Ofcom UK 4G Auction To Start Late 2012 For 2013 Rollout

The twice-delayed auction of 4G spectrum in the UK is finally set to begin at the end of this year, but consumers and businesses are unlikely to see the benefit until late 2013.

Ofcom has published its plans for the controversial auction, which has been subject to a series of delays, consultations and legal challenges.

The watchdog said its plans will ensure that 98 percent of the UK population have access to mobile broadband and will promote competition among operators.

4G auction

The auction will be held as soon as possible, with prospective bidders required to formally apply to take part by the end of the year. These bids will then be assessed by Ofcom before the bidding starts in early 2013. It expects mobile operators to start rolling out 4G networks from the middle of 2013, with commercial services starting later that year, however these could arrive sooner if Everything Everywhere launches LTE services on its existing spectrum.

The 4G auction will offer bandwidth on two spectrum bands, 800MHz and 2.6GHz, with 250MHz of additional spectrum available. Ofcom said that this is the largest auction of spectrum for mobile services ever in the UK, with three quarters of the 333MHz spectrum in use today also up for grabs in the sale.

The combined use of high and low frequencies is aimed at allowing LTE networks to be widely available in the UK, while also offering the capacity to deal with significant demands in urban areas. The spectrum will be sold in lots, and one of the 800MHz lots will carry an obligation to provide a mobile broadband service for indoor reception to at least 98 percent of the UK population by the end of 2017.

The same operator will also be required to offer the same level of indoor service to at least 95 percent of Scotland, Wales, Northern Ireland and England, with outdoor coverage reaching 98-99 percent. Ofcom said it hopes that this will encourage other operators to offer a similar level of service.

Promoting competition

As expected, spectrum has been reserved for a fourth operator, most likely Three, in order to promote competition. Three has warned that it could go out of business if it did not secure enough bandwidth in the auction and is keen to secure some of the lower 800MHz spectrum. Its rivals have disputed this claim arguing that that there would be plenty of opportunity for Three to acquire what it needs.

Both Vodafone and Three have said that they will carefully analyse the substantial 1,000 page decision document before considering their next moves.

“Ofcom’s decision on the structure of the spectrum auction will have a lasting effect on the choice of services and value available to mobile consumers,” a Three spokesperson told TechWeekEurope. “We are working through the detail of this very substantial document to evaluate what it means for both consumers and competition in the UK mobile market.”

“A competitive market for the next generation of mobile internet services will bring substantial benefits to British consumers, businesses and the wider economy,” said a Vodafone spokesperson. “Ofcom appears to have created a mechanism to deliver the spectrum needed to run competitive 4G services and we welcome the work it has done.

“We also support the regulator’s desire to see 4G services delivered to as many people as possible.

“However, we will obviously need to study today’s lengthy documents to make sure they deliver the fair and open auction that this country needs.”

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