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Ofcom and govt hit out at 4G mobile broadband complaints
Network operators have been told not to delay the 4G mobile spectrum auction.
Carriers Everything Everywhere, O2, Vodafone and 3 Mobile - and possibly a number of other telecoms firms - are set to bid for the airwaves in the first quarter of 2012 under plans from Ofcom, the industry regulator.
However, this timetable is at risk of being delayed after BT and O2 expressed their opposition to the existing proposals, with both companies claiming the strategy effectively offers their rivals a public subsidy.
Responding to the complaints, Ofcom warned it is prepared to "robustly" defend the decisions it has made towards the auction process, but insisted that any delay in the rollout of next-generation mobile broadband services must be avoided.
"We consider that it is in the best interests of citizens, consumers and the companies operating in the sector that we move on, without additional delays, so that the frequencies can be put to good use," the watchdog told the Financial Times.
This message was reinforced by the Department for Culture, Media and Sport, which said: "It is essential for consumers, the communications market and our wider economy that this spectrum is released as soon as possible."
O2's objection stems from Ofcom's decision to implement 'spectrum floors' in the auction to ensure that all bidders emerge with a reasonable amount of capacity.
It argued this measure will distort the sales process by potentially allowing all service providers apart from O2 and Vodafone to acquire spectrum at a knock-down rate, meaning the plan is tantamount to state aid and illegal under EU law.
BT's complaint was along similar grounds, with the telecoms giant describing Ofcom's proposals as an "anti-competitive subsidy" against fixed-line broadband.
Meanwhile, 3 Mobile has expressed concern that the regulator has placed "insufficient weight" on the 4G auction and the recent refarming of the 900MHz and 1,800MHz spectrum bands, the Wall Street Journal reported.