The completion of the UK’s 4G auction sets the country up for an economic boost, despite the sale netting £1 billion (€1.1 billion) less than predicted, a leading analyst claims.
Bengt Nordström, chief executive and co-founder of analyst firm Northstream, says it is wrong to lament the missed billion, because operators will more than make up for the difference by having more money to spend on deploying their 4G networks.
“The boost that 4G will contribute to UK GDP as a consequence will vastly outweigh the additional £1 billion they might have raised during this auction,” Nordström notes.
The Northstream chief also believes the timing of the auction is good, because the UK’s fiber network “is falling well short in delivering high-speed, nationwide broadband access.” The number of successful bidders is also good news, Nordström argues, because the high level of competition means operators “won’t be able to charge high premiums for 4G mobile services.”
Meanwhile, Daniel Gleeson, mobile media analyst at IHS, says the auction sets Vodafone up for a return to winning ways after being displaced as the UK’s second-largest carrier by the merger of Orange and T-Mobile. Vodafone bid the highest amount for spectrum in the auction – a move Gleeson says is a statement that the operator “intends to reclaim its former position in the market.”