Q&A: How 4G auction money could improve rural coverage

 

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By Stewart Mitchell

Posted on 28 Jul 2011 at 08:00

UPDATE: Campaigners have warned that next year's 4G auctions could leave isolated areas behind in the push for faster mobile broadband - but many households still don't have 2G coverage.

Telecoms regulator Ofcom has set a universal service obligation of 95% for mobile operators winning next year's 4G auction, which is close to existing coverage requirements, but critics believe such a low target leaves three million people without coverage of any kind, let alone 4G.

It costs money to push mobile services into rural areas and new masts are often ruled out because they are not economically viable for service providers.

Now communications experts believe the Government should use some of the money raised in the 4G auction to fill in wireless "notspots", whether it improves voice or data services in remote areas.

The Consumer Communications Panel, an independent body that advises Ofcom, has suggested a few ways to improve the situation. We spoke to Bob Warner, chairman of the CCP, to find out more.

The current coverage estimate for mobile is 97%, but what that really means is that 97% of postcodes have a least 90% coverage, if you read the small print

Q. How did you come up with the estimate that three million people will be left out?

A. The current coverage estimate for mobile is 97%, but what that really means is that 97% of postcodes have a least 90% coverage, if you read the small print. So it's not 97% of households - it's a lot less than that. The CCP reckons it's actually 95% or less if you measure it by household and that's how we got to three million, because it's 5% of the population.

Q. There have been a few ideas about who should pay for greater coverage. You have suggested a “reverse auction”, but how would that work?

A. It's a bit like what Broadband Delivery UK are doing for broadband coverage. For those that will never economically get broadband coverage from the operators, what it is saying is: “Tell us how much you'll charge to provide coverage in this area.”

Q. So the money would come from Government?

A. What we're advocating is that if the Government raises [however much money], then they should keep a chunk of that – somewhere between £250m and £500m and then after the auction has finished they'd go out to the operators and say, “Look, we really want coverage in these areas. How much would you charge us?"

So it's a reverse auction - they are not bidding to pay money for it, they are bidding for the cheapest price that they can do it for.