Orange pulls out of radio spectrum auction

UK mobile operator Orange has pulled out of the government's auction for fixed radio spectrum licences, which has already been delayed until further notice.

Orange's withdrawal from the auction follows the government's decision last week to delay the auction until further notice to allow it to review the applicants in more detail. The auction was due to begin today, but will now be held within the "next few weeks".

Orange, which announced on Friday that it will float on the stock market at the beginning of next year, would not give reasons for its decision.

A statement only reveals that it is "currently reviewing a number of access technologies to deliver broadband services, which remain core to the Orange vision" and said "at this stage, it is too early to say which type of technology we will ultimately use".

The Department of Trade and Industry announced last Tuesday that the auction is to be delayed while it examines the business relationships between prospective bidders. A spokeswoman said an announcement will be made "very shortly" as to when the auction will now be held, adding it hopes it will begin in the "next few weeks".

Forty-two spectrum licences in the 28Ghz band are up for grabs in the auction in 11 English regions, plus Scotland, Wales and Northern Ireland. Broadband fixed wireless services will enable businesses and consumers to have cheap, fast internet and multimedia access by using radio links instead of a telephone line.

Orange's withdrawal leaves 11 companies in the auction: Atlas, Broadnet UK, Chorus, Energis Local Access, Faultbasic, FirstMark, Formus, Norweb Telecom, Priority Wireless, Templeco 489 and Winstar.