{"id":12622,"date":"2016-10-04T11:22:25","date_gmt":"2016-10-04T10:22:25","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=12622"},"modified":"2016-10-04T11:41:06","modified_gmt":"2016-10-04T10:41:06","slug":"fixed-line-isps-three-uk-call-spectrum-cap-ee-vodafone","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2016\/10\/fixed-line-isps-three-uk-call-spectrum-cap-ee-vodafone.html","title":{"rendered":"Fixed Line ISPs and Three UK Call for Spectrum Cap on EE and Vodafone"},"content":{"rendered":"<p>Mobile operator <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/threeuk\" rel=\"nofollow\" target=\"_blank\">Three UK<\/a> has today roped in <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">Cityfibre<\/a>, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/tt\" rel=\"nofollow\" target=\"_blank\">TalkTalk<\/a>, Relish Wireless and the <a href=\"http:\/\/www.fcs.org.uk\/\" target=\"_blank\">Federation of Communication Services<\/a> (FCS) in order to press <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> for a 30% cap on the total amount of mobile spectrum that any one company can own, which is largely targeted at <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/eebroadband\" rel=\"nofollow\" target=\"_blank\">EE<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a>) and <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vodafoneuk\" rel=\"nofollow\" target=\"_blank\">Vodafone<\/a>.<\/p>\n<p><!--more--><\/p>\n<p>The fact that <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/threeuk\" rel=\"nofollow\" target=\"_blank\">Three UK<\/a> recently joined the &#8216;<em>Fix Britain&#8217;s Internet<\/em>&#8216; campaign against <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/openreach\" target=\"_blank\">Openreach<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a>), which houses some of the same outspoken members, is unlikely to be a coincidence and perhaps demonstrates an element of <span data-dobid=\"hdw\">quid pro quo<\/span>.<\/p>\n<p>Certainly <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/threeuk\" rel=\"nofollow\" target=\"_blank\">Three UK<\/a> has made no secret of its desire to see a spectrum cap being imposed (<a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2016\/09\/spectrum-starved-three-uk-asks-ofcom-tackle-bt-ees-mobile-power.html\">here<\/a>), not least upon <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a>&#8217;s upcoming auction of spectrum in the\u00a0<strong>2.3GHz <\/strong>(2350 \u2013 2390MHz) and <strong>3.4GHz<\/strong> (3410 \u2013 3600MHz) bands, and it&#8217;s easy to understand why.<\/p>\n<p>Both <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/eebroadband\" rel=\"nofollow\" target=\"_blank\">EE<\/a>) and <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vodafoneuk\" rel=\"nofollow\" target=\"_blank\">Vodafone<\/a> currently hold a lot more spectrum than their rivals, which gives them a distinct advantage in terms of network coverage and service speeds (especially in urban areas). At one point Three UK had hoped to solve this problem by merging with <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/o2uk\" rel=\"nofollow\" target=\"_blank\">O2<\/a>, but <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> and the EU smacked that idea down like a frozen fish (<a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2016\/05\/eu-puts-the-brakes-on-o2-and-three-uk-merger-a-concession-too-far.html\">here<\/a>).<\/p>\n<div align=\"center\"><img decoding=\"async\" src=\"http:\/\/www.ispreview.co.uk\/images3\/uk_mobile_broadband_radio_spectrum_holdings_2014.gif\" border=\"0\" \/><\/div>\n<p>Any cap would seriously hinder <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/eebroadband\" rel=\"nofollow\" target=\"_blank\">EE<\/a> \/ BT and <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vodafoneuk\" rel=\"nofollow\" target=\"_blank\">Vodafone<\/a>&#8217;s ability to bid on new spectrum, which in turn presents a problem for Ofcom because they also need to try and raise as much money as possible from future auctions (partly in order to satisfy the Government) and that won&#8217;t happen if two of the biggest players are forced out.<\/p>\n<p>So far Ofcom has rejected the idea of a cap, but that was before BT and EE&#8217;s merger got waved through without any concessions and not forgetting the move to stop Three UK and <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/o2uk\" rel=\"nofollow\" target=\"_blank\">O2<\/a>&#8217;s proposed deal. Suffice to say that the regulator&#8217;s position against a cap is beginning to look a little shaky and they&#8217;ll hopefully want to avoid creating another monopoly in the mobile sector.<\/p>\n<p>On the other hand BT \/ EE and Vodafone might well question why Three UK, which seems to be in reasonably good financial health, hasn\u2019t previously tried to acquire more spectrum when it had the chance. It&#8217;s into this battle that today&#8217;s Open Letter has surfaced..<\/p>\n<blockquote><p><span style=\"color: #339966;\"><strong>Open Letter to Ofcom&#8217;s CEO (Sharon White)<\/strong><\/span><\/p>\n<p>Dear Sharon,<\/p>\n<p>Next year Ofcom will auction another tranche of a critical but finite national asset with the release of 190MHz of spectrum. Spectrum is the lifeblood of the mobile industry. It determines a network\u2019s ability to offer consumers a fast, reliable and good value mobile network. It is therefore vital to competition, ensuring customers have a genuine choice of mobile networks wherever they are.<\/p>\n<p>The UK suffers from the largest imbalance in spectrum distribution across mobile operators of any developed country. BT already owns nearly half of the UK\u2019s vital airwaves and Vodafone nearly a third.<\/p>\n<p>This imbalance has developed as a consequence of Ofcom\u2019s failure to put protections in place that ensure all networks have access to sufficient amounts of spectrum to deliver both a great mobile service and competitive prices.<\/p>\n<p>Ofcom has acknowledged the role that four networks with sufficient access to spectrum played in mobile prices falling by two thirds between 2003 and 2013. However, the growing imbalance in spectrum distribution has more recently led to a rise in prices for mobile users. Ofcom also recognises that there is a worrying inequality across the UK for consumers to access latest technologies as well as to the full choice of all 4 mobile operators.<\/p>\n<p>Failure to tackle the imbalance will see consumers suffer the misery of higher prices for a poorer service at a time when mobile\u2019s importance to the digital economy has never been greater.<br \/>\nYou can fix this. The next auction of spectrum could be your last opportunity to give UK mobile customers a highly competitive mobile market which gives them the speeds, coverage and performance they deserve and demand.<\/p>\n<p>We call on Ofcom to apply a cap of 30% on the total amount of mobile spectrum any one company can own following the auction.<\/p>\n<blockquote><p><strong>A 30% cap will deliver:<\/strong><br \/>\n* Real and sustainable choice of networks for consumers and businesses<br \/>\n* Better network coverage and faster download speeds for all customers<br \/>\n* A mobile industry that ensures that the UK is at the forefront of new technologies like <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/5g\">5G<\/a> and the associated economic benefits<br \/>\n* More choice for consumers through a healthier wholesale sector<\/p><\/blockquote>\n<p>A 30% cap is not a radical intervention as it has no downside or negative consequences. A cap at this level will allow a competitive bidding process among existing operators and new entrants and provide a fair return to the public purse.<\/p>\n<p>By protecting effective competition and supporting a market with genuine choice, a 30% cap would also deliver significant long-term economic benefits for the UK well beyond the short-term sales proceeds of the auction.<\/p>\n<p>Most of all, it will ensure that UK consumers see real benefit from this vital national resource. BT and Vodafone already sit on large amounts of unused mobile spectrum, currently supported by mobile handsets. This denies customers of other networks access to increased speeds and better customer experience. The failure to implement the cap will mean that both BT and Vodafone have the opportunity to stockpile even more airwaves and increase their dominance with competition and consumers suffering as a result.<\/p>\n<p>Even if such an outcome is considered unlikely, unless it can be completely eliminated as a potential scenario, it would be reckless to avoid making an intervention that has no downside for UK consumers.<\/p>\n<p>Ofcom must therefore act to implement a cap of 30% to fulfil its duty to protect consumers and allow competition to thrive.<\/p>\n<p>Yours sincerely,<\/p>\n<p>[The CEOs of Three UK, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">Cityfibre<\/a>, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/tt\" rel=\"nofollow\" target=\"_blank\">TalkTalk<\/a>, <a href=\"http:\/\/www.ispreview.co.uk\/index.php\/go\/relish\" target=\"_blank\">Relish<\/a> and FCS]<\/p><\/blockquote>\n<p>It&#8217;s worth remembering that Ofcom views 2.3GHz and 3.4GHz as being used by operators to foster &#8220;<em>very fast download speeds<\/em>&#8220;, which is something that EE has being doing a lot of lately. But their plan on that front might be hampered if EE and Vodafone are unable to bid. We also note that <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/o2uk\" rel=\"nofollow\" target=\"_blank\">O2<\/a> didn&#8217;t sign the letter.<\/p>\n<p>A Spokesperson for EE told ISPreview.co.uk last month, &#8220;<em>We have never stopped using our spectrum to deliver the very best network experience for customers. We pioneered <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/4g\">4G<\/a> and we are a leader in network speeds. We are unique in our commitment to expand <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/4g\">4G<\/a> coverage to 95% of the UK\u2019s landmass by 2020, further than any other UK network has done, and will continue to ensure the UK stays at mobile technology\u2019s leading edge<\/em>.&#8221;<\/p>\n<p>Ofcom are expected to outline their revised plans for the auction this autumn.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mobile operator Three UK has today roped in Cityfibre, TalkTalk, Relish Wireless and the Federation of Communication Services (FCS) in order to press Ofcom for a 30% cap on the total amount of mobile spectrum that any one company can own, which is largely targeted at EE (BT) and Vodafone.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[61,474,418,405,60,32,36,74,63,96],"class_list":["post-12622","post","type-post","status-publish","format-standard","hentry","category-uk_isp_news","tag-4g","tag-bt","tag-cityfibre","tag-ee","tag-mobile-broadband","tag-o2","tag-ofcom-regulation","tag-talktalk","tag-three-uk","tag-vodafone"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - 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