EC to insist on one buyer for 1800MHz UK spectrum

The European Commission is believed to have told mobile operators T-Mobile and Orange that they must sell off a highly valuable block of 1800MHz spectrum to a single buyer.
The EC approved the merger of the two UK mobile operators on the condition that…

The European Commission is believed to have told mobile operators T-Mobile and Orange that they must sell off a highly valuable block of 1800MHz spectrum to a single buyer.

The EC approved the merger of the two UK mobile operators on the condition that the combined entity agreed to sell a quarter of its 1800MHz spectrum, although it was expected that the firms would be able to sell the block of 2 x 15 MHz frequency to more than one buyer. This is not to be the case, however, which will be displeasing to Vodafone and O2 and leaves 3 as the obvious buyer were it to find sufficient funds.

The UK’s smallest mobile operator 3 would see great value in the 1800MHz spectrum as it is more useful than the 2100MHz 3G spectrum – sold off in 2000 – that it currently uses. With the lower frequency 3 would require fewer base stations to cover the same area.

Vodafone and O2 already own 18000MHz and 9000MHz spectrum, meaning that T-Mobile and Orange’s cast offs would be of less concern to them.

The reasons for the EC’s decision are not yet clear but it could mean that not all of the UK’s operators will be able to offer best quality wireless broadband services.

Germany is due to auction 1800MHz spectrum in April.