The U.K. government this week said it will spend £550 million over the next five years to clear the 700 MHz band so the spectrum can be used for mobile broadband.
The investment plan was included in Chancellor of the Exchequer George Osborne’s Autumn Statement on Wednesday. In November 2014, regulator Ofcom set a deadline of early 2022 for auctioning the frequencies but it hopes to complete the process up to two years earlier.
The 700 MHz band is currently used for wireless microphones and digital TV.
The U.K. turned off analogue TV signals in the 800 MHz band and started operating digital TV in the 700 MHz band through the digital switchover, which took place over a five-year period ending in 2012. That process, which freed up spectrum for LTE, required users to purchase new equipment in order to keep receiving TV services.
Ofcom claims that reusing the 700 MHz band for mobile will not necessitate another switchover, and that the vast majority of consumers will simply need to retune their TVs. Approximately 0.5% of households may require a new rooftop aerial.
The government doubtless hopes that the 700-MHz auction will generate a windfall that is on par with other recent 700-MHz auctions in Europe.
In June, Germany raised just over €1 billion from its 700-MHz auction, while France raised €2.8 billion from its 700-MHz auction, which drew to a close earlier this month.
Meanwhile, in Wednesday’s Autumn Statement, the U.K. reaffirmed its commitment to providing superfast broadband coverage to 95% of households by 2017, a programme expected to cost the government £1.7 billion.
