DTI wins appeal to enforce roaming mobile 3G licences

The Department of Trade and Industry (DTI) has won its appeal against the High Court giving it the right to enforce a roaming condition for mobile operators in their bid for third generation licences.

The ruling will allow a new entrant to the market to piggy-back on the existing operators' networks. The Court had ruled in August that it was unlawful for the DTI to impose changes to operators' existing licences without going through the Competition Commission.

However, in its appeal case, the DTI told the judges: "We are only asking operators to accept the conditions if they want to be a successful bidder for the next generation of licences - the operator can choose to consent."

One2One argued, with the backing of Orange, that allowing roaming on their networks would damage its business. But last week, the two larger operators, Vodafone and BTCellnet, said they will accept the roaming condition.

Ted Mercer, partner at Taylor Joynson Garrett, believes the ruling is good news for UK plc. "This is good for the rollout of UMTS in the UK - the DTI can get back on with the process now. Although this may have caused a slight delay it should be able to keep fairly close to the original timetable."

However, Mercer warned it will have an effect on future quarrels over changes to licence conditions. He said: "The Judges have taken a pragmatic view on this issue but it is setting a dangerous precedent and I see it being the cause of much discussion in the future."

One2One has been refused leave of appeal. However, it could go straight to the House of Lords. But Mercer believes that step is unlikely. "One2One has achieved its goal of delaying the process slightly so it can catch its breath in the takeover from Deutsche Telekom."