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Ofcom announces 'competitive' auction for 4G mobile broadband spectrum

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By Stephen Lepitak, -

July 24, 2012 | 2 min read

Ofcom has announced that it is to hold the largest ever auction of spectrum for mobile services in the UK, ahead of the roll out of 4G networks next year.

The sale is expected to be 80% bigger than that of the auction of 3G in 2000, and will lead to mobile broadband covering at least 98% of the UK by 2017.

The auction will aim to ensure that almost everyone in the UK has access to broadband, with some of the available spectrum being reserved by Ofcom to ensure a competitive market for a fourth national wholesaler to take on the three largest mobile operators.

Ed Richards, chief executive of Ofcom, said: "The 4G auction has been designed to deliver the maximum possible benefit to consumers and citizens across the UK.

"As a direct result of the measures Ofcom is introducing, consumers will be able to surf the web, stream videos and download email attachments on their mobile device from almost every home in the UK."

Two spectrum bands will be offered in the 4G auction, 800 MHz and 2.6 GHz, allowing the lower to be made available in low usage areas, and the higher band to be used in urban centers which experience significant broadband demand.

The spectrum bands will be auctioned to bidders as a series of lots, Ofcom has said.

A statutory consultation will run until 11 September on the auction, which is expected to be underway before the end of the year, and the bidding phase initiated by early 2013.

The roll out of 4G networks using the auctioned spectrum is then expected to begin in the middle of next year.

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