Ofcom updates plans to auction valuable spectrum

Ofcom updates plans to auction valuable spectrum

Business news |
By eeNews Europe

The decisions announced will help Ofcom set the groundwork for the spectrum award, including how these frequencies will be licenced and the mechanics of the auction.

Potential bidders are also being asked for their views on how to best proceed with the auction.

While no specific uses for this spectrum have been prescribed, it is likely to interest the mobile industry, which relies on spectrum to offer internet services to consumers’ smartphones and tablets.

The 2.3 GHz and 3.4 GHz spectrum bands are being released for civil use and could be suitable for providing very high data capacity.

Since Ofcom’s last consultation on the auction, BT has announced plans to buy EE, while Hutchison Whampoa — the owner of Three — has reached agreement to acquire O2 from its current owner Telefonica. If the latter merger goes ahead it would reduce the UK wholesale mobile market from four major operators to three.

It is not Ofcom’s role to decide whether these mergers should go ahead. This rests with the relevant competition authorities. However, Ofcom has a duty to secure the optimum use of spectrum.

Ofcom’s objective is to award the frequencies in a way that will allow consumers to enjoy greater access to high-capacity mobile internet without undue delay.

This consultation invites potential bidders to comment on an option where Ofcom would award most of the newly available spectrum later this year, or early in 2016. The remaining frequencies would be held back for award at a later date.

Under decisions announced in this update, Ofcom would issue licences for the 2.3 and 3.4 GHz bands for an indefinite period, but with an initial term of 20 years after which licence fees may be payable.

There will be no coverage obligations placed on this spectrum. This is because the frequencies being auctioned are better suited for high capacity and faster speeds, rather than achieving wide geographical coverage.

The closing date for this consultation is 26 June.

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