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Ofcom gives thumbs up to mobile broadband spectrum trading
Mobile spectrum can now be traded between rival carriers, Ofcom has ruled.
Of the 80 million mobile devices in the UK, more than 12.8 million are smartphones that are placing a strain on existing infrastructure through their users' desire to access the web while on the go.
Under the new regulations set out by Ofcom yesterday (June 20th 2011), carriers will be able to buy and sell radio waves in the 900MHz, 1,800MHz and 2,100MHz spectrum bands in order to help them meet some of this demand for mobile data.
"It will allow operators with a greater need for spectrum to make offers for spectrum from those who need it less," the regulator explained. "It is hoped that this added flexibility will help operators to respond more efficiently to demand."
Service providers have been acquiring airwaves over the past two decades, with some holding more than others. As a general rule, the more spectrum an operator has, the better its network can cope with mobile broadband usage, voice calls and SMS messaging.
Ofcom hopes that by enabling trading, spectrum will be used more efficiently, bringing benefits to consumers across the country in terms of the mobile services they can receive.
The body will be responsible for the administration of the trading process and the consideration of whether a proposed sale could adversely affect competition in any given area.
Responding to the news, 3 Mobile questioned whether Ofcom's plans do enough to encourage rival carriers to trade with one another.
"Ofcom's ambition to deliver faster and more capable services to consumers is best served by a truly competitive allocation of this public asset," a spokesman said.
The announcement comes ahead of the auction of spectrum to support next-generation mobile broadband services, with Ofcom keen for the sale to take place in the first quarter of 2012.