Three Wants Early Spectrum Auction as Network Capacity Issues Prevail

Telecom giant Three has raised the alarm by saying that the company may soon run out of capacity in urban areas if there are any further halt in the spectrum auctions.

It further stated that the networks within the country are already facing from capacity outage with a consistently rising consumption of data by consumers.

The auctions, aimed at freeing up space for the next generation mobile services were originally scheduled to be held in the mid-2012. However, according to Three the timetable is “already slipping”.

Three argued that it was vital for the firm to gain its own share of new spectrum, and also that its rivals could attempt to force a delay in the auction process.

"There is a huge financial incentive for rival operators to delay the auction. We are worried that the other three will attempt to squeeze us out of the market," said 3’s chief executive David Dyson at a press briefing in London, BBC News reports.

Meanwhile, Ovum analyst Matthew Howett expressed his mind on the spectrum auction by saying: "The more that is bid for new spectrum the more operators will pay in fees for existing spectrum. They will only start paying the fees from the end of the auction so there is an incentive to delay it.”