UK Spectrum Auction Seeks to Promote Fair Competition

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On 22 March 2011, UK telecom regulator Ofcom announced its plans for the auction of spectrum earmarked for next-generation services such as Long Term Evolution (LTE). The auction will consist of frequencies in 800 MHz and 2.6 GHz spectrum bands.

Ofcom has proposed a variety of minimum and maximum holdings and coverage conditions to ensure a level playing field for all bidders. It intends to disregard auction bids that would not result in one of five possible outcomes, all of which involve four companies holding a minimum of 2 x 5 MHz of spectrum under 1 GHz. It also plans to cap allocations to a maximum of 2 x 27.5 MHz of spectrum under 1 GHz and 2 x 105 MHz of mobile spectrum in total. And one of the 800 MHz licences will include a requirement to provide mobile broadband coverage to at least 95 percent of the UK population by the end of 2017.

The plans are open for consultation until 31 May 2011. Ofcom hopes that bidding will start during the first quarter of 2012.


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