bassethound
22-03-11, 15:13
Ofcom has today announced plans to launch the largest ever single auction of the mobile phone spectrum in 2012, towards the aim of boosting internet connectivity around the UK.
In the first quarter of next year, the media regulator will put up for sale what is equivalent to three quarters of the mobile spectrum in use today, around 80% more than was sold off in the multi-billion pound 3G auction that took place in 2000.
The spectrum is required to provide capacity for the launch of fourth-generation (4G) mobile technology, also known as "Long-Term Evolution" (LTE), capable of delivering mobile broadband speeds of up to 100Mbps.
It is also required to meet the growing demand for mobile data in the UK, due to the increasing use of smartphones and tablet computer devices.
In the auction, Ofcom will limit both the maximum and minimum the four mobile networks - Vodafone, O2, 3 and Everything Everywhere (Orange and T-Mobile) - can purchase as a way to safeguard competition. This system is known as auction 'floors' and 'caps'.
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.
"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."
The auction will cover two spectrum bands - 800 MHz and 2.6 GHz. The lower frequency of 800 MHz is part of the "digital dividend", freed up as the UK switches from analogue to digital television. The 2.6 GHz band is at a higher frequency, and is more suited to delivering higher speed services.
Combined, the two bands make up around 250 MHz of additional mobile spectrum, which Ofcom believes would create "the ideal conditions for next-generation mobile broadband services".
The UK raised around £22 billion when it auctioned off the 3G spectrum in 2000, but the 4G sell-off is not expected to generate a similar windfall for the Treasury.
Ofcom is running an online consultation of the terms of the 4G auction, and the regulator aims to start the sale in the first quarter of 2012.
The 4G auction comes as part of Ofcom's drive to free up the UK's mobile networks to enable more advanced services that will boost competition and benefit consumers.
In January, the regulator gave the go-ahead for mobile operators to utilise the 2G spectrum used for making phone calls and sending texts to provide 3G services such as mobile broadband.
A month later, Ofcom also announced plans to allow the UK mobile operators to trade radio spectrum as a way to improve network management and bring faster, more reliable services to consumers.
In the first quarter of next year, the media regulator will put up for sale what is equivalent to three quarters of the mobile spectrum in use today, around 80% more than was sold off in the multi-billion pound 3G auction that took place in 2000.
The spectrum is required to provide capacity for the launch of fourth-generation (4G) mobile technology, also known as "Long-Term Evolution" (LTE), capable of delivering mobile broadband speeds of up to 100Mbps.
It is also required to meet the growing demand for mobile data in the UK, due to the increasing use of smartphones and tablet computer devices.
In the auction, Ofcom will limit both the maximum and minimum the four mobile networks - Vodafone, O2, 3 and Everything Everywhere (Orange and T-Mobile) - can purchase as a way to safeguard competition. This system is known as auction 'floors' and 'caps'.
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.
"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."
The auction will cover two spectrum bands - 800 MHz and 2.6 GHz. The lower frequency of 800 MHz is part of the "digital dividend", freed up as the UK switches from analogue to digital television. The 2.6 GHz band is at a higher frequency, and is more suited to delivering higher speed services.
Combined, the two bands make up around 250 MHz of additional mobile spectrum, which Ofcom believes would create "the ideal conditions for next-generation mobile broadband services".
The UK raised around £22 billion when it auctioned off the 3G spectrum in 2000, but the 4G sell-off is not expected to generate a similar windfall for the Treasury.
Ofcom is running an online consultation of the terms of the 4G auction, and the regulator aims to start the sale in the first quarter of 2012.
The 4G auction comes as part of Ofcom's drive to free up the UK's mobile networks to enable more advanced services that will boost competition and benefit consumers.
In January, the regulator gave the go-ahead for mobile operators to utilise the 2G spectrum used for making phone calls and sending texts to provide 3G services such as mobile broadband.
A month later, Ofcom also announced plans to allow the UK mobile operators to trade radio spectrum as a way to improve network management and bring faster, more reliable services to consumers.