­Ofcom, UK’s telecoms regulator is proposing to allow the mobile networks to buy and sell their radio spectrum, creating a market place in the industry for the first time.

As per the proposals, which cover spectrum at 900 MHz, 1800 MHz and 2100 MHz, operators with a greater need for spectrum will be able to make offers for spectrum from those who need it less.

According to Ofcom, it is hoped that this added flexibility will help operators to respond more quickly to demand.

According to Ofcom Chief Executive, Ed Richards, this is an important milestone in the modernization of spectrum management in the UK. It comes in response to the fast pace of change and innovation taking place in the mobile communications sector, which is placing increased demands on spectrum. One important way of meeting this demand is making the acquisition of spectrum as flexible as possible.

3 Denmark awarded additional spectrum

3, the Danish unit of mobile group was awarded additional spectrum this week, a move that the company claims will aid to improve competition in the market.

According to the company, 3 Denmark will pay US$2.25 million for vacant spectrum in the 900-MHz and 1800-MHz bands. It grabbed the 2×5 MHz of 900 MHz spectrum and 2×10 MHz in the 1800-MHz band for US$1.21 million and US$60, 9720 respectively.

Since 3 was the only one in the management for the spectrum, it will pay the minimum rate set by regulator Telestyrelsen. Competitor operators TDC, Telenor and TeliaSonera were excluded from the process on the grounds that they already have 900-MHz and 1800-MHz licences. The award levels the playing field from a spectrum opinion.

According to 3 Denmark CEO Morten Christiansen praised Telestyrelsen for the way it handled the process, granting spectrum to 3 at the minimum price would have a positive impact on consumers and on the competitive landscape in the country. The company will continue to invest heavily.

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UK

regulator Ofcom has proposed cutting wholesale mobile termination rates further. The current agreement on rates expires in March 2007. The five major network operators have all been deemed to be significant powers in the market and will be subject to rate cuts in four steps for the four years to early 2011. Average charges for Vodafone, O2 ,

Orange

and T-Mobile are expected to fall to GBP 0.053 per minute by
31 March 2011
. This would remove the current difference in charges between users of 1800 MHz and 900 MHz spectrum. Network operator 3′s charges are expected to fall to GBP 0.06 per minute by 2011, reflecting a different cost base for the 3G operator. Ofcom will re-evaluate the proposed final level of the charges and the glide path cap for implementing the gradual reductions following a public consultation. The consultation runs until 22 November, with a final decision on the rates expected in early 2007.

Source- http://www.telecompaper.com

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