Make the Air Fair

 

Many constituents have copntacted me about the auctioning of spectrum capacity for the mobile phone network.

Ofcom is responsible for competition in the UK mobile market, in line with its statutory duties. These duties include the promotion of competition and efficient use of auctions to create competition and capacity.

Ofcom recently launched a consultation on the upcoming spectrum auction. The auction consists of 2.3 GHz spectrum, which is already useable for better 4G services and 3.4 GHz spectrum which is unlikely to be useable for at least two to three years, but could help unlock a new wave of future services such as 5G.

Ofcom agrees that there is a competition concern around the 2.3 GHz spectrum available and it has therefore imposed a cap on bidding. The cap prevents any one company holding more than 45 per cent of spectrum that can be used immediately after the auction. It also argues that by the time 3.4 GHz spectrum is usable, other bands will become available and there is therefore no immediate necessity for action on competition grounds in respect of this spectrum. 

Ofcom has been clear that its intervention has been minimal as it does not want to distort the auction by giving the smaller operators a price break through the weakening of competition. Furthermore, there are concerns it would provide a perverse incentive for smaller operators to under-bid in this and future auctions if they always expected intervention in their favour on grounds of lacking spectrum.

I join the Government in welcoming Ofcom's focus on ensuring effective competition in the mobile market and on getting the spectrum into use as quickly as possible.

As an aside - I am sure you are aware that the mobile networks in this constituency are not good enough. Improving these services is something I am actively working on. I recently held a conference with local councillors and members of BT and EE at Great Dixter partially concerning this issue. The link detailing what was talked about at the conference is available via the following link:

https://www.huwmerriman.org.uk/news/huw-holds-local-parish-conference-r…