5 years ago... DTI delays mobile licence auction

27.01.1999: The auction of third-generation mobile phone licences in the UK has been delayed.

Guidelines for the bidding process of the licences were due to be drawn up in February, but a UK government statement claims a reshuffle at the Department of Trade and Industry (DTI) means the deadline will not be met.

Companies expected to bid for the licences include media companies Reuters, Carlton and United News and Media, as well as UK telco BT. Up to five licences will be awarded, with each likely to fetch around £500m.

A DTI spokesman said the original date was never set in stone, but claimed that an announcement will be made soon.

27.01.2004: The protracted 3G licence auction eventually concluded in April 2000 with the mobile operators paying a collective £22.5bn to the UK government. What the government failed to realise while it was busy counting the loot was that the extortionate sums it had gained actually threatened both the future rollout of 3G and the financial stability of some of the operators.

The big operators are expected to start rolling out services towards the end of this year - though what will be the killer 3G application for which they can charge the kind of fees that will make back some of that auction money is still far from clear.