Ofcom sets stage for 4G spectrum auction

Regulator is preparing for a 4G mobile auction in early 2012

Communications industry regulator Ofcom has said it intends to launch an auction of the 4G mobile spectrum in early 2012.

Ofcom said on its web site that the auction is necessary to cope with the rapid increase in mobile traffic.

The regulator explained that this increase has been fuelled by the proliferation of smartphones and mobile broadband data services such as video streaming, email, messenger services, mapping services and social networking sites.

The extra capacity provided by the two new spectrum bands - 800MHz and 2.6GHz - will enable 4G mobile technology, which is already available to users in the US.

Ofcom chief executive Ed Richards said the auction would have a significant economic impact.

"It will support a wide range of data services that are fast becoming essential features of the modern world."

The regulator will auction the spectrum in sections to ensure that no one bidder can control a majority share.

"Our role as the independent regulator is to award this spectrum in a way that secures the best use of the spectrum for the benefit of citizens and consumers in the UK," Richards added.

"That is why we are proposing to design the auction in a way that not only encourages investment but also promotes competition and delivers wide coverage of services."