Row Over "Refarming" Re-opens

Arcep, the French telecoms regulator has reportedly granted permission for mobile operators Orange and FSR to re-use GSM 900MHz frequencies for their UMTS services. The move follows a controversial plan recently aired by Ofcom in the UK to effectively take back some of the 900MHz spectrum in the UK from mobile operators and re-auction it for UMTS use.

The 900 MHz spectrum is particularly valuable for providing better 3G coverage in rural areas and in buildings as radio signals propagate further at the lower frequency. However, UK companies Vodafone and O2 are up in arms at the plan and insist that Ofcom is going too far. The Arcep move to allow the practice, known as refarming, will not help their humour either.

Neither Vodafone nor O2 have ruled out a legal challenge if Ofcom insists on continuing with its plan.  Even 3G-only UK company 3, which has no GSM licence of its own and in theory stands to gain the most from Ofcom's wheeze, also opposes the plan. However, 3 is against the idea as, in its opinion, the plan does not go far enough. The operator wants Ofcom to take back and re-auction all of Vodafone and O2's 900MHz spectrum.