Rival groups plan roll-out of 4G services

Superfast mobile broadband will be rolled in the UK this year under plans by rival groups aiming to be the first to offer long-awaited 4G services.

Everything Everywhere, the UK joint venture of France Telecom and Deutsche Telekom, will on Thursday confirm plans to roll out 4G services this year, subject to regulatory approval expected this spring to use existing bandwidth.

Olaf Swantee, chief executive, said on Tuesday that the company would look to roll out the 4G services as soon as Ofcom, the telecoms regulator, approved the liberalisation of the 1,800 MHz spectrum under instruction from European authorities.

However, the company could face competition from PCCW, the Hong Kong group controlled by Richard Li, which has also drawn up plans to launch high-speed mobile broadband services in parts of the UK this summer.

UK Broadband, PCCW's British subsidiary, is expected to reveal at the Mobile World Congress next week that it will offer 4G services by May by turning on a network that uses technology provided by Huawei, the Chinese electronics group. Its business model is based on providing wholesale 4G services, including to other telecoms brands, as well as local areas.

Mr Swantee has described 4G services as essential for the future of the UK economy. Superfast mobile broadband can help link remote areas to the internet for the first time, as well as enable the rapid use of gaming and media applications for the country. Mr Swantee said on Wednesday that Everything Everywhere aimed to "build a new digital backbone for Britain".

Everything Everywhere's 4G services will be available first on dongles - mobile WiFi units - and then on other devices next year. Everything Everywhere will carry out the first 4G trials over 1,800 MHz in Bristol from April. The company has already tested out 4G services in Cornwall over 800 MHz spectrum.

UK Broadband owns spectrum at the 3.5 GHz and 3.6 GHz bandwidths that it believes is suitable for 4G technology, although this would require device makers to adopt the high frequencies. Analysts say that the lower frequencies, especially at sub-1ghtz, work best for 4G use.

Everything Everywhere will participate in the auction for these lower frequencies in the UK, which is expected at the end of the year and could raise more than £2bn for the government, although it has expressed disappointment with the process under consideration by Ofcom that has removed any support for the company. The company is still considering options, including a legal objection, although Mr Swantee is reluctant to further hold up the much-delayed auction. It had already been postponed from 2011 owing to the fears of legal complaint.

Meanwhile, the company will upgrade its 3G network, which is the UK's largest, to higher HSPA+ capability that is often called 3.5G. This allows 50 per cent faster data speeds.

Mr Swantee said: "We have a duty as the biggest network to make this happen for the UK, as soon as possible. Britain has fallen behind parts of Europe and the US. We want this to help Britain retain its rightful Space as leader in mobile communications."

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