UK 4G auction raises GBP 2.3 bln from 5 winning bidders

News Wireless United Kingdom 20 FEB 2013
UK 4G auction raises GBP 2.3 bln from 5 winning bidders

The UK's LTE auction has completed with total proceeds of GBP 2.3 billion and five bidders winning spectrum, regulator Ofcom announced. The proceeds fell somewhat short of the government's target of GBP 3.5 billion. The auction started just under a month ago. 

Vodafone UK paid the highest amount, at GBP 790.8 million for 2x10MHz in the 800MHz band, 2x20MHz in the 2.6GHz band and 1x25MHz in the 2.6GHz band. The operator said it plans to launch LTE services later this year, and the lower band will help provide coverage especially indoors. 

Everything Everywhere, the joint venture of T-Mobile and Orange, paid GBP 588.9 million for 2x5MHz in the 800MHz band and 2x35MHz in the 2.6GHz band. The company already launched LTE services last autumn, after Ofcom allowed it to refarm spectrum in the 1,800MHz band, and it now covers about half the UK population. EE said it was pleased with the auction results, which give it high and low spectrum to expand its coverage both indoors and outdoors, and in rural and urban areas. 

Telefonica, owner of O2 UK, followed with total bids of GBP 550 million for 2x10MHz in the 800 MHz band, which carries a special obligation of indoor coverage for 98 percent of the population by end-2017. 3 UK acquired 2x5MHz in the 800MHz band for a total price of GBP 225 million, benefiting from a spectrum reservation in Ofcom's efforts to create a fourth national wholesaler. Niche Spectrum Ventures, a subsidiary set up by BT, acquired 2x15MHz  and 1x20MHz in the 2.6GHz band for a total GBP 186.5 million. 

Two bidders, MLL Telecom and HKT (UK), did not acquire spectrum in the auction. Another round of bidding will be held to determine which lots each operator acquires in the bands, after which the licences will be awarded and services are expected to start in spring or summer. The licences are of indefinite length, with an initial 20-year free term. 

According to EE, the auction results in it holding 40 percent of all mobile spectrum issued in the UK. Vodafone has 31 percent, O2 holds 16 percent and 3 has 13 percent. 

Categories:

Mobile

Companies:

Orange,  Telefonica- Movistar,  T-Mobile,  Vodafone UK,  3 UK,  O2 UK,  Ofcom,  Everything Everywhere,  BT

Countries:

United Kingdom

Tags:

Government telecommunications licensing, Data services, Wireless, Wholesale, 4G - LTE

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