Better mobile broadband on way due to auction
The 20 per cent of the population denied mobile broadband access will have a better chance of being able to log on when the Government clears the way for an auction of airwaves best suited to wireless data.
The plan to improve broadband coverage in areas where it is uneconomic to build high-speed fixed-line networks was at the heart of the Government’s Digital Britain White Paper.
The increasing popularity of mobile broadband and smartphones, such as Apple’s iPhone, that rely on internet access has highlighted the value of the spectrum. The proposals will involve capping the amount of spectrum that any one company can own, Britain’s mobile phone network operators will also agree to improve their networks more quickly in exchange for an indefinite extension of the 3G licences that they bought for a combined £22.5 billion in 2000. The existing 3G networks cover only about 80 per cent of the population, which has created a digital divide between urban and rural regions.
Vodafone and O2 both own a chunk of “prime” 900-megahertz spectrum, which is better suited to mobile broadband as it has a longer range than bands at higher frequencies. The government report, which will be accompanied by a consultation document, will allow Ofcom to proceed with spectrum auctions in the 800Mhz range, which is ideal for mobile broadband, and the 2.6-gigahertz range, which is suitable for faster broadband speeds. Companies outside the mobile sector, including BT and Intel, are thought to be keen on the higher frequency band.
Ofcom originally announced its intention to sell the spectrum bands in 2006 and had hoped to start auctioning the asset this year. Ed Richards, its chief executive, hailed the sell-off and claimed it would boost the UK economy to the tune of £10 billion.
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