The contiguous spectrum holdings should facilitate efficient use of spectrum and lower deployment costs
The assignment stage is now complete: The principal stage of the auction was completed in March of this year, raising a total of £1.36bn. EE and O2 obtained spectrum in both bands, whereas Three won 2x10MHz in the 700MHz band, and Vodafone won 40MHz in the 3.6–3.8GHz band. Since then, operators have engaged in the ‘assignment’ stage, in which operators could bid for the frequency positions they preferred, after which they could negotiate frequency positions among themselves.
O2 and Vodafone swap spectrum to have contiguous holdings: The assignment stage resulted in an additional £23m being paid on top of the amount paid in the principal stage. O2 and Vodafone then entered into a trading agreement, whereby O2 swapped its 40MHz in the 3.4–3.6GHz band in return for Vodafone’s newly acquired 40MHz in the 3.6–3.8GHz band. This ensures O2 has a contiguous 80MHz lot in the 3720–3800MHz range. Vodafone now holds 90MHz in the 3.4–3.6GHz range which are not contiguous, but the operator is happy with the “good proximity” of its spectrum holdings. Subject to Ofcom’s approval, This allows both operators to use the respective lots without deploying new equipment, because they can deploy in a band from the same radio.
The outcome of the auction should mean a faster rollout: EE announced it is in a position to rollout in both bands almost immediately – starting with trials on a small number of sites in the 700MHz band this week. The operator also said it will shortly be ready to deploy in its new 3.6–3.8GHz lot, having already carried out work on a number of sites to allow for a quick launch. Overall, the auction ensures that the UK continues to be one of the fastest countries in rolling out 5G, with all operators now well positioned to ramp up coverage.
Source: https://www.ofcom.org.uk/about-ofcom/latest/media/media-releases/2021/final-spectrum-auction-results
