Ofcom to auction 190 MHz spectrum in 2.3 GHz, 3.4 GHz bands

mobile-data-growth-in-ukOfcom today said it will auction 190 MHz of spectrum in the 2.3 GHz and 3.4 GHz bands – targeting both 4G and 5G network operators.

Ofcom also clarified that BT / EE would not be able to bid for spectrum in the 2.3 GHz band due to a spectrum cap.

There are no restrictions on BT / EE rivals such as Vodafone, O2 and Three.

The British telecom regulator said 190 MHz spectrum is an increase of just under a third of the total mobile spectrum currently available. This represents more than three-quarters of the 4G airwaves that were released in 2013 mobile spectrum auction.

Ofcom says the proposed spectrum auction will help meet mobile broadband demand and future 5G mobile.

Ofcom will auction 40 MHz of spectrum in the 2.3 GHz band. Mobile devices such as Apple iPhone have phones in 2.3 GHz band. Telecoms can immediately use these airwaves after release to provide extra capacity.

In addition, Ofcom will auction 150 MHz of spectrum in the 3.4 GHz band. At present, there are no devices in the 3.4 GHz band. Ofcom has also identified the 3.4GHz band as central to the rollout of 5G across Europe.

Spectrum cap

Ofcom proposes to apply a cap, of 255 MHz, on immediately useable spectrum that any one operator can buy. As a consequence of this proposed cap, BT / EE would not be able to bid for spectrum in the 2.3 GHz band.

BT / EE currently holds 45 percent of immediately useable UK mobile spectrum. Vodafone holds 28 percent, O2 15 percent and Three 12 percent.

Ofcom is concerned that, if these immediately usable holdings were to become more unbalanced, this could harm competition in the next few years.

As a result of the new spectrum in the market after the award, BT / EE’s overall share of immediately-useable spectrum will fall, from 45 percent to 42 percent. If BT / EE were to acquire all the 2.3 GHz being awarded, it would have almost half of the immediately usable spectrum in the market.

Ofcom is not proposing a cap on the amount of 3.4 GHz spectrum. This is because the band is not immediately useable.

UK benefits from four national network mobile operators, as well as numerous virtual operators who use the networks of the four mobile operators to compete for retail customers.

Unlike the 4G auction in 2013, Ofcom is not proposing coverage obligations on the winning bidders in this auction. This is because the frequencies are suited for delivering greater network capacity, not achieving wide geographic coverage.

Ofcom plans to release further spectrum for mobile use.

These airwaves include frequencies in 700 MHz band, which is currently used by Freeview television and wireless microphones. Another potential source of future mobile spectrum is the 3.6 GHz – 3.8 GHz band. This is currently used by a mix of satellite services and ‘fixed links’, used for high-capacity data transmission.