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Government to auction yet more broadband spectrum

Here we go again

The government found its recent auction for third-generation (3G) mobile spectrum licences so lucrative, it is planning to hold a similar action in September, according to a report in the Financial Times.

Telecommunications companies will have the opportunity to bid for another part of the radio spectrum for high-speed Internet access, though the process may be altered to keep it from becoming as expensive for telecommunications companies as the first one, according to the report.

April's open auction for five licences was closely watched as bids soared and companies dropped out over the nearly eight-week process, which ended up netting the government £22.48 billion in the process.

The radio spectrum offers broadband service, which will allow full Internet access, e-mail and video services through handsets with large screens.

According to the report in the FT, the Department of Trade and Industry will meet with a group representing the telecommunication industry to decide how the proposed auction should be conducted. The Industry group is expected to call for a closed auction with sealed bids.

Representatives at the Radio Communications Agency, the government department responsible for the allocation, maintenance and supervision of the U.K. Radio Spectrum, declined to comment as did representatives for the Department of Trade and Industry.

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