The Commission for Communications Regulation (Comreg) is to relax the rules for wireless operators in an attempt to spur competition in the broadband market. Comreg plans to issue new-style licences from next month and hopes they will provide a more stable framework for firms operating in the fixed wireless access market.
Fixed wireless access technology enables operators to offer customers broadband services through radio waves rather than through fixed-wire connections. In theory this will enable the speedy deployment of services by operators compared to traditional broadband connections, which often require extensive infrastructure.
But until now the introduction of fixed wireless technology has been disappointingly slow despite the award of four national licences to operate the services in 2000.
One of the licensees, Formus, the Dublin-based firm set up by the Ardagh brothers Charlie and Rory, went bust in 2001, and Eircom, Esat BT and Chorus, which have similar licences, have so far failed to make a big impact in the broadband market.
Last week ComReg amended Eircom's licence to reduce stringent introductory requirements for fixed wireless technology. It is currently undertaking a similar process with Esat BT, and has confiscated Chorus's licence to operate following the Independent News & Media subsidiary's failure to meet specific launch targets. However, Chorus intends to continue to offer fixed wireless services to its 5,000 customers by applying for one of the new licences.
Under the new regime companies will now be able to offer services locally rather than have to introduce expensive national networks. This will dramatically reduce the cost of building a network and should also provide greater certainty for the operators.
The licences will be awarded on a first come, first served, basis by ComReg, which is expected to shortly outline the detail of the new licensing framework to firms.
Mr Rory Ardagh, who has set up a new wireless company called Leap Broadband, confirmed yesterday that his company would apply for one of the new licences.
"With this new licensed spectrum we will now be able to provide services over much bigger distances and they will be much faster speeds," he said. "It is a good stepping stone... we should be able to expand our service to other cities and provide a good rural network cost effectively."
Currently companies such as Leap Broadband are offering wireless services using unlicensed spectrum in the 2.4 and 5.8 gigahertz band. This enables them to provide a broadband service over short distances at medium speeds.
However, the decision by ComReg to strip Chorus of its fixed wireless licence has freed up extra spectrum in the 3.5 gigahertz band. This will enable firms to provide more powerful services than the one that Leap currently operates, and should enable faster speeds and greater capacity.
"The 3.5 gigahertz technology enables each base station to cover more distance, and maybe up to 20 to 30 miles," said Mr Ardagh, whose firm has signed up more than 100 customers in Dublin.
