4G auction plans of Ofcom faces criticism

Ofcom’s plans to auction off parts of the 4G spectrum for mobile broadband have been condemned. Broadband providers, O2 and BT criticized Ofcom's 4G auction process and said that this will give an unfair advantage to its rivals. O2 described this move of Ofcom has a turning point moment for the mobile phone industry in the UK. However, it warned that the proposed spectrum floors are illegitimate under EU law. The proposed spectrum floors are based on wrong idea that O2 and Vodafone have sufficient sub-1GHz space and that 800 MHz and 900 MHz are comparable spectrums, the company said. The auction system will offer the competitors with discounted prices, broadband provider added. Provider said that the action is not about 2G and 3G, it’s about next generation services and therefore it should be used as an opportunity to offer reasonable, open and equivalent access to the newly available spectrum.