Ofcom outlines low power licences for low cost local mobile services

Ofcom is preparing to auction five to ten low-power radio spectrum licences in a move that could lead to a host of low-cost, local mobile phone firms breaking into the UK mobile markets.

The regulator today outlined plans to award the licences after one round of sealed bids and called for industry comments by September 16. Bidders would be able to buy only one licence and each licence would be tradable and last for at least 10 years.

The auction planned for later this year or in 2006 of the new licences, which will work over the 1781.7-1785 MHz and 1876.7-1880 MHz band, will be the first a series of planned spectrum tenders by 2008. And it has already sparked interest and enthusiasm from potential low cost, locally based new entrants.

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