Ofcom announces plans to auction 4G mobile spectrum in 2012

Next year’s auction of the 4G mobile spectrum is an opportunity to upgrade the UK's mobile infrastructure, said the Communications Consumer Panel
.

With around three million people living in rural areas where there is no mobile coverage, the advisory group said the money from the auction could go towards upgrading these so called ‘not-spots’.


The Panel said it did not believe that new 4G services, which will be crucial for faster mobile internet, would extend beyond existing coverage; so is now urging that both the Government and regulator Ofcom take action.


Bob Warner, the advisory groups chairman said: “This is a critical moment, and we have a unique opportunity to resolve the persistent problem of inadequate mobile coverage. Most places that were mobile coverage not-spots ten years ago are still not-spots today, and the spectrum auction presents perhaps the only chance we have in the next decade to improve coverage in the nations and for rural communities.”
 

The Panel now wants Ofcom to consider setting coverage obligations for each of the UK nations and some English regions. Alternatively it has suggested that money be retained from the spectrum auction and then a reverse auction could be run and successful bidders from this should be required to provide roaming for these rural areas.


The auction of the spectrum, which is being freed up because of the digital TV switchover, will take place next year and 4G services are expected to begin in 2013. But without intervention, the panel says that a purely market-based approach means that 4G won’t be extended beyond current 2G coverage.


“Effective mobile communication is essential for the growth of rural communities and businesses, and we now need an intervention to improve rural services. The potential significant windfall to the Treasury from the spectrum auction presents us with the opportunity to do something about it,” said Warner.