Mobile network operators who fail to comply with the regulations of their 3G licences set out by Government media watchdog Ofcom in 2000, are unlikely to have their licence revoked, a new report said yesterday.
In a consultation document issued yesterday, Ofcom said “this was a clarification rather than a softening of its line on 3G licensing”.
The news will anger 3G operator, 3 Mobile, who was last month reported to be planning legal action against Ofcom, after rumours that the watchdog would relax or abandon the targets set four years ago (see 3 Mobile Plan To Sue Government).
The development and take-up of 3G services has not been as quick as the Government had previously predicted and a report from Government advisor Quotient Associates earlier this week, stated that a second auction of third generation mobile (3G) telephone licences, scheduled for 2007, will gross only one tenth of the £22.5 billion secured in the first auction, making the Treasury just £2.5 billion (see 3G Licence Prices To Drop By 90%).