Everything Everywhere is heaping pressure on regulator Ofcom to approve its plans to roll out a 4G network this year, by claiming the British economy could miss out on billions of pounds worth of investment.
The mobile operator, the result of a merger between T-Mobile and Orange, is seeking an early license from Ofcom to roll out 4G services early, ahead of the spectrum auction expected later this year.
According to a new report – paid for by mobile operator Everything Everywhere – rolling out 4G will lead to £5.5 billion in investment and help boost GDP by 0.5% by the end of the decade. However, the latter figure is based entirely on saving UK businesses the 37 million hours of time they apparently spend waiting for downloads, according to Everything Everywhere.
The report is the latest in Everything Everywhere’s 4G lobbying efforts, part of a new “4G Britain” campaign.
The 4G roll out hinges on a spectrum auction, which Ofcom has planned for later this year. However, EE has spectrum it could use for next-generation mobile networks now, and is looking to get permission to use that to offer 4G as soon as possible – giving it a headstart on rival networks. Vodafone and O2 have publicly protested against the plan, claiming it gives Everything Everywhere an unfair advantage.
The UK has the highest levels of smartphone penetration and mobile commerce in Europe, and Britons deserve to have the best infrastructure in place to support this growth
EE’s CEO Olaf Swantee claimed the UK was trailing behind 30 other countries that already had 4G networks – although exactly what “4G” means remains the subject of some debate, as it isn’t technically defined by the International Telecommunication Union.
“The UK has the highest levels of smartphone penetration and mobile commerce in Europe, and Britons deserve to have the best infrastructure in place to support this growth,” Swantee said.
However, rival mobile operators are hoping to get the most out of their existing investment into 3G and 3.5G, an industry insider told PC Pro in an investigation into spectrum auction delays in our latest issue. “None of the operators can see how they’re going to monetise 4G,” the expert told us on conditions of anonymity.
Legal delays
Ofcom’s most recent consultation on whether Everything Everywhere should be allowed to move first was expected to end on 17 April, but the regulator is yet to get back to us with details about when a decision is expected.
Meanwhile, the regulator blamed the spectrum auction delays on industry in-fighting.
“It is our objective to see consumers benefit from 4G services as soon as possible,” an Ofcom spokesman said. “We also want consumers to continue to enjoy the benefits of strong competition into the future.”
“Delays have been caused by legal challenges and threats of future litigation from various companies as they seek to defend their own commercial positions,” Ofcom added. “While we recognise the need for companies to protect the interests of their shareholders, our role is to promote the interests of consumers.”
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