O2 UK in trouble over 3G rollout
27 February 2008
O2 UK in trouble over 3G rollout
UK communications regulator Ofcom has slapped O2 UK with a warning after the mobile operator was found to be behind in its obligations to roll out 3G.
Ofcom said it has issued O2 with a notice under the procedure in the Wireless Telegraphy Act for licence breaches, after O2 failed to enable the provision of 3G services to at least 80 per cent of the population by the end of December.
The other four 3G licensees have complied, but O2 only covered 75.69 per cent of the population - a shortfall equivalent to approximately 2.5 million people.
Under the warning, O2 has until the end of June to meet its requirements or Ofcom will shorten the term of its 3G licence by four months, leading O2's licence to end on August 31 2021 rather than December 31 2021.
O2 acquired its 3G licence in 2000 for just over £4bn. Ofcom estimates that a reduction of the licence term by four months would be equivalent to a financial sanction of at least £40m.
To comment on any articles, please contact us at chatback@telecoms.com or have your say on our blog.
Bookmark this page
