Virgin testing 4G, set to bid for spectrum

Virgin Media are set to enter the race for the 4G spectrum that Ofcom will be auctioning off later this year which will enable faster mobile broadband services, following trials that they have undertaken in the Oxford Street area of London using spectrum that the regulator loaned them for the trials' duration.

The company's mobile services run over the Everything Everywhere (EE) network at present and obtaining their own spectrum would enable them to broaden their own mobile horizons in a data hungry world where the company is also gunning for concessions to run urban WiFi Hotspot services similar to the deal that O2 have tied up in Kensington & Chelsea.

The company's wireless director Kevin Baughan was keen to emphasise how expanding into this area compliments their cable services:

"This wireless solution fits so well with our fibre network which covers most major cities. We are interested in working with WiFi as well as licensed spectrum. It provides capacity to where people need it the most."

A company spokesman added:

"There is a huge challenge to meet this growing demand for connectivity and we are looking at ways to put the power of our fibre-optic network where people need it most, both inside and outside the home.

We are working closely with partners across the UK to develop our proven Wi-Fi solution and our recent 4G trial proved the capability of our small cell solution."

Ovum's Steven Hartley believes that other fixed line telcos will follow Virgin in chasing spectrum:

"There are several notable firms missing from the UK's mobile market: BT, Virgin, Sky all have strong broadband offerings but very little in the mobile space, but they may all look to bid for a portion of the spectrum later this year.

It could even be the case that some of these firms form consortiums to work together, as taking on incumbents like O2 or Vodafone from scratch could be difficult."

The much delayed spectrum auction will finally happen late this year.