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Ofcom plays it safe on 3G regs

January 13, 2005 - source: BWCS

UK telecoms regulator Ofcom said today that it will not relax any of the licence rules for 3G network operators. However it also added that it will only revoke licences for serious transgressions," which are not likely to include failure to meet coverage schedules. The remarks came as the authority, which is in the midst of a wide ranging review of all telecoms services within the UK, published details on twelve new blocks of spectrum which it intends to award before 2008. Ofcom has also proposed extending and liberalising the rules on spectrum trading in the UK.

In its latest consultation document regarding spectrum trading, the UK watchdog made it clear that it has no intention of letting 3G licence holders off the hook regarding their obligations to cover 80% of the UK population by the end of 2007. On the other hand, it underlined that it would only revoke licences in extreme cases and would consider other solutions or punishments for operators failing to comply with the stipulated coverage target.

According to the consultation document: Ofcom suggests that "licence revocation is only likely to be proportionate in serious cases of non-compliance, not least given the serious consequences that this could have for existing customers of any licencee." The fact that Ofcom does not appear to be threatening revocation of operators' licences for non-compliance with regulations seems to at least partially let 3G network builders down lightly.

MmO2 immediately welcomed the news and CEO, Peter Erskine, was quoted by the London Financial Times this morning as saying the decision demonstrated a greater degree of pragmatism on Ofcom's part. He told the FT, "MmO2 has consistently maintained that market demand should determine the pace and scope of the new roll-out."

At the moment, Orange, Vodafone and the Hutchison-Whampoa-backed 3 are the only ones of the five UK 3G licence winners to have launched a service. Between them the operators have blamed technical difficulties, high costs of roll out and deficiencies in the supply of 3G handsets for the delays in the roll out of next generation mobile phone services.

 

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