UK spectrum auction raises £1.35 billion for Treasury

UK spectrum auction raises £1.35 billion for Treasury

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The principal stage of The UK's long-awaited 5G auction has raised £1,356,400,000.

Over 34 lots a total of 200 MHz of spectrum was auctioned, split across two bands: 80 MHz of spectrum in the 700 MHz band, and 120 MHz of spectrum in 3.6-3.8 GHz band. The funds raised will go to HM Treasury.

With the largest haul, EE Limited won 2x10 MHz of paired frequency spectrum in the 700 MHz band at a cost of £280 million; 20 MHz of supplementary downlink spectrum in the 700 MHz band at a cost of £4 million; and 40 MHz in the 3.6-3.8 GHz band at a cost of £168 million.

Telefónica spent £280 million on 2x10 MHz of paired frequency spectrum in the 700 MHz and £168 million securing and 40 MHz in the 3.6-3.8 GHz band.

Hutchison 3G UK Limited also spent £280 million on 2x10 MHz of paired frequency spectrum in the 700 MHz and Vodafone Limited won 40 MHz in the 3.6-3.8 GHz band at a cost of £176.4 million.

Philip Marnick, group director of spectrum at Ofcom, said: “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 – wherever they live, work and travel. These airwaves will help improve coverage for the mobile services people use today, as well as supporting the UK’s position as a world leader in 5G.”

The auction is intended to increase the amount of spectrum available to operators by 18%, with the additional range is likely to be used by MNOs to deliver various services, including 5G mobile.

The issue of spectrum costs has been a hot topic in recent months, with questions raised over the sustainability of multi-billion-dollar auctions in an industry stretched by next-generation infrastructure investments and debt.  

In the US telcos paid a collective $81 billion in the country's recent 5G spectrum auction, while in Spain, the local divisions of Orange and Telefonica spent  €21 million each on 20MHz of additional 5G spectrum.

Meanwhile following India's latest, C-band free, spectrum auction, it has been reported that the Department of Telecoms (DoT) is planning to ask the regulator to lower the minimum auction price for future, 5G auctions. These reports also state that the DoT is planning to review the minimum price for the 700 band, which has remained unsold in the country's last two auctions.

 

 

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