UK auditors to probe Ofcom's 4G spectrum auction

THE UK NATIONAL AUDIT OFFICE will look into Ofcom's 4G spectrum action after it failed to reach its £3.5bn target.
The UK 4G auction took place earlier this year, and saw big mobile operators including O2 and Vodafone bidding for parts of the 4G spectrum. However, the mobile networks didn't bid quite as much as George Osborne would have liked, with the auction falling £1bn short of its £3.5bn target. However, the result met Ofcom's reserve price of £1.3bn.
Because it fell short of the government's target, the UK National Audit Office (NAO) will launch a probe of the auction. A NAO spokesperson told The INQUIRER that it will conduct an investigation, but didn't mention a timeframe for doing so.
"We can confirm we will be examining the 4G spectrum auctions. We looked at the 3G auctions and would look at the 4G auctions as a matter of course," the NAO spokesperson said.
UK communications regulator Ofcom has said it is aware of the investigation, but seems to believe it is unnecessary, heralding the 4G auction as a success.
An Ofcom spokesperson said, "The 4G auction was a success, which will deliver the maximum benefit to UK citizens and consumers - in line with Ofcom's statutory duties. It will create competition, with five companies able to launch competitive 4G services."
"The auction was designed to promote competition and ensure coverage, rather than to raise money. These benefits will deliver significantly more value in the long term to the UK than simply the revenue raised in the auction."
Following the 4G auction, O2 and Vodafone are expected to start rolling out their respective LTE services later this year. Three has said that its users can expect its LTE network to arrive in the fourth quarter of 2013, costing no more than its 3G services.