Mobile operator Three has lost its final legal bid to force Ofcom to tighten limits on how much 5G spectrum can be bought in an upcoming auction.
Three, part of Hong Kong conglomerate CK Hutchison, is the smallest UK mobile provider by subscriber numbers and holds roughly 15% of existing spectrum. By comparison, BT/EE controls about 42% of spectrum, Vodafone around 29%, and O2 about 14%.
Those differences in spectrum share explain Three’s previous attempt to merge with O2. Combining the two would have brought the merged operator closer to Vodafone’s spectrum position and made it more competitive with BT/EE. Regulators, however, blocked the deal over concerns that reducing the market to three major mobile providers would harm competition.
Following that blocked merger, Three sought preferential treatment in the next spectrum auction so it could secure priority access to 5G airwaves. The company argued that larger operators should face stricter caps on how much spectrum any single firm can acquire. Three’s challenge was rejected previously in the High Court and has now been dismissed again by the Court of Appeal.
A spokesperson for Ofcom said:
“The Court of Appeal has very firmly rejected Three’s application for permission to appeal on all grounds.
We welcome this decision, and will now press ahead with releasing these important airwaves. This new capacity will allow mobile companies to offer more reliable reception, and to prepare for future 5G services.”
The UK government has made rolling out 5G a national priority, and today’s ruling is likely to be seen as a positive step toward ensuring the auction proceeds without further delays.
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