Hewitt Names Applicants For 3G Mobile Licence Auction

DTI Press Release - 12 January 2000

Patricia Hewitt, the Small Business and E-commerce Minister today named the companies who have applied to bid in Europe’s first auction for third generation mobile telecommunication licences in March.

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

Ms Hewitt said:

"Thirteen groups have applied to bid in Europe’s first ever 3G auction. I am delighted that nine potential new entrants to the UK mobile telecoms market see the opportunities and have applied to take part, including interest from outside the traditional telecoms market.

"The prospect of one or more new mobile operators and the increased competition and innovation that this will bring is good news both for UK consumers and the economy.

"Greater competition will spur the faster roll out of more innovative services, fresh approaches, and cheaper prices. UK consumers can expect to gain early access to this exciting new technology."

The Government will auction five licences for blocks of spectrum for 3G services. The licence with the largest amount of spectrum is reserved for a new entrant to the UK mobile telecoms market. Reserve prices for the five licences total £500 million.

Applicants which qualify to take part in the auction, and the auction start date, will be confirmed in February, following the completion of checks on applications.

The main auction will take place over a number of rounds possibly lasting several weeks in total. Information on the progress of the auction, including the most recent bids made by each bidder and the licence it is bidding for will be published on the auction website (http://www.spectrumauctions.gov.uk) shortly after the end of each round.

Applications were submitted by:

3G (UK) Limited*
BT(3G) Limited
Crescent Wireless Limited*
Epsilon Tele.Com PLC*
NTL Mobile Limited*
One.Tel Global Wireless Limited*
One2One Personal Communications Limited
Orange 3G Limited
SpectrumCo Limited*
TIW UMTS (UK) Limited*
Telefonica UK Limited*
Vodafone Limited
WorldCom Wireless (UK) Limited*


* New entrants are briefly described below:



3G(UK) Limited is an Eircom company. Eircom is one of Ireland’s leading providers of local, long distance and international telecommunications services.

Crescent Wireless Limited is a recently organised company whose shareholders have significant interests in Global Crossing. The shareholders of Crescent Wireless have granted an option to Global Crossing to purchase up to 100% of Crescent Wireless.

Epsilon Tele.Com plc is a wholly owned subsidiary of the Japanese finance house Nomura.

NTL Mobile Limited is jointly owned by NTL, a leading alternative telecommunications provider and cable company, and France Telecom.

One.Tel Global Wireless Limited is a subsidiary of One.Tel, a global telecoms company based in Australia.

SpectrumCo Limited was formed by the Virgin group and its partners (which include Nextel, Sonera, EMI, Tesco and a number of private equity funds).

Telefonica UK Limited is a wholly owned subsidiary of TelefonicaSA, one of the leading telecoms companies in Spain and Latin America.

TIW UMTS (UK) Limited is a subsidiary of TIW, the telecoms company listed in Montreal and Atlanta, which also owns the UK TETRA operator Dolphin.

WorldCom Wireless (UK) Limited is wholly owned by MCI Worldcom, the global telecoms company

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