British government expects to raise 3.5 billion GBP from 4G auction

British government expects to raise 3.5 billion GBP from 4G auction

The UK Treasury hopes to raise as much as 3.5 billion GBP from the auction of 4G spectrum licenses early next year, chancellor George Osborne said in his autumn budget statement.

British telecom regulator Ofcom put a 1.3 billion GBP reserve price on the 800MHz and 2.6GHz bands last month, adding that companies wanting to bid for spectrum will be able to submit applications and an initial deposit from December 11th. Bidding will begin in January with licenses due to be granted in February and March.

The country’s number-one operator EE (Everything Everywhere) recently launched its 4G LTE network after Ofcom allowed it to repurpose spectrum it already held. EE plans to serve 16 cities with LTE by Christmas and has recently announced increases to data included in its 4G price plans, suggesting that the original pricing strategy has seen limited uptake.

Other operators — including Three, Vodafone and O2 — are set to follow and launch their own LTE networks from spring 2013.

[Via: MobileWorld]

  • Jason Brant

    The 4G network operated by EE first across 16 cities within the UK is exciting news for all those that have eagerly anticipated its launch. However, taking out a 4G priceplan before Christmas that is only effective in 16 cities is only a fraction of the excitement, what I mean by this is for those smart phone users on the move will not be of benefit until 4G is available countrywide. When Vodafone and o2 launch their 4G network it will be the most effective. This is due to an agreement already in place that commenced November this year whereby Vodafone and o2 will be sharing their cell sites to increase coverage for their customers alike. Also, they have agreed to split the UK in two for the upgrade of 4G so sharing the cost, but ultimately they will having a fantastic 4G coverage. Another significant factor is the above article makes reference to EE being the largest operator in the UK however, this is only the case for the consumer, the number network in the UK for SME and Corporate is currently Vodafone leapfrogging for this with o2 for the number 1 position. In case anyone is unaware, Vodafone purchased Cable & Wireless for £1b in June of this year with the maximum benefit of this 2-3 years away, once Vodafone have incorporated this with their current infrustructure they will be streets ahead of the remaining competition….FACT!

  • Moatway

    So the government is going to make loads of money, thanks to the digital switchover making space for 4G.. Its a shame that many OAP’s had to in some instances pay twiceout of there pensions, to have there freeview units retuned.

  • Frank Beijen

    The just finished auction of 4G in the Netherlands has raised around 3 billion GBP.
    So 3,5 for the UK is not that high I would say.

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