Insights Ofcom announces outcome of the principal stage of its auction to release more airwaves to improve mobile services and support 5G

A total of 200 MHz of spectrum was available to bid for in the auction, split across two bands: 80 MHz of spectrum in the 700 MHz band, and 120 MHz of spectrum in 3.6-3.8 GHz band.

Results of the principal stage:

  • EE Ltd has won 2×10 MHz of paired frequency spectrum in the 700 MHz band at a cost of £280,000,000; 20 MHz of supplementary downlink spectrum in the 700 MHz band at a cost of £4,000,000; and 40 MHz in the 3.6-3.8 GHz band at a cost of £168,000,000;
  • Hutchison 3G UK Ltd has won 2×10 MHz of paired frequency spectrum in the 700 MHz band at a cost of £280,000,000;
  • Telefónica UK Limited has won 2×10 MHz of paired frequency spectrum in the 700 MHz band at a cost of £280,000,000; and 40 MHz in the 3.6-3.8 GHz band at a cost of £168,000,000; and
  • Vodafone Limited has won 40 MHz in the 3.6-3.8 GHz band at a cost of £176,400,000.

The total revenue raised from the principal stage is £1,356,400,000 and all money is to be paid to HM Treasury.

The auction will now move to the “assignment” stage. This process involves a single bidding round in which the companies can bid for the frequency positions they prefer for the airwaves they have secured in the principal stage.

After submitting their assignment stage bids in the 3.6-3.8 GHz band, bidders will then have the opportunity to negotiate the frequency positions among themselves, i.e. if they want to join together the airwaves they have secured with spectrum they already hold in the wider 3.4-3.8 GHz band. This will be subject to whether the companies wish to enter the negotiation period. If they do, Ofcom will publish the dates for the negotiation period. To read Ofcom’s news release, click here.