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O2 meets 3G rollout deadline ahead of schedule [Back to News Reports]

3rd May - UK communications regulator Ofcom said Friday that O2 UK has now met its 3G rollout obligation, a whole two months ahead of deadline.

Back in February the watchdog slapped O2 with a warning after the mobile operator was found to be behind in its obligations to roll out 3G to at least 80 per cent of the UK population by the end of 2007.

O2 was alone in its transgression, having only covered 75.69 per cent of the population - a shortfall equivalent to approximately 2.5 million people.

Under the warning, O2 had until the end of June to meet its requirements or Ofcom threatened to shorten the term of its 3G licence by four months, leading O2's licence to end on August 31 2021 rather than December 31 2021. Since O2 acquired its 3G licence in 2000 for just over £4bn, Ofcom estimated that a reduction of the licence term by four months would be equivalent to a financial sanction of at least £40m.

Evidently the warning, whilst seen as an attempt to discipline an organisation guilty of procrastination with consequences that won't take effect for another 13 years, has had the desired effect.

Naturally, some commentators are speculating that the speed with which O2 met the requirements means the company is paving the way for the introduction of a 3G iPhone.


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