hot-spots’ that need more capacity. The extensive use of both the 900MHz and the 2100MHz bands for 3G in Asia–Pacific countries could lead to 450 million people in the region using 3G by 2012, if all operators chose to deploy 3G and the majority of investment goes into 3G at 900MHz. If 3G were restricted to 2100MHz alone, Ovum forecasts there will be just 200 million people using 3G in the region by 2012.

In light of these findings, the GSMA urges regulators, together with vendors, to plan together for the coordinated refarming of 900/1800MHz spectrum, which is widely used for GSM in Europe, Asia and Africa, and for the availability of compatible and affordable handsets. Such global planning will give investors the confidence to fund the development of 3G/HSPA at 900MHz and 1800MHz as well. There should be no differentiation between the different GSM bands (900/1800/1900) to avoid any distortion of competition among GSM operators. The same benefits would also be achieved by refarming 850MHz spectrum (widely used in US and Latin America).

According to the Inquirer, the GSMA may have fallen into a trap. China has its own flavour of 3G – called TD-SCDMA. One of the benefits of this standard – compared to W-CDMA which the GSMA promotes – is that it shares infrastructure costs with existing GSM equipment. Naturally providing cost savings. So while the GSMA is admitting that standard W-CDMA at 2100 MHz is too expensive for developing economies, China can quite reasonably say, "We know. That's why we've stuck with TD-SCDMA.
A bit of an own goal really.