Originally Posted by reclusive46:
“I doubt Three will argue you though because of the MBNL agreement.”
The MBNL agreement has nothing to do with 3's position re bandwidth. That is a joint venture to provide a radio access network and 3 have to consider their commercial position and how any change might affect their ability to attract cusotmers to their service. EE have more 2100MHz spectrum than 3 have and a huge amount of 1800MHz despite having to divest some. They need it with 27 million cusomers it could be argued!
3 UK are unique in only having access to 2100MHz whilst EE have that plus 1800MHz, Vodafone and O2 have 900 plus 1800 and 2100MHz bandwidth available. For as long as 900 and 1800 were used for voice and SMS 3 had little to worry about as they have as much 2100MHz as any others but refarming changes the market dramatically and whilst there will be opportunities for new spectrum for all the biggest networks have more scope to expand what they already have.
3 have some options. They could buy EE's 1800MHz spectrum but that is for the highest bidder and 3's parent company have not been paying premium prices in markets to expand lately. They could wait and hope to win some spectrum at auction but they might be outbid as they were in Italy for the most lurative 850MHz range. Or they could do a deal and get out of the UK market altogeter as a single player. They could do a deal to take some equity in another company in exchange for their assets as they did with Vodafone in Austrailia.
The mobile telecoms market in the UK has been very competitive and that has worked well for customers. The regulator knows that giving a single network an advantage forces others to up their game so perhaps that is what Ofcom have in mind. They did exactly that when 3G was auctioned and gave 3 UK the biggest piece of the pie.
I expect further comeptiton might tip the balance and force 3's parent company to divest and take a share of profit from a much safer bet as a shareholder of a bigger operatior. Maybe not the best news for customers but there are competing technologies offering other LTE services so Ofcom might be prepared to have three UK mobile networks and MVNOs which is common in most European countries and has achieved similar price reductions for customers.