BT Unhappy with Government’s Proposal for Extension of 3G Licences
Popular telecom service provider BT has been pushing for auction of the broadband spectrum instead of extension of present 3G licences as proposed by the government. In fact the provider has gone to the extent of threatening the authorities with a judicial review.
BT has put down its objections in a ‘letter before action’ addressed to the Business Secretary. In the letter it has pointed out that extending the licences as per the present plans would mean handing over taxpayers’ money to the mobile operators. They also pointed out that even though the plan was in accordance with Digital Britain project for providing broadband access to all, it is unfair on the face of it.
The provider fells that this is not the right way as it wants the spectrum to be auctioned in a way that allows more participation in the process. The spokesperson also pointed out that the process should not only be fair to all operators but also give a chance to the new entrants in the industry. BT is also looking forward to their negotiations with BIS on the matter.
It is also to be noted that the deal was finalized between the government and the five major mobile service providers long back in 2000 and is due to expire in 2012. The agreement involved terms of extension of 3G licences for £22.5bn for consideration of comprehensive broadband services.
Pursuant to the concerns of BT, BIS, the Department for Business, Innovation and Skills has extended the deadline for consultation till 5th February. However, there are chances of clash between the legislation process and the upcoming general elections in this case.
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