Three is concerned about Ofcom spectrum auction

MOBILE OPERATOR Three has expressed concerns over the auction that Ofcom plans to hold for parts of the wireless spectrum.

In a rather large document outlining its response, Three has voiced reservations regarding the combined auction of the 800MHz and 2.6GHz spectrum. It said, "insufficient weight has been placed by Ofcom on the link between the Combined Auction and the earlier 900/1800MHz liberalisation."

In a statement Three said, "Ofcom's and the Government's decision in January to authorise Everything Everywhere, O2 and Vodafone to repurpose 2G spectrum to provide 3G services fundamentally distorts and undermines the competitive marketplace developed in the UK since the 2000 3G spectrum auction."

The decision was "anti-competitive and potentially unlawful and must be redressed through the upcoming 'digital dividend' spectrum auction," said Kevin Russell, CEO of Three.

Although it is concerned about certain aspects, Three also said that it supports Ofcom's plan to maintain four national wholesale operators in the UK market.

The auction is due to happen in 2012 and Ofcom expects it to get the UK a big step towards '4G' networks and much faster mobile services, but Three will be hoping for some changes by the time it comes around.

There are three (no pun intended) main things that Three wants to see happen with the auction.

Firstly, the four operators must have access to 2x10MHz of sub-1GHz low frequency spectrum. This is apparently "essential for offering fast and reliable mobile data services".

Secondly, no operator should be allowed to obtain a disproportionate total amount of spectrum as this will "only harm consumers and competition".

Lastly, Three wants revised annual licence fees for Everything Everywhere, O2 and Vodafone on the spectrum they have already been allowed to use for next generation mobile services.

Rival operator O2 has also criticised Ofcom's plans, claiming that they are illegal. Ofcom has since told The INQUIRER, "We are fully aware of state aid rules and would not have made proposals that we considered illegal."

Ofcom will have trouble satisfying all of the operators, especially as they each want what's best for them. The regulator is also under pressure to get things moving as quickly as possible whilst the UK falls behind other countries with telecom technology deployment. µ