EU set to free up spectrum restrictions

The aim is to allow European network operators to use the 900MHz and 18000MHz bands more efficiently, increasing the number and choice of wireless services available and expanding their geographic coverage.

It means 3G services may soon be allowed on the radio spectrum currently being used for GSM networks. The third generation technology employs the higher frequency 2100MHz range.

In essence, the Commission is proposing to repeal the GSM Directive of 1987, which helped make GSM such a success in Europe. The directive is now felt to be out of date as it prevents more advanced wireless technologies from using the reserved spectrum.

The proposal would allow new technologies to coexist with GSM in the 900MHz and 1800MHz frequencies, while preserving the continued operation of GSM in the EU.

A recent study for the industry suggested the new rules would cut network operating costs by 40 percent over the next five years, the EU noted.

"Radio spectrum is a crucial economic resource which must be properly managed across Europe to unlock the potential of our telecoms sector," said Viviane Reding, the EU's Telecoms Commissioner.

"In the EU, we must therefore remove regulatory barriers and facilitate the deployment of mobile communications by allowing new technologies to share spectrum with existing ones. This proposal is a concrete step towards a more flexible market driven approach to spectrum management in Europe. It will increase competition in the use of spectrum bands."

Provided the proposal receives formal approval from the European Parliament and EU Council of Ministers, the measures should be in place by the end of the year.

The reaction from the GSM Association (GSMA)— the trade body representing the major mobile operators, which recently renewed its call for so called "refarming" to be allowed in the 900MHz band — was positive.

"Amongst our membership there is general consensus that there should be refarming. A key concern had been that different spectrum bands are treated fairly and equally, as some operators have 900MHz only and some have 1800MHz only. So we're positive about [the EC's announcement]."