Mobile broadband improvements could be delayed due to competition concerns within the sector, as Vodafone and O2 look to take action against the proposed terms of the Orange and T-Mobile merger.

With T-Mobile and Orange due to merge, their union is subject to some terms - including the requirement that the new combined company should sell off part of its spectrum at the 1,800 MHz range.

The network operators agreed to do so on the premise that the 15 MHz divesture should go to a single bidder.

However, O2 and Vodafone have complained that this places an unfair limitation on the transaction - and that the spectrum should be available for purchase on more flexible terms.

The pair argue that fair allocation of the frequency spectrum is a "vital" component of ensuring healthy competition within the sector.

With respect to mobile broadband, the row could put a halt - albeit temporary - to the adoption of fourth-generation wireless internet capabilities.

Last week, the Department for Business, Innovation and Skills reported that it had instructed the Office of Communications to implement the "spectrum modernisation programme" that forms part of the Digital Britain strategy.

This aims to deploy next-generation mobile technology earlier and to release additional space within the electromagnetic spectrum in order to support these enhancements.

But with the 1,800 MHz band a core component of fourth-generation mobile services, the argument relating to the T-Mobile and Orange merger - and the reallocation of the two firms' spectrum - may yet delay proceedings as the companies and their regulatory bodies seek to safeguard competition and fair dealings across the mobile telecommunications industry.

Do you think Vodafone and O2 are right to question the terms of the merger?

 source:broadband