It is not unusual for a communications regulator pondering the release of new spectrum to take current market structure into consideration. So it is that U.K. regulator Ofcom, planning for a 2017 auction of 190 MHz of spectrum in the 2.3GHz and 3.4GHz bands, wants to cap any single mobile provider’s maximum spectrum holdings at 255 MHz.
The practical implication is that BT, owning the use of 45 percent of “immediately usable” spectrum, will not be able to bid for any of the spectrum. Of the total amount of mobile spectrum that is currently useable, BT/EE holds 45 percent; Vodafone holds 28 percent; O2 holds 15 percent; and H3G holds 12 percent.
The auction will increase the total amount of mobile spectrum from 647 MHz to 837 MHz, an increase of 29 percent.
An argument can be made that O2 is the carrier most in need of additional spectrum, as it has market share as great as BT does, but without BT’s spectrum assets.
In the near term, the 40 MHz of spectrum in the 2.3 GHz band will be most useful in an immediate sense, as popular devices already support that band.
The 150 MHz of spectrum in the 3.4 GHz band is not immediately useful since most mobile devices do not support those frequencies.
Additionally, there will be more spectrum made available for mobile services in future, including at 700 MHz and proposed at 3.6-3.8 GHz.
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