BT/EE won't be able to bid in mobile spectrum auction, says Ofcom

Ofcom will auction 190 MHz of spectrum in the 2.3 GHz and 3.4 GHz bands next year – an increase of just under a third of the total mobile spectrum currently available – but BT/EE will not be able to bid as it already owns 45% of immediately–usable UK mobile spectrum.

The telecoms regulator said it has proposed a cap of 255MHz on immediately-usable spectrum that any operator can buy. Vodafone holds 28% of immediately-usable mobile spectrum, while O2 and Three hold 15% and 12%, respectively.

Ofcom said it is concerned that, if these immediately usable holdings were to become more unbalanced, this could harm competition in the next few years.

“As a result of the new spectrum in the market after the award, BT/EE’s overall share of immediately-usable spectrum will fall, from 45% to 42%. If BT/EE were to acquire all the 2.3 GHz being awarded, it would have almost half of the immediately usable spectrum in the market.”

The regulator is not proposing a cap on the amount of 3.4 GHz spectrum as the band is not immediately usable and it believes it is important that operators are given an opportunity to acquire this spectrum so they are able to consider early development of 5G services.

Philip Marnick, Ofcom Spectrum Group director, said: “Spectrum is the essential resource that fuels the UK’s economy. This auction can help ensure that UK consumers can access the mobile data services they need, and that operators can continue to innovate and build for the future.

“The UK has long benefitted from strong mobile competition. We are designing the auction to ensure everyone benefits from a market that continues to innovate and serve them well.”