Thirteen companies are to bid for licences to operate UK mobile phones that offer email and internet access, the government announced on Monday.

The auctions for the five licences will start in March and are expected to raise £2bn for the government.

The first consumer products are expected from 2002.

Global rivals

The UK's four existing mobile operators, Vodafone, Orange, BT Cellnet and One2One, will bid against nine rivals from across the world.

Those who want a slice of the UK market include US carrier MCI Worldcom and cable giant NTL.

Richard Branson's Virgin Group is leading a consortium called SpectrumCo Ltd.

Other bidders include Ireland's Eircom, which has set up a company called 3G, and TIW UMTS, a subsidiary of US carrier TIW.

The auction will be the last chance for an overseas buyer to gain access to the valuable UK mobile market.

The four UK companies are prepared to pay substantial sums to ensure that they can continue to operate in the UK.

That will allow at least one new mobile phone company to enter the UK market.

Green light for Orange

All the companies who wanted a licence have been given the green light to take part in the auction.

Observers had questioned whether both Vodafone and Orange would be allowed to bid.

Under government rules, no group could own more than one licence.

If Vodafone AirTouch spins off Orange - as planned following its takeover of German company Mannesmann - then both companies can own a licence.

"I am delighted that we have been able to qualify all the applicants and that we are on track for the beginning in March," E-Commerce Minister Patricia Hewitt said.

"I expect to announce the exact date for the start of the auction shortly."