British telecoms regulator Ofcom has completed its 5G spectrum auction after a two-month delay caused by the COVID-19 pandemic.
Originally scheduled for January, the auction was postponed amid a resurgence of COVID-19 cases. Industry leaders had urged Ofcom not to delay further, stressing that the timely release of spectrum is central to expanding mobile networks and supporting economic recovery through resilient digital infrastructure.
No additional postponements were made, and Ofcom has now announced the auction results.
A total of 200 MHz of spectrum was made available across two bands:
- 80 MHz in the 700 MHz band. This lower-frequency spectrum is well suited to wide-area coverage, reaching rural locations and providing better in-building penetration.
- 120 MHz in the 3.6–3.8 GHz band. These mid-band frequencies are ideal for urban deployments and increasing mobile data capacity in dense areas with many simultaneous connections.
Philip Marnick, Group Director of Spectrum at Ofcom, said that with the principal stage of bidding concluded, the auction will move into a phase where operators can negotiate the position of their spectrum holdings within the wider bands. He described the step as important for bringing improved mobile services to people wherever they live, work and travel, and for supporting the UK’s leadership in 5G.
All four major operators—EE, Three, O2 and Vodafone—participated in the auction. The allocations and prices were as follows:
- EE secured 2×10 MHz of paired spectrum in the 700 MHz band for £280,000,000; 20 MHz of supplementary downlink in the 700 MHz band for £4,000,000; and 40 MHz in the 3.6–3.8 GHz band for £168,000,000.
- Three won 2×10 MHz of paired spectrum in the 700 MHz band for £280,000,000.
- O2 acquired 2×10 MHz of paired spectrum in the 700 MHz band for £280,000,000 and 40 MHz in the 3.6–3.8 GHz band for £168,000,000.
- Vodafone won 40 MHz in the 3.6–3.8 GHz band for £176,400,000.
Kester Mann, Director of Consumer and Connectivity at CCS Insight, noted that the 700 MHz spectrum was particularly valuable for EE and Three, both of which had been weaker in low-band frequencies. Low-band spectrum plays a key role in delivering wide-area, rural and in-building coverage. Mann added that O2, which entered the auction with the smallest holding, will welcome the increase in both low- and mid-band frequencies to support its more than 35 million customers.
Ahmed Essam, Chief Executive of Vodafone UK, said the auction will boost Vodafone’s 5G network capacity, enabling further roll-out of 5G services and creating opportunities for new products and services. Vodafone focused its investment on the 3.6 GHz band and plans to refarm its existing 900 MHz holdings over time to carry 5G traffic rather than purchasing additional low-band spectrum.
The auction raised a total of £1,356,400,000 for HM Treasury.
Mann concluded that the prompt completion of the auction and the moderate overall expenditure are positive for UK 5G development. He noted that while the UK was an early mover with 5G launches in 2019, progress has faced challenges, including the government’s restrictions on certain suppliers.
(Photo by Bill Oxford on Unsplash)
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