UK 4G auction raises a billion less than expected

UK 4G auction raises a billion less than expected
UK regulator Ofcom has raised over a billion pounds less than it expected to make from its long-awaited 4G auction in the country.

It had forecast a haul of about 3.5 billion, but ended up netting 2.34 billion instead. In 2000, when mobile operators bid on 3G spectrum in the UK, the regulator raised 22 billion. Ofcom chief executive, Ed Richards, said the figure is much lower because we are now in very, very different times.

"What we were trying to do was ensure that a valuable economic resource was brought into productive commercial use," he said.

The winners of the UK's 4G auction were Everything Everywhere; Hutchison 3G UK; Niche Spectrum Ventures, a BT subsidiary; Telefonica (O2); and Vodafone.

The shortfall might cause headaches for Chancellor George Osborne, as he had included 3.5 billion worth of 4G auction receipts in his Autumn statement in December. He had predicted that the UK's budget deficit would fall in 2012-13, but now with a shortfall of over a billion in the 4G auction, all bets are off.

Written by: James Delahunty @ 20 Feb 2013 22:59
4G UK Ofcom
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  • 1 comment
  • plazma247

    More like the operators were more cautious after over paying for the 3g spectrum.

    22.2.2013 10:41 #1

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