5G Radio Spectrum Auction.

The UK Government on Wednesday 17th March, auctioned off some radio spectrum:-

A total of 200 MHz of spectrum was available to bid for in the auction, split across two bands:

80 MHz of spectrum in the 700 MHz band. These airwaves consist of 2×30 MHz of paired frequency spectrum, and 20 MHz of supplementary downlink spectrum. The 700 MHz airwaves are ideal for providing wide area coverage – including in the countryside.

120 MHz of spectrum in 3.6-3.8 GHz band. These important airwaves are part of the primary band for 5G and capable of boosting mobile data capacity, carrying lots of data-hungry connections.

The winners were:-

EE Limited has won 2×10 MHz of paired frequency spectrum in the 700 MHz band at a cost of £280,000,000; 20 MHz of supplementary downlink spectrum in the 700 MHz band at a cost of £4,000,000; and 40 MHz in the 3.6-3.8 GHz band at a cost of £168,000,000.

Hutchison 3G UK Limited has won 2×10 MHz of paired frequency spectrum in the 700 MHz band at a cost of £280,000,000.

Telefónica UK Limited has won 2×10 MHz of paired frequency spectrum in the 700 MHz band at a cost of £280,000,000; and 40 MHz in the 3.6-3.8 GHz band at a cost of £168,000,000.

Vodafone Limited has won 40 MHz in the 3.6-3.8 GHz band at a cost of £176,400,000.

The total revenue raised from the principal stage is £1,356,400,000. The money raised by this auction will be passed on to HM Treasury.

For EE (A wholly owned subsidiary of BT, the UK’s premier telecommunications and media company), spent in total, £280,000,000 + £4,000,000 + £168,000,000 = £452,000,000 = £452 Million.

For EE, the lower-frequency 700MHz spectrum is seen as crucial for wider and better indoor coverage It will also be useful for expanding the reach of 5G across rural areas in the years ahead. Meanwhile, the mid-range 3.6GHz spectrum will help to deliver greater capacity and speed, both of which are vital in supporting the growing use cases associated with 5G technologies.

Keep in mind that that EE’s investment is approx £5.7 Million per MHz

Globally,

In India recommended price £49.2 Million per MHz as base price.
In Italy was £18.2 Million per MHz,
In Australia was £3.5 Million per MHz,

https://www.ofcom.org.uk/about-ofcom/latest/features-and-news/spectrum-auction-principal-stage-results

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