Broadband operators are to get a second bite at broadband fixed wireless and will be able to bid for unwanted licences left over from last year's disastrous auction, when only 16 of the available 42 slots were sold.

The auction raised a pitiful £38m, little more than half the listed reserve price and completely out of sight of the Government's expected £1.5bn.

The decision followed the auction process for Universal Mobile Telecommunications System licences, which raised an unexpected £22.5bn for the Treasury ahead of the general election.

Applicants will be able to buy licences at the same reserve price that was set last year. In the event that two applicants apply for the same licence, an auction will be conducted between the interested parties.

Ecommerce minister Douglas Alexander said: "This will have a real impact on ecommerce."

See also:

Licence distribution lapses into farce

Government must devise services worth paying a premium for  21 Sep 2001

UK broadband auction flops

The UK government has sold only a third of its fixed radio spectrum licences - netting a mere £38m in the much-anticipated auction.  21 Nov 2000

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