GSM, WiMax battle over spectrum in Europe

The GSM Association on Monday urged the European Commission not to lift current restrictions that tie specific technologies to individual spectrum bands, taking sides in a battle that pits the cellular industry against the WiMax market.

The Commission, in late June, again discussed its proposal of a new policy whereby operators that win spectrum could build networks using any technology they choose. It's a controversial subject because a similar policy has enabled innovation in the U.S. but the existing policy, which limits spectrum users to specific technologies, has historically lead to success in Europe.

The GSM Association is particularly concerned about how the new policy could affect the 2.5 GHz band in Europe. That spectrum has been designated in most European countries as a 3G (third-generation) extension band, initially designed to enable more 3G services.

A policy change would create market fragmentation and would drive up the price of equipment because vendors wouldn't be able to standardize their products on the same spectrum around the globe, the GSM Association said. The 2.5 GHz band should be reserved for 3G operators to ensure that new services, like mobile video, can realize their full potential, the group said.

However, similar spectrum is being used in the U.S. for other broadband wireless services like WiMax. The WiMax industry has been lobbying to be able to use that band in Europe for similar types of networks.

"We've endorsed the technology agnostic route because it allows operators to make their own choice," said Andy McKinnon, WiMax principal for Motorola Inc. in Europe, Middle East and Africa. He cautioned, however, that the Commission will have to carefully manage any new policy so that if different technologies are used within the band, they won't interfere with each other.

The Commission is expected to come to a decision on the proposed change later this year. While initially member states were split on the move, the majority now seem to support the change, McKinnon said.

The existing policy of tying a technology to a spectrum band is often cited as a reason that the cellular market matured quicker in Europe than in the U.S. Operators on the Continent were required to use GSM (Global System for Mobile Communications), which enabled easy roaming across borders and low-cost equipment due to economies of scale. By contrast, some say that one of the reasons the U.S. cellular market grew slower is because operators chose different technologies that were not interoperable.

However, the more liberal spectrum policy in the U.S. enabled the development of CDMA (Code Division Multiple Access), a technological innovation that contributes to the current 3G standard in Europe.