Vodafone has hit back after Ofcom gave Everything Everywhere (EE) provisional approval to rollout a 4G mobile network this year.
The firm’s CEO has accused Ofcom of "taking leave of its senses". Ofcom said EE can use its existing 1800MHz spectrum for 4G this year saying it doesn’t consider the move a risk to competition with rivals.
Guy Laurence, CEO of Vodafone said, "[Ofcom] is all but agreeing to grant the largest player in the market a headstart on the next generation of mobile internet services."
Ofcom said, "As our view is that there is no material risk of a distortion of competition if EE is permitted now to use the 1800MHz band to deploy LTE and/or WiMAX technologies, we propose to vary EE's 1800 MHz licences as soon as practicable, subject to this consultation."
Vodafone disagrees saying that it is very concerned about the negative impact it will have of the competition between mobile operators in the UK.
Ofcom is accepting comments on the proposal with EE until 17 April. We’ve spoken to Ofcom which said there is no further comment to what it said last week in the EE announcement.
The following is a full statement from Vodafone CEO, Guy Laurence:
"Ofcom appears to have taken leave of its senses. The regulator has always stressed that competition is in the best interests of consumers and the British economy yet here it is all but agreeing to grant the largest player in the market a headstart on the next generation of mobile internet services.
This decision leaves Everything Everywhere free to prevent anyone else from launching 4G services by bogging next year’s auction down in endless litigation. It has already threatened to do so once before. On Ofcom’s own admission, all the other players in the market require new spectrum in order to run LTE so Ofcom’s plan will deal a terrible blow to competition in the UK.
Vodafone UK shares the desire of both the regulator and the Government to see the next generation of mobile internet services rolled out quickly and placed within the reach of many more people in rural areas. But Everything Everywhere will be under no obligation to offer services to any rural areas. Ofcom’s plan risks further widening the digital divide in this country.
We know the Government wants to be a friend to business but surely that shouldn’t mean giving the biggest player in the UK market such an undeserved advantage."
Comments
arb76 said: Does no one get it stillAll these so called regulators are just working for the highest bidder biggest back-handerYou name it - banks energy internet etcWhy do you think were in the sh1t were in All these so called regulators are powerless to act even more so once theyre given a sweetener
Ian, Exeter said: Everything Everywhere just an Orange rebrand with their friends Ofcom creating a monopoly Antitrust case anyone
Maccyroo said: Ofcom are supposed to work in the consumers interest and handing such an important early advantage to such a large provider as EE cannot be defended in any wayMaybe if they made EE agree tobring services to rural areas with currently no 3Gcoverage it could be defended but without that caveat Ofcom are obviously taking back handers