UK’s MNOs line up for mmWave spectrum – but can they use it effectively?

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Ofcom has confirmed that all three of the UK’s mobile operators – EE (BT), Virgin Media O2 (VMO2), and VodafoneThree – have been given the greenlight to participate in the upcoming auction

This week, UK telecoms regulator Ofcom has approved all three of the UK’s mobile operators to participate in the upcoming auction for spectrum in the 26GHz (25.1-27.5GHz) and 40GHz (40.5-43.5GHz) bands.

In total, 5.4 GHz of the spectrum will be available in 200MHz lots, with 68 licences available covering ‘high density’ areas across the country. For areas outside the remit of these licences, the UK’s Shared Access licensing framework will apply, meaning operators can attain permission to use the spectrum on a first-come, first-served basis.

The spectrum, often known as mmWave spectrum, has qualities that make it both appealing and challenging for the operators. On the one hand, it can support multi-gigabit-per-second peak data rates, with massive capacity and low latency. This makes it ideal for supporting large numbers of users simultaneously in dense environments like stadiums and city centres, as well as providing a ‘fibre-like’ broadband experience for Fixed Wireless Access (FWA) users.

On the other hand, the spectrum has a much shorter range than the mid-band (generally 1GHz–6 GHz) spectrum typically used for 5G, hence more base stations are required to support an equivalent area, driving up deployment costs. It also has poor signal penetration, meaning it can be blocked by common obstacles, including walls, windows, and even the human body itself.

As a result of its limitations and inherent expense, mmWave deployments worldwide so far have been patchy.

At the dawn of 5G, the US quickly emerged as the poster child for mmWave, spending billions of dollars on relevant spectrum licences, with Verizon even targeting nationwide coverage. The reality, however, was underwhelming. While the spectrum has found some success in targeted urban environments and for FWA, deployment at scale has proven difficult, with the spectrum’s value sliding in response.

Indeed, this deployment challenge is being felt around the world. Even in South Korea – one of the most advanced mobile markets in the world – the country’s three national mobile operators were forced to surrender their mmWave licences to the regulator, having failed to meet minimum deployment targets.

This raises the question of how the UK mobile operators plan to use mmWave spectrum effectively – and how much they will be willing to pay for it.

Ofcom’s auction has reserve prices set at £2 million for lots in the 26GHz band and £1 million for those in the 40GHz bands. Given the relatively large amount of spectrum available and the expensive rollout of 5G Standalone the operators are already undertaking, it seems unlikely that they will be willing to shell out huge sums of money for mmWave.

While no official date for the auction has been given, it has long been planned for this month, with Ofcom saying that it will take place “soon”.

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Author: Ernestro Casas -

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