Three warns of capacity crunch if spectrum auction delayed

Says rivals stand to gain by delaying the sell off
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Mobile operator Three has said that the telco could begin running out of mobile network capacity in city regions by the end of the next year, according to a BBC report.

Three boss David Dyson said there was "huge financial incentive" for Three's rival networks to delay the impending auction of radio spectrum.

Ofcom had allowed O2 and Vodafone to reuse a part of their lower frequency spectrum for 3G services which promoted Three to to complain that the telcos were being offered an advantage.

The regulator appeared to recognise the precarious position of competition in the mobile marketplace by announcing the intention to limit the amount of spectrum individual bidders could win.

Culture secretary Jeremy Hunt had early urged telcos not to delay the progress of the spectrum auction with additional legal challenges.