The communications regulator, Ofcom UK, has today "given the go-ahead" for Mobile Network Operators (MNO) to boost their Mobile Broadband network capacity, speeds and reliability by allowing them to trade their wireless network licences in the 900MHz, 1800MHz and 2100MHz (radio frequency) spectrum bands.

The move is essentially designed to allow operators with a greater need for spectrum, such as Three (3) UK, to make offers for spectrum from those who need it less. In an ideal world this would allow MNO's to "respond more efficiently to demand", although such trading is likely to come at a price and in some cases could even give rise to competition concerns.


But who would use it? Larger operators won't wish to give any spectrum away without being able to extract a good profit; otherwise they could lose some of their competitive advantage. Likewise the 800MHz and 2.6GHz band auctions are just around the corner and spectrum trading could also form a part of that process.

Meanwhile the government would still very much like to see both O2 and Vodafone sharing out some of their prized 900MHz band. So far they haven't had much luck with that. The new measures should come into force on 4th July 2011.

Separately Ofcom has also decided to vary the existing 2100MHz 3G Mobile Wireless Telegraphy Act licences. This would require related mobile operators to ensure that 90% of the UK could "receive the [3G Mobile Broadband] service with a sustained downlink speed of not less than 768Kbps in a lightly loaded cell" by 30th June 2013. That's somewhat shy of the government's 2Mbps minimum speed target.

Ofcom Spectrum Trading (PDF)

Ofcom Variation of 2100MHz Licences (PDF)