Mobile operators gear-up for 3G auction

The auction process for next-generation mobile phone network licences goes live at 13:30 GMT today as the UK's four incumbents and nine wannabe operators start bidding.

The Radiocommunications Agency will take submissions, via fax. The process will eventually lead to the government raising up to about £5bn, according to most analysts' estimates.

Some critics have said a "beauty contest" approach - where a government assesses and chooses bids based on various criteria - as used in Finland would lead to a better allotment of the third-generation, UMTS licences.

Besides the UK's four incumbent operators (BT Cellnet, One2One, Orange and Vodafone AirTouch), the companies that will bid are: Eircom subsidiary 3G (UK); Crescent Wireless, owned by Global Crossing; Epsilon Tel.COM, owned by Nomura; NTL Mobile; One.Tel Global Wireless, in which Rupert Murdoch's News Corp has an interest; SpectrumCo, backed by Virgin Group and others; TIW UNTS from Canada; Telefonica UK; and WorldCom Wireless, part of the aggressive MCI WorldCom.