Telecom’s regulator, Ofcom has announced plans for a sell-off of additional spectrum for mobile data services in the UK. It says that the additional spectrum is 80% more than the 3G space which was auctioned in 2000, and is equivalent to 75% of the current total spectrum.
The new spectrum is intended to be used for the next generation of faster mobile data services, known as 4G. Ofcom chief executive, Ed Richards, said ‘The auction is not only critical to the future of the UK mobile telecommunications market but it is also of significant importance to the wider economy. It will support a wide range of data services that are fast becoming essential features of the modern world.’
The term 4G is used to cover a number of next generation services including WiMax and Long Term Evolution (LTE), and the auction will include two spectrum bands; 800MHz and 2.6GHz.
The 800MHz frequency is part of what Ofcom calls the ‘digital dividend’ — spectrum freed up following the digital TV switchover. It’s seen as being a good way to increase the breadth of mobile coverage across the country, while the 2.6GHz spectrum will be used to deliver high-speed data services.
Ofcom is keen to ensure that the auction promotes fair competition between the UK’s four national network wholesalers and has placed conditions on the auction to make sure this happens.
‘Our role as the independent regulator is to award this spectrum in a way that secures the best use of the spectrum for the benefit of citizens and consumers in the UK. That is why we are proposing to design the auction in a way that not only encourages investment but also promotes competition and delivers wide coverage of services,’ said Richards.
In addition, Ofcom has proposed that one licence for the 800MHz spectrum will have a minimum service guarantee that will force the licensee to cover 95% of the UK. In addition, the regulator has proposed specifying a service guarantee in defined parts of the country, such as rural areas.
The auction is due to begin in the first quarter of 2012.
