OPINIONS

Relaxing Frequency Regulation – Opportunity or Threat?

Three trends suffuse the advanced communications markets today: mobile connections contribute to most of the growth caused by the growing popularity of broadband internet; the shift of media usage towards uncontrolled channels might jeopardise the traditional broadcasting business; as a result of the above, regulators favour technology neutrality and auctions in frequency management.

Some regulators have already awarded the 2.5 GHz band as well as part of Digital Dividend band to mobile broadband players. Also, further reductions in TV broadcasting frequencies in favour of mobile broadband services are being discussed. New frequencies may lead to fundamental changes in the mobile markets, as with them new operators can gain as good a footprint and capacity as the existing ones.

This development helps the newcomers become worthy adversaries for the existing players. It also contributes to oligopolistic markets evolving into competitive ones. Therefore, all players in a specific market can have a lot to win, but the existing players may also end up losers due to increased competition.

It is imperative that operators pay considerably more attention to their business planning of the new potential frequencies. Omnitele has developed a professional methodology to carry out a valuation of the different frequency bands by estimating the market development and analysing which of the various frequency options available would offer the optimal solution to satisfy the demand.

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