Home > Media and Analysts > Media and Analysts FAQs > Radiocomms FAQs > Award FAQs

On 11 December 2006 Ofcom published a consultation document setting out proposals for the award of available spectrum in the bands 2010-2025MHz, 2290-2300MHz and 2500-2690MHz.

The award of these bands forms an important part of Ofcom’s approach in securing the optimal use of this finite and valuable natural resource.

The consultation closes on 9 March and the full consultation document can be found in the Related Items.

1. How much spectrum will be released and in which bands is it in?

The consultation document proposes to make available 215MHz of spectrum. Most of the spectrum, 190MHz, is in the 2500-2690MHz (2.6GHz) band. There is also 15MHz at 2010-2025MHz and 10MHz at 2290-2300MHz.

2. How will the spectrum be released?

Ofcom believes that fairest and most efficient way of awarding the bands 2500-2690 MHz, 2010-2025 MHz and 2290-2300 MHz to secure optimal use is through an auction that gives the flexibility to decide how the spectrum is used.

3. When will the auction take place?

Ofcom is keen to release the spectrum as soon as is practical and believes that the earliest date for an award is late 2007. However, there are a number of factors that could cause the award to be later than this, for example developments in European regulatory groups. Timing will also depend on the results of the consultation process.

4. Why is the spectrum available for release?

Following its international identification for mobile terrestrial use, the 2.6GHz band will become available when existing users (mainly outside broadcasters using wireless cameras and other wireless video equipment) have moved to other bands in the 2GHz range. This process has already started and is expected to be completed in the course of 2007.

The band 2010-2025MHz has been available since 2000. The band was identified internationally for a particular wireless technology. However, this technology never took off and equipment was never developed, therefore the band remains vacant.

The band 2290-2300MHz was returned to Ofcom by the Ministry of Defence (MoD), largely as a result of the application of Administered Incentive Pricing to spectrum held by the MoD.

5. What are the potential uses for this spectrum?

Spectrum is a valuable and finite natural resource that underpins the operation of a wide number of services. Ofcom believes that the best way to secure the optimal use of the spectrum is to limit regulation to the essentials, for example preventing harmful interference and ensuring fair competition. To that end, Ofcom will allow the market to decide how best to use the spectrum that is being released.

Ofcom is consulting on proposals to package and auction the spectrum to offer maximum flexibility in the way that the bands could be used. Ofcom’s research into the bands has identified a number of potential uses of the spectrum. They include:

• mobile broadband wireless services, offering high-speed, high-capacity mobile data connections using technologies such as WiMAX;
• mobile multimedia services, such as mobile television;
• advanced mobile services using technologies such as UMTS and its evolutions; and
• mobile broadcast, such as wireless cameras for outside broadcasts and temporary or portable video links.

The potential uses – ranging from broadband to mobile television – reflect increasing convergence in communications services.

6. How will the auction process work?

The proposed auction of the bands 2.6GHz and 2010-2025MHz includes two main stages:

In the first stage, bidderscompete for generic lots of 5MHz (“generic” because the lots are not associated with specific frequencies within the band at this stage). In each round Ofcom will increase the price of the lots and bidders will state how many lots they would wish to purchase at this price. This stage ends at the point where demand for each type of lot has fallen to the point where it no longer exceeds supply.

In the second stage – the assignment stage – successful bidders from the first stage can express any preference they might have for particular frequencies by submitting sealed bids for specific packages. This stage will result in the assignment of frequencies to particular bidders.

The auction of the 2.6GHz and 2010-2025MHz bands will be conducted online using a secure server. The spectrum will be divided up into 5MHz blocks. They will be auctioned as unpaired lots (5 MHz each) or paired lots (2x5 MHz each). The minimum amount any one bidder will be able to receive is 10MHz lot, i.e. a minimum of one paired lot or a minimum of two unpaired lots.

The 2290-2300MHz band will be auctioned through a sealed bid process. It will be sold as a single lot.

7. How will consumers and citizens benefit from the auction?

The bands are currently unused or underused; therefore the launch of new services in the bands will bring benefits to consumers and the economy.

Consumers are likely to benefit from new or improved services, which could be based on the use of new technologies. The potential for innovation and new competition with existing operators is expected to provide consumers with greater choice and increased value in existing services.

Uses of the radio spectrum in the UK contribute £37bn, or 3 per cent, to the GDP. Making more efficient use of this scarce resource will generate new value to the economy.

Back to top