Ofcom Launches 4G Auction; 28 Lots Available in 2 Spectrum Bands

LONDON--Ofcom, the independent regulator and competition authority for the U.K. communications industries, said Wednesday it has started its 4G mobile spectrum auction, with seven bidders competing for 28 lots in two separate bands of 800 MHz and 2.6 GHz, and services expected to launch from late Spring/Summer 2013.

MAIN FACTS:

-Following organizations are bidding in the auction:

* Everything Everywhere Ltd.;

* HKT (U.K.) Company Ltd. (a subsidiary of PCCW Ltd. (PCCWY));

* Hutchison 3G U.K. Ltd.;

* MLL Telecom Ltd.;

* Niche Spectrum Ventures Ltd. (a subsidiary of BT Group PLC (BT));

* Telefonica U.K. Ltd.; and

* Vodafone Ltd.

-Ofcom has designed the auction to ensure at least four different operators have sufficient spectrum to be credible national 4G wholesalers.

-Bids are being placed online over secure connections and continue over several rounds; bidding is expected to take a number of weeks until the final winners are known.

-No updates on bidding activity will be provided until the conclusion of the auction.

-Lower frequency 800 MHz band is part of the 'digital dividend' freed up when analogue terrestrial TV was switched off, which is ideal for widespread mobile coverage; higher frequency 2.6 GHz band is ideal for delivering the capacity needed for faster speeds.

-Write to Ian Walker at [e-mail]

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