O2/NEC
UK networks commit to pay £39m to secure mmWave 5G spectrum
UK comms regulator reveals conclusion of principal bidding stage for latest wireless spectrum auction, which will see boost for mobile services in crowded areas like sports stadiums and train stations
UK communications regulator Ofcom has announced the outcome of the principal stage of an auction to release more mobile airwaves to improve 5G services in the busiest places.
A total of 5.4 GHz of spectrum in the mmWave band was made available in the auction, split across two bands: 26 GHz and 40 GHz. This spectrum is regarded as ideal for improving capacity in crowded places where lots of people want to use their phone at the same time, like at airports, football stadiums, major concert venues and transport hubs. It is also seen as advantageous for businesses using 5G private networks in the likes of factories or ports, where reliability, speed and low latency is key.
With data consumption increasing by more than 30% year on year due to the increasing number of devices connected to the network, and consumers using more data-rich applications on their smartphones, the UK, like other major economies, faces an ongoing risk of network congestion.
5G high-band frequency spectrum is able to help improve customer experiences. By using a higher frequency than the airwaves currently connecting devices in the UK, 5G mmWave offers the potential of faster data speeds, increased capacity, reduced latency and enhanced network performance.
These mmWave frequencies also enable more devices to be connected simultaneously without experiencing network congestion, and present a future platform for innovative applications and services.
Three companies – EE, O2 and VodafoneThree – took part in the principal stage of the auction, which involved them bidding for airwaves in “lots” to determine how much of the available spectrum they each secured. Principal stage bidding has now ended, and has seen the auction raise £39m, which will go to HM Treasury.
For the £13m they have each committed to pay for this spectrum, EE, O2 and VodafoneThree individually won 800 MHz of spectrum in the 26 GHz band, and 1 GHz of spectrum in the 40 GHz band. The mobile network operators will be able to deploy the spectrum gained in 68 designated “high-density” areas of the country, from London, Cardiff and Bristol to Newcastle, Belfast, Glasgow and Edinburgh, where Ofcom has identified significant demand for mobile data.
Read more about UK mobile spectrum
- GSMA calls for governments to prioritise affordable mobile spectrum: Global Spectrum Pricing Report from mobile trade association finds spectrum costs have risen sharply, increasing the cost burden on operators and constraining critical network investment.
- Virgin Media O2 boosts mobile network through Vodafone spectrum acquisition: Details released of spectrum transfer agreement between leading UK telcos, which is expected to materially enhance Virgin Media O2’s network position and improve connectivity experience of businesses.
- Potential £230bn boost from improved UK mobile coverage: Economic study calls for UK government to support acceleration in investment in mobile networks through reforming planning laws and significantly increasing the availability of spectrum for operators to reap huge benefits.
- Global mobile trade body hails agreement on future mobile spectrum ranges: ITU’s World Radiocommunication Conference concludes with consensus on roadmap for mobile services using designated low-band and mid-band frequencies.
David Willis, Ofcom’s group director for spectrum, said: “Today’s results are an important milestone on the path to better, faster 5G. The large amount of spectrum we’ve released will help support innovation, open doors to new applications and growth, and can bring noticeable improvements to mobile services in busier places up and down the UK.”
Virgin Media O2 has already carried out a successful real-world 5G Standalone test using a trial licence for mmWave spectrum which saw speeds of 4Gbps on a single device – a new speed record for O2. Virgin Media O2 CEO Lutz Schüler described the purchase of the new spectrum as an investment for the future, which was “perfectly suited” to delivering “incredible” connectivity in crowded places.
“This new investment in high-speed, high-capacity mobile airwaves … pairs perfectly with our strategy to transform our mobile network and give our customers a trustworthy and reliable mobile connectivity experience wherever they are … We’ll be fired up and ready to deploy our new spectrum at the right moment so our customers can benefit as soon as possible,” he said.
The auction will now move to the assignment stage, where the operators can bid for the frequency positions they prefer for the airwaves they have secured in the principal stage. Ofcom will publish the final results of the auction, including the total amounts paid and the specific frequencies secured for each bidder period, once all stages are complete.
