Ofcom under fire over data spectrum competition concerns

Communications regulator Ofcom has published proposals for the rules it could enforce on an upcoming mobile data spectrum auction, which will see major mobile companies bid for a larger share of the airwaves.

There will be two spectrums - or bands of available airwaves which would allow the owners to offer their customers faster mobile download speeds - up for grabs.

These are the 2.3GHz spectrum, which would enhance current 4G speeds, and the 3.4GHz spectrum, which will be important for the rolling out of 5G coverage in the coming years.

Ofcom plans to auction the spectrums as part of a Government programme, but some operators have raised concerns about BT using the process to increase its share past the point of fair competition.

BT, which includes mobile network EE, currently owns a total of 45% of the available spectrums.

Vodafone has 28%, while Three has 15% and O2 has 12%.

Some in the industry had hoped that the discrepancy would lead Ofcom to prevent BT from buying any more, but the regulator's proposals have fallen short of an all-out ban.

Stating that "an uneven distribution of spectrum is not necessarily a barrier to strong competition among operators', Ofcom has proposed that a limit of 42% ownership be placed on the 4G spectrums available for "immediate use".

This would include the 2.3GHz spectrum, and would mean that BT could not buy any of that spectrum in the upcoming auction.

But it would not include the 3.4GHz spectrum, which comprises about 75% of the total spectrum which will be up for sale and will not come into use until 5G is rolled out.

Commenting on the plans, Three said in a statement: "Ofcom exists to promote competition and protect consumers but it has once again shown it is not willing to make the big decisions needed to deliver the best outcome for the UK.

"It has allowed BT and Vodafone to stockpile valuable mobile airwaves and put genuine choice for consumers at risk."

Three had lobbied for a 30% cap on spectrum ownership.

Mobile networks will have until 30 January 22017 to respond to the proposals.