The UK government aims to raise £5 billion from the forthcoming spectrum auction that it hopes will be given state approval later this month. If granted, then the auction could commence next year with bids being invited for the 800MHz spectrum that is central to LTE deployment.
However, O2 and Vodafone have both issued threats of legal action that the auction could create a 'two-player market' making the UK uncompetitive. If successful, then this challenge could delay the auction until 2012.
The two operators worry that the 30MHz of 1800 bandwidth spectrum divested by Orange and T-Mobile as part of their merger agreement will be auctioned off as one block. If this happens, then they claim it would give the winning bidder an unfair advantage. Article