Ofcom reveals 4G mobile auction plans

Telecoms regulator Ofcom has unveiled plans for the auction of fourth generation (4G) bandwidth for mobile phone services.

The sales process will start later this year but bidding will not begin until early 2013, which Ofcom said was in line with its previous timetable.

The regulator says it expects consumers to start getting services in late 2013.

It wants to see a new market entrant to promote competition, naming Hutchison 3G as a potential new operator.

The auction will sell chunks of radio spectrum to support future 4G mobile services, which will allow users to download data such as music and videos at much faster speeds.

New operator

The regulator has previously said that the spectrum to support 4G services will not be available to use until 2013.

It says its plans should see mobile broadband rolled out to at least 98% of people in rural areas across the UK.

The auction will offer the equivalent of three-quarters of the mobile spectrum currently in use - some 80% more than released in the 3G auction which took place in 2000, Ofcom said.

It now wants to see a new market entrant so that consumers will benefit from better services at lower prices.

"In the interests of competition, Ofcom has decided to reserve a minimum amount of spectrum in the auction for a fourth operator. This could be either Hutchison 3G or a new entrant altogether," Ofcom said.

Everything Everywhere - the merged operator of Orange and T-Mobile - Vodafone and Telefonica, which owns O2, are the other three operators.

-BBC