3 (Three) Mobile UK seems to be in a dilemma, it may be running out of data capacity in urban areas within the next year, for them to be ok they really need spectrum auctions to go ahead.

Mobile networks are getting congested as major demand for data is soaring, such spectrum auctions will free up some space for next generation mobile services and such auctions to free space are earmarked for mid-2012 although Three said that the timetable was “already slipping” according to BBC News.

Three really needs its share within the new spectrum if they are to get somewhere, but it is possible that other network rivals could delay the process.

David Dyson, who is Three’s chief executive, mentioned in a press briefing in London “There is a huge financial incentive for rival operators to delay the auction. We are worried that the other three will attempt to squeeze us out of the market,”

Fees that operator’s pay for 2G-spectrum once the auction is complete, will be re-evaluate by Ofcom. Ovum analyst Matthew Howett said: “The more that is bid for new spectrum the more operators will pay in fees for existing spectrum. They will only start paying the fees from the end of the auction so there is an incentive to delay it.”

The next 4G auctions will sell off spectrum in the 800MHz and 2.6GHz bandwidths. When it comes to in-building coverage, Three has the worst of all network operators.

Three is already dropping its all-you-can-eat data plan to just £18 per month to try and make data more available. If 3 Mobile UK does not get the spectrum auction where does this leave them?