GENEVA-Second-ranked Spanish carrier, Retevision, is taking to the air waves with plans to build one of the world’s largest networks based on point-to-point and point-to-multipoint fixed wireless access technology.
The company, which became Spain’s first new market entrant following the liberalization of the Spanish market in 1998, already delivers fixed-line voice, data and Internet services to more than 2.1 million customers across the country, in addition to serving around 800,000 customers through its Amena GSM network. Now, through a slew of contracts valued at more than US$190 million, it is building a nationwide 3.5 GHz and a nationwide 26 GHz FWA network, both of which will help it deftly sidestep onerous interconnect charges and establish a closer link with its growing customer base.
The new networks will target both business and residential customers throughout the country, initially focusing on users in Spain’s largest cities and secondary population centers. Winning bidders for the infrastructure buildout include Alcatel, L.M. Ericsson, Lucent Technologies Inc., Marconi and Siemens, each of which will undertake specialized aspects of the project, from design and construction to negotiation with local Spanish authorities on access rights for antenna placement.
The 3.5 GHz point-to-point and point-to-multipoint systems will be dedicated to voice and low-end data applications, while the 26 GHz point-to-multipoint network will support a broader range of applications, from voice to full-scale broadband services. Capable of carrying traffic at speeds of up to 155 Megabits per second, the 26 GHz system is being put in place by Alcatel, which already supplies Retevision with point-to-point technology, and Marconi, Retevision’s major supplier of Synchronous Digital Hierarchy transmission equipment. With most of the 350,000 wireless lines and 12,000 network terminals in place, the system is expected to come online later this summer.
For Retevision, the FWA network represents a chance to break clear of incumbent, Telefonica, which still dominates the country’s fixed-line and mobile markets and enjoys a monopoly on local calls until the end of this year. Controlled by Telecom Italia, one of Europe’s most successful carriers, in partnership with local power companies Endesa and Union Fenosa, Retevision has quickly earned a reputation as an aggressive player, investing $2.44 billion to date in a state-of-the-art network incorporating advanced, high-capacity technologies such as Wave Division Multiplexing.
Now, through its high-speed fixed wireless access system, it is hoping to capitalize on the imminent opening of the country’s local call market and growing pressure from customers for lower prices and converged service offerings.
Figures released by Spain’s Telecoms Market Commission at the beginning of June show a migration of 6,000 long-distance customers a day from Telefonica to alternative operators.
