BT IS to fight the mobile operators in a new spectrum auction set to provide a multimillion-pound windfall for the Government.

The telecoms giant said yesterday that it is “analysing the opportunity” around radio airwaves that Ofcom, the telecoms watchdog, said that it intends to auction off by March next year.

Vodafone, the world’s biggest mobile operator, and O2 said that they are also assessing the potential of the new spectrum for which licences for a minimum of 15 years are to be made available.

The 40 megahertz of spectrum to be auctioned off is less than half the amount in the 3G auction of 2000. Frenzied bidding for licences in that auction raised £22.5 billion for the Treasury. But the spectrum’s position, in the “sweet spot” — it sits at the 1452-1492 megahertz frequency — and its potential uses (for mobile television and wireless broadband access through technologies such as wimax) mean that licences for the new spectrum are likely to be keenly sought. High demand could trigger a big windfall for the Treasury.

Operators are keen to get their hands on spectrum that will allow them to broadcast television over the mobile to a wide audience. More companies are also waking up to the potential of wimax — a wireless broadband technology that works over a wider area than wi-fi.

A spokesman for Vodafone, said: “We will take a look at this (spectrum) and potential commercial applications of it.” He added that wimax is “one of the technologies we are testing”.

O2 said that it was also looking at the spectrum.

The planned auctioning of the 1452-1492Mhz spectrum, which is currently used for such things as wireless cameras and microphones at sporting events, is part of a wider drive by Ofcom to auction off more than 400Mhz of prime spectrum over the next few years. The aim is to ensure the best possible use of the important resource.

In a consultation paper published yesterday, Ofcom said that international arrangements over spectrum could limit the use of the 1452-1492 Mhz spectrum.

However, it believes that not all the constraints are justified. It aims to negotiate with the other countries involved in an attempt to loosen the rules around it.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive