LONDON (WiMAX Day). The UK telecoms regulator Ofcom announced that it will amend the WiMAX spectrum license of UK Broadband to allow for the provision of mobility. According to an Ofcom press release, “the change will allow the company to offer Internet connections to portable or mobile devices as well as to fixed locations across the UK.”

UK Broadband acquired 15 regional licenses for 3.4 ~ 3.6 GHz spectrum several years ago. At the time, the licenses were restricted to fixed and nomadic use for wireless broadband. In 2006 UK Broadband requested that Ofcom permit the company to operate its license at higher power levels and to allow for the use of “mobility” services. In its request to Ofcom, UK Broadband said that the higher power levels were required so the company could employ the IEEE 802.16e mobile standard of WiMAX, which requires higher power levels.

The decision by Ofcom is significant. It is the first telecommunications regulator in Europe to recognise the decision made in Geneva last week at the World Radio Conference that designated the 3.4 ~ 3.6 GHz as IMT “mobile” spectrum. The support of Ofcom on the WRC decision points the way for other European regulators to amend the mobility restrictions on this frequency range across Europe.

UK Broadband has the only license in the UK for 3.4 ~ 3.6 GHz spectrum. The company has been planning to deploy a WiMAX network for the last year, pending a decision on the issue of mobility, which many believe greatly increases the value of the service that UK Broadband can deliver. Indeed, in its press release, Ofcom noted that by removing the mobility restriction on the UK Broadband license “will benefit consumers, encourage competition, optimise use of the spectrum and is therefore in the interests of citizens and consumers.”

It is understood that UK Broadband will now move forward quickly to show how WiMAX can work effectively at 3.5 GHz, ahead of decisions on expansion plans. The company is reportedly in discussion with major equipment suppliers to ensure technology fit and the availability of equipment.

This will mean greater competition for the broadband access market in the UK, which is dominated by a handful of ADSL providers. In a research note yesterday, the investment bank Dresdner Kleinwort observed that the license amendment will allow UK Broadband to “sell broadband you can use anywhere,” which is a service no other provider can offer. The report also noted that such competition will be “a problem for BT, Virgin Media et al.”

UK Broadband is a wholly-owned subsidiary of the Hong Kong telecoms conglomerate PCCW, itself a leading provider of IPTV services and early supporter of convergence. Some analysts questioned where PCCW would make support substantial investment into the UK market, however, the mobility amendment to the spectrum greatly expands the options open to PCCW in the UK.