National Communications Commission (NCC) Chairman Howard Shyr (石世豪) yesterday denied the government intended to empty the 2.6 gigahertz (GHz) frequency band so that it can be auctioned again, adding that Worldwide Interoperability for Microwave Access (WiMAX) service operators could continue using the 2.6GHz frequency band once their licenses have been successfully renewed.
Earlier this year, President Ma Ying-jeou (馬英九) announced that the government planned to place the band up for auction next year, but the band is still being used by six WiMAX operators.
Some have interpreted the commission’s decision last month to reject the license renewal application of WiMAX operator Tatung Infocomm as the government’s way of forcing the operators to withdraw from the market and make the band available to long-term evolution (LTE) operators.
Photo: Wang Yi-sung, Taipei Times
“It [the suspicion] is malicious and subjective speculation,” Shyr said.
Shyr also dismissed the allegation that WiMAX operators would automatically get an extension to continue offering their service for another six years after the current license expires because there is no such regulation.
“The WiMAX operators have known all along the rules [of the license renewal application], which have not been changed since 2007,” Shyr said.
“This should not come as a ‘surprise’ to them,” he added.
Shyr said that WiMAX operators can continue using the frequency band if they have their license renewed, adding that all the requirements that need to be met are clearly listed in the Regulations for Administration of Wireless Broadband Access Business (無線寬頻接取業務管理規則).
The renewed license is also valid for six years, he said.
Though the 2.6 GHz frequency blocks that the government plans to release next year will overlap with the ones used by WiMAX operators, Shyr said that different operators can exchange frequency blocks by returning the blocks to the NCC and asking it to reassign them.
“If the 4G service bidders acquire through the auction the frequency blocks currently used by WiMAX operators, their licenses would be valid for nine years after the six years during which the WiMAX operators are entitled to use the frequency. However, we will offer 4G operators incentives to continue using the frequency blocks after their licenses expire,” Shyr said.
He added that WiMAX operators are also qualified to participate in the auction next year to migrate from WiMAX to the LTE 4G service, although they must be prepared to pay more in license and usage fees.
A report published in Chinese-language magazine Business Today said that the success of the LTE auction, which helped the nation raise NT$118.6 billion (US$3.93 billion) in revenue last year, had motivated the government to raise the floor price of next year’s auction.
In response, Shyr said it was the Executive Yuan which determined the floor price and it has been set at NT$15 billion for next year’s auction.
He added that the monetary gains from the auction should not be the only consideration when planning the use of different frequencies.
Shyr said the government supports the simultaneous development of both the time-division duplex (TDD) and the frequency-division duplex (FDD) standards of LTE technology.
Of the 190 megahertz (MHz) on the 2.6GHz frequency band that is scheduled to be released next year, Shyr said 140MHz is to be used for the FDD standard, while 50MHz is reserved for the TDD standard.
The bandwidth for the TDD standard will be released first next year, he said, adding that the bandwidth for the FDD standard could be released in the fourth quarter of next year.
“The Executive Yuan is planning to release the bandwidth between 2.3GHz and 2.4GHz for services using the TDD standard in the short term, but more bandwidth for TDD standard could become available in the future after the government reviews the use of the 3.6GHz and the 1.9GHz frequency bands,” he said.
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