Ofcom paves the way for 4G spectrum auction

Chief Executive of Ofcom gives details of next generation mobile broadband timeline

Ofcom has announced that the auction for 4G spectrum will begin in the first quarter of 2012, with the process of release to be completed by the end of 2013.

The announcement was made by Ofcom chief executive Ed Richards, who also stated that a consultation on Ofcom's assesment of likely future mobile competition and detailed proposals for the auction is expected to end in May 2011, with draft auction regulations expected in early autumn of the same year.

The auction will release the crucial 800MHz and 2.6GHz blocks of spectrum required for next-generation mobile broadband.

The time frame of just over two years could be a challenge, Ofcom admitted.

"This is a stretching timetable. The equivalent time period for the 3G auction was around three years," said Richards.

"However, we want to set out and attempt to hit this ambitious timescale because of the significance of this spectrum to our economy," he added.

Richards also highlighted the fact that the timetable outlined remains subject to the Government Direction being made to Ofcom in the next few weeks, and there being no legal challenge to that Direction or any subsequent decisions.

However, it seems that there are still concerns surrounding the imminent arrival of 4G.

"The £22bn raised from auctioning the 3G licences was largely a speculative move on behalf of the operators as they weren't completely sure how the spectrum would be used," said Stephen Rayment, CTO at BelAir Networks, a company that builds mobile broadband networks working with mobile operators.

"Now, the vast surges in data consumption are wreaking havoc across 3G networks, particularly in areas of high user concentration. In fact, mobile data traffic is already on track to exceed the capacity that will be available in forthcoming LTE and 4G networks," added Rayment.

"The real elephant in the room is how operators ensure their networks can continue to cope with the increasing appetite for mobile data."