BT broadband, one of the more prominent broadband provides in the UK, is set to challenge the UK government’s plans for mobile broadband which would see existing 3G licences extended indefinitely. The company believes that these plans are effectively handing billions of pounds of taxpayer’s money to various 3G mobile broadband licence holders in the UK and would reduce competition in this particularly competitive area of the UK broadband market.
The company has sent a letter to the Department of Business, Innovation and Skills laying out its reasons for opposing the government’s plans for 3G broadband licences. So far the government has yet to respond although BT has confirmed it would push ahead with a request for a “judicial review” if the plans are not revised in the short term.
Those who remember the 3G licence auctions will be well aware of the massive amounts of money the UK government received at the time. While many of the 3G licenses have been superseded and in some cases have created very little in the way of profits for UK mobile broadband providers they are an integral part of the government’s plans for mobile broadband and UK broadband in general. Whether the government will take note of BT’s opposition to the plans remains to be seen but there would appear to be a basis for the company’s opposition.