The spectrum allocation issue has taken a new turn now that T-Mobile has backed out of its attempt to halt Ofcom’s auction of the 2.6GHz range.
Ofcom has been trying to auction off the 2.6GHz range, the prime spectrum for LTE, for a long time now. However, the industry is not in agreement with the timing of this move by Ofcom, as many decisions about other parts of the spectrum, such as those related to the 900MHz range, are still pending. The 900MHz range is perfectly suited for 3G, and until a decision has been taken regarding its reallocation, the industry believes that it would be tough to place a value on the 2.6GHz range, which will support the next generation of mobile internet services.
In May last year, T-Mobile and O2 had initiated a lawsuit against Ofcom, with the goal of putting off the auction until there is more clarity on pending issues regarding spectrum allocation, especially the 900MHz range. The result was that the spectrum auction was stalled. It also stopped anyone wanting to rollout WiMax, which is LTE’s rival technology on the 2.6GHz slab, and this has suited mobile providers who have been in favour of LTE.
Now, however, O2 is the only obstacle that Ofcom has to overcome, as T-Mobile has opted out of the legal wrangles. According to Ofcom, the sale of the 2.6GHz range is a completely different issue from the 900MHz range reallocation, and it is preparing to hold the auction before the end of this year.