UK operators Vodafone and O2 are uniting to oppose local regulator Ofcom’s plans to recoup part of the country’s 2G radio spectrum in order to auction it off to other 3G operators, according to a report in The Guardian. The two firms licensed the 2G, 900MHz spectrum two decades ago for use in the UK’s first mobile networks, and have used it ever since. The report outlines how Ofcom believes it is time to reclaim the spectrum and put it up for general sale, with the auction potentially sparking competition between the UK’s five mobile operators and the winners providing cheaper nationwide mobile services, rural broadband coverage and a significant reduction in the number of mobile masts. Under a recent European Union decision, Ofocm must ‘liberalise’ the airwaves, removing the restrictions regarding which mobile technology can be used in which part of the spectrum – meaning 3G services can be run on the UK’s older 900MHz and 1800MHz bands, a process known as refarming.

O2 counters that Ofcom’s plan, outlined last September, will cost itself and Vodafone a total of £13 billion, most of which will be passed onto consumers as higher bills and less competitive services, as well as requiring 7,000 new mobile phone masts across the country. O2 and Vodafone say Ofcom’s research into the effects of the auction is “manifestly deficient” and instead claim operators should be allowed to trade spectrum between each other based on market demand. Meanwhile rivals T-Mobile and Orange are supporting the spectrum auction, with T-Mobile proclaiming that Ofcom should go a step further and ban the two firms from bidding in the 900MHz auction.