A dispute between UK mobile operators over the distribution of spectrum may be brought to a close by government intervention.
The minister for communications Lord Carter had earmarked a 900MHz of the airwaves for providing mobile broadband in rural areas, part of the Government's promise to provide universal broadband across the UK at a minimum speed of 2Mbps.
But the government's suggestion that this be shared between mobile phone operators has received a frosty response.
The spectrum was originally divided between the two operators Vodafone and O2 when they were the main companies in the industry. With the growth of more mobile operators, this is now being disputed and other companies want a piece of the spectrum pie.
Ofcom has proposed that one other operator gets a slice of the spectrum and has warned this suggestion will be imposed if the operators cannot come up with a suitable deal between themselves. The five UK operators did meet in February to make an agreement but one was never reached.
O2 said in a statement: "We want to see the UK continue to benefit from a world leading digital economy and we share the view of Government that it is better for all concerned to reach an industry-agreed solution on spectrum. We've always supported a market led rather than regulatory led approach and believe it is the best way to find an outcome that is acceptable to all. We believe this may be achievable. We look forward to contributing to the discussion over the coming weeks."
Vodafone was a bit less enthusiastic with its response, as a spokesperson said: "Vodafone has been part of ongoing and constructive conversations behind close doors so we are not willing to give any comment at this stage."
