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O2 UK fails to meet 3G obligations, Ofcom issues warning

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28-02-2008 10:26am

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bealtine

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O2 UK fails to meet 3G obligations, Ofcom issues warning
Wednesday 27 February 2008 | 10:49 AM CET

Lisa Caruana

UK regulator Ofcom has proposed action against mobile network O2 UK to meet its 3G roll-out obligation. It has issued O2 with a deadline of end-June to meet its obligation of providing 3G services to at least 80 percent of the population. Ofcom has completed assessment of the five 3G licence holders. They had to achieve 80 percent coverage by end-2007, with O2 the only one failing to comply. Ofcom has told O2 that its 3G licence terms with be cut by four months if it fails to comply with its obligations by end-June. This would mean that O2's licence would end on 31 August 2021, instead of 31 December 2021. O2's 3G network covered 75.69 percent of the population at end-2007. O2 paid GBP 4.03 billion for its 3G licence in 2000. Ofcom estimates the 4-month reduction term would be equal to a financial sanction of at least GBP 40 million.

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