26th May 2015 10:21
LONDON (Alliance News) - UK telecommunications regulator Ofcom on Tuesday outlined plans for the auction of 2.3 gigahertz and 3.4 gigahertz spectrum bands, and launched a consultation with potential bidders on how to proceed with the auction.
The spectrum bands are being released for civil use and could be suitable for providing high data capacity.
Ofcom noted that, since it last consulted on this auction, BT Group PLC announced plans to acquire EE Ltd, whilst Three owner Hutchison Whampoa Ltd agreed to acquire the 02 network from Telefonice SA. If the latter merger goes ahead, Ofcom says, it will reduce the UK wholesale mobile market from four major operators to three.
"It is not Ofcom's role to decide whether these mergers should go ahead. This rests with the relevant competition authorities. However, Ofcom has a duty to secure the optimum use of spectrum," Ofcom said.
The consultation invites bidders to comment on an option whereby Ofcom would award most of the newly available spectrum later this year or early in 2016, with the remaining frequencies to be held back for award at a later date.
The regulator said it believes this option may be preferable to either awarding all of the spectrum or delaying the award.
Ofcom would issue licences for the two spectrum bands for an indefinite period, but with an initial term of 20 years, after which licence fees may be payable. There will be no coverage obligations placed on this spectrum, it said.
Shares in BT are trading up 0.8% at 454.45 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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