4G mobile broadband spectrum auction delayed

Tuesday, September 6th 2011
Opposition from network operators has led to the delay of the spectrum sell-off.
4G mobile broadband spectrum auction delayed
The UK's forthcoming mobile broadband spectrum auction has been delayed and will not take place until the second quarter of 2012 at the earliest, Ofcom has announced.

Terms of the sell-off were expected to be published by the telecoms watchdog this month, but that date has been pushed back until November following veiled threats of legal action by network operators such as O2, reports the Guardian.

As a result, Ofcom revealed it will not be able to achieve its original goal of holding the auction in the first quarter of next year.

Commenting on the development, a spokesman from the regulator said it is still aiming to hold the sale in the first half of 2012, but noted the organisation has always maintained that its timescale is "ambitious".

He insisted the auction is a "complex" matter involving several technical and competition issues that must be ironed out before proposals can be finalised.

Among these matters is the fact that a very high proportion of UK households get their digital TV from Freeview. Spectrum used by the free-to-air TV platform must be relocated before the auction can proceed, the Ofcom source explained.

"We note that because these technical issues need to be satisfactorily resolved before new networks can be built, it will not be possible for mobile operators to start rolling out 4G networks until 2013 at the earliest, regardless of when the auction itself actually takes place," he added.

The news comes shortly after David Dyson, the new chief executive of 3 Mobile, warned that rival carriers Everything Everywhere, O2 and Vodafone would be eager to see the sell-off delayed.

Speaking to the Financial Times, he claimed all of these network operators have something to gain from the sale being pushed back.

Consequently, Mr Dyson called on Ofcom and the government to "take a strong lead to make sure that any potential disruption to the auction is dealt with effectively".

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