Rival networks opposed Everything Everywhere’s spectrum reuse plan but Ofcom, the communications regulator, today said the benefits to consumers from getting 4G services sooner outweighed claims it would give Everything Everywhere an unfair head start.
Allowing the change “will deliver significant benefits to consumers, and that there is no material risk that those benefits will be outweighed by a distortion of competition”, Ofcom said.
Along with Three, O2 and Vodafone will have to bid for new spectrum licences at auction later this year. They are expected to introduce their 4G networks from next year if the auction process does not become bogged down in threatened legal action.
Vodafone said it was "frankly shocked" at Ofcom's decision in favour of Everything Everywhere's plan.
"The regulator has shown a careless disregard for the best interests of consumers, businesses 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 4G market," a Vodafone spokesman said.
"The regulator has spent several years refusing to carry out a fair and open auction. Now its decision today has granted the two most vociferous complainants during that entire process a massive incentive to further delay it."
Britain is already years behind the United States and some European countries in deploying faster mobile internet services, leading to criticism of bureacratic delays.
The upcoming generation of smartphones, including, it is believed, the iPhone 5, will take advantage of the new technology. Apple is expected to unveil its new handset on 12 September.
Everything Everywhere would gain a significant advantage as the only network compatible with the bestselling smartphone’s new faster mobile internet capabilities.
"Ofcom's decision to make 4G available this year is great news for the UK," a spokesman for the firm said.
"Consumers will soon be able to benefit from the much greater mobile speeds that 4G will deliver. 4G will drive investment, employment and innovation and we look forward to making it available later this year, delivering superfast mobile broadband to the UK.”
Everything Everywhere has been replacing its infrastructure in preparation for the 4G signalling standard, also known as Long-Term Evolution, via a deal with the Chinese telecoms equipment manufacturer Huawei. It is understood that major cities that have already benefited from the upgrade programme could get faster mobile internet coverage relatively easily by simply turning on the new masts’ in-built 4G capabilities.
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