BT is holding back Britain, slams Ofcom

SQUABBLING mobile phone companies have been accused of holding back the UK’s digital future as they fight a legal wrangle over faster networks.

Sharon White, chief executive of Ofcom, warned that a High Court battle with BT-owned EE and rival Three threatened to delay the rollout of faster internet services for smartphones.

They have challenged new rules which would limit how much of the airwaves any one company can own, dragging Ofcom into court.

BT argues the proposed cap of 37pc is too low, while Three says it is too high. The litigation is set to delay an auction of airwaves that Ofcom says could be used for 4G internet, as well as faster 5G networks in the coming years.

Taking aim at the telecoms firms, White said: ‘Three and BT are taking legal action because they do not like the rules. We will defend our decision. The benefits for mobile users will inevitably be delayed.

‘We appreciate companies must look after their own positions, but commercial interests must not derail a golden opportunity for the UK to achieve leadership in 5G and be among the world’s best-connected nations.’

Three first threatened to launch High Court action against Ofcom after it revealed the proposed new rules in the summer.

However BT moved first, filing papers with the court before its smaller rival and claiming that its threats had forced bosses’ hands.

BT said that it was arguing for no cap at all but White dismissed this, saying that its claim went ‘much further and seeks to challenge the auction on a whole new set of grounds’.

A BT spokesman declined to comment yesterday.

A Three spokesman said last night: ‘It is absolutely vital that the regulator gets this auction right for the long-term benefit of all consumers.

‘Larger players in the market are hoarding large amounts of spectrum, denying UK consumers the benefits of a finite national resource.’