WiMax Italy - Guidelines are now officially released

As previously stated, during the Broadband Access Forum Meeting held in Naples, on 16th January 2007, AGCOM (the Communications Regulatory Authority - Agcom - is an independent Italian authority, established by Law n. 249 of 31 July 1997) declared their intention to define during June the guidelines for the allocation of rights for users of broadband wireless frequencies operating at 3.5 Mhz.

It actually happened and had its maximum expression in the drawing up of Resolution n. 209/07/CONS. This resolution plays a key role and the way that led to it’s drawing up has been long and tortuous: first of all, some frequencies that previously belonged to the Defense Ministry had to be set free, then AGCOM had to analyze the approximately 70 inquiries sent by Operators belonging to that field. In Italy, Wi-Max aroused a growing interest because it is expected to solve the hoary issue of digital divide, and also because a relevant number of operators had already declared an interest to enter this market, which looks like a great opportunity, at least on all appearances.

In a context like the Italian one, where the telecommunication market competition is strictly controlled by regulations, a call for bids to allocate the rights of users is unavoidable, or at least advisable: “The number of interest displays”, quotes the Resolution, ”widely exceeds the band availability “.

From a technical point of view, the Ministry of Telecommunications, in the 27 March 2007 note, reported to the Authority that, thanks to the agreement signed up with Ministry of Defense, a band of total amplitude of 150 MHz, situated inside the 3,4-3,6 GHz band, can be split in two blocks of MHz 75 since the beginning of the procedures of selection. This band can be free enough from interferences to be destined to civil use, provided that in some geographical areas this band of 150 MHz can be set progressively free from interferences deriving from the last Ministerial usage. In addition, the Ministry makes available 2×75 MHz of 3.5 GHz. Band for public services.

To define the number of rights for users that can be granted according to availability, the Authority, in the first place, asserts that a right of a user of at least 2×21 MHz is the essential requirement to provide high quality services. Public calls for bids should have begun in July 2007, but it seems to have been delayed once again. As it already happened for other calls for frequencies allocation, the possession time will be determined in 15 years in order to allow Operators an adequate return on the investment. The call criterion will be based on the best economic offer. One of the risks of a similar procedure, as already underlined, is the fact that existing operators can buy up all available frequencies and delay the realization of alternatives broadband networks. For this reason, the Authority suggests “to reserve a preferential treatment to the operators that do not have other spectral resources to offer broadband services comparable to BWA. The aim is to develop new networks of access to broadband and to improve the number of operators deeply- routed on the territory, maybe on a regional base, so that they can offer a variety of services more aimed at the citizens’ local requirements”.

In the past months, one of the most discussed topics was the settlement of geographical areas. The hypothesis of “creating small homogenous geographical areas or provincial allotments” was rejected because “in some areas of the country the call could have failed due to a reduced business interest and therefore force the Administration to repeat the allocation procedures”. The final decision is to proceed on a macro-regional base “by putting together only regions that are territorially adjacent and by stating a minimum number of two and maximum number of four regions that can be grouped together. The Italian islands are not bound to this aggregation rule”.

To sum up, a report that underlines the Authority’s farsightedness establishes that “if after 30 months from the release of the rights for users, the assignee (or person to whom the frequency has been adjudged) does not demonstrate concrete possibilities of direct or indirect use of the frequencies to provide services of broadband wireless access, than every reasonable demand for access to the same frequencies in different areas from those indicated in the initial cover plans will be satisfied on the basis of business negotiation and fair non-discriminating terms. Such restriction can be justified by the necessity to guarantee an efficient use of the frequencies for the aims they were intended for, in case of shortage of accesses to broadband networks”.