Mobile network operators O2 and Vodafone could be excluded from the auction process for buying additional spectrum when UK switches off its analogue network.
Both mobile companies could therefore keep their spectrum but won't be able to bid for the new 800Mhz which will be made available after the move to digital TV and radio takes place. Vice versa, they will have to sell existing spectrum to be able to acquire more for mobile broadband and other services.
The news was announced by Independent spectrum broker Kip Meek who was in charge of coming up with a proposal to solve the current deadlock.
Ofcom is looking to use the 900Mhz spectrum as part of plans to get mobile broadband coverage for rural areas but this would entail taking away spectrum from O2 and Vodafone.
Both companies are obviously against this scenario. Hence Meek's proposal looks more like a carrot-and-stick solution, especially given the fact that T-Mobile, 3 and Orange would be allowed to get their hands on the 800Mhz spectrum band.
Stephen Carter said that "The Independent Spectrum Broker has concluded that there is a need to find a new comprehensive approach to enable the roll-out of Next Generation Mobile Services, which offer enormous benefits for the UK economy".
and join more than 1400 other followers.
Our Comments
O2 and Vodafone do not really have the choice as the current government has made of universal broadband service one of its priorities. It looks though that O2 could possibly relinquish some of its allocated spectrum as its UK CEO, Ronan Dunne, has already said that Meek's report is a "significant step forward in making Digital Britain a reality and is good news for UK PLC".
Related Links
Government response to independent Spectrum broker's report
http://media-newswire.com/release_1091263.html
Vodafone and O2's spectrum could be taken away
http://www.itpro.co.uk/610835/vodafone-and-o2s-spectrum-could-be-taken-away
UK Government to Cap Mobile Broadband Spectrum Ownership
Everything you need to know about Ofcoms possible “bandwith cap” for mobile operators
Lord Carter's lieutenant proposes mobile broadband shakeup
http://www.guardian.co.uk/technology/2009/may/13/kip-meek-mobile-broadband-spectrum
Mobile Auction Would Allow UK-Wide 4Mbps Broadband
Ofcom mulling frequency cap for mobile operators
http://www.telegeography.com/cu/article.php?article_id=28421&email=html
Networks subject to spectrum cap
http://www.mobilenewscwp.co.uk/News/250179/networks_subject_to_spectrum_cap.html
Vodafone, Telefonica Hold Onto U.K. Mobile Spectrum
http://online.wsj.com/article/BT-CO-20090513-705371.html
UPDATE 2-UK may cap spectrum ownership for mobile telcos
http://www.reuters.com/article/technology-media-telco-SP/idUSLD55295720090513