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By Graeme Wearden, 10 January 2003 16:05

NEWS Companies will soon be able to bid for licences allowing them to provide wireless broadband to consumers and businesses using the 3.4GHz spectrum. The UK government confirmed on Friday that it will hold an auction of 3.4GHz licences in 15 regions in May this year. These licences will let companies offer fixed wireless access services, potentially at speeds similar to ADSL. Each licence will cover one region of the UK, and successful bidders will not be forced to roll out services within a certain timeframe. They also won't have to offer wireless broadband, and could instead use the bandwidth for other purposes. The government, though, is hopeful that this auction is a way of making high-speed data connections to rural areas, and other places where ADSL and cable broadband is not available. Interested parties will be able to apply for a licence from March. The Radiocommunications Agency, which will handle the auction, has not yet revealed whether there will be a reserve price set for the licences. Wireless is generally seen as the key to making Broadband Britain a reality, and many companies are keen to get involved in wireless broadband. Some in the industry, though, believe that the government is making the wrong bandwidth available. A number of companies are understood to be pushing the government to make the 2GHz spectrum available for high-speed wireless services. These firms - including, it is understood, BT - believe that rural wireless broadband will only be commercially viable if 2GHz is used, rather than a higher frequency part of the spectrum. A source close to the issue said: "Certain companies have been pushing the government very hard over 2GHz for some time." However, it appears that these discussions, which are still ongoing, are unlikely to result in 2GHz being thrown open to wireless broadband providers in the near future. The Radiocommunications Agency held a consultation into 2GHz last year. Its proposals included the possibility of awarding fixed wireless licences covering the metropolitan areas of Scotland and Wales, using the 2GHz band. A decision on the future of 2GHz has still not been taken and it is understood that none is imminent. One reason for the government's reluctance to make 2GHz available for wireless broadband could be that it is currently used by Britain's security services, who are unwilling to give it up. Graeme Wearden writes for ZDNet.co.uk