UK Planning a Shake-Up of Radio Spectrum

The UK government has published details of plans to revamp radio spectrum management which could resolve a long-running battle between the two original mobile networks. Vodafone and O2 have been fighting plans proposed back in 2007 by the telecoms regulator to take back some of their licensed radio spectrum and refarm it to the later networks.

The regulator, Ofcom wanted to re-sell the 900Mhz spectrum to the three other operators and then permit 3G services to be deployed on the 900Mhz bands. The plan would bring in additional revenue for the regulator while enabling the networks to offer 3G services in rural areas where the lower frequency band makes it cheaper to deploy services.

Under the compromise deal, proposed by an independently commissioned report, the five networks will be allocated a spectrum cap and any company seeking to buy additional radio spectrum may have to sell some of their existing holdings. The government is planning to sell off radio spectrum in the 800 and 2,600 Mhz bands, which could result in the operators exceeding the spectrum cap and being forced to sell other holdings.

Responding to the report, Ronan Dunne, Chief Executive, Telefonica O2 UK, said: "This Report is a significant step forward in making Digital Britain a reality and is good news for UK plc. Spectrum allocation is a complex question. Throughout the process we've looked for a solution that delivers the Government's vision for Digital Britain, while ensuring we can continue to deliver a great customer experience."

The regulator is expected to publish its response to the report next month.

Posted to the site on 13th May 2009