§ The Earl of Northeskasked Her Majesty's Government:
Whether they believe that there is a legitimate case for spectrum-trading between the licences for 3G spectrum. [HL4080]
§ Lord Sainsbury of TurvilleThe Government support spectrum trading in principle and are committed to its introduction now that the necessary changes have been made to EC legislation. These take effect in July 2003. The independent review of radio spectrum management, to which we plan to respond in the summer, strongly endorsed this policy and recommended that trading should be introduced widely as soon as possible, including for mobile public 9WA telecommunications such as 3G. Meanwhile, we will shortly be consulting on the specific details of trading implemention, including the services for which it should be introduced and the restrictions that should apply.
§ The Earl of Northeskasked Her Majesty's Government:
Whether there is adequate scope for competition between, and innovation by, the licences for 3G spectrum; and how this is affected by the current difficulties in the telecommunications sector. [HL4081]
§ Lord Sainsbury of TurvilleBy assigning the spectrum licences for third generation (3G) mobile telecommunications services by auction, the Government ensured that the licences went to those that valued them the most and are likely to make the best use of them. The auction also introduced a new entrant to the UK market for mobile telecommunications, which will benefit consumers by increasing competition, spurring innovation, and bearing down on prices.
Despite the current difficult conditions affecting the telecommunications sector world-wide, all of the UK operators are proceeding with plans to roll out 3G networks, and government expect UK consumers to be among the first in the world to benefit from 3G services. Oftel regularly reviews competition in mobile markets and could use either sectoral powers or Competition Act powers to address potential failures in competition.