O2 UK has now complied its 3G license conditions and finally covers 80% of the UK's population. The UK's telecoms regulator, Ofcom had issued a warning to the operator in February that it faced financial sanctions if it didn't reach the coverage milestone by the end of June.
The rollout obligation requires each of the five holders of a 3G licence to roll out their networks to enable the provision of 3G services to at least 80 per cent of the population from 31 December 2007. Ofcom says that it will conduct a further assessment to ensure that these licensees remain in compliance on 31 December 2008.
Ofcom warned in February that O2 only covered 75.69 percent of the population. This is a shortfall equivalent to approximately 2.5 million people.
Ofcom has warned that if O2 has not met the rollout obligation by the end of June 2008, Ofcom would shorten the term of its 3G licence by four months. O2 acquired its 3G licence in 2000 for £4,030m. Ofcom estimated that a reduction of the licence term by four months would be equivalent to a significant financial sanction of at least £40 million.
The other four 3G license holders had met their license requirements.
Posted to the site on 2nd May 2008
Posted to: www.cellular-news.com/story/30918.php