Ofcom to Auction Low-Power Wireless Spectrum Licenses

London -- Ofcom, the U.K. telecommunications watchdog, announced
that it plans to auction as many as 10 low-power wireless spectrum
licenses. Each licence will be tradable and have an indefinite term of no
fewer than 10 years, Ofcom said. Industry experts say the decision
should lead to the launch of a number of low-cost mobile services in
the U.K. if only because the cost of rolling-out low-power networks is a
fraction of what established network operators spend on full national
networks. Incumbent BT Group Plc, Coffee Telecom and FMS have
already expressed an interest in the licenses. The auction will be
decided by a single round of sealed bids, and bidders will be able to
acquire a maximum of one licence only. The consultation closes on
Sept. 16, with the entire process concluding sometime in the first
quarter of 2006.
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