MPs hit out at Orange
EVERYTHING Everywhere, the joint venture between Orange and T-Mobile, faced criticism from MPs yesterday over profit it stands to book on the sale of radio waves.
Orange, which acquired the spectrum for free in 1991, must now offload it as part of its merger agreement with Ofcom, with analysts estimating it is worth around £450m.
After taking into account licence fees, this would give the firm a profit of £290m. In a Department of Culture, Media and Sport hearing yesterday Labour MP Tom Watson asked if it was fair that the firm make a profit for its stakeholders in France and Germany on the taxpayer-subsidised spectrum.
Everything Everywhere responded by pointing out it has invested millions in infrastructure in the UK and said it will re-invest the proceeds into the rollout of a 4G network.
MPs believe the government must set a coverage obligation to make sure the whole of the country can access mobile internet. They said mobile broadband is a vital aspect of the rollout of superfast internet to the whole of the UK.