Ofcom on Monday confirmed that it will go ahead with plans to auction off spectrum in the 2.3 GHz and 3.4 GHz bands early next year, setting a reserve price of £70 million (€97 million) for the airwaves.
The U.K. regulator did not set a firm date for the process, other than to say that the auction "is planned to take place in early 2016."
Participants will be able to bid for a total of 190 MHz of spectrum, 40 MHz in the 2.3 GHz band and 150 MHz in the 3.4 GHz band. Earlier this year Ofcom mulled holding some 60 MHz in reserve for sale at a later date, due to the potential impact on the market of ongoing operator consolidation, but it has elected to auction off all the spectrum at once.
The spectrum has been made available by the Ministry of Defence as part of a broader government initiative to free up spectrum for civil uses.
There is no cap on the amount of spectrum any one operator can acquire since large blocks have the potential to support fast download speeds, the regulator said.
It will split the 2.3 GHz band into 10-MHz lots, setting a reserve price of £10 million per block. The 3.4 GHZ band will be divided into 5-MHz lots each carrying a minimum price of £1 million.
"This auction is an important step in ensuring that the UK has the wireless capability to deliver and support new technology," said Philip Marnick, Ofcom’s spectrum group director.
"We’re responding to rapid change and innovation in the communications sector, which is placing greater demands on spectrum," he said. "Part of our plan to meet this demand is by making new spectrum available and allowing it to be used in a number of different ways."
Ofcom said the spectrum in question will be suitable for mobile broadband services, including 4G.
It noted that the 2.3 GHz band is already being used for 4G services in 10 markets outside of the European Union, including China, India and Australia. TD-LTE services have been particularly successful in China, thanks to support from China Mobile, which had 247.62 million 4G customers using the technology as of the end of September. Major smartphone brands also support the 2.3 GHz band.
The 3.4 GHz band is being used for 4G wireless broadband in six countries including the UK, Canada and Spain, Ofcom added.
UK Broadband uses 3.4 GHz spectrum for its Relish wireless broadband service in London.
