BT Group plc (LON:BT), Vodafone PLC (LON:VOD), Telefonica and Hutchinson have spent £1.35bn in the first stage of bidding in Ofcom’s 4G and 5G mobile airway spectrum auction.
Regulator Ofcom offered lots in two frequency bands: 2.3 gigahertz (GHz) used to help improve 4G capacity for mobile users; and 3.4 GHz that is earmarked for 5G services.
BT said its EE mobile network secured 40 megahertz (Mhz) of 3.4 GHz spectrum at a cost of £303mln, while Vodafone picked up 50 MHz of 3.4 GHz spectrum for £378mln.
Three owner Hutchinson won 20 MHz of 3.4 GHz spectrum for £151mln and O2 parent Telefonica secured all 40 MHz of the 2.3 GHz spectrum available at £206mln.
BT looks forward to launch of 5G
Marc Allera, the chief executive of BT's consumer division, said: "The acquisition of 40MHz of 3.4GHz spectrum positions us well for our launch of future 5G services and consolidates our position as one of the world's leading providers of communications services.”
"With this outcome, we'll continue to roll out the fastest 4G service to consumers and businesses across the UK, and now look ahead to the potential new services that 5G will offer, keeping our nation at the forefront of digital communications."
Ofcom moves to final bidding stage
Funds raised from the auction will be paid to the Treasury.
Ofcom will now move to the last bidding stage of the auction, allowing companies that were successful in the first round to bid to determine where in the frequency bands their new spectrum will be located.
Successful bidders will then be issued with licences to use the spectrum within a few days.
"As a nation we're using ever more mobile data on smartphones and mobile devices,” said Ofcom’s spectrum group director Philip Marnick.
“Releasing these airwaves will make it quicker and easier to get online on the move. It will also allow companies to prepare for 5G mobile, paving the way for a range of smart, connected devices."