UK Government changes broadband licence condition

Internet Business News, Sept 5, 2002

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The UK Government has extended the 'use it or lose it' condition placed on 28GHz broadband licences awarded in an auction held 18 months ago.

The companies involved agreed to make 28GHz broadband available to 10% of the population in its area in 18 months or face tough penalties, The government has however extended the time limit saying that they did not want to damage business plans with unachievable targets.

Of the six firms only one is near the target having achieved 10% availability in three out of four of its areas, with the final area very near target.

The remaining five companies have been given until December 1 to achieve the target which was added to the deals to prevent companies from not using the licences once owning one. One company, Irecom, has however handed back its licences.

The auction originally took place in November 2000, when only 16 of the 42 licences were given to the following companies; Norweb, Energis, Faultbasic, Broadnet, Chorus Communications and Eircom. The sale raised just GBP32m, not the expected GBP1bn, and covered only half of the UK.

The remaining licences were put up again for auction in October 2001. Companies had 12 months to make bids, and with the closing date looming no bids have been received.

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