The auction beat most expectations as EE, Vodafone, O2 and Three looked to secure bandwidth for the next generation of superfast mobile broadband as they look to open up a more internet-connected world that will include: driverless cars, smart home appliances, delivery drones and superfast video.
The £1.4billion paid was close to double what many analysts in the City had expected Ofcom’s auction to raise, and highlights the attractiveness of future 5G services to both consumers and mobile operators.
The four have secured roughly the same amount of 5G spectrum to use after the auction.
Vodafone won 50MHz of spectrum in the 3.4GHz frequency band auctioned paying £378m, BT-owned EE won 40Mhz paying £303m, O2 picked up 40MHz for £318m, and Three spent £151m on 20Mhz. Three UK had already secured a 40Mhz of 5G spectrum prior to the auction.
According to Ofcom 5G is set to be rolled out in the UK over the coming ten years and is seen as crucial in extending the reach of IoT technology.
“This is good news for everyone who uses their mobile phone to access the internet,” said Philip Marnick, spectrum group director at Ofcom. “Releasing these airwaves will make it quicker and easier to get online on the move. It will also allow companies to prepare for 5G mobile, paving the way for a range of smart, connected devices.”
The auction also saw O2 win 40MHz of 4G spectrum (2.3Ghz) with the company paying £206m. The win was considered essential as O2 had the smallest share of the UK’s usable mobile spectrum.
