Thursday, 18 October 2018

5G Fanfare – Will overpaying for spectrum come back to haunt the UK's big 4?

By Chris Kelly, Total Telecom
Friday 06 April 18

Vodafone, O2, EE and Three all spent big at Ofcom's 5G spectrum auction, but have operators paid too much for spectrum and left themselves short of cash to invest in network transformation?

Collectively, Britain's big four mobile network operators spent more than £1.35 billion at Ofcom's 5G spectrum auction – a princely sum but significantly less than the £2.3 billion raised in the 4G auction of 2013. Indeed, the figure pales into near insignificance when compared to the absurdly bloated figure of £22.5 billion raised in 2000 for the 3G licenses.    Despite the comparatively low revenues generated, analysts are hailing the auction as a success, with the final figure of £1.35 billion beating most analysts' predictions by around 35 per cent.  So now that the network operators have parted with their hard-earned cash, is Britain actually any closer to rolling out 5G services?  The short answer is no…

Collectively, Britain's big four mobile network operators spent more than £1.35 billion at Ofcom's 5G spectrum auction – a princely sum but significantly less than the £2.3 billion raised in the 4G auction of 2013. Indeed, the figure pales into near insignificance when compared to the absurdly bloated figure of £22.5 billion raised in 2000 for the 3G licenses.    Despite the comparatively low revenues generated, analysts are hailing the auction as a success, with the final figure of £1.35 billion beating most analysts' predictions by around 35 per cent.  So now that the network operators have parted with their hard-earned cash, is Britain actually any closer to rolling out 5G services?  The short answer is no…

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