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Ofcom fights in court for satellite license.
Ofcom, the media regulator, is facing costly legal action in the High Court after becoming involved in a space race between US and UK satellite providers.
The action is being brought by ICO Global Communications, one of several companies competing for the right to broadcast on the valuable “S-band” frequency, which offers the potential to deliver mobile television technology, digital radio and broadband from the skies.
The American satellite provider has decided to challenge Ofcom in the courts after the regulator suggested that it should be stripped of its license to broadcast on S-band for failing to make sufficient use of the frequency.
Several companies are currently engaged in a turf war over this next-generation spectrum with multi-billion pound contracts at stake.
The European Commission this week awarded a contract worth an estimated £2bn to FTSE 100 company Inmarsat and the Dublin-based company Solaris, which will give them the right to operate satellite services on S-band across the continent.
This means ICO has been left out in the cold by both Europe and the UK – leading it to challenge Ofcom and, possibly, the European Commission in the courts. Sources close to Ofcom suggested that ICO has not been using its license fully for many years, leading to accusations that it was “hogging” the UK frequency by preventing others from using the lucrative spectrum.
The S-band frequency is currently used by astronauts and weather radars, but satellite providers believe it will become instrumental in the way technology is provided for consumers over the next few years.
“S-band is an incredibly valuable bit of global real estate,” said Chris McLaughlin of Inmarsat. “It’s the means by which we can enable 3G and 4G all across Europe and we are building a capable satellite at the moment. The original vision was mobile television, but there’s the potential for much more.”
Inmarsat, the British company, believes it could have a satellite up and running by 2012, which could be used to create a Europe-wide security system as well as consumer entertainment such as mobile television.
Analysts believe the real value of S-band will come from partnerships between satellite and mobile phone companies.
Ofcom confirmed that ICO had applied for to the High Court for permission to launch a judicial review, adding that its recommendation is separate from the European Commission’s decision not to award ICO any spectrum.
“Ofcom is considering the application and will publish its response shortly,” an Ofcom spokesman said.