Ofcom's 3G power boost could help tackle the digital divide

Ofcom's decision to increase the power limit levels at which network operators can broadcast 3G spectrum has been welcomed by analysts as a key move in helping to improve coverage.

The power limit change was made after pressure from the five major UK network operators to help them meet demand for mobile internet coverage and data transfer from rapidly growing numbers of smartphone users.

Terry Nelson, principal analyst at Analysys Mason, said that the increase will offer a number of benefits.

"A rise of three dBm [decibel power to one milliwatt] is a doubling of the power levels. This will have a significant impact for people living in areas with poor to non-existent 3G coverage, and even play a part in closing the digital divide," he said.

"It will also help operators increase capacity as they can send the data in bursts of information that will free up other parts of the spectrum and help increase the quality of service for customers."

Nelson expects that updates to base stations could take a little while if operators focus on increasing capacity, but that increasing the coverage will now be a lot more straightforward.

Forrester Research analyst Ian Fogg also believes that the increase will improve 3G connections, but warned that issues around the reallocation of 2G spectrum still need to be resolved.

"The 3G spectrum often struggles to penetrate walls, so being able to transmit more power in the signals for in-building coverage will offer an improvement, and in turn reduce the drain on a device's battery when sending and receiving data," he said.

"However, for significant improvements in the 3G spectrum, the switch from using the 900MHz frequency from 2G to 3G will be imperative. There are lots of issues around this though, as the original licence was given for 2G use only."

Fogg argued that, while T-Mobile and Orange use 1,800MHz for 2G, the 900MHz currently used by Vodafone and O2 for 2G coverage is far more suited to 3G, but that allowing them to switch to 3G would be contentious.

"The 900MHz frequency is now a much more valuable commodity than the 1800MHz as it is much better suited for broadcasting 3G, which is now becoming an ever more important technology as smartphone numbers continue to rise," he said.

"It's a very complex situation because, if the switch to 3G on 900MHz is to take place, all sorts of sharing deals may have to be drawn up between the four operators to ensure a level playing field."

Steve Reynolds, president of the Mobile Data Association, also praised the move, but stressed that operators and Ofcom must address the issue of capacity and the reallocation of the 900MHz spectrum.

"This move is definitely to be welcomed, but there is a risk that it could actually make things worse for operators by increasing coverage and therefore allowing even more smartphone users to start accessing data on the 3G networks, " he said.

"The spectrum allocation of 3G needs to be changed, though, as the huge demand for smartphone technology is only going to increase, and apps in particular are causing huge strains on networks."

With regard to the competition issue of allowing Vodafone and O2 to change their spectrum broadcast from 2G to 3G, Reynolds believes that the merger of Orange and T-Mobile under the Everything Everywhere umbrella had made this possible.

"Everything Everywhere is already playing up the increased coverage of its planned merged network, so allowing Vodafone and O2 to transmit 3G on the 90MHz spectrum could be a good way to keep competition fair," he said.

Reynolds also touched on the issue of the London 2012 Olympics, noting that demand on networks during the games could present a significant challenge, and that it would be beneficial for all if a resolution was reached before the event.

Three Mobile also waded into the issue of the need to reallocate spectrum.

"Upgrading the signal strength is helpful, but what the industry really needs is for the government to reach a decision on the issue of additional radio spectrum for future mobile use," the firm said.

Three added that the necessity to carry out this review was vital to closing the digital divide in the country and said any issues standing in the way of this needed to be overcome.

"If the UK is to continue to take a leading role in digital communication, and ensure people in rural areas can access high speed mobile broadband via a 3G connection, the digital dividend spectrum must be put up for auction soon," it said.

"Questions regarding the potential concentration of large spectrum holdings by some operators must be resolved as quickly as possible."