Treasury 'Could Make £1bn From MoD 4G Sale'

Written By Unknown on Senin, 17 Desember 2012 | 18.56

The Ministry of Defence (MoD) is planning to sell part of its mobile spectrum currently reserved for military purposes, according to a newspaper report.

The sale of the airwaves - used to support superfast 4G mobile broadband - could bring in around £1bn for the Treasury, The Financial Times (FT) said.

In his Autumn Statement, George Osborne said he planned to raise a total of £3.5bn from auctioning off other 4G spectrum.

But the Chancellor's decision to add the anticipated income to the nation's accounts was criticised for helping him avoid a rise in UK national debt.

Around half of the UK's 4G network is controlled by the Government, according to the newspaper, with large swathes of it run by the MoD.

The auction is expected to be completed by the summer of 2014, after the Government's planned auction of other spectrum at the beginning of next year.

The department will confirm the move on Monday, the FT said.

Last month, the telecoms regulator Ofcom set a reserve price of £1.3bn for the January sale, although the final figure could be much higher.

In 2000, the auction of 3G brought in more than £22bn for the Treasury, when the reserve price was £500m.

Then-Chancellor Gordon Brown also used the proceeds to pay down national debt.

To date, EE, which owns Orange and T-Mobile, is the only mobile network to launch 4G products in the UK.

Its network, which offers speeds up to five times faster than 3G, is now available in London, Bristol, Birmingham, Cardiff, Leeds, Sheffield, Edinburgh, Glasgow, Liverpool, Southampton and Manchester.


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