Ofcom dismisses 3G auction speculation

Ofcom has denied press speculation that it will allow mobile operators' 3G licences to continue beyond their allotted terms.

A report in The Times on Thursday suggested that the regulator had "revealed" it would waive its right to repeat the hugely profitable auctions, through which operators acquired 3G licences in 2001, after those licences expire in 2021.

The auctions produced £22.5bn for the Treasury, although it has since become apparent that the operators paid too much for a technology that was, at the time, years away from fruition. Attempts to claw some of that money back from the Treasury have consistently failed, and the operators are understood to be keen on those licences remaining valid for longer than their 20-year terms.

On Friday a spokesperson for Ofcom denied the allegations that the regulator was ready to bow to such pressure, and pointed out that the licences would be expiring a full 14 years from now. "We haven't even started any work on considering that," said the spokesperson, while confirming that it would be Ofcom's responsibility — come the time — to decide what should be done.

The spokesperson also noted that there was no mention of what should happen with  existing 3G licences in Ofcom's draft annual plan, published last December, although further spectrum which could be used for an extension to 3G services will be auctioned off later this year.