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O2 and Three threaten legal action to delay 2.3 & 3.4GHz auction |
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#1 |
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O2 and Three threaten legal action to delay 2.3 & 3.4GHz auction
O2 who are no stranger to using legal action to delay spectrum auctions has used this tacit again this time joined by Three. They are unhappy about the auction going ahead whilst their proposed merger is being investigated. The auction was due to go ahead this month. The auction will be delayed at least until May and probably a lot later in the year. Quote:
Ofcom has today provided an update on timing of the auction of spectrum in the 2.3 and 3.4 GHz bands. http://stakeholders.ofcom.org.uk/spe...2C%20statement
On 26 October 2015, Ofcom published the statement Public Sector Spectrum Release (PSSR) Competition and auction design issues for the 2.3 and 3.4 GHz spectrum award, including reserve prices (the “Statement”). This sets out our decision to conduct an auction of the spectrum in the 2.3 and 3.4 GHz bands following the release of those bands to Ofcom by the Ministry of Defence as part of the Government’s Public Sector Spectrum Release programme. The Statement sets out Ofcom’s intention to commence the auction process during December 2015. In the Statement, we recognised that there is demand for this spectrum and took the view that spectrum efficiency is best achieved by bringing available frequencies into use as soon as possible to benefit consumers. Since the Statement was published, the Competition and Markets Authority (“CMA”) has published its provisional findings on the proposed merger between BT Group plc and EE Limited. The European Commission has also announced its decision to launch an in-depth investigation into the proposed merger between Telefónica UK Limited and Hutchison 3G UK Limited. The CMA’s decision on the proposed merger of BT Group plc and EE Limited is expected in January 2016 and the Commission’s decision on the proposed merger of Telefónica UK Limited and Hutchison 3G UK Limited is expected no later than mid-May 2016. In addition, on 19 and 20 November 2015, Ofcom received letters from Telefónica UK Limited and Hutchison 3G UK Limited respectively stating their intention to bring judicial review proceedings against Ofcom’s decision to commence the auction process before the outcome of the European Commission’s consideration of the proposed merger between those two companies. After careful consideration, given these specific circumstances, we have decided for reasons of good public administration to delay commencing the auction process. Therefore, Ofcom will not now commence the auction process until the European Commission has taken its decision as to whether the proposed merger between Telefónica UK Limited and Hutchison 3G UK Limited is compatible with the common market. |
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#2 |
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Seeing as they're the ones most likely to benefit from extra spectrum, you can't help feeling it's only themselves they're hurting by delaying it.
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#3 |
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Quote:
Seeing as they're the ones most likely to benefit from extra spectrum, you can't help feeling it's only themselves they're hurting by delaying it.
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#4 |
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Quote:
I suspect three and o2 don't want to be bidding each other up now and possibly ending up with duplicate spectrum (at a higher cost) that they wouldn't need post merger.
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#5 |
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Quote:
They could gamble that the merger will get approval and only one of the two companies bid.
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#6 |
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I think all the networks wanted a delay including BT, EE and Vodafone.
Had there been no takeovers there might have been 5 big players in it as BT might well have been a bidder. However an auction with 3 main players instead of 5 means they can stitch it up amongst themselves and all of them get to pay lower prices than they would otherwise have had to. |
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#7 |
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Three are still going on about taking legal action over the forthcoming auction.
http://www.mobiletoday.co.uk/news/in...spectrum-.aspx |
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#8 |
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This is the same thing that several posters here including me have been warning about is that BTEE and Vodafone are so huge and in so many other markets that they can afford to spectrum gulp for the sake of it and to negatively impact the market and cause further knock on consumer price rises.
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#9 |
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Quote:
Mobile operator Three UK has today roped in Cityfibre, TalkTalk, Relish Wireless and the Federation of Communication Services (FCS) in order to press Ofcom for a 30% cap on the total amount of mobile spectrum that any one company can own, which is largely targeted at EE (BT) and Vodafone.
http://www.ispreview.co.uk/index.php...-vodafone.html
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#10 |
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Quote:
There is no chance of any kind of cap. OFCOM often talks tough on BT but their actual actions speak much louder. You'll always hear tough regulations and restrictions they could impose on BT for many months, and then when the actual decisions are announced amazingly they are almost always the most favourable of all possible outcomes for BT. Every time.Even Sky with their friends in government plays second fiddle to the influence BT broadly has in helping to shape the policy decisions that matter. Sky continues to push for BT to be broken up, but it's absolutely a losing battle. |
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#11 |
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Same companies, but on slightly different tack...
I am on a contract with Three, but only because I mainly use my phone to listen to Five Live through my car radio while travelling and (on my route from Cornwall to London and back) Three seem to have the best, most consistent data coverage. On the other hand I once had an O2 wifi dongle for use when I was still taking the train and coverage was terrible and very slow. That was a few years ago, mind, so perhaps it has improved.
However, my daughter, at college in Bristol (UWE to the north-west of Bristol) says O2 coverage is great but that a friend who has a Three phone is always complaining. So my question: If and when O2 and Three merge, will that mean more extensive coverage for users, i.e. merging their two sets of masts etc? |
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#12 |
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Join Date: May 2007
Location: Wakefield, West Yorkshire
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Quote:
I am on a contract with Three, but only because I mainly use my phone to listen to Five Live through my car radio while travelling and (on my route from Cornwall to London and back) Three seem to have the best, most consistent data coverage. On the other hand I once had an O2 wifi dongle for use when I was still taking the train and coverage was terrible and very slow. That was a few years ago, mind, so perhaps it has improved.
However, my daughter, at college in Bristol (UWE to the north-west of Bristol) says O2 coverage is great but that a friend who has a Three phone is always complaining. So my question: If and when O2 and Three merge, will that mean more extensive coverage for users, i.e. merging their two sets of masts etc? |
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