UK Mobile operators hope to thwart 4G plans

Telecommunications companies are threatening to launch a legal challenge to the government's plans to increase the availability of Internet access on mobile phones.

O2 and Vodafone are considering legal action after ministers finalized their proposals to end a bitter and long-standing dispute between mobile phone operators over radio spectrum. The government is hoping that parliament will approve a law before the end of the month that will enshrine the plans for a large auction of spectrum in the first half of 2011. But O2 and Vodafone are threatening to launch a judicial review of the plans that might delay the auction. If the auction timetable slips, it could delay the start of mobile services based on fourth generation mobile technology that will enable faster web surfing on handsets compared to 3G. Mobile operators in the US and Japan are starting 4G services this year. Legal action by O2 and Vodafone could also hamper government efforts to ensure that all homes have Internet access - some households in remote areas will have to rely on wireless access because of cost.