4G auction could be delayed once again

Following reports of complaints from two communications and broadband giants the 4G broadband spectrum that is scheduled for next year could be delayed once again.

The 4G spectrum auction that is schedules for 2012 is something that has been eagerly awaited by many providers and consumers. The auction has already experienced a number of problems over the past couple of years, from the threat of legal action to long delays. However, at present it is scheduled for the early part of next year.

According to recent reports, however, this could once again be delayed as a result of possible action from two broadband and communications giants. BT and O2 have accused the UK’s communications regulator, Ofcom, of acting illegally by offering rival mobile operators up to £1bn of “illegal state aid”. They said that this breaches EU laws and O2 said that the proposals from Ofcom to ensure that all four operators in Britain are give minimum spectrum floors will artificially reduce spectrum prices at auction leaving the exchequer around one billion pounds down.

O2 said: “We believe that the proposed spectrum floors are a state aid and are therefore illegal under European Union law. The spectrum floors would distort the auction process, allowing all bidders bar Vodafone and O2 to potentially acquire spectrum at discounted prices.”

One industry official said: “If any of the operators go ahead with their threats to launch legal challenges the auction could be delayed by at least a year, which will leave the UK languishing even further behind other European countries which have far more advanced mobile phone networks.”

Source – Guardian