BT Enters Debate on Spectrum Extension
In 2000 five mobile service providers had entered into an agreement with the British government for 3G licenses for 12 years for £22.5bn. As the licenses come to expire soon, the negotiations restarted and recently the government and the companies agreed that the government will extend the licenses indefinitely if the companies agree to support it in the process of providing broadband everywhere. This will be a part of the Digital Britain project.
This has not gone down well with British Telecom who has threatened to drag the government to court if this measure is implemented. British Telecom believes that the decision of the government is not fair and reasonable. It claimed that the 3G spectrum should be assigned only after proper auction in which every mobile service provider is given equal opportunity to participate. The current decision will amount to spending the money of tax paying citizens on giving very expensive gifts to large companies. It will also exclude anyone who wants to join the industry.
British Telecom has already sent a ‘letter before action’ to the Business Secretary raising its objections. It has also taken the matter to BIS, the Department for Business, Innovation and Skills which has asked the government and the mobile service providers to reconsider the subject and has extended the deadline for negotiations to 5th February, 2010. However, this has made mobile service providers anxious as they think that even if the decision is in their favour it will be too late to implement it as the government will be facing the next elections and will not pay attention to it.
For more information on 3G internet, or the mobile broadband providers, look at mobile.broadbandgenie.co.uk. There is useful information on a mobile broadband card; it is worth a look at the website for and their comparative table of broadband
