7/5/2013 11:56:24 AM
4G auction faces review over £1bn shortfall
The National Audit Office (NAO) is considering further investigation of the 4G auction.
In a report to Parliament the NAO said the Government’s forecast of generating £3.5 billion from this year’s 4G auction has fallen short by over £1 billion..
The auction, held by Ofcom in February, only raised £2.3 billion in spite of Chancellor George Osborne’s predictions – a figure dwarfed by the £22.5 billion made by the 3G sale in 2000.
Amyas Morse, head of the NAO said the auction ‘met its planned objectives’ but that further investigation may be required.
Although EE is the only operator to have launched the 4G frequency, all four major networks have secured access, and Ofcom has predicted the delivery of £20 billion in consumer benefits off the back of the deals.
Industry regulator Ofcom claims that it ‘was not set an objective by the government’ and ‘not made forecasts of anticipated proceeds in advance of the auction’.
Editor: Matthew Campelli