Benoit Reillier, Director in KPMG’s Economics & Regulation practice comments on OFCOM’s second spectrum consultation on the forthcoming spectrum auction (planned for Q4 2012). He said:
“This new consultation suggests a significant departure in the thinking of the Regulator regarding competition in the UK mobile market. Under the new proposed rules, most of the UK mobile operators will be unable to bid for a reserved spectrum portfolio.
“OFCOM has undoubtedly had the difficult task of balancing a range of objectives such as the promotion of competition, increased coverage for the next generation of mobile services, the maximization of consumer benefits and the requirements of the operators. It does however remain a fine balancing act.
“Finally, the announcement that OFCOM is proposing to link a new 98 per cent coverage obligation to Government’s £150 million Mobile Infrastructure Programme, surely heralds good news for both business and consumers alike.”
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