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(Alliance News) - The UK Office of Communications on Monday said it will auction new airways for mobile services in 2020 to improve coverage, boost network capacity and support rollout of 5G services.
Ofcom plans auction 80 megahertz of spectrum in the 700 MHz band, ideal for providing good-quality mobile coverage, both indoors and across very wide areas - including the countryside.
It also will auction 120 MHz of spectrum in 3.6-3.8 GHz band, which is part of the primary band for 5G services and are capable of carrying lots of data-hungry connections in concentrated areas.
Ofcom also plans to place a 37% cap on the overall spectrum that any one mobile company can hold following the 2020 auction to maintain strong competition.
The regulator said it will no longer propose coverage obligations in the 2020 auction as telecom companies - BT Group PLC, Vodafone Group PLC, Telefonica SA unit O2 and Three UK, have proposed a 'Shared Rural Network' plan to deliver good quality 4G coverage to at least 92% of the UK over six years.
"We're pressing ahead with plans to release vital airwaves to improve mobile services for customers. Together with mobile companies' commitments to improve coverage, this will help more areas get better services and help the UK maintain its place as a leader in 5G," said Philip Marnick, spectrum director at Ofcom.
BT Group shares were down 0.2% at 201.13 pence each in London on Monday morning. Vodafone shares were down 0.9% at 159.02p each.
By Tapan Panchal; tapanpanchal@alliancenews.com
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