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Mobile operator calls on Ofcom to impose restrictions on U.K. incumbent at this year’s auction.
3UK chief Dave Dyson has called on Ofcom to impose restrictions on the country’s big guns at this year’s planned spectrum auction.
In a Financial Times report on Sunday, he warned that BT in particular has the means and incentive to bid strategically to prevent a smaller player like 3UK from acquiring frequencies that would improve its competitiveness.
"Ofcom wants credible operators. But to be credible you need enough spectrum," Dyson said, in the report. "Hopefully Ofcom will make some pro-competition choices in the design of the auction."
This could include requiring BT to hand back spectrum before allowing it to bid for more, he said.
Ofcom plans to auction 40 MHz of spectrum in the 2.3 GHz band and 150 MHz in the 3.4 GHz band later this year. It has set a reserve price of £70 million (€97 million) for the airwaves.
Ofcom had planned to conduct the auction in 2015, but it was put on hold until the European Commission issued its decision on 3UK’s proposed merger with rival O2.
With that merger having now been blocked, and with BT being allowed to acquire EE without making significant concessions, 3UK is under intense pressure to remain competitive.
Dyson told the FT that this means improving quality by adding more base stations and refarming 3G spectrum for 4G services, and focusing on being the U.K.’s best mobile-only operator.
"You have to move forward and make the most of the cards you’re dealt even if you disagree with the decision," he said.
