THE UK government was today urged to invest the proceeds of the forthcoming auction of next-generation mobile phone airwaves in high-tech companies to help deliver a sustained economic boost.
Telecoms regulator Ofcom is due to kick off its 4G auction later this year in a move that will give at least 98 per cent of the UK population access to super-fast download speeds.
Ofcom has set a reserve price of £1.4 billion, but analysts at PwC believe the UK government could raise as much as £4bn through selling off the airwaves.
The National Endowment for Science, Technology & the Arts (Nesta) will today call on the Scottish Government to lobby for a share of the money and then plough the cash into the next generation of technology firms north of the Border.
Nesta said: “This windfall could pay for more investment in high-growth start-ups, back better links with scientific research and provide seed funding for a Scottish Innovation Bank.”
The Scottish Government said the 4G auction was a matter reserved for the UK government, and there was no automatic right to a share of the proceeds.
A spokeswoman said: “As decisions on the use of this money rest with the Treasury, it is not possible at this stage to talk about a Scottish share of the 4G auction revenue. However, we will be pursuing the UK government to ensure Scotland does benefit fully and proportionately from the receipts.”
Everything Everywhere, the parent company of Orange and T-Mobile, yesterday said it would roll out 4G to 16 cities, including Edinburgh and Glasgow, by the end of this year. It will launch a new brand, EE, to deliver the service.
Nesta chief executive Geoff Mulgan also said Scotland’s economy could benefit to the tune of £12bn a year over the next decade if it takes the right approach to innovation.