Vodafone accused the regulator of a “careless disregard” for consumers and the
health of the economy by allowing Everything Everywhere, Britain’s biggest
mobile operator which runs Orange and T-Mobile, to get a head start on its
rivals. Vodafone has launched a blistering attack on Ofcom over its
decision to allow rival mobile operator Everything Everywhere to launch 4G services this year.
Ofcom
this morning agreed to relax the rules on a chunk of the Everything
Everywhere’s highest quality spectrum, the airwaves it uses to
carry mobile signals, so that it can launch 4G services this year and allow
much speedier access to the internet over mobile phones.
The operator will be allowed to effectively “flip a switch” on 11 September to
create a network that will typically offer internet downloads 10 times
faster than its existing 3G network. Eventually it will be able to offer
download speeds that are three times faster than the current fixed-line
broadband.
However, most other mobile operators in Britain will not be in a position to
launch 4G services until next year, after Ofcom has completed a long-awaited
auction of 4G spectrum, allowing Everything Everywhere to use its superior
service to make a land-grab for new customers.
“We are frankly shocked that Ofcom has reached this decision,” Vodafone said.
“The regulator has shown a careless disregard for the best interests of
consumers, business and the wider economy through its refusal to properly
regard the competitive distortion created by allowing one operator to run
services before the ground has been laid for a fully competitive market.”
Everything Everywhere, which is already Britain’s biggest mobile operator, has been campaigning to be allowed to launch 4G services this year on the basis that it will be good for businesses and the health of the economy.
However, its rivals argue that a head start will actually damage the economy in the long term, by creating an uneven playing field and stifling competition.
The decision to relax the rules governing Everything Everywhere’s spectrum could also threaten the 4G spectrum auction, Vodafone claimed.
Three, Britain’s smallest mobile network, is in advanced talks with Everything Everywhere to buy a chunk of the prime spectrum that can, from September 11, be used for 4G services.
If it clinches the deal, as seems likely, Three will have the spectrum it needs for 4G services “in the bank” and could challenge the rules for the 4G auction to try to secure more.
“The balance in the auction will fundamentally change,” Vodafone said.
Everything Everywhere, which is already Britain’s biggest mobile operator, has been campaigning to be allowed to launch 4G services this year on the basis that it will be good for businesses and the health of the economy.
However, its rivals argue that a head start will actually damage the economy in the long term, by creating an uneven playing field and stifling competition.
The decision to relax the rules governing Everything Everywhere’s spectrum could also threaten the 4G spectrum auction, Vodafone claimed.
Three, Britain’s smallest mobile network, is in advanced talks with Everything Everywhere to buy a chunk of the prime spectrum that can, from September 11, be used for 4G services.
If it clinches the deal, as seems likely, Three will have the spectrum it needs for 4G services “in the bank” and could challenge the rules for the 4G auction to try to secure more.
“The balance in the auction will fundamentally change,” Vodafone said.
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