How much is the 700MHz frequency band worth? 7.6 billion!

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Today, UK Ofcom announced the results of the latest 5G spectrum auction.

The spectrum for this auction has a total bandwidth of 200MHz, divided into two frequency bands:

(1) 80MHz spectrum resources in the 700MHz band

• Includes 2x30MHz uplink and downlink paired spectrum (703-733MHz/758-788MHz), and 20MHz auxiliary downlink band (738-758MHz)
• 700MHz is very suitable for providing wide wireless coverage, especially in rural areas.

(2) 120 MHz spectrum resources in the 3.6-3.8 GHz (3.68-3.8 GHz) frequency band

• This frequency band is part of the main 5G frequency band and can provide large capacity and carry high-speed data connections.

The auction results are as follows:

• EE: won 2x10 MHz paired spectrum in the 700 MHz band for £280 million, 20MHz of auxiliary downlink spectrum in the 700 MHz band for £4 million, and 40MHz of spectrum in the 3.6-3.8GHz band for £160 million.
• Hutchison 3G UK Limited (Three): won 2x10 MHz pairs of spectrum in the 700 MHz band for £280 million
• Telefónica UK Limited (O2): won 2x10 MHz pairs of spectrum in the 700 MHz band for £280 million and 40MHz of spectrum in the 3.6-3.8GHz band for £160 million.
• Vodafone Limited: won 40MHz of spectrum in the 3.6-3.8GHz band for £176.4 million

From the results of this UK spectrum auction we can see:

Three more operators around the world have adopted the 700MHz frequency band to deploy 5G networks

As mentioned above, the 700MHz frequency band auctioned in the UK this time is 703-733MHz/758-788MHz, which is consistent with the 700M frequency band jointly built and shared by China Mobile and Radio and Television, namely the n28 frequency band.

The difference is that China Mobile and China Radio and Television jointly build and share the 30MHz frequency band, while the three British operators (EE, Three and O2) each get 10MHz frequency band.

As for another British mobile operator, Vodafone, although it did not win the 700MHz prime frequency band this time, it is said that it may re-cultivate the 800MHz/900MHz frequency band to deploy a wide-coverage 5G network. In short, low, medium and high frequency hybrid networking, using less than 1GHz as the coverage layer, using the medium frequency band as the capacity layer, and using millimeter waves as the hotspot layer, has become a major trend in global 5G deployment.

The auction price of 700M is much higher than that of C-band, which is worthy of being the golden frequency band.

Comparing the auction results, 2x10MHz bandwidth in the 700MHz band is worth 280 million pounds, while 40MHz bandwidth in the 3.6-3.8GHz band is only 160 million pounds. 700M is obviously much more valuable.

In total, the three mobile operators in the UK spent 840 million pounds, or about 7.6 billion yuan, on the 30MHz spectrum resources of 703-733MHz/758-788MHz for both upstream and downstream.

According to British industry insiders, the auction price of Ofcom is "very reasonable", which allows operators to have more funds for 5G network construction and technology upgrades. It seems that this price is not inflated, and is even relatively cheap.

If the auction is for a continuous 30MHz bandwidth, the price may be much higher than this figure! It is indeed a golden frequency band! No wonder China Unicom recently proposed that the four operators jointly build and share the 700MHz frequency band!