UK to auction 190 MHz in two bands
The UK aims to auction 40 MHz in the 2.3 GHz band and 150 MHz in the 3.4 GHz band.
UK spectrum regulator Ofcom has announced that it will release extra spectrum via an auction in order to facilitate current and future mobile broadband needs.
Ofcom has also announced measures designed to increase safeguards for competition, including a new cap on overall spectrum.
Later in 2017, it will auction licences to use 190 MHz of spectrum in two bands, increasing the airwaves available for mobile devices by almost one-third.
40 MHz of spectrum will be auctioned in the 2.3 GHz band, a band that is already used by devices from manufacturers such as Apple and Samsung. The extra spectrum would be available for use immediately after release.
150 MHz of spectrum will be auctioned in the 3.4 GHz band, which is expected to be used by the next generation of 5G devices in Europe.
In a statement, Ofcam said the auction rules are “designed to reflect recent market developments and safeguard competition over the coming years”.
The regulator says it will impose two different restrictions on bidders to “limit the amount of spectrum operators can win in the 2.3 GHz band, and place overall limits on the spectrum an operator can win across the 2.3 GHz and 3.4 GHz bands in aggregate”.
The first restriction will be a cap of 255 MHz on the “immediately useable” spectrum that any one operator can hold as a result of the auction, which means that BT/EE will not be able to bid for spectrum in the 2.3 GHz band.
The second restriction will be a new, additional cap of 340 MHz on the overall amount of mobile spectrum a single operator can hold as a result of the auction. The cap will amount to 37% of all the mobile spectrum expected to be useable in 2020, which includes not only the spectrum available in this auction but also that of the 700 MHz band.
Taken together, Ofcom said the effect of the caps will be to reduce BT/EE’s overall share of mobile spectrum; the company can win a maximum 85 MHz of new spectrum in the 3.4 GHz band. The overall cap also means that Vodafone could gain a maximum 160 MHz of spectrum across both the 2.3 and 3.4 GHz bands.
The regulator said that, based on the current spectrum holdings, there will be no restriction on the amount of spectrum that any other bidder could win.
“As we have previously said in our Strategic Review of Digital Communications, we will also look to include new obligations in future spectrum licences to ensure rural coverage continues to improve and are making further spectrum available for mobile in the 700 MHz band in 2020,” Ofcom said in its statement.
Ofcom’s final auction rules reflect several important developments in the market since it last consulted with the sector (in November 2016), such as changes in the availability of additional 5G spectrum. “We had expected that an additional frequency band for future mobile services, including 5G — the 3.6 GHz to 3.8 GHz band — was likely to be available at around the same time as the 3.4 GHz band becomes useable for mobile,” the Ofcom statement said.
“We now have less confidence that it will be useable nationwide by that time. Therefore, releasing the 3.6 to 3.8 GHz band cannot be relied upon to tackle competition concerns that arise from 2020. The new overall spectrum cap addresses these concerns.
“We still intend to make the 3.6 to 3.8 GHz band available for mobile as soon as possible and will shortly publish our proposed approach,” the regulator’s statement added.
Philip Marnick, Ofcom’s Spectrum Group director, said: “Spectrum is a vital resource that fuels the UK’s economy. We’ve designed this auction to ensure that people and businesses continue to benefit from strong competition for mobile services.
“We want to see this spectrum in use as soon as possible. With smartphones and tablets using even more data, people need a choice of fast and reliable mobile networks. These new airwaves will support better services for mobile users and allow operators to innovate and build for the future.”
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