§ Ms HewittTo ask the President of the Board of Trade if she will make a statement on the preparations for issuing licences under the Wireless Telegraphy Acts for operators of third generation mobile telecommunications networks. [42794]
§ Mrs. RocheThe UK has been at the forefront of developing mobile telecommunications in Europe, and I am determined that it should retain that position. Third generation mobile—also known as UMTS or Universal Mobile Telecommunications Systems—offers exciting prospects for new jobs, new services and new investment, and I aim to ensure that the UK benefits fully from this new technology.
To that end, we intend to hold an auction of UMTS licences in the summer of 1999, subject to market and other developments and to final decisions nearer the time. This timetable takes account of responses to the Government's consultation document 'Multimedia Communications on the Move', further discussions with industry, and advice from N M Rothschild and Sons.
In offering through an auction licences to use specified frequencies for the delivery of UMTS, the Government's overall aim is to secure, for the long-term benefit of UK consumers and the national economy, the timely and economically advantageous development and sustained provision of UMTS services in the UK.
Subject to this overall aim, the Government's objectives are to (i) utilise the available UMTS spectrum with optimum efficiency, (ii) promote effective and sustainable competition for the provision of UMTS services, and (iii) subject to the above objectives, design an auction which is best judged to realise the full economic value to consumers, industry and the taxpayer of the spectrum.
In developing detailed auction proposals, my Department will continue fully to consult industry.