The U.K. government has decided to appeal a recent court decision that determined the Department of Trade and Industry could not force existing wireless operators to grant roaming rights to a new entrant under proposed third-generation licensing rules.
Such a move could delay the government’s plans to auction 3G spectrum in the January time frame, though DTI is determined to stay on schedule. Earlier this year, in an effort to stimulate strong mobile-phone competition, DTI modified it licensing plans to include an extra license reserved for a new entrant, which would have a larger license area than the other four licensees and the right to roam onto at least one second-generation network to ensure coverage.
DTI planned to require the country’s four operators-Vodafone Group plc, Cellnet, Orange plc and One 2 One-to open their networks to the new entrant or risk being banned from bidding in next year’s auction. In addition, if the operators did not reach a roaming rate that was acceptable to both, an independent third party would intervene and set the fees.
One 2 One and Orange said the tactic amounted to blackmail and challenged the government’s rights to change terms in their licensing agreements, which did not spell out mandatory roaming.
The court agreed, but conceded roaming rights were important for a new entrant to compete with existing operators.
