{"id":26268,"date":"2021-03-17T07:34:43","date_gmt":"2021-03-17T07:34:43","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=26268"},"modified":"2021-03-17T07:56:50","modified_gmt":"2021-03-17T07:56:50","slug":"preliminary-winners-of-ofcoms-uk-5g-mobile-auction-revealed","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/03\/preliminary-winners-of-ofcoms-uk-5g-mobile-auction-revealed.html","title":{"rendered":"Preliminary Winners of Ofcom’s UK 5G Mobile Auction Revealed"},"content":{"rendered":"

Ofcom<\/a> has today revealed the winners from the “principal stage<\/em>” of their latest 5G<\/a> focused mobile (mobile broadband) spectrum auction for the 700MHz and 3.6-3.8GHz bands, which saw operators spend a total of \u00a31.356 billion across the various bands and EE<\/a> (BT<\/a>) appears to have gobbled up the most (\u00a3452m).<\/p>\n

Just to recap. The regulator was auctioning off 80MHz of spectrum frequency in the 700MHz<\/strong> band and 120MHz of spectrum in the 3.6-3.8GHz<\/strong> bands to EE<\/a> (BT<\/a>), Vodafone<\/a>, Three UK<\/a> and O2<\/a>. The combination of these should increase the total amount of airwaves available for mobile services in the UK by 18%, which in turn may result in faster data speeds and better coverage.<\/p>\n

NOTE:<\/strong> 700MHz was formerly used for Digital Terrestrial TV services. Lower frequencies like this are ideal for delivering wide geographic coverage as they travel further and penetrate better into buildings (complemented by 800MHz and 900MHz), while 3.6-3.8GHz tends to be better for ultrafast data speeds in urban areas.<\/div>\n

The auction included a 37% (416MHz) cap on the overall amount of spectrum that any one mobile operator can hold following the auction, which effectively limits the spectrum that some operators can acquire in the award. For example, EE<\/a> was limited to acquiring up to 120MHz, while Three UK<\/a> can only acquire 185MHz, Vodafone<\/a> could grab up to 190MHz and O2<\/a> was largely unrestricted.<\/p>\n

We should point out that all the major operators already have some 5G<\/a> specific spectrum. At present EE, Vodafone<\/a> and O2<\/a> all have a 40MHz, 50MHz and 40MHz slice, respectively, of the 3.4GHz<\/strong> band, while Three UK<\/a> holds 140MHz of spectrum across several similar bands thanks to their previous \u00a3250m acquisition of UK Broadband Ltd several years ago (this includes a 20MHz slice from the 3.4GHz auction).<\/p>\n

As such we were expecting EE, Vodafone and O2 to bid hard in order to try and secure a large block of contiguous spectrum to aid their 5G<\/a> plans (i.e. a block of 100MHz+ is considered ideal – Three UK already has this).<\/p>\n

Principal Stage Winners<\/strong><\/span>
\n\u00b7 EE<\/strong>
\n— 2×10 MHz of paired frequency spectrum in the 700 MHz band at a cost of \u00a3280,000,000<\/p>\n

— 20 MHz of supplementary downlink spectrum in the 700 MHz band at a cost of \u00a34,000,000<\/p>\n

— 40 MHz in the 3.6-3.8 GHz band at a cost of \u00a3168,000,000<\/p>\n

\u00b7 Three UK<\/strong>
\n— 2×10 MHz of paired frequency spectrum in the 700 MHz band at a cost of \u00a3280,000,000<\/p>\n

\u00b7 O2<\/strong>
\n— 2×10 MHz of paired frequency spectrum in the 700 MHz band at a cost of \u00a3280,000,000<\/p>\n

— 40 MHz in the 3.6-3.8 GHz band at a cost of \u00a3168,000,000<\/p>\n

\u00b7 Vodafone<\/strong>
\n— 40 MHz in the 3.6-3.8 GHz band at a cost of \u00a3176,400,000<\/p><\/blockquote>\n

The total revenue raised from the principal stage is \u00a31,356,400,000<\/strong> with all money to be paid to HM Treasury, but it’s not quite over yet. The final phase is called the “assignment stage<\/em>“, which enables operators to negotiate (bid on) placements of their spectrum within the 3.4-3.8GHz band. Ofcom<\/a> hopes this will reduce the level of fragmentation and help operators to create more blocks of contiguous spectrum.<\/p>\n

However, the assignment stage will be subject to whether the companies wish to enter the negotiation period. If they do, Ofcom<\/a> will publish the dates for the negotiation period.<\/p>\n

Philip Marnick, Ofcom’s Group Director of Spectrum, said:<\/strong><\/p>\n

“With bidding in the principal stage concluded, we now move to the next stage of the auction where the operators will have an opportunity to negotiate the position of their spectrum holdings in the wider band. This is an important step forward in bringing better mobile services to people \u2013 wherever they live, work and travel.<\/p>\n

These airwaves will help improve coverage for the mobile services people use today, as well as supporting the UK\u2019s position as a world leader in 5G.”<\/p><\/blockquote>\n

The final results of the auction will be published once all stages are complete (we expect the assignment stage to take about 4 weeks), although it does look like most operators now have a good chunk of spectrum for 5G services (e.g. Vodafone now owns 90MHz of the 3.4-3.6GHz band) and this comes attached to a 20-year licence term through to 2041.<\/p>\n

Ahmed Essam, CEO of Vodafone UK, said:<\/strong><\/p>\n

“This auction will boost our 5G network capacity. It means we will have the spectrum we need to further the roll-out of 5G to our customers, bringing high speed connectivity and opening up new opportunities for products and services. We have been successful in the 3.6 GHz band and have avoided expenditure on low band spectrum, where it is our strategy to refarm over time our significant 900 MHz holdings to carry 5G traffic.”<\/p><\/blockquote>\n

Mark Evans, CEO of O2, said:<\/strong><\/p>\n

“We are pleased to announce that Telef\u00f3nica UK (O2) has secured a significant share in the latest spectrum auction, investing \u00a3448m to obtain 40Mhz of 3.6GHz and 20MHz of 700 MHz FDD.<\/p>\n

This demonstrates Telef\u00f3nica\u2019s continued commitment to the UK Market and the very best connectivity for our customers. We are delighted with the result, which secured the right spectrum at a fair price.<\/p>\n

This additional spectrum will allow for continual improvement in our network. We pride ourselves on being a champion of reliability and quality coverage and look forward to continuing to invest in digital infrastructure to build Britain\u2019s connectivity, for the benefit of all.”<\/p><\/blockquote>\n

Robert Finnegan, CEO of Three UK, said:<\/strong><\/p>\n

“We are delighted to have won two 10MHz blocks of low frequency spectrum at the auction. This triples the amount of low frequency spectrum we own and will have a transformative effect on our customers\u2019 experience indoors and in rural areas. Coupled with our existing low frequency spectrum and the UK\u2019s largest 5G spectrum holding, we are in a fantastic position to deliver a great network experience for our customers now and in the future.”<\/p><\/blockquote>\n

Marc Allera, CEO of BT<\/a>\u2019s Consumer Business, added:<\/strong><\/p>\n

“EE has secured vital new spectrum in this auction which, when rolled out into the network, will allow us to grow our position as the UK\u2019s number one 5G network. EE was first to launch 4G<\/a> and 5G, and this auction outcome is great news for our network, our customers and BT.”<\/p><\/blockquote>\n

We should finish by pointing out that a lot of the new 5G kit being deployed today can already support the new bands, which should enable operators to bring it into service fairly quickly, once the auction process has finished.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ofcom has today revealed the winners from the “principal stage” of their latest 5G focused mobile (mobile broadband) spectrum auction for the 700MHz and 3.6-3.8GHz bands, which saw operators spend a total of \u00a31.356 billion across the various bands and EE (BT) appears to have gobbled up the most (\u00a3452m).<\/p>\n","protected":false},"author":1,"featured_media":25526,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[406,405,60,32,36,63,96],"class_list":["post-26268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-5g","tag-ee","tag-mobile-broadband","tag-o2","tag-ofcom-regulation","tag-three-uk","tag-vodafone"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nPreliminary Winners of Ofcom's UK 5G Mobile Auction Revealed - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Ofcom has today revealed the winners from the "principal stage" of their latest 5G focused mobile (mobile broadband) spectrum auction for the 700MHz and\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2021\/03\/preliminary-winners-of-ofcoms-uk-5g-mobile-auction-revealed.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Preliminary Winners of Ofcom's UK 5G Mobile Auction Revealed - 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