Broadband blow as providers go slow

NEWS The chances of the 28GHz spectrum being used for commercial broadband fixed wireless services in the near future look increasingly bleak following a government decision not to penalise companies who have failed to achieve rollout targets laid down by the DTI. Of the six firms who were awarded 28GHz licences in the auction process held in November 2000, only Your Communications (formerly known as The Norweb Telecom Group) can now offer broadband services to 10 per cent of people in the areas covered by three of its four licences. In the fourth licence area, Your Communications has also almost reached the target, according to the Radiocommunications Agency. The other five companies have all failed to hit the 10 per cent rollout target, which the government specifically included in the licence conditions. As such, their licences could be revoked and offered to other companies under the "Use it or lose it" condition that is meant to prevent companies winning licences and then failing to make use of them. However, Patricia Hewitt, secretary of state at the DTI, has decided to give these five until 31 December, 2003, to achieve this minimum requirement of 10 per cent rollout. A DTI spokesman said that the government is confident that the 28GHz licence-holders are all committed to using their licences to offer broadband services. "There was always a clause within the 28GHz licences that stated the secretary of state could extend the time limit for compliance with the rollout condition," said the DTI spokesman. "This was, and still is, a new market and we don't want to damage the business plans of companies by insisting on unachievable conditions." "The DTI spoke to all the companies before making the decision, and we're convinced that they are all committed to rolling out services," he insisted. However, since the decision was made, one licence - covering Northern Ireland - has already been handed back by its former owner Eircom. When the licences were auctioned in November 2000, they raised just £38m compared to predictions of up to £1bn. At the time one expert described the outcome as a "bit of a disaster". Graeme Wearden writes for ZDNet.co.uk