UK gives go-ahead for new spectrum auctions

Sign of things to come in India too and the first two being things I have been signalling for a long time now - Refarming of existing 900 & 1800 MHz spectrum allocated for 2G for 3G/LTE, usage of 800 MHz for 3G/LTE & indefinite extension of 3G licenses


GSMA Mobile Business Briefing
July 28, 2010

The UK government has given the green light for regulators to sell-off long-awaited new spectrum - with a plan for auctions to take place at the end of next year. The move will see UK regulator Ofcom conduct a combined auction of 2.6GHz and 800MHz spectrum. The proposals will also allow operators to ‘refarm’ existing 2G spectrum in the 900MHz and 1800MHz bands for new 3G services. Existing 3G licenses will be extended indefinitely, though license holders will need to pay Ofcom an annual fee when the current licenses expire in 2021. “Under our plans, our mobile industry will have access to the 21st-century infrastructure it needs to give UK consumers the latest technologies and even better coverage for broadband on their mobile phones,” said Ed Vaizey, the UK's communications minister. The bandwidth becoming available in the new frequency bands (800MHz and 2.6GHz) is expected to pave the way for UK operators to launch LTE. The 800MHZ spectrum forms part of the so-called ‘digital dividend’ spectrum being freed up by TV broadcasters.

The auctions of new spectrum in the UK have been delayed several times, most recently when the previous UK government failed to secure parliamentary approval to begin the process before the recent general election was called. According to a Financial Times report today, some analysts believe that such delays have seen the UK fall behind the rest of Europe in releasing the new bandwidth. “Ofcom has been trying to auction the 2.6GHz spectrum for three years now,” said Lee Sanders, a partner at Analysys Mason. “Six other European countries have awarded the spectrum while Ofcom has been struggling. From the industry’s point of view, this is welcome news to get things moving finally. But any potential new entrant may be concerned that this is still going through without any new changes to what was originally planned.”