Everything Everywhere, the parent company of Orange and T-Mobile in the UK, should not be allowed to profit from the sale of additional mobile spectrum, MPs have claimed.
The mobile broadband giant could be set to raise up to £450 million when it sells off 25 per cent of its 1,800MHz spectrum, the Telegraph reports.
Ofcom ruled this week that broadband providers will be permitted for the first time to trade radio spectrum, clearing the way for Everything Everywhere to sell off its surplus.
A condition of the UK merger of Orange and T-Mobile in 2010 was that some of the firms' spectrum must be redistributed across the mobile broadband sector.
But with the French and German governments among the shareholders in Everything Everywhere, MPs are concerned about the end destination for the profits from the sale.
With the 1,800MHz spectrum originally granted to telecoms firms as a government gift in the 1980s, there have been calls for any funds generated to be ploughed back into UK broadband.
Labour MP Tom Watson, a member of the Culture, Media and Sport Select Committee, commented: "Is it right that the government should give away a public asset to a private company that it then makes a surplus on?
"The British taxpayer is not getting any of the money but the French and German governments will."
He has called for any profits generated to be reinvested in the government's rural high-speed broadband rollout, which is currently ongoing.
Mr Watson believes that, after costs, Everything Everywhere could clear £300 million from the spectrum sale.
Culture Secretary Jeremy Hunt revealed last week that extra funding will be needed on top of the £530 million set aside by the government, and Everything Everywhere could boost the project with a significant private sector investment.
However, according to the Telegraph, officials at Everything Everywhere are not expecting to make a huge profit on the sale of radio spectrum.