BT will control 45 per cent of the UK mobile industry’s spectrum holding if its proposed takeover of EE is successful but should give up some of those radio frequencies, according to a Financial Times interview with Vodafone UK CEO Jeroen Hoencamp.

BT’s EE deal, as well as the bid for O2 by Hutchision Whampoa, would turn the UK mobile market upside down, leaving Vodafone as the smallest player. How it fights back, including on a regulatory front,  is crucial for its future prospects.

In addition to giving up some of its spectrum stash, BT must improve access and the costs to use its fixed broadband network, the means for Vodafone to launch a rival service, argues Hoencamp (pictured).

He said Vodafone’s previous attempt to launch fixed broadband was hampered by the terms under which it accessed BT’s infrastructure.

Subsequently Vodafone acquired fixed operator Cable & Wireless two years ago but still needs BT for nationwide coverage. Its fixed broadband service is due to launch in the Spring.

Interestingly, Vodafone also has a network-sharing agreement with O2 which is now in some doubt following the latter’s talks with Hutchison. Separately, EE and Hutchison’s Three UK have a network-sharing deal.

Following the proposed takeovers, “Hutchison will have to make a decision whether to go with Vodafone or the other way,” points out Hoencamp. If Hutch does shift across onto the Vodafone/O2 infrastructure then three operators will be crowded onto one network, while EE will have a network to itself, which would not be good for competition, he said.

However, Vodafone has said the network-sharing deal with O2 contains costly break clauses, with the implication that jumping the other way has implications for Hutchison too.