News Archive

10. January 2007

PTA intends to issue frequency authorisations for two new GSM 1800 mobile phone networks

The Post and Telecom Administration (PTA) intends to issue frequency authorisations for the operation of two new mobile phone networks in accordance with the GSM standards of the European Telecommunications Standards Institute (ETSI). An advertisement soliciting applications for frequency authorisations will be published, and a selection will be made from among the applicants on the basis of the terms and conditions appearing in the tender documents soon to be published by the Administration. The purpose of this tender is to seek tenders from those who do not hold GSM 1800 licenses in Iceland. PTA is of the opinion that the issuance of additional frequency authorisations is conducive to enhanced competition in the electronic communications market in Iceland. Therefore it is not anticipated that present holders of GSM 1800 licenses in Iceland will participate in this tender. Consultation with stakeholders is in process. The deadline for submittal of comments is Wednesday 17th January 2007, at 12:00 p.m. Comments shall be sent by e-mail to gudmundur@pta.is. Consultation document (PDF - in english)

10. January 2007

3G frequencies to be assigned in Iceland

The Post and Telecom Administration in Iceland has sent out an invitation for a tender for the right to use certain frequencies for IMT-2000/UMTS standard third generation mobile services. The tender procedure, which is based on a “beauty contest” approach, will be conducted in accordance with Icelandic law, Act 8/2005 on Third Generation Mobile Telephony. Up to four licences will be assigned. Following a consultation with stakeholders the tender was advertised on December 28th. and will close at 11 o´clock on March 12th. Four technically identical frequency blocks in the UMTS frequency band are offered, all covering the whole country and each providing 2 x 15 MHz FDD and 5 MHz TDD, summing up to 35 MHz each: 1) 1920-1935MHz / 2110-2125MHz and 1915-1920MHz2) 1935-1950MHz / 2125-2140MHz and 1900-1905MHz3) 1950-1965MHz / 2140-2155MHz and 1905-1910MHz4) 1965-1980MHz / 2155-2170MHz and 1910-1915MHz Minimum demands are set for population coverage within certain areas and speed of network construction.The country is divided into four areas and shall the IMT-2000 service reach 60% inhabitants of each of them.The areas are:a) The metropolitan areab) The West-Iceland, Westfjords and the western part of North-Icelandc) The eastern part of North-Iceland and Eastern-Icelandd) South-Iceland and Sudurnes in Southwest-Iceland The speed of coverage shall be in four steps:T1: 1 year and 6 months to reach 40% of inhabitants of all Iceland. Free choice of areas.T2: 2 years and 6 months to reach 30% of inhabitants of each area, a), b), c) and d).T3: 4 years to reach 60% of all inhabitants of each area, a), b), c) and d).T4: 5 years and 6 months to reach 60% – 75% of the summarised number of inhabitats in areas b), c) and d). The duration of the right to use the frequencies is 15 years per each block. Questions on the rules and procedure of the assignment can be sent to the PTA by e-mail: gudmundur@pta.is.All written questions will be answered. PTA will reserve the right to publish information on received questions and its answers on its web-page, www.pfs.is Tender document (PDF - in icelandic) Calculation of points in tender document (An Excel document (in icelandic))

12. April 2006

Data collection 2005

New statistics on Icelandic telecom market (pdf).

2. January 2006

Results of the public consultation on future use of NMT-450 spectrum in Iceland

On October 24th 2005 Post- and Telecom Administration (PTA) published a document for discussion ot the future use of NMT-450 spectrum in Iceland. The purpose was to investigate market interest and the viewpoints of interested parties. Comments and pointers were requested. The deadline for submissions was 8 December 2005. Altogether 9 statements were received from the following parties: Ericsson Danmark A/S, Federation of Icelandic Vessel Owners, 112 Emergency Alert Iceland, Nordisk Mobiltelefon AB, Nortel, Og Vodafone, National Energy Authority, The Icelandic Travel Industry Association and Iceland Telecom. Three of the above-specified parties plan to build up a new telecommunications network; two are manufacturers of equipment , and four are other interested parties.The discussion document specifically requested statements regarding the following points. Summaries of the replies received appear in blue: a) Number of operators As the frequency band in question is only 2 x 4.5 MHz, it could be argued that this is not suitable for division. The first paragraph of Article 9 of the Electronic Communications Act authorises PTA to limit the number of allocations to ensure effective use of frequencies. Market actors are asked whether they consider that there would be a demand for the allocation of only part of the frequency band, e.g. 2 x 1.5 MHz. Should one party be authorised to use the entire frequency band or should it be divided up between several operators? Most of the commenters deemed it clear that the most sensible course would be to assign the entire frequency range to one party. It nevertheless emerged that dividing the frequency range in two would be conceivable, with one party getting a 2/3 share and being subject to the most stringent requirements for distribution and service, while the other would get 1/3 and not be subject to the same distribution requirements. Should a geographical division be considered? The agreed view is that geographic division is not an option. b) Development of the electronic communications network and sale of consumer services No position has been taken in advance as to whether the party to whom this frequency band is allocated should construct and operate its own network and have exclusive right to sell services to the public, or whether other parties should be allowed access to the network and to sell services to the public. The following questions are thus asked: Does the party expressing an opinion intend to apply for allocation of the frequency band to construct its own network and sell services to the public? Three parties announced that they planned to use the frequency spectrum involved to build up their own network and sell service to the public. Does the party expressing an opinion anticipate granting other electronic communications enterprises access to the network in order to sell services to the public? This question was directed only to those planning to build up their own network. One of them answered the question with a yes, while one thought that this would be a possibility, and the third took no position Is the party expressing an opinion solely interested in gaining access to an electronic communications network owned and operated by another party, in order to provide services to the public? None of the commenters declared having any such interest. c) Service on the NMT-450 MHz frequency band Reference is made to the previously mentioned government policy in the Telecom Policy Statement, and its specific objectives concerning mobile communications and high-speed connections. How can the NMT-450 MHz frequency band be optimally utilised to achieve as many as possible of the specific objectives defined in the Telecom Policy Statement? Those answering this question emphasised that the proper technology should be used. A majority of the commenters thought that CDMA-450 would best ensure achievement of the goals, while others thought that the right technology would be GSM-450. How can a suitable balance be achieved between mobile communications, on the one hand, and high-speed connections, on the other? Those answering this question believed that technology would be the most important factor here, as in the preceding question about the best utilisation of the frequency spectrum. d) Coverage required of a new system The Telecom Policy Statement also discusses objectives on minimum coverage requirements. How should these requirements be put into practice? The general view was that the current coverage of the NMT system would be the natural standard. More stringent requirements could conceivably be made, but it would not be realistic to require service "everywhere in Iceland", i.e., anywhere at all in Iceland, as it is worded in the Telecom Policy Statement. Are they realistic or too limited in scope? The Telecom Policy Statement states in several places that certain services shall be provided "everywhere in Iceland". It can be concluded from the statements that a better definition is required as to what this precisely entails. Here, the following locations are presumably meant: Where there is permanent residence and summer cottage communities Popular tourist sites and trails (must be better defined) The main highways (must be better defined) It emerges in the statements that a sensible balance must be found between coverage requirements, on one hand, and return on the investment, on the other. Should the same requirements be set in urban and non-urban areas? A majority of those taking a stand believed that the same requirements should be made in urban and rural areas. e) Speed of development of a new system How quickly is it fair to expect a new system to be developed? It could be concluded from the answers that marketing parties think that the build-up will take 12-18 months after the authorisation for the frequency range has been issued. When should it commence? Those answering this think that it is realistic to aim at closing the current NMT service in the period September-December 2007. For this to work, build-up of a new system must start 12 months before, i.e., in the latter part of 2006. o Should the NMT system, perhaps, be operated temporarily on part of the frequency band, parallel to a new digital system? All commenters deemed it obvious that both systems would have to be operated in parallel for a certain period. It nevertheless emerged that this period must not be too long. It could be concluded from the answers that an appropritate period would be 6-12 months. f) Charges Should a fee be charged for the frequencies? Emphasis was placed on setting possible fees at a moderate level. Stringent coverage requirements would actually be the equivalent of charging a fee. If so, how high should this be, e.g. as a percentage of the frequency band fee for a traditional 3G system (UMTS)? Commenters avoided answering this question. g) Impact on other electronic communications systems Can service on the NMT-450 MHz frequency band be expected to compete with, complement or replace other services, or to make development in other areas unnecessary/unprofitable? Commenters' answers varied. It was not thought that there would be much competition in mobile phone services in urban areas; on the other hand, a new service would solve many problems in rural areas, regarding both mobile phone service and high-speed connections. It was pointed out that a new 450-MHz system would probably impede launching the build-up of third-generation systems on higher frequencies, at least in rural areas. This would be an option since build-up of such systems in the 2-GHz frequency range would be much more expensive since they were initially designed for areas with much greater population density than can be found in Iceland. It was finally pointed out that the build-up of a new system might jeopardise the further build-up of the TETRA system. Should this be considered in allocating frequencies? The commenters thought that the above points must be taken into account in allocating the frequency spectrum, without specifying how this should be done regarding particular points. Should the use of the NMT-450 MHz frequency band be authorised for the development of mobile phone services in urban areas, i.e. in direct competition with the anticipated introduction of traditional 3G mobile phone systems? Two of the three commenters planning to build up a new 450-MHz telecommunications network answered the question with a decided "yes". The third did not state his position. h) Miscellaneous Are there other aspects which should be considered in deciding how to utilise the NMT-450 frequency band in Iceland? Most of the commenters thought that the above-specified questions covered all aspects of the matter that were important. One commenter, however, heavily emphasised that the build-up of a new 450-MHz might have a negative effect on the build-up and operation of an emergency and security system like TETRA.

26. October 2005

Future usage of the NMT-450 spectrum

The Post and Telecom Administration (PTA) is today publishing on its web page a document intended for a public consultation by market players and others that are interested in the future usage of the NMT-450 MHz spectrum in Iceland. The NMT system, as it is regularly called, has served a very important role by providing service and security for fishermen and others that are travelling outside the coverage areas of the GSM systems. It has now been decided that the operation of the NMT system will be closed down in 2-3 years time. It is therefore necessary to draw attention to its replacement. The PTA wants this decision to be made in the spirit of the Telecom Policy Statement 2005-2010 that calls for a new long-range digital mobile phone system. A public input and opinions on issues such as; on the necessary numbers of service providers using the spectrum, methodology in regards to the build up of the mobile network, wholesale access, services, requirements on coverage, speed of the network build up, charges for spectrum usage, market influence on other telecom systems such as the 3rd generation mobile system, are among the questions that needs to be answered . Everyone is entitled to send in their opinions but strong emphasis is put on the value of answers from the registered telecom operators and other interested market players. The PTA will evaluate all inputs and thereafter put forward its recommendations on the usage of the spectrum, if a public auction is of a value in the process or if a public service contract might be more favourable solution. These options and others will be evaluated. For further information please contact Mr. Hrafnkell V. Gislason, Director of the Post and Telecom Administration. Document for discussion (PDF)

29. September 2005

Over 61.000 high-speed connections in Iceland

New statistics on Icelandic telecom market reveals a steady increase in high-speed connections to households. x-DSL subsribers are now 61.432 or almost twice as many as two years ago. Access channels in the fixed telephone network and digital subscriber lines 1994–30/6 2005 See data collection 06/2005 More statistics

21. September 2005

273.000 mobile subscribers in Iceland

According to a new overview Icelandic mobile subscribers are almost 273.000.The market share of Landsíminn, the incumbent actor, is 64,5%. Landsíminn has a 66,4% market share of prepaid cards. 20.564 long reaching NMT mobile phones are in use in Iceland - all subscribing to Landsíminn . Number of mobile subscribers

7. September 2005

Market analysis under consultation

The implementation of the Electronic Communications Act requires substantial work by PTA, particularly regarding ananlysis of the elctronic communications markets. All countries in the European Economic Area (EEA) are required to adopt the same regulatory approach, in order to harmonise rules of play. The results of PTAs market analysis are expected to further support the development of the Icelandic e-communications market towards harmonisation with the European market, as defined by e-communications law. In July 2005 the first drafts on analysis of telecom market nr. 15 and nr. 16, as defined by EU directives, were sent for consultation with interested parties in Iceland .