| 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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