Mobile giants at war over sale of super-fast signal

TELECOM giants have clashed ahead of the multi-billion pound auction of the latest super-fast mobile networks.

Some firms have called for BT and Vodafone bids for the next generation of phone signals, known as 5G, to be capped.

The auction happens later this year, and rivals see this as a key opportunity to topple BT, which also owns mobile firm EE.

Vodafone and BT hold the biggest share of the spectrum and face calls that the amount they can buy at the next Government auction should be limited.

Together the two firms own 73pc of the country’s mobile spectrum, the lucrative radio frequencies that transmit sound, data and video to mobile phones. O2, which controls just 15pc, has demanded regulator Ofcom block anyone from buying more than 35pc of the network – effectively barring BT, EE and Vodafone from the sale. Chief executive Mark Evans said the UK has one of the largest spectrum imbalances in the world – which he claims is hurting competition and causing prices to rise for consumers.

‘We need a competitive market to ensure that the UK mobile networks drive competition, investment and innovation and deliver value for customers,’ he said.

‘That’s why we are calling for the industry regulator to restrict the share of the spectrum at the coming auction.’

5G is seen as vital if the UK is going to be able to excel in indus- tries such as driverless cars. An auction in the summer will see the Government sell the network to bidders – in an upgrade expected to add £7bn each year to the UK economy by 2026, according to a report from O2. BT has already been barred from the next auction of the 4G spectrum, also later this year, but O2 wants Vodafone to also be restricted from bidding strategically and buying up all the airwaves.

O2 claims that without a cap, it and rival Three will be hurt.

BT, which controls 45pc of the UK’s usable spectrum, became the UK’s largest telecoms provider when it merged with EE last year in a £12.5bn deal.

Vittorio Colao, boss of Vodafone, insists firms which have made huge investments in the past should not be penalised, and dismissed the notion that regulators should step in to enforce a cap.

Speaking at the Mobile World Congress in Barcelona, the 55year- old said: ‘ Vodafone has paid and made investments to be a quality operator. As a result we are paying the costs and we should also have the benefits.

‘I don’t like it when people start playing with regulations if the conditions are fair. That’s why we are in favour of auctions and open processes.’

An EE spokesman said: ‘ EE has tirelessly deployed all of its spectrum and network assets to deliver the very best network experience for customers.’