a) What conditions do you consider important for the successful implementation of BWA technologies?
The responses received allow the conditions considered important for the successful implementation of BWA to be divided into three categories: technological aspects, regulatory issues and market conditions.
a) In respect of the technological aspects it should be noted that five parties clearly specified the minimum consignment of spectrum that they considered suitable, although they did not agree on the values. Three of the parties also considered it important that there should be standardisation of equipment in order to promote interoperability. Two parties also cited the need for harmonisation of work bands.
The lack of technological constraints, the possibility of operators determining and managing the guard bands so as to allow maximum spectrum efficiency, the guarantee of the possibility of expansion through spectrum reservation, the availability of terminal equipment at low cost and integration of the WiMAX chipset in portable computers, as well as the operation of NLoS are other technological factors individually cited by various parties.
b) Regarding regulatory issues, the non-imposition of restrictions on the usage model was emphasised by five parties. Three respondents are supporters of flexibility in the terms of licensing and the regulatory framework. The following positions were also stressed:
- Licenses should be awarded for realistic periods of time (15-20 years);
- The rules of allocation and the costs inherent in the licenses have great importance;
- Operator obligations should be as unrestrictive as possible;
- Regulation is needed in the area of antenna installation (BS and terminals) in municipalities and condominiums, in order to harmonise and simplify current procedures and bring about a reduction in costs;
- The intellectual property rights associated with the technologies should be controlled and enforced.
c) With respect to coverage, there is a difference of opinion: of the parties that gave a position on this subject in the context of this question (which is specifically covered in question 3.b)), two considered national coverage to be suitable, while two others argued for a licensing model that allowed regional and national licences’ in accordance with the business plans presented.
Other regulatory issues were also raised by different parties:
- The provision of spectrum on a fair and equitable basis;
- The allocation of licenses to operators which present the best business plans and best use of the spectrum for the offer of wireless broadband services;
- The guarantee of interconnection between different operators;
- The frequency allocation process being ruled by neutrality of technology and services;
- Ease of access and swift licensing of sites;
- The timely allocation of spectrum;
- The lack of regulatory constraints;
- The allocation of frequencies in the 3.4 GHz - 3.6 GHz band;
- The costs associated with the reduced rights of spectrum use;
- The need to review ITED legislation.
d) Regarding market conditions, it is noted that two parties cite, as an important factor for the successful implementation of BWA technology, the involvement and level of awareness among the general public as to the framework and control of correct use of radio technologies, especially in respect of the risks and impact for public health.
b) When do you consider that BWA technologies will have the necessary conditions for successful implementation in the Portuguese market?
In response to this question the majority of parties consider that only a few of the BWA technologies identified in question 1.a) already meet the necessary conditions for their successful introduction in the Portuguese market. Sharing another view, three of the parties consider that the conditions needed for the introduction of BWA in our market already exist. One other party also stated that, through IMT-2000/UMTS, the services associated with BWA were already available.
The remaining parties that gave a position on this subject, a total of four, indicated the beginning of 2008 for the effective implementation of BWA services in Portugal. They stated, however, that the success of the introduction and the spread of this technology depends unequivocally on the technological, regulatory and market conditions which are created and provided in the Portuguese market.
c) In what way would you be interested in using and eventually commercialising BWA technologies?
Of the operators who responded to the consultation, eight showed an interest in using BWA technology:
a) Emacom "as a telecommunications operator is interested in using BWA as a way of complementing, at an access network level, the "Backbone" of fibre optic, which it has in A.R.M., being able therefore to turn itself into an operator of services, especially of "triple play"";
b) Neuvex considers that the "use of BWA (WiMAX) (…) technologies, with the authorisation of the regulator for the supply of ISP services, Fixed Telephone Services and VoIP, would allow an independent connection with the final customer, making it therefore an interesting business model for a new operator in the market and so benefiting the final customer (for example by reducing costs, improving response times, etc.) REDVO (NEUVEX) considers the use and/or provision of backhauling using a BWA technology to be an interesting prospect";
c) Onitelecom "considers that BWA technologies, attractive in the short term in the corporate market, could constitute a business opportunity, provided that a number of parameters that are essential for its viability are complied with, especially:
- Validity of the expectation of price erosion in the first commercial version, comparatively to the current technologies supported by LLU;
- Development of terminal equipment that supports traditional voice and data services;
- Compatibility/Interoperability between the equipment of different manufactures."
d) Grupo PT "is interested in using all technologies, especially BWA, that permit the broadening of its commercial offer range and contribute to the development of the Information Society";
e) Radiomóvel "manifests the upmost interest in the use of BWA technologies, considering the development of an innovative and flexible operator to be viable, given the growing demand and effective existence of a market for innovative access services to wireless broadband";
f) Sonaecom "has a clear interest in the use of BWA technologies, which it will in the meantime have to validate through in-depth research in respect of the tender for spectrum allocation, with attention to the conditions governing the execution of such a tender, as well as (i) to the structural limitation of the market that can be targeted by these technologies and (ii) the important technological and business risks (…)";
g) Vodafone "considers that these new technologies could complement its broadband offer and could be a strong impetus for broadband penetration in Portugal. Accordingly, provided that the technical and economic rationale of the license process is ensured, Vodafone would be interested in its use and commercial exploitation";
h) Grupo SGC Telecom indicates that "...the allocation of frequencies to Grupo SGC creates the potential of having a real second operator, with national coverage, fundamentally wireless and with an integrated alternative structure."
