UK telecoms regulator Ofcom has issued a statement outlining the rules for the award of mobile spectrum in the 2.3 and 3.4 GHz bands. These regulations will come into effect on 31 January 2018.
Ofcom had planned to hold the 5G spectrum auction in autumn 2017, but this was delayed by legal action brought by 3 UK and BT/EE. Both claims were dismissed by the High Court in December 2017, although 3 UK is appealing to the Court of Appeal, with the case due to be heard on 13/14 February. If Ofcom is required to make changes to the regulation following the Court of Appeal ruling, it aims to do this as quickly as possible to avoid any more delays to the auction process.
After considering responses to its consultation, Ofcom believes that the auction design, as set out in previous policy statements, is fit for purpose with no reason for any changes. It will therefore proceed with making the regulations as they were drafted in July 2017. Also, the regulator has rejected a request from O2 to allow bidders to submit bank guarantees in lieu of cash deposits. In its consultation response, O2 said that bank guarantees would give bidders greater financial flexibility while providing Ofcom with the same financial security. However, Ofcom has decided that it will not accept any bank guarantees in place of cash deposits.
