Skip Navigation


Ofcom announces 4G spectrum auction to take place Q1 2013
Tuesday 24 July 2012 10:51:41 by John Hunt

The long awaited 4G mobile auctions are to get under way at the end of 2012 to ensure that Ofcom meets requirements of the EU commission. After legal battles, several consultations and dates which have drifted back, the processes which will allow the next generation of mobile broadband services to be used in the UK will get under way at the end of this year with the actual auction taking place in the first quarter of 2013, and services possibly available from mid-2013.

The timeline is constrained by the European Commission who set a deadline requiring that the authorisation process to allow the use of the 800MHz and 2.6GHz spectrum bands should be underway by the 1st of January 2013. This is of course good news for consumers who will finally see next generation mobile services able to offer faster broadband speeds, which have been available in other countries for several years. The main use of the 4G bands will be a technology called Long Term Evolution (LTE) which allows speeds to approach 100Mbps, although real world speeds seen by consumers will be much lower than this. They should be more than suitable for watching video streams however. Another advantage of the technology, is that the lower frequency band of 800MHz which is used will allow the signal to travel further - increasing the range of potential services.

Under the auction, Ofcom has worked in some specific obligations which one operator with spectrum in the 800MHz band will have to meet. This will require them to provide a 98% UK population coverage which will enable speeds of 2Mbps indoors. This indoor requirement should mean that outdoors coverage reaches 99.5% of the population. Note, that this doesn't mean that nearly the entire country will be swathed in mobile signal, but only those areas that are populated. It's worth remembering that 98% coverage means that around 1.2 million people will not have access to this new technology. The coverage requirements also stated that coverage should be at least 95% to each nation, so countries such as Scotland and Wales with harsh rural conditions may find that these areas also slip off the coverage map.

Ofcom also hope to ensure that there remains healthy competition within the market by reserving spectrum for a fourth operator. Ofcom is uncertain whether Hutchison 3G (H3G), Three, will bid for their spectrum on their own and has therefore reserved some spectrum for a fourth wholesaler, whether this be H3G or another provider, to ensure that the market does not stagnate.

Three have a network sharing agreement (Mobile Broadband Network Limited, MBNL) with Everything Everywhere (the company formed from the merger of Orange and T-Mobile) which has enabled both companies to increase their 3G network coverage, and the companies may choose to integrate LTE through the same or a similar joint venture on joint spectrum. Some question marks may lie over a similar agreement between Vodafone and O2 but the companies might opt for separate spectrum which would provide advantages in the number of customers that can be served from a specific cell site. Ofcom seem less concerned that O2 and Vodafone will put in a joint bid.

It's uncertain what kind of revenue Ofcom will receive from this spectrum auction - the 3G auctions of 2000 netted nearly £22.5 billion - but with the current banking and financial issues plaguing much of the world, companies may be prudent in how much they are willing to spend. In anycase, the outcome will be a step up the technology ladder for the UK which will hopefully benefit everyone in their day to day lives.

"The 4G auction has been designed to deliver the maximum possible benefit to consumers and citizens across the UK.

As a direct result of the measures Ofcom is introducing, consumers will be able to surf the web, stream videos and download email attachments on their mobile device from almost every home in the UK.

Ed Richards, (Chief Executive) Ofcom

The full statement on the awarding of spectrum is available from Ofcom.

Comments

Posted by rtho782 over 2 years ago
A pipedream, I'm sure, but imagine if this raised £12bn that was then used to meet BT's quoted cost of FTTP for all.

Of course, the mobile operators wouldn't like their cash used for this, but it would do wonders for the UK economy, far better than us getting £12bn in revenue and giving it away in aid and spending it on new internet monitoring systems.
Posted by otester over 2 years ago
I hope 3 get a slot, be awesome to have near unlimited 3.9G.
Posted by bosie over 2 years ago
Another vote for 3 getting a decent spectrum allocation this time. They may have the worst customer service experience by far but apart from that, only the spectrum issue lets the service down - otherwise with the best data allowance and no image compression they're way out in front for mobile data services.
Posted by ahockings over 2 years ago
I wouldn't imagine EE are particularly worried.
They already have most of their sites upgraded to LTE. If Ofcom would stop pandering to a moaning Vodafone they could flick a switch and have LTE over 1800Mhz tomorrow! Put in a bit of 800Mhz for us rural users and we're sorted.
What are Three going to call themselves then? Four? No they can't do that... what about "Three Point Nine".. Ha ha!
Posted by otester over 2 years ago
Three has a vested interest in delaying this further since they have started rolling out HSPA+ 42Mbps, serves the other operators right for delaying initially.

As long as I continue to get near unlimited 7Mbps I will cease to care.
Posted by leexgx over 2 years ago
DC-HSPA+ 42mb is only useful for tablets as they are the only devices that have it (if not all phones have 21mb HSPA+ as standard now even thought its only about 1-3mb better then 7.5mb HSDPA in real world use)

Three have all ready been pre allocated the 800 LTE band, Three needed LTE 100mb like 2 years ago (as around where i am a lot of users hammer it so speeds are only just enough for youtube streaming some times i tryed 3 times over last 2-4 years with three allways been slow and lots of dead spots and does not work in houses, but thats most likely just around warrington)
Posted by otester over 2 years ago
@leexgx

I'm seeing a ~5Mbps increase over my old 7.2Mbps dongle vs my Galaxy S3.

Hopefully the Galaxy S4 (or w/e they call it) will get it or LTE if it's out by then.
Posted by otester over 2 years ago
Get 42Mbps HSPA+.
You must be logged in to post comments. Click here to login.