{"id":12996,"date":"2016-11-28T08:33:06","date_gmt":"2016-11-28T08:33:06","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=12996"},"modified":"2016-11-28T08:34:40","modified_gmt":"2016-11-28T08:34:40","slug":"three-uk-launches-fun-public-campaign-30-mobile-spectrum-cap","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2016\/11\/three-uk-launches-fun-public-campaign-30-mobile-spectrum-cap.html","title":{"rendered":"Three UK Launches Fun Public Campaign for a 30% Mobile Spectrum Cap"},"content":{"rendered":"

Mobile operator Three UK<\/a> has taken a leaf out of TalkTalk<\/a>’s “Fix Britain’s Internet<\/em>” book and launched a new campaign (‘Make the Air Fair<\/em>‘), which adopts the image of Ofcom<\/a>’s CEO, Sharon White, and calls on her to impose a spectrum ownership cap of 30% that would hit EE<\/a> (BT<\/a>) and Vodafone<\/a>.<\/p>\n

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At present EE<\/a> (BT<\/a>) own 45% of all the available mobile (2G, 3G<\/a>, 4G<\/a>) spectrum and that gives them a big advantage (network capacity, speeds, coverage etc.), while Vodafone<\/a> holds 28%, O2<\/a> has 15% and Three UK<\/a> are stuck in last place with a measly 12%.<\/p>\n

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Mobile operators Three UK<\/a> and O2<\/a> had hoped to tackle this imbalance by merging, but Ofcom<\/a> and the EU competition regulator blocked the deal out of fear that it would result in higher prices (here<\/a>). As a result Three UK, which owns the least spectrum but claims to handle 39% of all mobile traffic, needs to improve its spectrum holdings and thus boost their competitive position.<\/p>\n

The regulator, Ofcom<\/a>, is at least wise to the concern and admits that EE<\/a> has more spectrum than is fair. As a result they recently imposed a restriction on the forthcoming auction of radio spectrum in the 2.3GHz<\/strong> and 3.4GHz<\/strong> bands (here<\/a>), which will prevent EE from bidding on the 2.3GHz band but NOT 3.4GHz; this reflects a cap of 255MHz on “immediately useable<\/em>” spectrum that any one operator can buy.<\/p>\n

Ofcom has clarified that 3.4GHz is “not immediately useable, and we believe it is important that operators are given an opportunity to acquire this spectrum so they are able to consider early development of 5G<\/a> services<\/em>.” Naturally Three UK weren’t best pleased.<\/p>\n

Dave Dyson, CEO of Three UK, said:<\/strong><\/p>\n

“Ofcom exists to promote competition and protect consumers but it has once again shown it is not willing to make the big decisions needed to deliver the best outcome for the UK.<\/p>\n

It has allowed BT<\/a> and Vodafone<\/a> to stockpile valuable mobile airwaves and put genuine choice for consumers at risk. It made empty promises to the European Commission that it would tackle this issue but it doesn\u2019t have the courage to do so.<\/p>\n

The mobile industry is failing customers and Ofcom has showed it has no interest in addressing that. A 30% cap on total spectrum ownership and a spectrum reservation for smaller operators are the only measures that will preserve competition for the benefit of UK mobile consumers.”<\/p><\/blockquote>\n

However Three UK’s demand of a 30% cap<\/strong> would create both significant challenges for the future potential of EE to bid fairly for the necessary 5G<\/a> spectrum and limit the money earning potential of Ofcom’s auction, which probably wouldn’t please the Government.<\/p>\n

Meanwhile opponents suggest that Three UK has more than enough money behind it (i.e. parent CK Hutchison Holdings) to splash some cash on a good chunk of spectrum and they’ve had plenty of opportunities to do that in the past too, but haven’t. Had some concessions been extracted from the earlier merger of BT and EE then this might never have become such an issue.<\/p>\n

As it stands all of the arguments have some merit and Ofcom is trying to find the best balance, but Three UK isn\u2019t waiting. Instead they’ve launched a new ‘Make the Air Fair<\/a><\/strong>‘ campaign, which is supported by Cityfibre<\/a>, Gamma, TalkTalk<\/a>, FCS and Relish Wireless (i.e. many of the same friends from the earlier ‘Fix Britain’s Internet’ campaign against Openreach<\/a>). However O2<\/a> has not put its name down.<\/p>\n