Vodafone and O2 , the mobile phone groups, could be forced to give up some of their most valuable bandwidth as part of the government’s plan for all homes to have broadband internet access by 2012.

Along with the proposed deployment of fibre-optic broadband, spectrum reallocation is at the top of the telecommunications regulation agenda. O2 and Vodafone hold exclusive rights to the part of the radio spectrum most suitable for mobile broadband services.