Ben
16th March 2011, 11:23 AM
With OFCOM getting set to auction new spectrum, which will hopefully breathe life into LTE for the UK, the mobile operators are already getting vocal about how they want things to go down.
Three, in particular, believes that if spectrum is simply sold to the highest bidder then it will not be able to compete, leaving it without adequate spectrum and resulting in it being acquired at a discounted price by a rival.
Now, that sounds a bit off to me. If simply bidding the most is what is required, then Three certainly has a big enough conglomerate behind it to do the necessary. Perhaps, then, Hutchison Whampoa has finally turned off the tap.
But shouldn't OFCOM be taking more into account? Yes they need to raise money, but perhaps a fixed fee and then a thorough application process detailing the business plan for using the spectrum would be more appropriate. I believe new entrants should be given a chance to acquire spectrum on a level pegging as existing MNOs, and that a panel should weigh up the proposals and decide what would be in our best interests. The truth is there's limited spectrum available; what's the point, other than money, in just auctioning it off and letting the fattest networks get fatter and the smaller ones fade away? It should all come down to vision.
I also don't think spectrum trading is going to work. Not if the bigger networks just hoard the spectrum to stifle competition, which of course is what they'll do. OFCOM should instead limit allocation to what the networks can demonstrate they will need within a reasonable period. Guarantees on investment and timescales must be made and OFCOM must have the power to withdraw spectrum if the commitments are not met.
Three, in particular, believes that if spectrum is simply sold to the highest bidder then it will not be able to compete, leaving it without adequate spectrum and resulting in it being acquired at a discounted price by a rival.
Now, that sounds a bit off to me. If simply bidding the most is what is required, then Three certainly has a big enough conglomerate behind it to do the necessary. Perhaps, then, Hutchison Whampoa has finally turned off the tap.
But shouldn't OFCOM be taking more into account? Yes they need to raise money, but perhaps a fixed fee and then a thorough application process detailing the business plan for using the spectrum would be more appropriate. I believe new entrants should be given a chance to acquire spectrum on a level pegging as existing MNOs, and that a panel should weigh up the proposals and decide what would be in our best interests. The truth is there's limited spectrum available; what's the point, other than money, in just auctioning it off and letting the fattest networks get fatter and the smaller ones fade away? It should all come down to vision.
I also don't think spectrum trading is going to work. Not if the bigger networks just hoard the spectrum to stifle competition, which of course is what they'll do. OFCOM should instead limit allocation to what the networks can demonstrate they will need within a reasonable period. Guarantees on investment and timescales must be made and OFCOM must have the power to withdraw spectrum if the commitments are not met.