Ofcom 4G spectrum auction to be investigated by Government spending watchdog

The amount raised by the Ofcom 4G spectrum looks set to be scrutinised by Government spending watchdog the National Audit Office (NAO).

O2, Vodafone, EE, Three and BT stump up hundreds of millions of pounds to secure 4G spectrum in either the 800MHz and 2.6GHz bands, during the auction in February.

Around 2.34 billion was raised as a result of the auction, despite the Office for Budget Responsibility expecting the initiative to raise somewhere in the region of 3.5 billion.

According to a report in the Guardian, the NAO is preparing to investigate the shortfall, after complaints were made by Labour MP and Shadow Minister for Media and Communictions, Helen Goodman.

The publication also claims to have seen the content of a letter from the NAO's auditor general, Amyas Morse, to Goodman that states: "I intend to conduct a value-for-money study of Ofcom's recent auction of 4G spectrum."

Speaking to IT Pro, a spokesperson from the NAO said the organisation was in the throes of "scoping out" its investigation to determine what form it will take, and will release further details once that is established.

"We've sent the letter. We've said we're going to do it and that's all I can say at the moment," the spokesperson added.

In a statement to IT Pro, Ofcom insisted the auction was a success and the conclusion in-line with the organisation's statutory duties.

"It will create competition, with five companies able to launch competitive 4G services. This will lead to investment in new services, greater innovation and lower prices, plus enhanced coverage with a rule to cover almost all of the UK population by 2017 at the latest," the statement read.

"The auction was designed to promote competition and ensure coverage, rather than to raise money. These benefits will deliver significantly more value in the long term to the UK than simply the revenue raised in the auction," it concluded.