UK telco Everything Everywhere is receiving interest from both existing and aspiring mobile operators for the spectrum it intends to sell before October.
Olaf Swantee, EE’s CEO, told TelecomFinance that the company has been approached by existing…
UK telco Everything Everywhere is receiving interest from both existing and aspiring mobile operators for the spectrum it intends to sell before October.
Olaf Swantee, EE’s CEO, told TelecomFinance that the company has been approached by existing players, as well as “people that are today not operating directly in our market”.
Swantee said the 2×15 of 1800MHz frequencies it is required to divest under European Commission rules would be enough for a company with no previous spectrum to offer viable services.
Acquiring the frequencies from EE would also give a new entrant to the UK’s mobile market a level of clarity over its spectrum portfolio ahead of the country’s 4G auction in Q4, he added.
Swantee declined to disclose further details of the companies looking to bid for its spectrum, which is being sold in a process managed by Morgan Stanley.
However, a number of UK-based companies have already expressed interest in entering the mobile market through regulator Ofcom’s 4G auction later this year.
Pay-TV firm BSkyB and fixed line operators BT and Virgin Media have already hinted they could take part, as Ofcom proposes auction rules that would make it easier for new players to pick up spectrum.
But an aspiring mobile operator would need more than just the right frequencies to launch commercially. It would also need access to a costly infrastructure of radio sites, transmission and backhaul networks.
Rival mobile operators Vodafone and O2, whose spectrum is predominately in the 900MHz band, are also likely to be the frontrunners for the additional spectrum. Hutchison-owned 3 UK, the country’s smallest operator, would presumably also be interested in the extra capacity as demand for mobile broadband continues to skyrocket.
EE, a Deutsche Telekom and France Telecom joint venture, must divest the spectrum this year to satisfy European Commission conditions that are tied to its approval for the creation of the JV.
If it fails to sell the frequencies this year, the spectrum will join Ofcom’s 4G auction. This would result in Everything Everywhere being unable to profit from the sale, which reports have valued at £425m (US$688m).
