Broadband boost for rural communities

RURAL communities suffering from a lack of fast broadband access may find it cheaper to take up the mobile alternative following the forthcoming sale of additional spectrum to network operators.

Ronan Dunne, chief executive of O2 UK, said the 800MHz spectrum set to be freed up by the switch from analogue to digital television, was ideal for use in rural areas. Because of its lower frequency, it provides wider coverage and better penetration within buildings and other structures.

"The cost structure of providing fixed (broadband] is such that some remote communities would find mobile access a less expensive alternative," Dunne said. "One mobile cell site can cover a one kilometre area, and for many places that would be all that's needed."

Earlier this year, the Royal Society of Edinburgh called for urgent action to provide high-speed internet access to Scotland's rural homes and businesses. The society warned that by falling behind UK and overseas rivals in broadband provision, the country would likewise slip in areas such as economic growth, health and education.

The society has called for a significant extension to Scotland's fibre optic cable network over the next five years at a cost of about 100 million. This would give access to 99 per cent of the population.

High-speed 3G mobile networks currently reach about 80 per cent of the population, but Dunne said this would rise to between 95 and 97 per cent once the 800MHz spectrum is in use. Industry regulator Ofcom is due to auction off these airwaves to mobile operators in the first half of 2012, and they will come into use in 2014.

"The nice thing about mobiles is that rural companies can have confidence that they will have access at the same price as a business in London or any other urban area," Dunne said.

Dunne conceded that getting high-speed mobile access to the last 3 per cent or so of the population would require government support, as reaching those areas would be economically unviable for network operators. He also called for more practical support in gaining access to rural areas and public land for new mobile phone masts, which are frequently opposed by local residents.

Announcing its third-quarter results in November, O2 said it would ramp up spending on its UK infrastructure to support the explosion in demand for data transfer brought about by the introduction of smartphones such as Apple's iPhone and BlackBerry's Torch. Network investment will rise by as much as 25 per cent next year to some 500m.

Dunne said network traffic volumes in Scotland had increased five-fold during the past 12 months, with services such as Facebook and Twitter generating multiple and concurrent requests to the data network.