Ofcom Gives O2 the All-clear

Telecoms regulator Ofcom has confirmed that mobile operator O2 has now met its obligation to roll out its 3G services to at least 80% of the UK population. This follows Ofcom's notice to O2 in February that it would shorten its licence by four months if it did not comply with its rollout obligation by 30 June 2008. O2 acquired its 3G licence in 2000 for 4,030 million. Ofcom estimated that a reduction of the licence term by four months would have been equivalent to a significant financial sanction of at least 40 million.
The rollout obligation requires each of the five holders of a 3G licence to roll out their networks to enable the provision of 3G services to at least 80% of the population from 31 December 2007. The other four licensees, H3G, Orange, T-Mobile and Vodafone, demonstrated that they were in compliance with this obligation on this date.
Ofcom says that it will conduct a further assessment to ensure that these licensees remain in compliance on 31 December 2008.