Britain plans to auction mobile spectrum in 2012

The Communications Regulator, Ofcom has revealed that Britain is planning to auction more radio spectrum in 2012 to mobile telecoms operators who need it to handle increasing amounts of data traffic.

Up till now, Germany is the only European country to have auctioned off the spectrum that has been freed up by broadcasters switching from analogue to digital transmission, raising US$5.8 billion last year.

The European Union, seeking to boost cross-border trade and create jobs, has stated that EU countries should release spectrum to mobile operators by 2013 to spur consumer demand.

The use of mobile Internet services such as browsing, email and the updating of social networks have exploded in the last three years, leaving operators struggling to satisfy demand.

According to Ofcom, it aimed to start the auction of licences for 800 MHz and 2.6 GHz bands by the end of its 2011/12 financial year, which runs until end-March 2012, or early in 2012/13, and to issue the licences in the first half of 2012/13.

The 800 MHz band previously used by broadcasters is particularly suitable for mobile broadband.

Auctions have already been held in several European countries for the 2.6 GHz band, which is suitable for next-generation mobile networks using LTE or WiMax technologies.

On Thursday Ofcom has ssaid that it would allow airwaves currently used for 2G services — mainly voice calls and texting — to be used for 3G mobile broadband services too.

Telecoms operators in Europe spent over $100 billion for 3G licences in 2000 — US$34 billion in Britain alone — in a rush to build networks for services that turned out to be slow to materialize.

The coming round of auctions is expected to raise far less.

Ofcom will consult on its draft plan until March 1 with a view to publishing its actual plan for 2011/12 in April.