Ofcom puts brakes on BT, Vodafone in new mobile spectrum auction

The communications regulator revealed how it was going to release the next batch of cellular spectrum on Tuesday, in a bid to both improve mobile broadband speeds on existing services, and prepare for the rollout of the next generation of mobile technology, dubbed ‘5G’.

Ofcom said it would auction licences to use 190 MHz of spectrum in two frequency bands later this year, which would increase the airwaves available to be used by mobile devices by almost one third.

Of that, 40 MHz of spectrum would be auctioned in the 2.3 GHz band, which is already supported by most recent smartphones, and could be used by the networks immediately after release to provide additional capacity for their existing services.

On top of that, 150 MHz would be auctioned in the high-frequency 3.4 GHz band, which is already compatible with most current devices, but was primarily expected to be used for future ‘5G’ services.

“Spectrum is a vital resource that fuels the UK’s economy,” said Ofcom’s spectrum group director Philip Marnick.

“We’ve designed this auction to ensure that people and businesses continue to benefit from strong competition for mobile services.”

Ofcom was also designing the auction to create a more level playing field for the highly-competitive mobile service market, where the BT-owned EE and London-listed Vodafone control significantly more spectrum than the other providers - Hong Kong-owned Three and Telefonica’s O2.

The regulator said it would place a 255 MHz cap on the ‘immediately usable’ spectrum that any single operator could hold after the auction, which will prevent EE from bidding for spectrum in the 2.3 GHz band.

It said it had also decided to place a 340 MHz cap on the overall amount of spectrum an operator could hold after the auction.

That would result in a reduction of the overall share of mobile spectrum held by EE, with Vodafone being able to gain a maximum of 160 MHz of spectrum across the two bands up for grabs.

No restrictions would apply to Three or O2.

“We want to see this spectrum in use as soon as possible,” Marnick added.

“With smartphones and tablets using even more data, people need a choice of fast and reliable mobile networks.

“These new airwaves will support better services for mobile users, and allow operators to innovate and build for the future.”