Mobile firms face spectrum caps

 

Gallery

By Reuters

Posted on 13 May 2009 at 08:16

British mobile phone companies could be forced to cap the amount of spectrum they own under a proposal aimed at settling a long-running dispute and fulfilling the Government's target of providing universal broadband.

The country's five main mobile operators have been in dispute since the telecoms regulator Ofcom said in 2007 that it could take radio spectrum away from the two leading operators O2 and Vodafone.

Ofcom said at the time the 900 Megahertz spectrum could then be auctioned off to the three remaining operators - Orange, T-Mobile and 3 - which could lead to billions of pounds in network rollout savings.

Ofcom wanted to lift regulatory restrictions on the use of spectrum so that 3G mobile phone services could also be offered over older 2G networks.

The regulator said it was cheaper to provide 3G-type services over the 900MHz band in rural areas than its rival 2G frequency (1800MHz), as the lower frequency travels further and needs fewer base stations and masts.

But O2 and Vodafone protested against the plans and the dispute was seen as a potential barrier to the Government's plans for universal broadband, which would need co-operation from the mobile companies.

Under proposals outlined by the Independent Spectrum Broker today, mobile companies would be given a spectrum cap, meaning they could hold on to the spectrum they own but would need to sell it before buying any more.