Ofcom Outlines Auction Roadmap For 4G Spectrum
After an auction in 2012, Ofcom expects to see 4G networks come online in early 2013, barring any further delays
Mobile operators will be competing for their slices of the 800Mhz and 2.6Ghz high-speed data spectrum just before the Olympic Games begin in 2012. Ofcom’s chief executive Ed Richards has announced that the auction will take place in Q1 2012 and will “fuel an explosion” of 4G networks.
In a speech at the FT World Telecoms Conference yesterday, Richards announced a timetable that should see Long Term Evolution (LTE) networks up and running at the beginning of 2013.
Timetable Carries No Promises
“We aim to publish a consultation on our assessment of likely future mobile competition and detailed proposals for the combined auction, including details of any measures we propose to take to ensure effective competition, by the end of February [2011],” he said. “That consultation will end in May. A statement on future competition and details of the combined auction, together with draft auction regulations, in early autumn of 2011.”
The final auction regulations will be published by the end of 2011, when bidders will be invited to apply, with bidding starting in Q1 2012. The licences will be issued in the quarter following but bandwidth will not be available until early 2013, he explained.
There are two important caveats. Richards warned that any litigation against the government or Ofcom will jeopardise the timetable. Secondly, he said that the timetable was an ambitious one, compressing three-year’s work into two years which leaves no room to accommodate unforeseen delays and problems that may arise.
Four-year delay
The auction was originally scheduled for 2008 but a legal challenge by T-Mobile and O2 demanding clarification of any refarming of the current 2G bandwidth for 3G use has delayed the process, hence Richards’ warning.
The implementation of high-speed 4G networks has already started in many other countries and the four-year delay could put Britain’s businesses at a disadvantage.
“It is clear that we are talking about a very significant step forward – not only the most significant release since the 3G auction in 2001 but spectrum which is the raw material that will fuel an explosion in next generation mobile broadband,” he said.
Analysts have predicted that the auction will reap the government billions of pounds at a time when a cash injection to the economy is sorely needed. However, this will still not measure up to the £22.5bn paid for 3G licences in 2000. A similar auction in Germany only raised £3.7bn.
