Ofcom pushes for new 3G auction

Telecoms regulator Ofcom, is planning to drive the roll-out of faster 3G mobile networks across the UK by opening up existing 2G bandwidth to new players.

Ofcom has said it wants to use part of the 2G radio wavelength already used for current mobile services like calls, slow Internet access and text messaging, to develop next generation 3G networks.

The proposal is to use the 2G 900Mhz frequency, which is currently licensed to Vodafone and O2, meaning they will be forced to surrender part of it for a new auction. Ofcom said it wants three more players in the 900MHz space developing 3G networks and that an auction could raise as much as £6bn.

According to the regulator, the move to 3G will result in greatly improved rural coverage, mobile broadband services for faster web browsing and video downloads, greater interactivity, better quality indoor coverage and lower prices. Ofcom said using the 900Mhz frequency would require far fewer mobile phone masts than if higher frequencies were used. It said a high quality 3G network covering 99 per cent of the population could be built using around 10,000 fewer sites per operator.

"We can't see it, touch it or hear it, but radio spectrum is central to our lives and we are using mobile devices more than ever before," said Ed Richards, Ofcom chief executive. "Our proposals are designed to make more spectrum available for high-speed mobile broadband services across the whole of the UK and to ensure that the UK mobile market continues to be one of the most competitive and innovative in the world."

An auction is expected as early as 2009 and new players could be rolling out 3G services by 2010. Ofcom will also remove restrictions next year on the other 2G frequency, 1800MHz, to allow 3G services to be rolled out.

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