Warning over UK’s 4G spectrum auction

The auction of spectrum in the UK for next-generation mobile services next year could struggle to preserve competition in the market as well as raise money, according to Freshfields Bruckhaus Deringer, the law firm.

The high costs paid by mobile operators to acquire spectrum for the previous generation of 3G services affected the competitive landscape in many markets around the world, according to an analysis of the auctions by Freshfields, and hindered the roll-out of 3G network infrastructure. The findings suggest the UK could face obstacles in its goal to preserve competition in the mobile market among the four main operators. Ofcom, the regulator, has committed to auctioning the spectrum next year to broadcast 4G services, which will be needed to meet the demands of customers for data-hungry services such as video and the intent.