A Three spokesperson said: "Liberalisation of 2G spectrum to date has distorted the competitive landscape in the UK, which ultimately harms consumers. Further liberalisation without addressing competition issues could make that distortion worse."

However, Vodafone has launched a particularly scathing attack on the regulator, claiming that it is Ofcom itself that is standing in the way of getting 4G services to the UK, due to a number of delays to the auction process.

It also said that the decision is "bizarre", given that EE is to sealing a deal with Three to sell it some of its old 2G spectrum, which was part of the agreement when T-Mobile and Orange merged to become EE.

"We are frankly shocked that Ofcom has reached this decision. The regulator has shown a careless disregard for the best interests of consumers, businesses and the wider economy through its refusal to properly regard the competitive distortion created by allowing one operator to run services before the ground has been laid for a fully competitive 4G market," said a Vodafone spokeswoman.

"Ofcom's timing is particularly bizarre given the reports that Everything Everywhere is currently in discussions to sell some of its spectrum to Three, which Ofcom has previously been at such pains to protect with its over-engineering of the 4G auction. This means the balance in the auction will fundamentally change."