Radio spectrum for sale

Ofcom announces plans for radio spectrum sell off

Ofcom has unveiled proposals for another radio spectrum auction, which the watchdog said could help usher in a range of new services such as mobile broadband and advanced wireless.

The auction is set to focus on three bands, 2010-2025MHz, 2290-2300MHz and 2500-2690MHz. Ofcom said it plans to award the radio bands on a technology- and service-neutral basis, allowing “organisations to decide how best to use the spectrum within certain minimum technical specifications to prevent harmful interference”.

The spectrum could be useful for mobile operators such as Vodafone, T-Mobile and 3, which are concentrating on mobile broadband based on 3G and HSDPA systems, according to Ofcom. The fledgling WiMax technology currently being trialled in Milton Keynes by Pipex, backed with cash from processor giant Intel, could also benefit.

The consultation will close in March 2007 and Ofcom envisages the spectrum being auctioned at the end of next year.

Some industry experts have suggested that there is a link between the spectrum auction and the UK government’s announcement last week of plans to dilute European Commission (EC) proposals to cap mobile roaming charges.

They argue that the government is worried the EC’s proposals to cap mobile operators’ profits will reduce the amount of money the operators can afford to spend at the auction.