LONDON (Alliance News) - UK media and communications regultor Ofcom on Monday tabled plans for its next auction of mobile spectrum, including a cap on the amount of spectrum for which BT Group PLC can bid.
In 2017, the regulator said it will auction 190 megahertz of spectrum in the 2.3 gigahertz and 3.4 GHz bands, an increase of just under a third of the total mobile spectrum currently available.
Ofcom said it will apply a cap of 255 MHz on "immediately useable" spectrum any one operator can buy. As a result of this, BT Group's EE mobile business will not be able to bid for any spectrum in the 2.3 GHz band.
BT/EE currently holds 45% of immediately useable UK mobile spectrum, Ofcom noted, compared to 28% for Vodafone Group PLC, 15% for O2 UK and 12% for Three.
Ofcom said is it concerned that if these immediately usable holdings become more "unbalanced", this could harm competition in the UK mobile market in coming years.
As a result of the cap Ofcom has imposed, BT/EE's overall share of immediately-usable spectrum will fall to 42%.
"Spectrum is the essential resource that fuels the UK's economy. This auction can help ensure that UK consumers can access the mobile data services they need, and that operators can continue to innovate and build for the future," said Philip Marnick, Ofcom's spectrum group director.
"The UK has long benefited from strong mobile competition. We are designing the auction to ensure everyone benefits from a market that continues to innovate and serve them well," he added.
Ofcom also said demand for mobile data is expected to rise considerably in coming years and, as a result, it will release more spectrum for mobile use in the future.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
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