Telefónica will participate in the 5G auction in the United Kingdom
Telefónica UK, Vodafone, Hutchison 3G UK and BT/EE Limited are the four telecoms companies that will participate in the forthcoming spectrum auction to be held by UK telecoms regulator Ofcom for the roll-out of 5G networks.
The UK plans to auction spectrum in the 700 MHz and 3.6-3.8 GHz frequency bands over 2021, which are key to enabling operators to drive the development of new mobile technology and its add-on services.
The UK regulator has published the final list of operators that will participate in the 5G spectrum auction, which are the same four operators that Ofcom identified in December as qualified for the process.
As regards the exact date when the auction process will start, the agency has indicated that it will depend on how the situation in the country develops due to the COVID-19 pandemic, which is currently registering record numbers of new infections of the disease.
"We are carefully reviewing the timing of the start of bidding at the auction in light of the recent worsening of the coronavirus situation and will issue an update on this in due course," he said.
The auction was initially scheduled for spring 2020, but had to be delayed, as was the case in other countries such as Spain, due to the outbreak of COVID-19. Ofcom's forecast was that it would take place in January 2021, but the resurgence of the pandemic in the country has once again left its celebration in the air.
Ofcom will auction 80 MHz of spectrum in the 700 MHz band, which is ideal for providing good mobile coverage, both indoors and over very wide areas, including the countryside. It notes that the release of this band will also increase the capacity of existing mobile networks, offering customers a "more reliable" service.
The UK regulator will auction an additional 120 MHz of spectrum in the 3.6-3.8 GHz band, specifically in the 3,680-3,800 MHz range, which is mainly used for 5G, as it allows many connections with high data volumes to be transported in concentrated areas.
As in the auction held in 2018, the process will have two phases, a first one in which companies will make their bids by separate spectrum lots to determine how much each one gets and a second one of allocation in which they will make bids to choose the specific frequencies they want to operate in.
Ofcom also adds that, in order for companies to compete fairly and for customers to have a good choice of mobile networks, a cap of 37% will be imposed on the total spectrum that any mobile company can have after the auction.