Frequency talks see O2 and Vodafone upping the Ante

The recent talks taking place between Communications Minister Stephen Carter and mobile network operators O2 and Vodafone was described by one the parties as “a good game of poker.”

The frequencies currently held by the two mobile broadband providers in the 900MHz band for use with so-call 2G mobile telephony is something that Stephen Carter is trying to get the operators to give up. By doing this it would allow for the allocation of the UK’s spectrum to be brought in line with European guidelines by Ofcom.

The extension of broadband services to the more rural areas would also be possible for mobile network operators, which is considered to be more important. For the proposals in the Digital Britain project by Carter, which promises a minimum 2Mbps broadband connection throughout the UK, this will play a key role.

The talks so far had been “encouraging” even though they were in their early stages a spokesman for Vodafone said. He said “We are pleased that we are being asked to give up only 2×2.5MHz rather than the 2×7.5MHz of the original proposal of last year.”

Although he did not deny that some of the spectrum it holds now might be traded in order for it to be the first to choose from the spectrum that will become available for high-speed mobile application, he advise that at this stage he did not wish to show his hand. He said that the spectrum bands it was look at were in 800MHz, 1.8GHz and 2.6GHz range.

The proposal made by Ofcom to allow network operators to trade spectrum licences with each other where there was a competitive market was something he said Vodafone was in favour of.

In a recent statement, O2 said “We agree with the government that it is in the best interests of everyone to reach an industry-agreed solution provided it does not affect our customers or commercial interests.”

Rather than the Ofcom consultation O2 would prefer to concentrate of talks with the governments independent spectrum broker and the chairman of the Broadband Stakeholders Group, Kip Meek, said the O2 spokesman.

An O2 spokesperson said it would concentrate on talks with Kip Meek, chairman of the Broadband Stakeholders Group and the government’s independent spectrum broker, rather than the Ofcom consultation. She said “There is no date in the diary as yet, but we expect to meet Kip Meek soon.”