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Hooray, the official UK 4G auction bidding war is finally underway. Bidders are now free to throw their cash at Ofcom, using what basically sounds like Ofcom’s own version of a top-secret eBay.
How much Vodafone, O2, EE, Three and the others are punting, we won’t know because it’s all confidential, well, until the end anyway. Ofcom’s expecting several rounds of bidding, so it’s not going to be over by Friday, but we should hopefully know the outcome in the next month or so.
Thankfully, it looks like we’re not going to have to wait too long for everyone else, other than EE that is, to roll out their 4G networks once things are done. According to Ofcom:
“Once fees are paid, licences will be granted, enabling operators to start rolling out new networks. It is expected that services will be launched by a range of providers from late spring / summer 2013.”
That lines up suspiciously well with EE’s new cut-price 4G promotional plans, which end on February 28th, don’t you think? Cunning EE, cunning indeed. Anyway, there are 28 lots of spectrum within the 800MHz and 2.6GHz bands up for grabs, which means the seven bidders have a lot to fight over. In theory, the chunks within the 2.6GHz band should provide higher data-carrying capacity and speed, while 800MHz provides greater a coverage footprint and building penetration.
It’ll be interesting to see who comes out on top. The auction rules are fairly complicated, but it basically boils down to what Ofcom describes as similar to eBay’s auto-bidding system:
“Having identified the winning combination of bids, Ofcom will then work out how much each winning bidder should pay using a so-called ‘second price rule’. Each winning bidder will pay the smallest amount that they would have needed to bid in order to win – as on auction website eBay.”
The government’s hoping for about £4bn out of this little lot, so we’re not talking chump change here. Of course, that’s a double-edged sword. The more the networks have to fork out for their allocation of LTE-capable spectrum, the more cost is going to be hefted onto us, the consumers. Seems we’ll be paying through the nose either way. [Ofcom]
Ofcom, the Networks and the Government May Bring Forward the UK's 4G Auction
4G Spectrum Auction Bidding to Kick Off 23rd Jan
ohh we will be able to get 2 Astute class subs with that money.
Maybe is will properly bring 4G plan prices down and not just a quick “sale” as we saw with EE. I can see it now;
Other providers will have reasonable prices and EE will be stuck in their ways with high prices, lose custom and fall into administration.
I jest, I jest. They do need to lower prices permanently though.
I still dont understand how they have the cheek to charge soooo much when their 4G only covers a handful of city centers. its ridiculous!
Because they believe that people travel out of cities. Between each city with 4G, there is nothing. It’s an empty void that can harbor no life and traversing it is dangerous and foolish. People just stay at home or within the city limits, which has been defined by the range limit of the 4G they provide, as it keeps them safe.
“It’s an empty void that can harbour no life and traversing it is dangerous and foolish.” or “The North” for short
I would take offence but Manchester isn’t really the North, it’s on the South edge of the North.
I think you mean Watford is the south edge of the north
HA! Nice one! I never thought of it that way.
Anywhere north of London, Is chips and gravy country in my book
Have Ofcom not just considered asking ebay for a private auction?
Have you considered how much eBay would charge in fees? Also, I’m not sure Vodafone has a paypal account.
As long as you state clearly in the listing that the purchaser is liable for the PayPal costs, then Ofcom will be covered
With a 50% commission haha
Ooh I do hate this appropriating stuff to sell at a profit. So the gov’mint takes 4bn that the ‘winner’ then has to take off us before they show a profit. How did it happen that the gov’mint ‘owns’ any part of the electromagnetic spectrum? Regulating it I can understand but owning/leasing/selling?
Okay, I own the bit between 450-500nm. If you want to see anything that’s blue, you gotta pay me. How ethical does selling off a different part of the spectrum sound now eh?
Why do these take so long?? I mean, cant they just have a meeting
Mobile provider: I will pay £xxxx for 4G?
Ofcom: No
Mobile provider: Ok how about £xxxxx
Ofcom: Ok yes
Mobile provider: Woo hoooo, KA-CHING! Time to rape my uk customers!
I mean how hard is it?
Many many accountants trying to work out how much the company can afford to pay in order to place their bids.
But theyve been harping on about it for ages, surely they should have done the sums before now…
If it’s
There will be multiple rounds of bidding, and the prices companies offer will vary depending on what else they may or may not have won, etc…
It is like ebay, except played out over a few weeks rather than the last few minutes of an auction because there’s so many more variables to consider than just:
‘I have to have that’
YOU ARE THE HIGHEST BIDDER
‘Yay!
YOU HAVE BEEN OUTBID
‘Nooooooo! Must bid twice as much!’
YOU WON THIS ITEM
‘Hang on, why have I bought this?!’
My offer stands firm at £18.27.
£18.28
£21.00 (step up man!)
Oh no, it’s a runaway bidding war. I will not get suckered into bidding more than I want to spend just to “win”.
£25.02
Dammit!
What time does it end?
£25.03
Time to piss or get off the pot.
Too rich for my blood. Oh well, back to my ham radio…
£25.04
I’m going to sniper bid right at the end
Bidding’s heating up! £29.76