The absurdity that surrounds licence distribution for broadband fixed wireless (BFW) services continued last week as the Government announced seminars to "promote forthcoming licence opportunities for BFWA at 28GHz".
In July, ecommerce minister Douglas Alexander said companies would be able to bid for unwanted licences at the reserve price. If the licence attracts more than one applicant, it will go to auction.
Tony Lock, senior analyst at Bloor Research, said there was a real chance that many areas of the UK would not have broadband because of the limits of fixed wire and the economics of wireless.
"No-one has a convincing business model for any wireless technology. Business isn't willing to spend big bucks unless there is a proven return on investment," he said.
Operators are concerned about the costs of building out the infrastructure, particularly in the current financial climate. Adding to the unease, there is no reliable model to predict the revenues they can expect to draw.
Some industry figures have blamed the Government for the auction model of licence distribution, which has seriously undermined the financial stability of some operators.
But Lock said Blair's government was damned either way. "The whole economic psyche needs to change. Business is paranoid about spending, and unless the Government can devise services that people will pay a premium for, I'm not sure what it can do."
The possibility of swathes of the country failing to attract interest from operators is now real, and it will be the people BFW was designed to reach out to who will suffer.
See also:
All Network Infrastructure
del.icio.us
Digg this
reddit!
