Mobile Phones - The Next Generation

DTI Press Notice - 1 November 1999



E-commerce and Small Firms Minister Patricia Hewitt today announced that the UK is firm favourite in the European race to grant spectrum licences for the third generation (3G) mobile phones.

The next generation of mobile phones will allow users to surf the internet, rapidly download e-mails, music and high quality pictures, and even hold video conferences on the move.

An Information Memorandum setting out the details and timetable of the proposed auction for prospective bidders was issued today. Ms Hewitt said:

"We are on track to hold the first 3G spectrum auction in Europe. This will give UK consumers early access to e-commerce on the move and the many other exciting possibilities that 3G will open up.

"There will be five new licences on offer with the biggest reserved for a new entrant. That will boost competition."

By offering licences by auction and through its other measures to enable new entrants to compete, the Government is opening up the opportunities of 3G to the widest possible range of individual companies and groups, encouraging enterprise, innovation, fresh ideas and new approaches.

Potential bidders can now finalise their detailed preparations for the auction which is planned to take place in March 2000.

Notes to Editors

1. A copy of Ms Hewitt's Parliamentary Answer to a Question from David Borrow (Lab South Ribble) is attached.

2. Copies of the Information Memorandum are available from the Radiocommunications Agency Auction website: http://www.spectrumauctions.gov.uk

3. Potential bidders can get copies from: Ms Emma Owens, NM Rothschild and Sons Ltd, New Court, St Swithins Lane, London EC4P 4DU

4. The auction will be modified version of auction designs used by the US Federal Communications Commission. Bidders who are associated with other bidders will take part in a first-phase play-off to determine who may take part in the main auction. In the second phase (the main auction) bidding for the five licences will take place in a series of rounds until there is only one bidder for each licence.  Bids will be submitted electronically (by encrypted fax) to the Radiocommunications Agency.

5. The Government has set reserve prices for the five licences which total £500 million.

PQ No. : 98/3096

Post From Friday 29 October 1999

MONDAY 1 NOVEMBER 1999

1. David Borrow (Ribble South) : To ask the Secretary of State for Trade and Industry, if he will make a statement on progress towards issuing licences for third generation mobile spectrum under the Wireless Telegraphy Acts 1949 and 1998. 96905

Patricia Hewitt

I am delighted to announce that the Information Memorandum for the auction of licences for Third Generation mobile spectrum is being published today.

The Memorandum sets out the detailed arrangements for the auction. Applications to take part in the auction are scheduled to be due on 12 January 2000. The auction itself, is expected to start in March 2000. The Government expects that this will be the first auction for Third Generation licences in Europe, giving UK consumers early access to this exciting new technology, and keeping the UK at the forefront of international developments in mobile communications.

I am pleased that Vodafone's and BT Cellnet's Telecommunications Act Licences were modified by consent on 22 October to provide for the negotiation of roaming agreements with any new entrants. This will help to encourage market entry and competition, so benefiting consumers.

A copy of the Information Memorandum is being placed in the Library of the House and on the auction website at http://www.spectrumauctions.gov.uk

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