Criticism as Ofcom puts limit on mobile auction

Ofcom will introduce a cap on the amount of mobile spectrum any network can control ahead of an auction of airwaves to support the expansion of 4G and 5G.

The communications industry regulator said the cap, set at 37%, will restrict BTowned EE and Vodafone in the auction process later this year.

Philip Marnick, Ofcom’s spectrum director, said: “We’ve designed this auction to ensure that people and businesses continue to benefit from strong competition for mobile services.”

However, smaller operators such as Three and O2 wanted the cap to be set at between 30% and 35%.

Three CEO Dave Dyson described Ofcom’s proposal as a “kick in the teeth” for consumers.

He said: “By making decisions that increase the dominance of the largest operators, Ofcom is damaging competition, restricting choice Telecommunications, including broadband and mobile, is a reserved matter, for which the UK Government has responsibility for funding and delivering.

However, Scottish ministers recognise the vital role that digital connectivity can play in growing our economy and creating a fairer Scotland.

That is why, along with our partners, we have invested more than £400 million in a digital programme which is on track to deliver fibre broadband access to 95% of premises across Scotland by the end of 2017.

The vast majority of these will be at superfast speeds, with more than 750,000 premises already getting access to fibre broadband as a result of the programme.

Last month I was lucky enough to visit BRAG Enterprises in Lochgelly, a social enterprise which was one of more than 70,000 businesses we connected to fibre broadband in the last six months alone.

Facilities manager Paul Melvin described the impact on local businesses as “amazing”, and charity Re-Employ reported a significant increase in production after connecting to the fibre service. and pushing prices up for the very consumers that it is meant to protect.”

BT/EE holds 45% of all usable mobile spectrum, Vodafone has 28%, O2 15% and Three 12%.

However, Ofcom said that Three’s consultation response “presented an overly pessimistic view of its own position.”

An Ofcom spokesman said: “This auction will keep the airwaves fair by reducing the share held by the largest operator. It will include strong safeguards to maintain a healthy four-player market and allow mobile operators to acquire the airwaves they need to compete.”

Ofcom’s cap means BT/ EE will not be able to bid for spectrum in the 2.3GHz band and Vodafone can bid for a maximum 160 MHz of spectrum across both the 2.3GH zand 3.4GHz bands.

EE chief executive Marc Allera said: “We look forward to bidding for additional spectrum in this auction.”

Inchture Hotel also informed us that bookings and productivity have soared thanks exclusively to fibre broadband.

They are now able to work faster and smarter, and also meet the high expectations that business visitors have regarding Wi-Fi connectivity.

We want all of Scotland’s businesses and families to enjoy benefits like this from highspeed broadband.

We are committed to delivering 100% superfast broadband access across Scotland by the end of 2021.

And work has started to get us there with publication of a state aid public consultation on how best to ‘reach 100%’

This consultation outlines the number of premises – more than 280,000 – which cannot access superfast speeds.

While many of them already have access to some level of connectivity, often it is at slower speeds, so these premises will be the focus of our ambitious target.

Learning from previous experience, our plans to reach 100% will prioritise public investment in the hardest-toreach rural and remote areas while recognising the key role commercial investment will continue to play in urban areas.