UK mobile operators could face a new competitor in the shape of Google, according to a report in todays Guardian. Googles move will be made possible by the regulator Ofcoms plan to claw back more than a third of the 2G spectrum allocated to Vodafone and O2 by the Conservative Government in 1985 for re-auction. Ofcom estimates the sale could raise up to 6 billion.
O2 and Vodafone are understandably said to be less than happy about the plans, which would present Google with the opportunity to launch either a mobile, or a wireless broadband network. While neither Vodafone nor O2 would be allowed to bid for the spectrum, Orange, T-Mobile and 3 would.
Google has long been rumoured to be developing a G-phone. The companys dominance of the online advertising sector would enable it to woo customers with the promise of free, ad-funded access to mobile data services.