Telecomplus | The Utility Warehouse

SIX years after the frenzied bidding for licences to operate 3G mobile phone services, Britain’s telecoms companies will return to the auction table this week. Companies such as BT and Cable & Wireless will take on mobile operators including O2 in a spectrum auction that could raise millions of pounds for the Treasury.
The auctions could also lead to the introduction of exciting new technologies, from high-speed mobile broadband to mobile television.
The “starter” auction, on Thursday, is for the spectrum band 1781.7-1785MHz paired with 1876.7-1880MHz. It is ideally used for “low-power” or short-range mobile services. It could be used to set up special mobile networks on university campuses, for example, or within office buildings or shopping centres.
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Ofcom, the telecoms watchdog, has a duty to make the best use of radio spectrum — the airwaves — by releasing it to the market
It is expected to sell about 400 megahertz of prime spectrum by the end of decade
The sale of spectrum will lead to the introduction of several new, exciting technologies and services
The money raised from each auction is handed to the Treasury
In 2000, the Chancellor’s coffers were given a bumper boost from the auction of spectrum for third-generation (3G) mobile phones. The bidding raised £22.5 billion
The mobile operators, which believe that they overpaid for the 3G licences, want some of the money back. They have launched a legal challenge in Europe, seeking tax rebates worth more than £3 billion on the licences
Forthcoming auctions include one for the so-called “3G expansion band”
However, mobile operators want to delay the auction because they fear that selling off another chunk of the airwaves, at what is expected to