Ofcom pencils in UK mmWave auction for next year

A precise auction date has yet to be determined, but Ofcom intends to provide a further update on timings before the end of this year.

To recap, 5.4 GHz of mmWave spectrum in the 26 GHz and 40 GHz bands is going under the hammer.

It has been carved up into seven lots of 200 MHz in the 25.1-26.5 GHz band (the lower 26 GHz band), plus five lots of 200 MHz in the upper 26 GHz band, which covers 26.5-27.5 GHz. The 40 GHz band will be auctioned off in 15 lots of 200 MHz each.

"This is high frequency and well suited to carrying large amounts of data in densely populated towns and cities. It is particularly appropriate for places where there are lots of people, like stadiums, busy streets, concert venues and train stations," said Ofcom.

Indeed, due to mmWave being more suited to providing targeted capacity in densely-populated locations, licences will be subnational, granting the winning bidder permission to roll out spectrum in a specific, high-density area. In low-density areas, licences will be available on a first come, first served basis.

As for reserve prices, each lot of 26-GHz spectrum starts at £2 million, while each lot in the 40 GHz band comes with a reserve of £1 million.

Prospective bidders must also pay a deposit of £1 million when they apply to take part.

To date, the UK has made available low and mid-band frequencies for 5G services in a timely fashion, but allocating mmWave is taking considerably longer.

The auction has been designed in consultation with industry stakeholders, a process that is as long-winded and laborious as it is necessary.

The saga also hasn't been helped by Vodafone and Three's ongoing merger attempt. It makes little sense to hold an auction when two of the expected participants are planning their future as a combined entity.

Not only does the proposed tie-up have implications for their respective bidding strategies, but it could also lead to spectrum concentration that might require subsequent remediation.

Ofcom last September opted to delay the mmWave auction until there was more clarity on whether the merger would be waved through.

Last week, the Competition and Markets Authority (CMA) – which has been conducting an in-depth probe into the Voda-Three merger – proposed a range of concessions that were well-received by Vodafone and Three due to them being broadly in line with what they had in mind, sending a strong signal that the merger will be allowed to go ahead.

With this all-important matter on the verge of being settled – and with Ofcom's newly-published final draft rules due to become law early next year – the long-awaited auction of mmWave spectrum in the UK can finally take place. Soon. Hopefully.