Would you believe it, just after the US sale of wireless radio waves goes through without any real concerns the UK version has been put on hold after a flood of comments and suggestions from those in the industry. While initially the telecom regulator, OFCOM, announced plans to “take back” more than a third of the mobile phone spectrum which Vodafone and O2 have been using for over 22 years, it seems that they might have to think again.
As you would guess Vodafone and O2 were very vocal in their disgust at this attempt to take back the spectrum on which their very existence depends, repackage it and then auction it off to all players in the sector. Quite how there was no legal challenge from the two giants is a mystery, but it seems as though their comments and communications have stalled the process. However, this is not the only problem which OFCOM have encountered.
Part of the ambitious plans also included the sale of the analogue TV spectrum which will be turned off in the UK in 2012. The regulator was expecting possible buyers to bid on the spectrum later this year and pay up, without receiving access until 2012. Quite what business would be wiling to shell out millions of pounds for a service which is still nearly 4 years down the line remains to be seen!
All in all it seems as though it is back to the drawing board for OFCOM and while the sale looks as though it will eventually go ahead, do not be surprised to see a real change in the terms and the basis.
While much of the communication between OFCOM and the mobile phone companies has been confidential up to now, it will be interesting to see what facts and figures leak out over the coming months and what the new plans look like.

















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