Ofcom announces bidders for 800MHz and 2.6GHz auctions

Ofcom the super regulator that covers amongst other things radio spectrum has announced the bidders that have been accepted for the 800MHz and 2.6GHz spectrum auctions (a total of 250MHz is being made available). The details of who is bidding for what has not been made available.

Each of the following paid a £100,000 deposit and the actual auction will take place in early 2013.

• Everything Everywhere Limited (UK)
• HKT (UK) Company Limited (a subsidiary of PCCW Limited)
• Hutchison 3G UK Limited
• MLL Telecom Ltd
• Niche Spectrum Ventures Limited (a subsidiary of BT Group plc)
• Telefónica UK Limited
• Vodafone Limited

The four existing mobile network operators (MNOs) EE, 3UK, O2 (Telefonica) and Vodafone were expected to bid and will probably bid for the 800MHz spectrum.

BT was a preferred outsider and will probably be bidding for 2.6GHz spectrum.

HKT's parent PCCW already has a nationwide 3.4GHz license (but it's a weird LTE band) but they have launched an LTE-TD wholesale service in the London area, so they may well bid for 2.6GHz spectrum as at least this is a common worldwide LTE band.

MLL already have a low power GSM license and also will probably have bid for a 2.6GHz license, especially as they are developing their own LTE stack (via a 3rd party).

Next year Ofcom will announce which bidders bid for what spectrum.

Ofcom starts 800MHz and 2.6GHz auction race

Ofcom, the Super regulator that looks after radio spectrum (amongst others) has today released guidance for applicants and bidders PDF) and application forms for the 800MHz and 2.6GHz spectrum auctions.

These are similar to recent other spectrum auctions and all applications must be received by Ofcom by December 11th 2012 and at the same time Ofcom must have received a £100,000.00 deposit (which is refundable if the bidder doesn't win or withdraws from the auction within the withdrawal timeframe).

Ofcom will have some time to ensure the validity of the application and applicant (they must pass tests to ensure they are valid applicants).

On the 2nd dat Ofcom will tell all bidders of other bidders in their group.

Ofcom then allow 4 days for bidders to notify Ofcom on any group overlaps.

Ofcom then has 3 days to notify successfully qualified bidders, publish them on the Ofcom website and notify them of the last day for withdrawal.

The last day for withdrawal is 2 days following publication.

Ofcom will then publish the list of actual bidders.

Ofcom will use an electronic bidding system which allows bids to be submitted in rounds (this all gets very complicated, especially when an additional opt-in round is added to the process). Ofcom will train bidders on the use of the electronic voting system.

It's expected that at least O2 and Vodafone will bid for the 800MHz spectrum, though 3UK may join in too as they don't have any sub 1GHz spectrum at present. The 2.6GHz spectrum (especially low power licenses) may be more of a jamboree with some unexpected players joining in.

Ofcom announces date for 800MHz and 2.6GHz auctions

Ofcom, the super regulator has announced that the auction for the 800MHz and 2.6GHz bands will commence on December 11th 2012.

The new regulations (pdf) covering the auction (know as a Standard Instrument) has been published and will come into force on November 23rd 2012.

Ofcom is proposing to auction the following lots: -

Lot Category	A(i)	A(ii)	B	C	D(i)	D(ii)	E
800 MHz 2x5 MHz	800 MHz 2x10 MHz (with coverage obligation)	1800 MHz 2x15 MHz (Divestment)	2.6 GHz 2x5 MHz (standard power)	2.6 GHz 2x10 MHz (shared low power)	2.6 GHz 2x20 MHz (shared low power)	2.6 GHz 5 MHz (unpaired)
Ofcom’s proposal	£225m	£250m	£225m	£15m	£3m per bidder, £30m threshold	£6m per bidder, £60m threshold	£0.1m

Lots A(i), A(ii) and C are suitable for generic mobile network operator LTE services, lot B is now irrelevant as EE have divested this spectrum to 3UK.

The low power bands D(i) and D(ii) are more suited to companies that have infrastructure and can offer femto cell type services (probably on a wholesale service to the main operators - for network offload), though new entrants could come in and offer innovative localised LTE services.

Lot E is probably suited to an operator who wants to offer broadband services (not using LTE which requires paired spectrum).

This means the minimum bid (if there only 1 bidder each for the low power license) is £499.1m, and if there are 10 low power bidders £580.1m. Obviously these are Ofcom's minimum bid values and the actual values could increase substantially.

Ofcom have also valued the 800Mhz significantly more than the 2.6GHz spectrum (as it has better propagation characteristics and therefore it's easier to cover large areas of population).

Ofcom agreed to move forward the auction after O2 and Vodafone threatened to take Ofcom to judicial review after allowing EE to offer LTE services on their 1800MHz spectrum, however O2 and Vodafone have no guarantees that they will win a license in either 800MHz or 2.6Ghz (though Ofcom can assess bidders not to be suitable to bid - but based on their stability etc).

Let the fun begin.