The United Kingdom raises 1,587 million euros in the 5G auction

The United Kingdom has awarded Telefónica O2, Vodafone, Hutchison 3G UK and BT / EE the radio spectrum for the deployment of 5G networks in the country in an auction in which it has raised 1,356 million pounds (1,587 million euros), As Ofcom, the British regulator for the sector, announced on Thursday.

It is 200 MHz divided into 80 MHz of the 700 MHz frequency bands, ideal for providing wide area coverage, even in the field;

and 120 MHz of spectrum in the 3.6-3.8 GHz band, the main band for 5G to increase mobile data capacity in high traffic areas.

Telefónica has gained 20 MHz of spectrum of paired frequencies in the 700 MHz band and 40 MHz in the 3.6 GHz band for 448 million pounds (524 million euros).

EE has acquired 60 MHz of spectrum in the 700 MHz band and 40 MHz in the 3.6 GHz band at a cost of 452 million pounds (529 million euros).

Hutchison 3G UK got 20 MHz in the 700 MHz band for 280 million pounds (328 million euros) and Vodafone gained 40 MHz in the 3.6 GHz band for 176.4 million pounds (206 million euros).

The collection is below the forecasts of the analysts, who pointed to an investment in spectrum by the Spanish group close to 700 million pounds.

According to JP Morgan Cazenove, the final price is more than 50% lower than initial estimates.

Thus, for example, the price paid in the 700 MHz band is 0.21 pounds per MHz, 60% below the price paid in similar spectrum auctions in European countries with four mobile operators.

In the case of the 3.6 GHz band, the price registered in the British auction is 50% lower than other similar ones in the Old Continent.

The total revenue collected will be paid into the Treasury.

In Spain, the auction for the 700 MHz band is scheduled to be called in this month of March or early April and held in the second quarter of the year, with a starting price of 1,170 million euros.

With the tender in the main stage concluded, it will now move on to the next stage of the auction, where operators will have the opportunity to negotiate the position of their spectrum holdings in the broader band.

“This is an important step forward in providing better mobile services to people, wherever they live, work and travel.

These frequencies will help improve the coverage of mobile services that people use today, as well as supporting the UK's position as a global leader in 5G, ”said Philip Marnick, Ofcom's auction manager.

“The auction demonstrates Telefónica's continued commitment to the British market and the best connectivity for our customers.

We are delighted with the result, which ensures the right spectrum at a fair price.

This additional spectrum will allow for the continuous improvement of our network.

We pride ourselves on being champions of reliability and quality of coverage and we look forward to continuing to invest in digital infrastructure to build connectivity for Great Britain, for the benefit of all ”, said Mark Evans, CEO of Telefónica O2.