Understanding 5G Mobile Networks by Peter Curwen;Jason Whalley;

Author:Peter Curwen;Jason Whalley;
Language: eng
Format: epub
ISBN: 9781800710382
Publisher: Emerald Publishing
Published: 2021-02-04T16:00:00+00:00

UK

In July 2017, Ofcom (the regulator) laid down rules governing the first auction of 5G-suitable spectrum due to commence towards the end of 2017. The auction would comprise 40 MHz in the 2.3 GHz band (2350–2390 MHz) suitable for LTE and 150 MHz in the 3.4 MHz band suitable for 5G. Every incumbent would be capped at 225 MHz of ‘immediately useable’ spectrum and at 340 MHz of overall spectrum – equivalent to 37% of all spectrum expected to become useable by 2020 including that involved in the forthcoming auction and the 700 MHz band. As a result, EE – a subsidiary of fixed-wire incumbent BT – would be excluded from bidding for spectrum in the 2.3 GHz band and could acquire no more than 85 MHz in the 3.4 GHz band. For its part, Vodafone could acquire a maximum of 160 MHz across both bands.

Ofcom stated that it would not be auctioning spectrum in the 3.6–3.8 GHz band on the grounds that it had ‘less confidence’ that these bands would become available on a nationwide basis in the near future and that 3UK’s recent purchase of spectrum in the band had reduced the gap in overall spectrum holdings between 3UK and the other incumbents – the owner of 3UK is CK Hutchison which, via UK Broadband, had acquired 3605–3689 MHz.

Reserve prices were set at £10 million per 10 MHz block in the 2.3 GHz band and at £1 million per 5 MHz block in the 3.4 GHz band, equivalent to a total reserve price of £70 million. However, spectrum caps proved to be divisive, with EE threatening in August to take Ofcom to court if they were not lifted although this was directed at the bidding rules for 5G rather than 4G spectrum – Telefónica and 3UK also expressed severe misgivings and as a result it might be necessary to postpone any auctions. In early September, 3UK officially rejected the 37% cap on the amount of spectrum that could be acquired by an individual bidder as proposed by Ofcom and filed a judicial review in support of reducing that figure to 30%. This was supported by EE but opposed by Vodafone.

In September, EE also launched a legal challenge to the 37% spectrum cap on the grounds that the restrictions were too rigid in the context of an unpredictable future for 4G and 5G. While it appeared to be the case that EE was resigned to not participating in the 2.3 GHz auction, it was anxious to participate in the auction for 5G-suitable 3.4 GHz spectrum. The two challenges were likely to be heard concurrently.

In the event, the Court ruled for the defendant in both cases, arguing that it had sought to strike a delicate balance between the benefits of competition for end-users and the avoidance of an unduly restrictive solution. EE stated that it would not appeal the decision but Hutchison would not let the matter drop. In advance of the Court of Appeal decision due in February 2018,

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