The spectrum would be made available for bids in the following lots:
– Six lots of 2×5 MHz (60 MHz in total) in the 700 MHz band with a reserve price of £100m per lot.
– Four lots of 5 MHz (20 MHz in total) of 700 MHz downlink-only spectrum, with a reserve price of £1m per lot.
– 24 lots of 5 MHz (120 MHz in total) of 3.6-3.8 GHz spectrum, with a reserve price of £20m per lot.
– As we are not planning to include coverage obligations anymore, the two spectrum lots that carried a proposed maximum discount each of between £300-400m will no longer apply.
2. We are using an auction format known as ‘simultaneous multiple round ascending’ (SMRA).
3. The 37% cap on overall spectrum holdings has the effect of restricting existing mobile companies to acquiring the following amounts:
– BT/EE – 120 MHz BT/EE;
– H3G – 185 MHz;
– Vodafone – 190 MHz;
– Due to its current spectrum holdings, O2 will not be restricted by the cap.
4. The 700 MHz band has previously been used for digital terrestrial TV and wireless microphones. The 3.6-3.8 GHz band is used for fixed links and satellite services.
5. In December 2018 we proposed including coverage obligations in our auction rules. These would have required up to two mobile companies to increase coverage in rural areas, in exchange for winning discounted spectrum through the auction. The mobile network operators developed the Shared Rural Network plan in response to Ofcom’s proposals, and it is therefore no longer appropriate to include coverage obligations in the auction.