The 2.6 GHz range is the optimum spectrum for 4G services such as LTE, which is the reason why it kicked up such a storm when Ofcom decided to auction it off. However, as long as Ofcom does not spell out its verdict on the other parts of the spectrum, particularly the 900 MHz range (which many providers are eyeing since it is used for 3G services - click here for more info on mobile broadband), many in the industry say it is difficult to arrive at a conclusive value for the 2.6GHz range.

To add to the spectrum reallocation tale, T-Mobile has withdrawn from the legal battle it had initiated against the Ofcom auction along with O2. This gives Ofcom much more breathing space with O2 as the only barrier to its auction.

T-Mobile and O2 had commenced a court case against Ofcom in May last year in order to suspend the auction until Ofcom decides what it intends to do about allocation of other parts of spectrum in general and the 900 MHz range in particular. The auction was consequently stalled.

Ofcom has consistently taken the view that the reallocation of the 900 MHz frequencies and the sale of the 2.6 GHz chunk were distinct issues, and is all set to go ahead with the auction sometime later this year. The litigation has also prevented the launch of LTE’s rival technology WiMax on the 2.6 GHz spectrum, which will please the mobile providers who are supporting LTE.