Background


BWA (Broadband Wireless Access) is the term used to describe new wireless broadband technologies, including fixed, nomadic and mobile applications. Both at the CEPT level (European Conference of Postal and Telecommunications Administrations) and at the European level, the 3400-3600 MHz and 3600-3800 MHz bands have been selected for the development of both BWA applications based on a technological neutrality principle and electronic communications services.

On 14 June 2007, ANACOM approved the public consultation report on the introduction of BWA in Portugal, and the respective action plan. On 24 January 2008, the report of the consultation on limiting the number of frequency rights of use, reserved for broadband wireless access in the 3400-3600 MHz and 3600-3800 MHz frequency bands and the respective procedure for allocation was approved.

ANACOM decided to make available, through the auction procedure, the 3.4-3.6 GHz and 3.6-3.8 GHz frequency bands on the following terms:

  • Two (2) frequency rights of use - corresponding to 1 block of 2x28 MHz each - in each geographical area in the 3400-3600 MHz sub-band;
  • Two (2) frequency rights of use - corresponding to 1 block of 2x28 MHz each - in each geographical area in the 3600-3800 MHz sub-band;
  • Priority is given to a model of allocation of rights of use by area, maintaining, with respect to the frequency blocks to be allocated, the territorial division defined in the annex to Administrative Rule no. 1062/2004 of 25 August, over a national model of implementation.

The territorial division defined in the annex to Administrative Rule no. 1062/2004 of 25 August, is the following:

Zone 1 - The districts of Leiria, Lisboa, Santarém and Setúbal (municipalities of Alcochete, Almada, Barreiro, Moita, Montijo, Palmela, Seixal, Sesimbra and Setúbal).

Zone 2 - The districts of Braga, Porto and Viana do Castelo.

Zone 3 - The districts of Coimbra and Aveiro.

Zone 4 - The districts of Bragança, Guarda, Vila Real and Viseu.

Zone 5 - The districts of Castelo Branco and Portalegre.

Zone 6 - The districts of Beja, Évora and Setúbal (municipalities of Alcácer do Sal, Grandola, Santiago do Cacém and Sines).

Zone 7 - The district of Faro.

Zone 8 - The Autonomous Region of the Azores.

Zone 9 - The Autonomous Region of Madeira.

With the objective of promoting the entry of new operators into the broadband market, the allocation of frequency rights of use in these bands will be conducted in two phases.

  • In phase 1, participation will be restricted solely to those entities which, in Portugal, do not hold frequency rights of use for the supply of land mobile services, which have not been identified with significant market power in the wholesale broadband access market; and which do not hold rights of use in the frequency bands in question. Any other entities, including national operators, foreign operators and municipalities, may enter this 1st phase.

  • In phase 2, which will take place only if any rights of use remain available after phase 1 there will be no restriction on participation.

ANACOM will allow flexible modes in spectrum use (fixed, nomadic and mobile modes), based on the principle of technological neutrality, whereby operation will not be restricted to a specific electronic communications service or technology. As such, operators will have the freedom and flexibility to decide what types of services they wish to offer and which technology they prefer to use, devising business plans that best suit their objectives.

Granting rights of use of frequencies by geographical areas is a flexible option that does not preclude the selection of operators who use frequencies on a  nationwide basis. The geographic division in the allocation of rights of use may help reduce the extent of existing ''info-excluded'' areasgiven the possible emergence of business models that favour these areas as target markets. It is considered that geographical division in the allocation of frequency rights of use is the model that gives the greatest flexibility to market players, allowing the market to decide which business model is best suited to their needs.

The auction regulation was subject to an appropriate public consultation, in which the various market stakeholders have an opportunity to comment, particularly with regards to the recommended steps within the first phase of the auction, the limitations that the regulator intends to impose in terms of access to BWA frequencies as well as the requirements and technical conditions to be observed in their use.