What to do with the spectrum auction money

The auction of 800MHz and 2.6GHz frequencies, the so-called 4G spectrum, in November 2011, if it gets over the legal challenges put up by Everything Everywhere, the merged Orange/T-Mobile network operator, is likely to give government coffers a handy little fillip.
As communications minister Ed Vaizey told the Apcomm meeting yesterday, the money was likely to go to the Treasury, which is the bblakc hole where the £22.4bn from the 3G spectrum auction disappeared.
Many in the industry think it should have been ploughed back into the sector to help stimulate demand. We might have universal high speed mobile broadband coverage by now, they say. So they would like to see the coaltiion government take this lesson from the previous government. Except that Vaizey says it hasn’t even come up in discussion in the Cabinet.
To get the discussion started what about this: use the some of the money from the auction to buy Openreach out of BT (plant and equipment in BT’s balance sheet is worth £14.8bn), and use the rest to buy fibre and microwave towers for Openrearch to install, giving the mobile carriers first dibs on where to put them. And of course, make  it a condition of the 4G mobile licences that they cover the country’s broadband not spots first.
Anyone got a better idea of what to do with the money?
 

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Its gonna be a bit of a scandal if this government lets the same mistake happen again. That would be enough money to do fibre to the home for everyone... once we all had fibre then femtocells or such in smart meters would make mobile coverage ubiquitous too? a switched on nation... Shame the copper cabal and old boys network will stop it happening. chris
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Fibre to the home for everyone. That is what we need. The spectrum money would pay for it. Smart grids with femtocell type technology built in would enable many applications, including blanket mobile coverage for the uk with high data rates. job done. FTTH JFDI
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