UK telecoms regulator Ofcom expects to make a decision early next year over whether to allow mobile giants Vodafone and Telefonica’s O2 to keep their 900MHz frequencies when bidding for the 800Mhz band of low spectrum at the end of 2011.
Ofcom’s official…
UK telecoms regulator Ofcom expects to make a decision early next year over whether to allow mobile giants Vodafone and Telefonica’s O2 to keep their 900MHz frequencies when bidding for the 800Mhz band of low spectrum at the end of 2011.
Ofcom’s official stance still stands that a ruling is subject to a competition consultation, which will take place “as soon as it is practicable”.
However, TelecomFinance understands that the regulator is keen to start the process soon after the government returns from recess in October. A 12-week consultation is therefore likely to begin before the end of the year, meaning an official ruling could come in early 2011.
Citing an unnamed Vodafone official, a report by Bloomberg today suggested the new coalition government believes the current cap on how much of the prized frequencies, which are able to travel long distances with few expensive base stations, Vodafone and O2 will be able to acquire is inappropriate.
Vodafone did not return calls before going to press.
A spokesman for O2 denied knowledge of the reports, but it is understood that, if a ruling was to be made in their favour, the company would be keen to bid for the 72MHz wide slice in the 800MHz band to cater for growing worldwide demand for mobile data and mobile internet.
Services that could be run on the spectrum that is going up for sale include the long-term evolution (LTE) of 3G and WiMax.
The company sees LTE as a promising future technology for the mobile industry, and says that Telefonica is currently testing and developing LTE networks in the UK, Brazil and Spain.
