Wireless auction prices announced

The government has revealed details of reserve prices for the 3.4GHz wireless auctions to be held in May.

Three of the 15 regional licences, for Greater London, and the Midlands and Northern Metropolitan regions, have been set at £300,000 per region. The price for all the other regions in the UK has been set at £100,000.

Wireless technology is seen by the government as a vital addition to other broadband technologies and the most cost-effective means of reaching communities unable to use alternative solutions such as cable, DSL or satellite.

Employing the lower frequency wireless spectrum will let operators offer broadband services at speeds of up to 2Mbps.

The wireless spectrum will also mean improved flexibility and mobility for IT users, helping to create the wireless office and wireless public 'hot spots' in cafes and train stations.

The government has also relaxed the requirements placed on bidders to encouage telcos who have showm only lukewarm enthusiasm for this part of the spectrum to date.

It has introduced staged payments and said that the licences will not be subject to roll-out obligations or services restrictions.

The government is also considering auctioning other lower frequencies, and has published proposals for the use of spectrum at the 3.6GHz waveband.