BT is among seven bidders to enter the race for Britain’s 4G airwaves, fuelling expectations that the Government will secure the £3.5bn windfall it has banked on.
The auction will play a major role in determining the pecking order of Britain’s mobile businesses over the next decade, although not all of the bidders are chasing the airwaves in order to roll out mobile telephone services.
Instead, BT, MLL and PCCW are thought to be eyeing tranches of low-frequency airwaves which they can use to deliver speedy 4G wi-fi internet services in certain, localised areas. Analysts said they would be likely to offer the faster wi-fi to multinationals and companies on business parks, rather than making it generally available, to help boost their so-called “enterprise” operations serving business customers.
“There is nothing to stop them offering it to consumers as well, but it would have to be on a very local level. There is not enough [low-frequency spectrum, or airwaves] in the auction to offer them across the whole country,” said Matthew Howeet, a telecoms analyst at Ovum.
Although BT is the best placed of the three surprise bidders to launch a full-blown mobile network, it is very unlikely to do so, he added. “It would be a massive shock if any of these three attempted to bid for one of the big chunks [of airwaves needed for 4G mobile]. They would have to acquire a significant amount because they don’t have any as a starting point.”
