Posted: 13th Feb, 2009 By: MarkJ
Ofcom has launched a second consultation (
here) on the principal of using older 2G (900MHz) radio spectrum for delivery of faster
Mobile Broadband (3G) services over wider coverage. The move follows yesterdays meeting (
here) between all of the UK's major mobile phone operators and the governments communications minister, Lord Carter.
The result appears to have been a new proposal, which would see
Vodafone and
O2 being required to give up 10MHz of spectrum in total (made up of 2 x 5 MHz) from their 900MHz licenses. It's believed that the move would cost both operators between £60m to £90m.
This wireless spectrum would then be released to the market through an auction held by
Ofcom, with the new owners using it to deploy 3G based
Mobile Broadband services.
Ofcom estimates that the benefits of liberalisation to UK citizens and consumers could be worth up to £5 billion.
Ofcom would aim to auction the released spectrum in summer 2010 and the licences would be made tradable to ensure the most efficient use. Interestingly the idea of exchanging some of the 1800MHz band held by
Orange and
T-Mobile for
O2 and
Vodafone's 900MHz appears to have been dropped.