4G Bids….Woopie??

Ofcom Disclosed 4G Spectrum Bidders

UK communications watchdog has recently revealed the names of the 7 companies which have been allowed to bid for 4G spectrum. The outfit confirmed that the operators selected to start the auction process include Everything Everywhere, Vodafone, MLL Telecom, Telefónica (owns O2), HKT (subsidiary of PCCW), Hutchison 3G (operator of the Three network), and Niche Spectrum Ventures Limited (subsidiary of BT Group).

The operators will start the bidding process next month, and the winners will be tasked with boosting the spectrum available to subscribers by 75%. The bidders will be informed whether they have been awarded contracts to provide the high speed mobile broadband in February 2013, before rolling out services next summer.

7 companies will join the auction for spectrum at 800 MHz range. The latter will be used for widespread coverage having been freed up by the switch-off of analogue TV signals. Another range is 2.6 GHz, and this one will provide high speed connections, especially for urban areas.

According to Ofcom, the 4G auction will be a competitive process which will define the shape of the British mobile phone market for the next 10 years and beyond. New 4G services ware expected to stimulate investment, growth and innovation in the United Kingdom and provide considerable benefits to consumers in terms of more reliable mobile broadband connections.

Ofcom expects that the sale of spectrum will amount to £3.5 billion – this is a figure mentioned by Chancellor George Osborne in his latest budget report. But the communications watchdog set a reserve price of £1.3 billion.

Last week it was also revealed that the Ministry of Defence is going to start selling of parts of its spectrum below the 3.5 GHz range in 2013, which makes it possible to get another £1 billion.