4G spectrum auction may be delayed

O2 is distressed at the Ofcom’s decision to allow network service provider Everything Everywhere (EE) to run 4G services in their existing 2G network band as it will give (EE) monopoly at least for 18 months. O2 wants Ofcom to reverse its decision.

But Ofcom informed that issue of liberalizing the spectrum was settled in 2010 itself, at the time of merger of Orange and T-Mobile

According to O2, the watchdog should not have done so as it provides the monopoly to Everything Everywhere even for longer than 18 months.

If Everything Everywhere is granted the permission, it will enable them to start at least a year ahead of other service providers. It looks as though the company is more concerned about its own interest rather than putting effort in making the UK digital.

Vodafone also has the same view as O2 regarding the matter. Ofcom’s unjustifiable support to EE will put an end to competition for a quite a long time and this will not do well for the country.

However, Olaf Swantee of EE has different things to say. EE will be pleased to launch 4G itself this year as ‘Capital Economics’ has determined that launch of 4G will result in GBP5.5 billion private investment, provide 125,000 jobs and will pave the way for boosting GDP of the country by 0.5%. If the 4G launch is delayed, it will only put the UK much behind other European nations in digital communication. EE does not want it.

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