O2 boss backs EE’S call for snap auction of airwaves
PRESSURE was mounting on telecoms regulators last night to organise a quick auction of rights to the airwaves, as fears grew that a court clash between mobile operators would delay investment in better networks.
Mark Evans, chief executive of O2, backed a call by rival EE for Ofcom to press ahead with a big-money sale of radio spectrum that could bolster coverage immediately.
EE yesterday revealed plans to take the regulator to the High Court over restrictions on the share of airwaves it is allowed to buy at frequencies suitable for future 5G networks. It made the threat after Three launched its own action in a bid to impose a tighter cap.
EE, which is owned by BT and has a bigger share of radio spectrum than its rivals, said it would not seek to bid and not stand in the way of a quick sale of fre- quencies ready for use in existing 4G networks.
Mr Evans said the move clears the way for Ofcom to act. O2 has the smallest share of radio spectrum – the raw material needed to serve rocketing demand for data on the move. Its parent company, Spanish telecoms giant Telefonica, is also seeking to float part of its UK business and uncertainty over its rights to the airwaves is seen as an obstacle by investors.
Mr Evans said: “The entire industry is aligned that there is no reason this can’t go ahead. The 5G spectrum is contested and it looks like we’re going to court, but there is spectrum that can be deployed now...the ball is in Ofcom’s court and it is incumbent upon them to act.”
The regulator would need to abandon plans to auction off 4G and 5G airwaves together. Mr Evans said a new sale of immediately usable spectrum could be finalised “within a few weeks”.
He criticised Three’s claims that its court action will cause only a few months’ delay to 5G, saying that would only be possible if it loses. Mr Evans said: “If they have any chance of winning we are into a year or more of delays.”
Philip Marnick, Ofcom spectrum group director, said: “The quickest way to release airwaves is to award them to operators through the open auction we’ve set out, without legal challenges or delays.”