Finland Allocates New 4G Frequencies to TeliaSonera, Elisa, DNA

Finland has awarded three new tranches of frequencies, in the 1,800 Mhz range, to the country's three existing mobile operators, to enable the launch of 4G Long-Term Evolution (LTE) services. TeliaSonera, Elisa, DNA have all been awarded blocks of the low-bandwidth frequency—making Finland the first country in Europe to allow 4G services at such a low bandwidth.

A spokesman for the Finnish communications ministry said: "As a result, fast 4G networks can be provided with a substantially wider coverage at a lower cost than commonly used 2,600 MHz networks, which require a considerably larger number of base stations." The spokesperson added that the operators will not need an additional licence for any 4G network launches, as these are seen as an extension of existing wireless telecoms licences.

Outlook and Implications

• Finland One Step Closer to 4G: The spectrum award brings the possibility of LTE networks a step closer for the Finnish operators. TeliaSonera, Elisa, and DNA have all committed to 4G launches within the next few years, and now the country is among the front runners to be the first to launch in Europe. The Finnish government has made significant commitments to broadband roll-out (see Finland: 19 September 2008: Finnish Government to Offer High-Speed Broadband by 2016 ), and this latest spectrum allocation will bring these goals a step closer. The European recession threatens to overshadow network investment, and signs of the slowdown are already being felt in the Nordics (see Finland: 20 February 2009: Plunge of 14% in Finnish Handset Sales Sends Ill Omens). However, Several Swedish operators have signed up to 4G roll-outs (see Sweden: 15 April 2009: Telenor and Tele2 Join Forces to Build 4G Network), and the race is now on between the Nordic neighbours to be the first to launch 4G in Europe.

• The Advantage of Low Bandwidth: Although higher, 2 Ghz-and-above frequencies are being earmarked for mobile broadband launches elsewhere, the 1,800 Mhz spectrum has the advantage of offering improved service over distance and through physical barriers, such as trees. In Finland's case, this has significant advantages for the operators, in that it could effectively quarter the number of base stations needed to bring services to remote areas. The 1,800 Mhz frequency is also already in use in much of Finland, meaning existing base stations will not need any significant upgrades. The allocation of this low-bandwidth frequency will enable 4G networks that will operate over long distances, at low rollout cost—ideal for operators in Finland.

• LTE Now Seen as the Future in Europe: Many LTE networks are earmarked for deployment in the coming years, by large players including Vodafone and Verizon in the United States (see United States: 18 February 2009: Verizon Taps Ericsson and Alcatel-Lucent for LTE Upgrade). Many Asian operators are already rolling out network infrastructure (see South Korea: 23 March 2009: LG Telecom to Deploy Multi-Mode Base Stations), while in Europe, Telefónica is testing the technology in its home market (see Spain: 6 April 2009: Telefónica Tests LTE, to Deploy HSPA+ from Mid-2009). Alcatel-Lucent has recently announced the launch of a programme, the "ng Connect" initiative, to stimulate LTE market, in partnership with Samsung and other telecoms vendors, to foster new user experiences made possible by high-bandwidth networks (see World: 17 February 2009: Alcatel-Lucent Teams Up with Samsung for LTE Initiative). As WiMAX slips out of favour, and other 4G technologies fall by the wayside, Europe is putting its weight firmly behind LTE as the future for high-speed wireless technology.