Further auction planned as 3G tops £22bn

The UK government has announced it will hold another online auction, this time for broadband fixed wireless access (BFWA) services.

Ecommerce Minister Patricia Hewitt said the auction will be held in September for three licences which will be awarded on a regional basis.

BFWA enables users to have cheaper and faster internet and multimedia access as it uses radio links rather than a telephone line.

The announcement comes as bids in the current radio spectrum auction topped £22bn. Analysts warned last week that the extravagant bids in the 3G licence auction could delay the sale of fixed broadband wireless licences, and questioned whether the government would use the auction process again.

But Hewitt said that the awarding of licences by auction ensures that they are taken up by those operators best placed to develop services more efficiently.

"There is an increasing demand for broadband services in all sectors of the economy including small businesses. I want these services to be developed as quickly as possible. The licence package is designed to encourage new entrants and the development of a competitive market," she said.

The auction in September is for spectrum available at 28Ghz for BFWA. Three licences will be awarded in coverage areas to be defined over the next month. Proposals for awarding 40Ghz licences will be announced in the summer, with licences made available in the autumn.

The government invited views from interested parties on the proposals, including the number and size of regional coverage areas, by 19 May.

Bidding in the 3G mobile auction after round 145 sees Canadian group TIW leading Licence A with a £4.39bn bid; Vodafone leading B with £5.96bn; NTL Mobile leading C with £3.97bn; BT3G leading D with £3.944bn; and Orange leading E with £3.95bn.

The auction has now been suspended until Tuesday 25 April. The Secretary of State, after consulting bidders, called a recess day for Thursday 20 April.

See also:

Bidless broadband auction fiasco

Telcos ignore fixed wireless auction  19 Nov 2001

UK could get a sixth 3G licence

A meeting of UK government and telecoms industry officials has given the green light to build third-generation (3G) mobile networks in Europe, and raised the possibility that a sixth licence could be sold in the UK.  07 Jun 2000

UK government awaits One 2 One lawsuit

Mobile phone operator One 2 One yesterday launched legal action against the UK government, accusing it of acting unfairly in the third generation (3G) mobile phone licence auction.  09 May 2000

Winners of 3G licence auction revealed

The battle for the UK's third generation (3G) mobile phone licences has finally come to an end following NTL Mobile's withdrawal from the auction.  27 Apr 2000

UK basks in 3G auction success

The third-generation mobile spectrum auction has been spectacularly successful in raising money. UK citizens can now look forward to a healthy reduction to the national debt.  27 Apr 2000

TMA slams broadband auction plans

The Telecoms Managers Association (TMA) has slammed the UK government's plans to run a second auction this autumn for broadband and fixed wireless access.  27 Apr 2000

PeopleSoft warned against complacency

PeopleSoft has shown respectable first quarter results, but it needs to boost its high-margin licence sales to maintain current growth.  27 Apr 2000

BT defends 3G licence bid

BT has defended its decision to opt for one of the weaker mobile spectrum licences in the next-generation mobile phone auction.  27 Apr 2000

Another dropout in 3G licence race

Telefonica dropped out of the race for the UK's third-generation (3G) mobile phone licences today, as the bids topped £21bn.  17 Apr 2000

Mobile auction madness delays second sale

Extravagant bids in the UK's next-generation mobile phone licence auction could delay the sale of fixed broadband wireless licences.  12 Apr 2000

Mobile Internet technology failing to deliver

The much hyped technology that promises to bring Internet services to your mobile phone is late to the UK as vendors fail to meet demand for handsets.  10 Nov 1999

Like this story? Spread the news by clicking below:

 del.icio.us     Digg this     reddit!