Representatives in the European Council have endorsed plans drawn up by the European Parliament and Commission stipulating that all member states must free up the 800MHz frequency band for 4G services by 1 January 2013.
The 800MHz spectrum band is very valuable to network operators for 4G mobile services, as it can travel further than spectrum above 1GHz.
"This will set up a pan-European telecommunications market where new services can create opportunities and growth for a 500 million consumer market," said rapporteur Gunnar Hӧkmark.
The document also said at least 1200MHz of additional spectrum should be allocated to mobile data traffic, after 2013 but before 2015, as requested by the European Parliament.
"This means that Europe will be in the forefront of future internet and broadband developments," added Hӧkmark.
Neelie Kroes, Commission Vice-President for the Digital Agenda, welcomed the announcement.
"Devices like smartphones and tablets are putting our current spectrum allocations under strain," said Kroes.
"Making the best use of this public resource will ensure we have the rails on which modern communications can run – facilitating new applications and services, driving economic recovery, creating high-quality jobs, and maintaining our place on the world stage," she added.
"Today's agreement is a big step towards making Europe the connected, competitive continent."
Communications regulator Ofcom recently announced that it would be pushing back the UK's spectrum auction from the first quarter of 2012 to the fourth quarter.
This follows a period of consultation, which took place between March and May of this year, where responses from operators and stakeholders were submitted for assessment.
"In light of these responses, and the significance of the decisions we need to take – decisions that are likely to shape the future of the mobile sector in the UK for the next decade or more – we have decided to undertake a further round of consultation," Ofcom said in a statement.
This further consultation document is set to be published at the end of this year, followed by another period of review, whereby stakeholders will have a minimum of eight weeks to submit their responses.
However, Ofcom suggests that the delay in the auction is unlikely to impact the timeline for the availability of spectrum for new services, as the bands were never going to be made available until 2013.
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