Three chief slams Ofcom 3G plans

We recently told you how communications body Ofcom had had introduced new measures within the 3G spectrum.

Its stated aim was to "help mobile phone operators to increase mobile broadband speeds, deliver improved in-building coverage and widen mobile broadband coverage in rural areas". 

However, Three CEO Kevin Russell has criticised the move, stating that it could lead to "jeopardising the whole competitive environment that the 3G auction in 2000 started to establish".

The Financial Times is even suggesting that the company (which is the UK's smallest mobile network operator) could even be sold as a result, with O2 and Vodafone possibly in line for a takeover.

The report states that without a cap being applied to the amount of the spectrum that O2 and Vodafone can take up, operation for Three could become non-viable. It's also reported that Everything Everywhere (Orange and T-Mobile) has similar fears.

Mr Russell said: “Healthy competition is critical for UK consumers using mobile services and Ofcom and the government must address the significant competitive distortions they have now created in pushing through the reform of spectrum currently used for 2G mobile services. This can only be done through the structure of the spectrum auction planned for 2012.

“If the government and Ofcom get this wrong, further consolidation could result. Ultimately that can only be bad, not good, for UK consumers”.