Yes, this is it folks. The auction’s over after 50 rounds of bidding, and now the networks have up until midnight tonight to fork out the collective £2.3 billion odd in cash. But who won what, and how much? Seems Vodafone was on a full-on 4G crusade.
A load of different chucks of spectrum in various sizes within in the two auctioned-off bands — the country-covering 800MHz and high-density-covering 2.6GHz — were up for grabs.
The four traditional networks, EE, O2, Three, and Vodafone, were joined by one rank-outsider in the winning bids, with BT grabbing two 15MHz and one 20MHz chunk of the 2.6GHz band for the princely sum of £186,476,000. Apparently it’s not going to launch a consumer-facing 4G network outright, but will use it to augment its current broadband and phone offerings, which sounds like a connectivity bridge of some kind to me. Anyway, you’re apparently not going to get a traditional 4G network out of BT for the time being.
So, how did the others fare? Well, here’s where it gets interesting. There are definite winners and losers in the results, although technically they’re all winners, I guess.
Three came away with the least bagged spectrum, claiming two 5MHz chunks of the 800MHz band for £225m, which adds to its already-purchased chunk of 4G-capable 1800MHz spectrum that it bought from EE last year. O2 then put £550m down on the table to walk away with two 10MHz chunks of the 800MHz band, which comes with a proviso that it must cover 98 percent of the UK population. Ouch.
The first of the biggest two winners was, EE, with two 5MHz chunks of the 800MHz band, and two 35MHz slices of the 2.6GHz band, which came to the sum total of £588,876,000. Not exactly chump change there, and interesting given EE’s already got a big chunk of the 1800MHz 4G band it’s already broadcasting its LTE network over now.
Finally, Vodafone showed that it’s not pulling any punches. It forked out the most dosh, £790,761,000 to be exact, for the biggest overall allocation of spectrum, bagging two 10 MHz bits of the 800MHz band, plus two 20 MHz and one 25 MHz chunk of the 2.6GHz band.
It’s interesting to see Vodafone paying so much more (over £200m) to bag more spectrum than its rivals, which shows that either Vodafone has deep pockets, or that it’s going whole-hog into the 4G space, all guns blazing. Of course, this should all be tempered with the news that Ofcom’s going to allow networks to broadcast 4G LTE on existing spectrum used for current and previous generation networks. Each network has differing amounts of said 2G and 3G spectrum at their disposal, so actually you might find that as the licenses get opened up, the amount of spectrum dedicated to 4G in the UK from each network might vary.
Still, the take home from all this is that 4G is finally on the way in a full-scale way, that all the major networks will support 4G LTE in some capacity, and that Vodafone’s on a 4G rampage, but I wouldn’t count the other networks out. Even though both O2 and Three look to have small allocations, they are in the 800MHz band, which should give them the best range, coverage, and building penetration, especially in the early stages as the infrastructure begins to roll out. Exciting times to be a geek in the UK, that’s for sure. Let’s just hope that the £2.3 billion they’ve collectively just shelled out doesn’t drive up the price of our contracts, because even EE with a monopoly on 4G at the moment, has shown people aren’t prepared to pay through the nose for 4G. [Ofcom]













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Logo sucks
Because that’s what’s important here
Exactly.
Im glad its finally here!
Im interested with 3′s purchase, would this mean that the current no signal areas could be covered by the new 800MHz? And then their current coverage area be used by ofcom letting them run 4G on the existing network?
My contracts up at the end of the month and Im not sure weather to gamble on 3 or go for T-mobile
So the 800MHz should provide indoor coverage and will very quickly, dramatically increase the population coverage. OFCOM aren’t letting Three rung 4G on the 3G carrier (which is 2100MHz) but Three will use the 1800MHz that they got from EE. That will provide a good mix of speed and coverage too so I think its actually pretty exciting for Three. 2.6MHz – not sure about that. It will struggle in dense populated areas but could provide faster speeds. However this speed stuff is already getting pointless. You realyl dont need much over 8Mb on a phone for doing all oyur day to day activities including streaming video. If you use it as a hotspot then yes more is going to be better, but again do you really need over 42Mb? Probably not. So if the 2.6MHz does allow for some faster peak downloads over 1800MHz, I am not sure its going to be that beneficial in the real world.
Good thing about Three is that with LTE and 42MB both part of the Ultrafast coverage plan, if you get a Three contract you will get LTE when it rolls out by default as long as your device supports it. Other networks might as EE did, look to charge a premium. And I mean look at Voda – how are they going to get that £800m back…?
Cheers for that!
The pricing of three’s future 4g is nice, Im not too concerned about the speed, I don’t do intensive downloading on my phone, if I do its on the wifi at home or work. I would prefer three to have coverage of some sort in its current dead spots…
Vodaphone will pay for it with the money they saved from not paying their taxes
I would hope that the 800m odd will be paid for with the gargantuan disparity between the cost of carrying calls and data versus the price that you pay for it – for example a mobile call terminating to same network mobile costs a fraction of a penny to carry a minutes call, yet on a PAYU tariff the user will pay around 10p/min. data has slimmer margins, but it is still massively profitable – I suspect that Vodafone is expecting to shore up it’s reputation some more in terms of network stability which should see 800m returned within a couple of years without the need for price rises.
outside of my utopian fantasy world, I reckon prices will go up.
My bid of £27.91 was not successful
So what’s the initial thinking Sam, seems like Vodafone are the big winners (they bought the lot) and O2 came out the worse not picking up any of the high capacity 2.6 spectrum as they already have 3G issues in cities don’t they?
The trouble is it all revolves around how much of its existing spectrum it can leverage for 4G services. Honestly, I couldn’t tell you at this point. The 800MHz band will provide good coverage at least.
I think you have hit the nail on the head with this, i’d much rather have a lower speed in more areas then a higher speed in one area! Reliability is the key here and i think the 800MHz is the key to achieving this with the better range, coverage and building penetration. The speeds that the 2.6MHz can achieve aren’t really needed on mobile devices, the 2.6MHz is more beneficial for fixed propositions in my opinion
O2 have 3G in cities? That’s news to me! Hence why I didn’t cry when I left to join EE.
But O2 and Vodafone are merging their networks so surely they’ve come out the true winners
Whilst o2 and Vodafone are merging existing network infrastructure, there is no agreement in place regarding 4G frequencies thus far. The merge so far makes sense as the network hardware of both operates within the same spectrum bands.
contention will probably bee an interesting issue at that point, as inner city sites tend to be under heavy strain between 8 and 6 weekdays already.
Also, Vodafone have been rolling out UMTS 900 in a lot of areas to try and shift this load. I haven’t been aware of any expansion works by o2 as most of the work I assume them to having been doing is repairing the damage their ericcsson maintenance contact caused.
What’s the point when the Three network already rolling out 4g for absolutely FREE!
Social stigma of being on Three…
You bet
Can’t deny it and Three network is leading by example.
I can’t understand why anyone wouldn’t be on either 3, or EE nowadays.
My fear is that their tariffs will attract the significant majority of heavy data use customers whilst they will not have the spectrum to offer a genuinely 4G service to these customers.
I guess there is only one way to find that out
well Three only have 15MHz of 2100 at the moment and carry nearly 50% of the mobile data in the country. So moving up to 40MHz of 4G spectrum – should be fine.
Does that mean I could play Call of Duty on my PS3 without getting any lag?
That would be the one!
I could ditch the home phone and the broadband
*stops dreaming*
probably not. You’re always going to get what.. 20ms lag from it being radio, then 10-20ms of lag off the core network. So you’re probably always looking at a 30-50ms ping.
My day dream ends on that note..
30-50 is that all? My Sky broadband seems to sit at a constant 40ms!
“joined by one rank-outsider in the winning bids”
Who?
… and now I’ve learnt to read, I see it’s BT. Brain obviously wasn’t processing them as a ‘rank outsider’
I did exactly the same thing
Yes, sorry, BT. I consider it an outsider in the mobile space, well, since it sold off BT Celnet anyway.
Don’t BT have to buy it else they’ll have to use Satellite Broadband to meet their Universal Service Commitment obligation…
not so much. The universal service obligation is telephone only, doesn’t (currently) extend to broadband.
A subsidary of BT bought a few bits of 2.6MHz which I think is for some sort of business proposition for fixed and mobile data access.
Yeah, not a consumer-focused network, that’s for sure.
So, how did the others fair?
I believe the word is “fare”? Where Kat when you need her?
I just spotted your comment and changed it — must improve on my time; 11 minutes is far too tardy!
My friend is on three and its already getting close to 30MB with there existing network! Shame Vodaphone got the largest chunk as they’re the the worst network IMO.
Vodafone are by far the best in my area, but unfortunately, also by far the most expensive.
I’ll tell you why people aren’t prepared to pay more, it’s because the uplift speed quoted is based on typical 3Mbit 3G… I am on 3 UK who like other networks in the UK are rolling out DC-HSDPA which has a max theoretical speed on 40Mbit I believe…
Sitting in my living room now I can get 15/2Mbit on 3G with only 3 bars and stream Netflix fine, I actually had to upgrade my ADSL 14/2 connection to FTTC because my 3G connection on my phone was faster than my home broadband.
I work in the middle of the Square Mile. Three can only offer me 2.05/2.60 over 3G and that is with four bars. I’d pay a bit more for a better service.
Granted I have seen lightening fast speeds when I’ve been travelling but I expect better in central London.
… and I was getting 47/27 on EE4G last night.
And the benefits of that over 15Mb on a mobile are what? Unless you’re downloading movies it’s doesnt really make much difference…
The true benefits of 4G are not the download speeds though, surely it is the upload speeds, for business this brings massive benefits, the problem is people only focus on the download speeds.
With mobile tethering, the possibilities are endless
voda always try to be biggest, usualy costs them most, thats why they are always one of the more pricey networks and never provide any decent tariffs, cos their always juggling huge debts.
Signs of getting bust, just like 2e2 did!
It would not surprise me if BT are going to be using the 4G connectivity to hybrid their Internet connections to rural communities. There are still villages and hamlets that can not get 1MB from them!
It will be interesting to see what price increase Vodafone will put on their 4G service. They managed to flog a lot of “4G Ready” BlackBerry devices recently…..
All we need now are 4G phones with batteries that can last a day.
Will presumably be a while before 4G unlimited data tariffs become available and affordable. I got a new phone recently, so that should give me enough time to wear it out before I need to think about a 4G one.
Actually three uk will offer a free upgrade to 4g when it comes out, buy unlimited 3g plan now and boom you get unlimited 4g. Enjoy!
Good to hear, that should push the market along quicker than expected.
I thought Vodafone said that 4G was only for ‘techno freaks’? Hypocrites.
But Vodafone are shit!
Thought Voda looked like was the least interested to begin with saying 4G is for Freaks
and no rush