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Superfast Broadband - Evidence - Parliament

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Everything Everywhere – supplementary written evidence<br />

competitors both benefited from the Government direction to Ofcom to allow mobile<br />

operators to deliver 3G services over 900MHz and 1800MHz airwaves - a decision we did<br />

not challenge.<br />

We believe that our proposed investment and innovation will drive further investment and<br />

innovation in the UK from the other networks. The auction itself will not necessarily drive<br />

investment - the 3G auction in 2001 saw all networks overpay for the spectrum licences and<br />

subsequent infrastructure investment was consequently slow. Ronan Dunne made a recent<br />

comment to the effect that, as the CEO of 02, he does not see the business justification for<br />

bringing 4G to the UK. There is no better way to make him change his mind than EE<br />

launching a 4G service this year. This will ensure that the predictions in the economic<br />

research we commissioned from Capital Economics will materialize - these indicated that<br />

roll out of 4G networks would add 0.5% to UK GDP over the next decade and unleash<br />

£5.5bn in private investment that will support 125,000 jobs over the next three years.<br />

In a period of such economic uncertainty, we do not believe the UK can afford any further<br />

delays.<br />

1 July 2012<br />

287

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