Wireless broadband auction fails to meet expectations

Patricia Hewitt, Minister for e-Commerce and Small Business said she will examine the scope for awarding the unsold licenses in the Broadband Fixed Wireless Access (BFWA) 28GHz auction:

"As a result of this auction 60% of the UK's population will have access to a new source of high speed internet. This will provide competition to fibre, cable links, DSL phone lines and satellite, which also offer access to broadband services. It will add to the broadband coverage provided by these technologies and bring us closer to the delivery of broadband services across the UK. There will be further opportunities to develop wireless broadband services when licences are offered next year for spectrum at 3.4 GHz, 10 GHz and 40 GHz.

"I have asked for a report on the outcome of the auction to help us plan for future spectrum allocations. This will involve talking to operators and other interested parties on how BFWA can be developed into a commercial proposition in all parts of the country. It will examine also the scope for awarding licences in those regions where no licences were sold."

The provisional licence winners are:

• Energis Local Access Ltd
• Norweb Telecom Ltd
• Faultbasic Ltd
• Broadnet UK Ltd
• Chorus Communication Ltd and
• Eircom NI Ltd one licence in Northern Ireland.

Some commentators suggest that these companies have won the licences at bargain prices. Licences for certain areas, including Wales, Hampshire and Berkshire, received no bids.