"A good game of poker" is how one of the parties
describedtalks last week between mobile network operators Vodafone
and O2 and communications minister Stephen Carter.
Carter is trying to persuade the operators to give up
frequencies they hold in the 900MHz band for so-called 2G mobile
telephony. This would enable Ofcom to bring the allocation of the
UK's spectrum in line with European guidelines.
More importantly, it would let mobile network operators extend
broadband services to rural areas. This is a key part of Carter's
proposed Digital Britain project to make a broadband connection of
at least 2Mbps available throughout the country.
A Vodafone spokesman said the talks were in their early stages
but had been "encouraging".
"We are pleased that we are being asked to give up only 2x2.5MHz
rather than the 2x7.5MHz of the original proposal of last year," he
said.
He said he did not want to disclose his hand, but did not deny
that Vodfone might trade some spectrum it holds now for first
choice of the spectrum that is becoming available for high-speed
mobile applications. This includes frequencies in the 800MHz,
1.8GHz and 2.6GHz bands, he said.
He said that Vodafone was in favour of Ofcom's proposal to let
network operators trade spectrum licences between themselves where
there was a competitive market.
O2 said in a statement, "We agree with the government that it is
in the best interests of everyone to reach an industry-agreed
solution provided it does not affect our customers or commercial
interests."
An O2 spokesman said it would concentrate on talks with Kip
Meek, chairman of the Broadband Stakeholders Group and the
government's independent spectrum broker, rather than the Ofcom
consultation.
"There is no date in the diary as yet, but we expect to meet Kip
Meek soon," she said.
A spokesman for the Department of Business, Enterprise and
Regulatory Reform declined to comment on the talks, saying "We are
not going to give a running commentary on the talks."