The proposal would see the regulator auction off spectrum in the upper block of 1.4 gigahertz (GHz) band — ranging from 1492 to 1517 megahertz (MHz) — which provides supplementary downlink (SDL) capacity for 4G and 5G networks.
Ofcom said the additional spectrum would provide consumers with improved coverage, speeds and performance in locations where coverage relies on low-frequency spectrum, such as indoor environments.
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40 MHz has already been deployed by mobile network operators in the UK, with Ofcom looking to offer more to “boost growth, opportunity and innovation across the UK”.
Ofcom plans to use a sealed-bid, single-round, second-price auction, meaning bidders submit one confidential bid, and the highest bidder wins but only pays the amount of the second-highest bid.
Stakeholders have until April 25 to submit comments on the proposed sale, with the regulator planning to consult separately on any impacts to competition.
“We expect that further deployment of the upper block of the 1.4 GHz band will help improve the performance of mobile services, particularly in areas where coverage is patchy, such as some indoor areas and in remote parts of the UK,” the regulator said in a statement.
Some of the largest UK operators backed the proposal to open up more spectrum, but some expressed concerns about deployments and the auction format.
Vodafone expressed support for the auction in its response but raised concerns about the assumptions in Ofcom’s coexistence analysis, arguing that the regulator should consider real-world deployment characteristics rather than theoretical models.
The operator also opposed the single-round auction format, advocating for a multiple-round process to allow bidders to adjust their valuations dynamically
BT/EE acknowledged the benefits of releasing the 1.4 GHz spectrum but questioned the timing of the consultation, citing uncertainties around network equipment availability and Vodafone’s proposed merger with Three.
"Given the immaturity of the mobile ecosystem for this band and the lack of available network equipment and user devices, together with the present uncertainty created by the proposed merger of Vodafone/Three and consequent uncertainty as to what competition measures may be required for this award, we consider that in some respects the consultation is arguably premature,” the operator wrote.
VMO2 supported the auction approach but warned that Ofcom’s proposed coordination zones could significantly restrict mobile deployments, particularly in coastal and urban areas.
The operator also argued for a multiple-round auction format to enable better price discovery, given the uncertainty surrounding the spectrum’s value under current restrictions.
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