Apparently O2 and Vodafone are facing being excluded from future auctions of mobile spectrum should both fail to finalise a long dispute with other mobile groups, claims a report on ft.com.

Government appointed broker, Kip Meek, outlined the new proposals stating the two mobile companies would be capped from purchasing more spectrum in auctions without selling existing capacity.

O2 and Vodafone have opposed an Ofcom proposal in 2007 that both O2 and Vodafone give some of the 900MHz bandwidth which both companies own so it could be sold to the likes of Orange, T-Mobile and other rivals.