Government estimates of £3.5 billion from revenue raised from the auction of 4G spectrum have failed to materialise, with just £2.3 billion achieved.

Out of buyers including O2, EE, Vodafone, Three and BT, the highest bidder Vodafone paid £790 million spent to secure bands in 800MHz and 2.6 GHz spectrums.

Despite a gap of over £1 billion the Ofcom chief executive Ed Richards said the outcome was a "positive outcome for the UK".

Despite the success of communication providers in gaining 4G spectrum for a reduced price, there is little indication that customers have started to employ the new service in large numbers.