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UK says phone firms to spend 5 bln stg on tackling mobile "not spots"

Thu, 18th Dec 2014 07:29

LONDON, Dec 18 (Reuters) - Britain's mobile phone networkoperators have agreed to spend 5 billion pounds ($8 billion)improving basic service coverage in rural areas where consumerscannot get a strong signal, in response to a government pledgeto tackle the problem.

Networks EE, owned by Orange and Deutsche Telekom, Telefonica's O2, Vodafone andHutchison's Three will extend guaranteed voice andtext coverage to 90 percent of the country by 2017, halving thearea affected by patchy coverage, the government said.

The binding agreement takes legislative changes off thetable, including a proposal from Culture Secretary Sajid Javidto force operators to share networks, an idea vehemently opposedby the companies that have invested billions of pounds inbuilding infrastructure.

Javid said on Thursday the agreement would result in cuttingtotal "not-spots", where there is no mobile coverage, by twothirds.

It would also halve the area blighted by patchy coverage,where not all national networks were available, he said.

"Too many parts of the UK regularly suffer from poor mobilecoverage leaving them unable to make calls or send texts," hesaid in a statement.

"Government and businesses have been clear about theimportance of mobile connectivity, and improved coverage, sothis legally binding agreement will give the UK the world-classmobile phone coverage it needs and deserves."

Communications regulator Ofcom will monitor the progress ofthe companies in extending coverage, the government said.

The increased investment will also be taken intoconsideration in Ofcom's revision of the licence fees mobilecompanies pay to the government for using the radio waves, itadded. ($1 = 0.6391 pounds) (Reporting by Paul Sandle; Editing by Mark Potter, GregMahlich)

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