Ofcom yesterday announced the proposed rules for the UK’s 4G spectrum auction, but made no mention of Everything Everywhere’s (EE) proposal to refarm its existing 1800MHz 2G spectrum for 4G use. Ofcom stated simply that the UKs first 4G networks would launch in 2013.
"While there are still some elements of today’s proposal which we don’t think are in the interests of competition or consumers, we are pleased that Ofcom is moving in the right direction and we recognise that we need to get this process moving now before the UK falls further behind the rest of the world," said an EE spokesperson.
"However the auction is only one step towards bringing 4G to Britain. Everything Everywhere is committed to bringing 4G to the UK this year, and the next milestone will be the regulator’s response to our request to roll out 4G over our existing 1800MHz spectrum without further delay."
The company had originally been given the go ahead by Ofcom in May to launch 4G this year, but has backtracked somewhat after protests from competitors O2, Vodafone and Three Mobile. It has already been conducting tests in Cumbria and Cornwall.
Ovum’s Matthew Howett told CBR that the telecoms regulator is wary of giving any mobile operator too much of a lead time on 4G, and that the marketing advantages that EE would receive as ‘the UK’s only 4G network’ would be colossal.
"What Ofcom may be considering is some sort of share agreement, where the other competitors can use some of EE’s network, which would then be phased out after the 4G auction," he said.
It is expected that Ofcom will be making a decision shortly, and has been feeling the pressure from politicians and business groups that are sick of the endless lawsuits and delays.
Everything Everywhere itself has been in the midst of a marketing blitz, pulling consumers, businesses and industry groups into the fold as part of its 4G Britain campaign.
The 4G auction was originally mooted four years ago, and was meant to occur two years ago, under the Gordon Brown administration. This has seen the UK, formerly one of the world’s most advanced mobile markets, slip behind Europe, the US and Asia, which have already begun rolling out 4G networks.
Ofcom also announced protection for a ‘fourth operator’ in the spectrum auction, widely assumed to be Three Mobile. CBR understands that atleast two other foreign operators have approached Ofcom about launching in the UK – further increasing competitive pressures in an already tough market.
