Everything Everywhere disappointed with Ofcom's 4G auction changes

Everything Everywhere has voiced its dissatisfaction with Ofcom's new proposals for the 4G spectrum auctions set to take place at the end of 2012.

The regulator's initial proposals had centred around ensuring Everything Everywhere was guaranteed a portion of the 800MHz spectrum in order to restore what it saw as an imbalance in the sub 1GHz market where currently only O2 and Vodafone have access to the 900MHz band.

The proposals by Ofcom led O2 to threaten legal action over the situation and forced Ofcom to revise its plans. As a result, it has now removed this stipulation, but this has drawn the ire of Everything Everywhere, which said it found the decision "very disappointing".

"Ofcom is missing a huge opportunity for the UK to address the imbalance in sub 1GHz spectrum holdings, which has damaged consumer interests for the past 20 years – and is a situation which is now threatening to continue," it said.

The firm also criticised Ofcom for failing to follow the lead of its European counterparts.

"The importance of sub 1GHz spectrum, which delivers service and cost benefits, has been recognised by other regulators across Europe and supported by economic analysis," it added.

"All the regulators, bar Ofcom, have made vigourous efforts to support healthy and sustainable competition by ensuring that the imbalance of sub 1GHz holdings is redressed."

However, a spokesperson for O2 said the firm was pleased to see the publication from Ofcom and hoped it would lead to a positive outcome for the UK market when the auctions are held later this year.

"As we have said throughout this process the key objective of the 4G auction should be to ensure that operators are able to exploit the full potential of the spectrum in order to deliver connectivity for the benefit of consumers, business and UK plc," it said.

Despite removing the obligations for Everything Everywhere, Ofcom did outline its commitment to ensure the auctions allow a fourth operator, either Three or a new entrant, to receive a portion of the 800MHz spectrum band.