Legal action threatens to delay spectrum auction

It has been reported that the auction of radio spectrum that is so important for the implementation of 4G broadband technology could be delayed as a result of legal challenges by two mobile network operators.

According to recent reports two major mobile network operators in the UK are considering legal challenges that could further delay the auction of radio spectrum, which could in turn further delay the roll out of 4G broadband across the nation. More spectrum is needed in order for 4G to be rolled out effectively, but once this technology is widely available consumers will be able to benefit from improved reliability, faster speeds, and better access.

However, it could take longer than expected for 4G to come to Great Britain because of the legal challenges that the two network providers, O2 and Vodafone, are considering. This comes after ministers finalised proposals with regards to long term dispute amongst mobile network operators over radio spectrum.

The government is said to be hoping that the auction of radio spectrum will take place in the first half of 2011, but this may not happen if the mobile network operators press ahead with their plans for legal action. The dispute is over the proposed allocation of spectrum, which the providers have said is unfair, and an official from Vodafone said: “Fair allocation of spectrum is vital for our customers and for competition in the UK’s mobile industry. There needs to be an urgent reexamination of what can be done to amend the current proposals.”

One of the concerns expressed by O2 and Vodafone is that the merged Orange and T-Mobile will be able to sell its spectrum to a single bidder, which will most likely be either O2 or Vodafone, but this means that one of the two will end up missing out.

Source – FT