Ofcom revises plans for delayed 4G mobile auction

Ofcom has scaled back proposals that had ensured four potential bidders for the most valuable bandwidth able to carry next generation mobile services under the revised terms of a contentious auction that could raise billions of pounds for the government.

The regulator has also introduced measures expected to extend mobile coverage to at least 98 per cent of the UK population, including the so-called mobile ‘not spot’ areas, and revised plans to promote competition across all four mobile operators. In addition, the regulator has set aside bandwidth to be shared by a group of companies to deliver innovative new mobile services for consumers such as local networks for student campuses, hospitals or commercial offices. The most contentious change to the auction for UK operators will be the revised rules over the amount of the crucial 800mhz spectrum that can be bought by each. Ofcom will maintain a reserved amount of bandwidth for a smaller fourth operator such as Three or a new entrant away from O2, Vodafone and Everything Everywhere.