Spectrum expert raises concerns about 4G monopoly

A leading expert on mobile spectrum has argued that caps on bidding should be used during the UK's upcoming 4G auctions in order to ensure the market is not monopolised by the largest operators.

Speaking at a Westminster Forum event on Tuesday, professor Martin Cave, who published a major spectrum audit in 2005 for Ofcom, warned the market could suffer if smaller firms were unable to compete for new holdings.

"We need some form of spectrum caps on auctions to maintain the possibility of entry. The fear is that we'll end up with just the four mobile operators [owning all the spectrum] and there could possibly be a loss of innovation," he said.

Cave also said he felt that the model Ofcom has outlined for how the forthcoming auctions will be run was suitable and it was necessary for the industry to press ahead, in spite of any concerns, in order to ensure the UK keeps pace with other nations.

"The Ofcom auction design seems to me to be an impeccable model. Of course, you never really know how it will work, but it looks a good model," he said.

"After the 3G auctions it has been a story of delay which has led to a situation in which UK has probably fallen behind in relation to other European countries in the development of new services."

Cave added that he felt Ofcom's work on the possibility of utilising white space technology should be applauded, particularly with the demand on mobile spectrum set to rise exponentially.

"The demand for spectrum is set to double every year so we need to find new ways of transferring activities to white space technology, and it's impressive that Ofcom is taking this forward," he added.