British Regulator Investigated Over Low 4G Auction Revenue 116
judgecorp writes "Ofcom, the British telecom regulator, raised £2.3 billion in the 4G spectrum auction when the government had hoped for £3.5 billion. Now Ofcom's auction is being investigated by the National Audit Office over whether it provided value for money for the British taxpayer. Ironically, the auction resulted in a low price but spread the bandwidth amongst rival firms, and so provided better value than if the auction had created a partial monopoly or (as happened in the 3G auctions in 2000) gouged as much money as possible from the operators leaving them unable to actually build a network."
Maybe it'll end up being costing the customer less (Score:5, Informative)
When 3G was rolled out in the UK, the cost to the customer was prohibitively expensive that uptake was pretty slow, despite the fact that billions had been spent on acquiring the licence for the spectrum, let alone from the infrastructure costs. Gradually, it's come down to a more reasonable price, but it's still prohibitively limited by bandwidth for the majority of people - 250MB per month is often considered generous.
And so now we come to 4G. I happen to be on a network that was an early adopter of 4G and they've been pushing it agressively since they got the licence. Yet, it's only available in 10 cities (not mine), costs a minimum of £50 per month and the monthly bandwidth allowance can be used up in a matter of minutes if you actually use it.
Hopefully this time, with lots of companies getting in on the action rather than just a couple, there'll be competition and it'll actually become a viable technology for the customer rather than just being good in theory.
Re:Maybe it'll end up being costing the customer l (Score:5, Informative)
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