The plannedmerger of mobile operators T-Mobile and Orangecould delay the UK's proposed auction of radio spectrum
toextend web browsing on mobiles to rural
areas.
The auction was planned for the second half of next year. It is
part of government plans to end a dispute over spectrum and boost
wireless access to broadband services.
But a review of the merger of the UK's third and fourth largest
mobile operators could delay the auction at least until 2011,
according to the
Financial Times.
Competition authorities are expected to assess the merger,
including the spectrum held by the combined company, which will
become largest UK mobile operator.
If the review's findings differ from a government report's
recommendations on spectrum reform, the dispute over spectrum
ownership could be re-opened, the FT said.
The report was drawn up after the government's
Digital
Britain initiative identified the need to end the mobile
operators' dispute over spectrum ownership.
The report calls for an auction of several frequencies in the
800MHz and 2.6GHz frequency bands. These include
some frequencies currently used for transmitting analogue
television.
The recommendations also include capping operators' spectrum
holdings, so no company has a competitive advantage.
In return for giving mobile broadband access to more people,
network operators will get indefinite 3G licences, the
government has promised.
Digital Britain minister Stephen Timms said last week it was
vital to make the best use of the digital spectrum. He said it was
essential to ensure users had enough bandwidth for next generation
services, and not just calls and texts.
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