Mobile companies take on Ofcom
19 Jan 2009
Disputes between communications providers and Ofcom, the regulatory body of the industry, are not exactly uncommon. With so much at stake, it’s a delicate balancing act between ensuring that businesses can function effectively – and profitably – and providing consumers protection and the best service. This latest row, however, has caused such tension that Lord Carter, the communications minister, has weighed in to try and resolve the matter.
The controversy centres upon the radio spectrum which is used to provision wireless Internet services. Ofcom has for some years proposed a liberalisation of the 2G spectrum, which could allow the extension of 3G mobile Internet services from urban to rural areas, as well as improve the speed of handset’s web access. But in doing so they have angered O2 and Vodafone by suggesting they would have to give up some of their 2G spectrum to rivals such as Orange and T-Mobile.
Any auction of this spectrum can not hope to raise anywhere near the £22.5 billion paid out for the 3G spectrum in 2004, but feelings are still running high. Lord Carter’s admission that spectrum release is one of his top priorities, coupled with his high profile intervention means that there is much more to come from this story – not least in March, when O2 and T-Mobile will mount a legal challenge against Ofcom’s intention to auction a chunk of 2G spectrum
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