Will 4G mobile auction meet £3.5bn target?

For Hinterland readers who are not technophobes, this article on mobile phones reports how 4G (fourth generation) is being introduced to replace existing 3G coverage, which will give smartphone users faster data downloads. The deadline has now passed for applications to take part in the auction of the UK’s 4G phone network spectrum which the Government hopes will raise £3.5 billion. The auction to access the network will start in January, with licences granted in February and March and 4G services available from May. The £3.5 billion target figure originally came from the Office for Budget Responsibility, the agency set up by the government to independently monitor public sector finances.

The auction of the 3G network back in 2000 raised £22 billion for the Government. However, Dan Worth, news editor of technology website V3 describes how “the mobile phone network market is quite different now, it is not flushed with cash like it was in 2000. Then the mobile phone market was in its infancy, and the networks were able to enjoy substantial rises in profits as many people bought mobile phones for the first time. By contrast, the UK market is now saturated, and such big rises in profits are a thing of the past”.  Regardless of the income generated by the 4G auction, for many of us who live and work in rural England, in some places getting a phone signal with the current network is a struggle.

Hinterland readers may be interested to hear about the Mobile Infrastructure Project (MIP) being led by the Department for Culture, Media and Sport. The project is taking place until 2015 and  aims improve mobile coverage for businesses and consumers by working with industry to address what they call “mobile not-spots”.