The regulator is considering the possibility of liberalising the wireless spectrum to accelerate the roll-out of high-speed broadband across the UK. However it would also open up the UK market to rival wireless technologies such as Wi-Max.
Google could be planning to launch its own mobile service or establish an open wireless-broadband network, as it is already doing in the US. Gaining a foothold in the UK would put the company in a prime position to launch its rumoured Gphone.
There is ongoing speculation that Google is developing the Gphone, with HTC as its manufacturing partner. The company has submitted a US patent for a mobile-payment system called Gpay.
According to the Guardian, Google it is still undecided whether Gphone will feature 3G or Edge connectivity.
Google is believed to be considering a bid in the Federal Communications Commission’s upcoming 700Mhz spectrum auction in January 2008.
Google has not commented on the rumours.