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UK Sets $2 Billion Reserve Price for 4G Licenses

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The UK's telecoms regulator, Ofcom has outlined the final details for its delayed 4G license auctions.

Ofcom has also confirmed the reserve prices for the spectrum that is being auctioned. The combined total is £1.3 billion (USD2 billion). Ofcom has also announced 11 December as the provisional date for the submission of applications by prospective bidders.

Ed Richards, Ofcom Chief Executive, said: "Today marks an important shift from preparation to the delivery of the auction, which will see widespread 4G mobile services from a range of providers."

The auction itself is due to take place in January, with licenses awarded in February/March with the expectation that the first networks will launch services in May/June time.

Summary of Ofcom's proposal for reserve prices

Category Spectrum Proposed Reserve Price
A(i) 800 MHz 2x5 MHz  £225m
A(ii) 800 MHz 2x10 MHz
(with coverage obligation) 
B 1800 MHz 2x15 MHz
C 2.6 GHz 2x5 MHz
(standard power) 
D(i) 2.6 GHz 2x10 MHz
(shared low power) 
£6m per bidder, £60m threshold
D(ii) 2.6 GHz 2x20 MHz
(shared low power) 
£6m per bidder, £60m threshold
E 2.6 GHz 5 MHz

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Tags: ofcom  4g license  UK