But the case for 5G services still needs to be made, says Matthew Howett, founder of research firm Assembly.

"Everyone is still unsure of the 5G business model and use cases with the hype largely being driven by those who make the network equipment," he said.

"Operators still have so much more they can do with their 4G networks and investment is still going into improving the performance and coverage of those."

5G will work across a number of spectrum bands, so those missing out in this latest auction will still be able to roll out 5G services, he added.

"Naturally all operators will be looking to limit the amount they bid given the reluctance of customers to pay more for faster speeds," said Mr Howett.

"This auction is certainly unlikely to net as much as the last auction for 4G spectrum, and nowhere remotely close to the eye-watering £22.5bn operators paid for 3G licences almost two decades ago."

Digital analysts welcomed the development but said "the devil would be in the detail".

"Getting access to suitable sites, particularly in rural areas, has been a real challenge for mobile operators, so any initiative aimed at improving this will be welcomed by the industry," said Matthew Howett, principal analyst at research firm Assembly.

"What's not clear, though, is what the commercial relationship looks like. There have been many stories of rural land owners effectively holding operators to ransom for access to some sites, which has slowed down rollout and added considerably to the cost."