It says that by reducing the spectrum available to each operator and charging them high licensing fees, regulators risk lowering speeds and pushing up prices. However, delivering multimegabit speeds hinges on obtaining enough radio spectrum. And with spectrum a finite resource, only four operators should be licensed per region, says the forum, which represents more than 60 wireless operators and equipment manufacturers. Yet the biggest European countries are ignoring those recommendations. The United Kingdom is committed to five operators, while Germany threatens up to 10.
Critics contend that the countries are trying to maximize licensing revenue.
The only country following the forum's recommendations is Finland, which issued four licenses in 1999. Most governments allocate these licenses through auctions, another practice opposed by operators. Auctions can act as a tax on mobile telecom, increasing prices to end users. Operators claim those charges severely delay investment and create services that are too expensive for many potential customers. Governments, however, say that auctions make the procedure fair, reducing the possibility of regulators favoring incumbents.