Ofcom delays 4G spectrum auctions until the end of 2012

Ofcom has announced that spectrum auctions for 4G holdings could be pushed back as far as the fourth quarter of 2012 in order for the watchdog to extend its consultation period.

The communications regulator had already confirmed last month that the auctions would be pushed back to the first half of 2012, but now has further extended this deadline to more fully work through the issues that arose in the first consultation.

O2 threatened legal action against Ofcom over the proposed use of spectrum floors in the auctions – a system designed to ensure rival Everything Everywhere receives a set portion of spectrum.

Ofcom said that it needed to make sure any decisions it made were fully considered given the importance of the auctions to the UK's mobile future.

"In light of these responses, and the significance of the decisions we need to take – decisions likely to shape the future of the mobile sector in the UK for the next decade or more – we have decided to undertake a further round of consultation," Ofcom said.

"We plan to publish a further consultation document around the end of this year. We will then give stakeholders an appropriate period of time in which to comment and respond to our revised proposals – likely to be at least eight weeks."

Ofcom said that once these comments were reviewed it would look to publish its response in summer 2012, which would allow the auction to take place "a few months later – perhaps starting Q4 2012".

Ofcom defended the decision by arguing that the the 800MHz and 2.6GHz spectrum bands would not be available to use until 2013 anyway, and that it would still work to ensure the rollouts can deliver benefits as soon as possible.

"This step is unlikely to have a material impact on the timeline for the availability of new services to consumers," it said.

"Nevertheless it continues to be our aim to award this spectrum as quickly as possible, in a manner that best promotes the interests of citizens and consumers, in line with our statutory duties and the government's direction to Ofcom."