Published in Mobiles

O2 takes the biggest chunk of UK airwaves

by on05 April 2018


All of the blocks of 2.3Ghz airwaves for 4G

Telefonica’s O2 won the biggest chunk of new British mobile airwaves in an auction that raised $1.9 billion for the government.

Regulator Ofcom said all four of Britain’s networks secured new airwaves for next generation services but O2 also secured all of the blocks of 2.3Ghz airwaves that can be deployed immediately to boost capacity for 4G services.

The airwaves in the 3.4GHz band have been earmarked for 5G, which the Brits are starting to test but it will not be deployed commercially until 2020 at the earliest.

O2 said its success in the auction was further evidence of the commitment of its parent, Spain’s Telefonica, to Britain.

It will deploy its 2.3GHz spectrum as soon as possible, it said, starting in London and then in Edinburgh, Newcastle, Leeds and other cities in the coming months.

Industry analyst Kester Mann from CCS Insight told Reuters that O2 had emerged as the big winner.

“As the most spectrum-constrained operator, this sale was more crucial to O2 than any of its rivals and the result gives it the certainty to continue its mobile-centric strategy in the UK market. It will also give parent Telefonica some clarity over its intended IPO for the network.”

O2, which ranks second to BT’s EE, paid nearly £524 million for its two packages, Ofcom said.

No operator can own more than 37 percent of the total usable airwaves in 2020, Ofcom said, a cap that barred market leader EE from bidding for the 2.3Ghz band and limited the amount it could win in 3.4Ghz. EE secured one block for £303 million, while Vodafone , which was also limited by the cap, picked up a bigger chunk of 3.4Ghz airwaves for £378 million pounds. Three, which is owned by Hutchison, won the smallest amount of 3.4Ghz airwaves for £151 million pounds.

 

Last modified on 05 April 2018
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