Would Make The Air Fair’s Spectrum Cap Actually Make UK Mobile Networks Better?
ANALYSIS: Three’s drive to get consumers to complain Ofcom is underway but spectrum is only part of the equation and a few truths are being stretched
The campaign’s official website urges mobile users so sign a letter template that includes the text:
“I believe that Ofcom must address this in the upcoming auction for 2.3GHz and 3.4GHz spectrum. The regulator should make sure that following this auction, no operator is allowed to own more than 30 percent of the total mobile phone spectrum in the UK.
“However, I am concerned that the preferred option brought forward by Ofcom in its consultation will not do this, and will make an already bad situation for consumers worse.”
The whole truth
There’s just one thing. BT-EE is actually banned from bidding for the 2.3GHz spectrum because Ofcom agrees with Make The Air Fair. BT-EE is allowed to bid for the 3.4GHz assets because it is not “immediately usable” and is earmarked for 5G.
“The UK has long benefited from strong mobile competition,” said Ofcom’s director of spectrum “We are designing the auction to ensure everyone benefits from a market that continues to innovate and serve them well.”
Surely preventing the UK’s biggest operator from preparing for 5G would be to the detriment of UK consumers?
The crippling effects of the huge cost of 3G licences resulted in almost a decade of underinvestment by operators who couldn’t afford to build the infrastructure necessary to make the most of their expensive assets.
Ofcom recognised this at the (perpetually delayed) 2013 auction and also ensured spectrum would be reserved for a fourth operator in a bid to maintain competition. Who was the winner of the spectrum set aside? Three.
But spectrum is only part of the equation. Planned reforms to the Electronic Communications Code (ECC) will make it easier for operators to build and upgrade network infrastructure so it can handle more traffic and coverage can be extended to rural areas.
All four operators are in agreement the market needs to be less regulated and that they should have more powers. Limiting access to spectrum would be to the detriment of improving coverage and speeds, especially when you consider EE plans to cover 95 percent of the UK landmass with 4G by the end of 2020.
It’s unlikely the campaign will be successful – at least immediately. Ofcom hasn’t forced BT-EE to sell spectrum, had proposed banning the company from bidding for 2.3GHz in next year’s auction and believes the UK has the cheapest mobile broadband of any major EU country. A lynch mob probably won’t sway its belief the market isn’t competitive.
In a world where Brexit (and its NHS promises) was successful and Donald Trump (and his wall) is about to become US President, perhaps Make The Air Fair believes if the claim that a fairer share of spectrum will lead to cheaper mobile, a popular movement can have a long term impact on policy.
Or it could just strengthen the public perception that Three is still mobile’s underdog.
