UK regulator Ofcom has confirmed that bidding for 5G spectrum will start in January 2021, after deciding that it remains appropriate to hold the auction as the best way of releasing the spectrum.
The auction will boost the amount of spectrum available for mobile services in the UK by 18 percent. Ofcom has rejected a proposal by mobile network operators to allocate the spectrum through an administrative process, instead of an open auction, believing that this would not meet its duty to secure optimal use of UK spectrum. Ofcom has written to the mobile operators explaining its decision, and published new guidance on the auction process. It has also confirmed the rules for how the auction will work, following further consultation on modelling and technical issues.
Ofcom will now proceed with preparations to hold the auction as soon as practically possible in light of the Covid-19 pandemic. It is aiming for a late-November formal start to the auction process, and for bidding to commence in mid-January 2021. Ofcom has told the operators that there is no viable administration process which would meet its duties, which could be conducted simply, and which would not result to significant delays in making the 5G spectrum available. With evidence still showing excess demand for this new spectrum, Ofcom believes that all interested parties must be given a fair chance to secure frequencies, not just the existing mobile network operators. Ofcom also said that allocating the spectrum at the reserve prices, as suggested by the mobile operators, would be below the current market value of the spectrum.
