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Ofcom To Hold UK Auction For mmWave Spectrum Next Year

Accepted submission by Arthur T Knackerbracket at 2024-11-14 17:14:54
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Arthur T Knackerbracket has processed the following story [theregister.com]:

Britain's mobile telcos will get to bid for mmWave spectrum to provide high-speed wireless services next year, according to Ofcom, which just published the final draft of the regulations governing the auction.

The UK telecoms regulator says it plans to release spectrum in the 25.1-27.5 GHz and 40.5-43.5 GHz bands in 2025, and make them available for operators to deliver faster services. These are set to be restricted to urban areas, since these high frequencies can typically only operate over a range of a few kilometers.

This will be a big shift for the country's telcos, which have until now only had access to frequencies below about 4 GHz to deliver a mobile service. Higher frequencies allow for higher transmission rates and lower latencies, and for this reason are already used in countries such as the US for 5G data services.

The spectrum planned for release amounts to 2.4 GHz of spectrum in the 26 GHz band, and another 3 GHz in the 40 GHz band. Because of the range factor, this will not replace the existing spectrum UK operators already use, but compliment it for higher-bandwidth services in high-density areas.

Ofcom published a notice of its plans back in May and invited views on the proposals. It says in its latest missive that having considered the responses, it decided to enact the regulations largely in the form it consulted on, but with some tweaks.

The proposals were to auction the available spectrum in three categories, with each lot comprising a block of 200 MHz. The categories consist of 26 GHz lower (25.1-26.5 GHz), 26 GHz upper (26.5-27.5 GHz), and 40 GHz (40.5-43.5 GHz).

That split of the 26 GHz band into two categories is because some incumbent users continue to operate in the 25.1-26.5 GHz part of the band, Ofcom says.

Reserve prices are expected to be £2 million ($2.55 million) for each lot of the 26 GHz band, and £1 million ($1.27 million) for each lot in the 40 GHz space.

However, the comms regulator has previously said the auction cannot proceed until the UK's Competition and Markets Authority (CMA) has reached a decision on the proposed merger between Three and Vodafone [theregister.com], which might otherwise complicate matters.

The geographic scope of the licences will see each licensee authorized to use their allocated spectrum in all the major cities and towns across the country, Ofcom points out. In fact, one amendment to the final draft regulations makes it clear that awarded licenses only apply in designated areas – meaning those parts of the UK defined as "high density."

Telecoms industry analyst Paolo Pescatore at PP Foresight told us the merits of mmWave are clear to see, and he has personally experienced the "super lightning speeds" available with networks in some parts of the US.

This makes it great for locations like sports and entertainment venues where there tends to be enormous data demand, he added. The low latency should also make possible some of the oft-cited use cases for 5G networks, such as augmented reality and support for autonomous vehicles.

"However, the telcos need to avoid costly mistakes made with previous generations of network technology. The harsh reality means they will have to fork out more on capex and rolling out networks," Pescatore warned. "This comes at a time when margins are being squeezed, revenue increases are driven by price rises, and all focus is on driving further efficiencies," he added.

Ofcom also published information [ofcom.org.uk] for those considering participating in the auction, including practical guidance on how to apply, and indicative timings for each stage of the award process. It also includes more detail about the spectrum to be made available and the conditions for its use.

While the auction is set to take place in 2025, Ofcom is not specifying exact dates at this point, saying only that it will provide a further update on timings before the end of this year. ®


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