BT Group PLC (LON:BT.A) and its EE subsidiary are to be shut out from the next UK 2.3 Ghz mobile broadband spectrum auction next year.
Industry regulator Ofcom is to auction 190 megahertz (MHz) of spectrum in the 2.3 gigahertz (GHz) and 3.4 GHz bands next year, which would boost the size of the available mobile spectrum currently available by just under one-third, and represents more than three-quarters of the 4G airwaves that were released in 2013.
Ofcom said that as BT/EE currently hold around 45% of the useable UK mobile spectrum, they would not be invited to participate in the 2.3 Ghz auction. BT/EE’s share of the immediately useable spectrum should fall to around 42% following the auction. Vodafone Group PLC (LON:VOD) currently holds around 28% of the spectrum; O2 has 15% and Three 12%.
The 40 MHz of spectrum to be sold in the 2.3 GHz band is already supported by mobile devices, such as most recent releases of smartphone. These airwaves could be used immediately after release to provide extra capacity, meaning faster downloads and internet browsing for consumers, Ofcom said.
The 150 MHz of spectrum to be sold in the 3.4 GHz band is not currently used by most mobile devices, but is likely to be usable by future devices in coming years, the telecoms regulator explained. The 3.4GHz band has also been identified as central to the roll-out of 5G across Europe.