Telecoms regulator Ofcom has confirmed it has completed its landmark auction of spectrum for 5G and is ready to publish the results.
The auction offered licences in two frequency bands: 2.3 GHz and 3.4 GHz.
The 2.3 GHz band is suited to 4G use, improving capacity as networks handle ever more devices and data traffic. The 3.4 GHz band is the primary frequency eyed for 5G deployments, making it the most closely watched portion of the auction.
Philip Marnick, Spectrum Group Director at Ofcom, said:
“This is good news for everyone who uses their mobile phone to access the internet. As a nation, we’re using ever more mobile data on smartphones and mobile devices.
Releasing these airwaves will make it quicker and easier to get online on the move. It will also allow companies to prepare for 5G mobile, paving the way for a range of smart, connected devices.”
Below are the auction results:
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Airspan Spectrum Holdings Limited did not win any spectrum in either band.
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EE Limited won 40 MHz of 3.4 GHz spectrum for £302,592,000.
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Hutchison 3G UK Limited (Three) won 20 MHz of 3.4 GHz spectrum for £151,296,000.
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Telefónica UK Limited (O2) won all 40 MHz of available 2.3 GHz spectrum for £205,896,000, and 40 MHz of 3.4 GHz spectrum for £317,720,000.
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Vodafone Limited won 50 MHz of 3.4 GHz spectrum for £378,240,000.
The total proceeds from the auction amount to £1,355,744,000, payable to HM Treasury.
Industry watchers had been particularly interested in the outcomes for Hutchison 3G (Three) and Telefónica (O2). The two companies previously sought a merger that would have created a stronger competitor to EE and Vodafone by combining subscribers and spectrum holdings. That merger was blocked by national and European authorities over concerns it would reduce competition and harm consumers.
Ahead of the auction, Three campaigned heavily to limit the advantages that larger rivals might gain. The operator launched the #MakeTheAirFair campaign and pursued legal action to seek stricter constraints on spectrum sales to bigger competitors, but its final court appeal to delay the auction was unsuccessful.
Matthew Howett, Founder & Principal Analyst at Assembly Research, commented:
“Despite Three making the most noise about the rules of the auction, it was perhaps O2 that had the most to lose, being the operator that probably needed more spectrum the most. The outcome is a particularly good result for them.
Even though the auction raised a fraction of what was achieved in past 4G or 3G auctions decades ago, the prices paid exceeded expectations, reflecting how valuable these airwaves are to operators given the growing interest in 5G.
However, an unsatisfactory outcome in this auction would not necessarily spell the end for any operator’s 5G ambitions, since 5G will operate across multiple spectrum bands, including both new bands and those operators already hold.”
Ofcom will now proceed to the assignment stage. This shorter process allows winning bidders to determine the precise positions of their licences within the frequency bands they secured.
With the auction concluded, the UK has reached a key milestone in the rollout of 5G technology—clearing the way for operators to plan deployments and for devices and services that rely on faster mobile connections to emerge.
What are your thoughts on the 5G auction results? Let us know in the comments.
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