The UK telecoms regulator Ofcom has officially confirmed the mobile network operators that will participate in the highly anticipated millimetre wave (mmWave) spectrum auction. The auction, which will release valuable spectrum in the 26 GHz and 40 GHz bands, is a key step in advancing the UK’s 5G infrastructure, particularly in densely populated urban areas.
Confirmed Participants
Three major telecom players have been approved to take part in the auction:
- British Telecommunications Public Limited Company (EE)
- Telefonica UK Limited (on behalf of Virgin Media O2)
- Vodafone Limited (on behalf of VodafoneThree)
These companies represent the backbone of the UK’s mobile connectivity landscape and are expected to compete for 68 high-density area licences. These licences will be crucial for deploying ultra-fast 5G services in cities such as London, Manchester, Glasgow, Cardiff, and Belfast.
What’s at Stake?
Ofcom will auction off 5.4 GHz of spectrum, divided into 200 MHz lots across the 26 GHz and 40 GHz bands. The 26 GHz lots carry a reserve price of £2 million, while the 40 GHz lots start at £1 million. These bands are ideal for high-capacity, low-latency applications such as:
- Enhanced mobile broadband in crowded venues
- Industrial automation
- Virtual and augmented reality experiences
- Smart city infrastructure
Timing and Market Impact
Ofcom announced the auction is to start tomorrow.
Bidding will take place in two separate stages:
- Principal stage. Companies first bid for airwaves in ‘lots’ to determine how much spectrum each company wins in each band, but not the specific frequencies within each band. Bidding will continue for as long as there is excess demand for the spectrum available. Ofcom will announce the results of the principal stage shortly after it has concluded.”
- Assignment stage. There is then a stage of bidding to determine the specific frequencies that winning bidders will be allocated. Ofcom will publish the final results of the auction once all stages are complete.
Additional details on how to bid are available in a guide published by Ofcom and available at: Process Guidance for Potential Applicants and Bidders in the Auction
This auction marks a significant milestone in the UK’s digital evolution. mmWave spectrum is essential for delivering the next generation of mobile services, especially in urban centres where data demand is highest. The outcome of this auction will shape the competitive dynamics of the UK telecom market for years to come.
Antitrust Rules for Spectrum Auctions
Antitrust rules prohibit certain communications between applicants for an auction, regardless of whether the applicants seek permits or licences in the same geographic area or market. Sometimes, the lines between a legitimate exchange and a potential breach of the law may be blurred. A refresher on some of the bright lines to watch out for in the upcoming mmWave auction is available here: Antitrust-Guidelines-for-Communications-Between-Competitors-During-Spectrum-Auctions.pdf.
