The UK government will allocate £600m (US$880m) to help put 700 MHz spectrum into the hands of mobile operators.
Announced today by George Osborne, the Chancellor of the Exchequer, the programme would entail auctioning the prized 700 MHz frequencies…
The UK government will allocate £600m (US$880m) to help put 700 MHz spectrum into the hands of mobile operators.
Announced today by George Osborne, the Chancellor of the Exchequer, the programme would entail auctioning the prized 700 MHz frequencies during the next fixed-term parliament, which is set to run from 2015 to 2020.
The funds will support the infrastructure costs of clearing the band, including the retuning of broadcast transmitters to enable broadcasters to move onto lower frequency spectrum, the Treasury said.
Britain’s last significant spectrum auction, in 2013, raised £1bn less than Osborne had hoped. The Chancellor had budgeted for £3.5bn from the sale of 800MHz and 2.6GHz frequencies, but only received £2.34bn for the 4G frequencies.
There could be fewer bidders in the next auction as the UK telecoms sector is undergoing a period of historic consolidation. EE and O2, which both bought spectrum in 2013, look set to be taken over by BT and Hutchison Whampoa respectively.
Osborne also unveiled a wider plan, called the digital communications infrastructure strategy, to continue the deployment of “superfast” broadband.
This encompasses satellite technology to reach the remotest communities, providing funding for Wi-Fi in public libraries, and expanding broadband vouchers to promote digital inclusion.
“And we’re committing to a new national ambition to bring ultrafast broadband of at least 100 mbps to nearly all homes in the country, so Britain is out in front,” Osborne said.
Adrian Baschnonga, lead telecoms analyst at EY, described the announcement as “ambitious and far-reaching”.
“Britain is already ahead of many neighbouring markets when it comes to super-fast broadband coverage and plans to extend ultra-fast broadband to nearly all homes represent a strong statement of additional intent,” he said.
“The use of satellite technology, to reach the remotest areas, alongside moves to free up more spectrum for mobile are evidence of a holistic approach.”
Ofcom, Britain’s communications regulator, announced a strategic review of digital communications last week. This will include a reassessment of its stance towards competition and investment.
Ofcom plans to prepare a discussion document by the summer, with initial conclusions ready by the end of the year.
