UK government delays radio spectrum auction

It was provisionally scheduled to kick off on Monday 16 October, but a spokesman for the Department of Trade and Industry (DTI) today said the deadline has slipped because "more time was needed to review applicants".

The government is particularly keen to check if any of the potential bidders have "associations" with other organisations slated to take part that could prejudice the final outcome of the auction.

The process is now likely to begin at the end of October.

Yum Petkovic, senior consultant at research house Ovum, said the delay will cast doubt over the government's ability to handle these affairs, and could jeopardise its wish to be seen at the vanguard of new technology.

She said: "It's not too serious if it's a matter of weeks but if it's delayed any longer, that could cause some frustration and a great loss of confidence in government policy. We've already seen the delay of ADSL and now it's wireless."

Petkovic warned it could deter businesses wanting to locate in the UK. She added: "People may start to think that the UK is not the place to be."

The companies who have applied to bid in what is officially known as the 28 GHz Broadband Fixed Wireless Access (BFWA) auction are: Atlas Communications (UK), Broadnet UK, Chorus Communication, Energis Local Access, Faultbasic, FirstMark Communications (UK), Formus Communications UK, Norweb Telecom, Orange Personal Communications Services, Priority Wireless (UK), Templeco 489 (which is understood is to be re-named Unica BFWA), and Winstar Communications.