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4G auction details with coverage obligation get out option to keep O2 happy


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Old 12-11-2012, 11:03
Everything Goes
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Ofcom have published details of the 4G auction. The provisional date is Tuesday 11 December 2012.

The reserve prices start from £225 Million for 800MHz and £0.1 Million for 2.6GHz.

Interestingly only one part of the 800MHz spectrum will have a coverage obligation 2x10 MHz at 800MHz. The 2x5 MHz at 800MHz has no coverage obligation so perhaps O2 will bid for this and take 10 Years to do 50% of the UK population

There is 1800 MHz 2x15 MHz (Divestment) priced at £225m this will relate to EE's part of the spectrum which 3 have agreed to buy.

http://stakeholders.ofcom.org.uk/bin.../statement.pdf
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Old 12-11-2012, 11:15
interactiv-uk
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Surely as O2 and Vodafone are building their 4G networks together and splitting the country they need to have the same coverage obligation. If one HAS to cover more than the other it would rely on the partner network building 4G into their sites too, so they may as well activate them.
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Old 12-11-2012, 11:42
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O2 and Vodafone would normally put in separate bids I guess they could do it as an individual company and call themselves Nothing Nowhere

Im not sure how much of an agreement over 4G they have and what level of integration if any. Only got a month to wait and im sure there will be some sort of press release.

Still 800MHz with no coverage obligation must be a wet dream come true for O2
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Old 12-11-2012, 12:12
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Here are the spectrum lots up for grabs:

800MHz Paired

Lot 1 (2X 5MHz)
791-796MHz and 832-837MHz

Lot 2 (2X 5MHz)
796-801 MHz and 837-842 MHz

Lot 3 (2X 5MHz)
801-806 MHz and 842-847 MHz

Lot 4 (2X 5MHz)
806-811 MHz and 847-852 MHz

http://stakeholders.ofcom.org.uk/bin...Instrument.pdf
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Old 12-11-2012, 13:13
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No coverage obligations? I'm almost certain O2 just did something in its pants...
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Old 12-11-2012, 13:41
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No coverage obligations? I'm almost certain O2 just did something in its pants...
This music video springs to mind

The Lonely Island - Jizz In My Pants
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Old 12-11-2012, 13:52
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Hahaha.

Ofcom should've shown some teeth and made coverage obligations. I have faith that EE/Three will do a good job, but you can see it now can't you? Five years down the line...O2 dragging their heels with a dismal 70% coverage.

So are we expecting each operator to get one of those lots each?
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Old 12-11-2012, 14:09
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Hahaha.

Ofcom should've shown some teeth and made coverage obligations. I have faith that EE/Three will do a good job, but you can see it now can't you? Five years down the line...O2 dragging their heels with a dismal 70% coverage.

So are we expecting each operator to get one of those lots each?
I'm not defending o2 by any stretch here their 3g coverage *is* dismal... However, market forces (and their network partnership with Vodafone) will dictate they can't drag their feet when it comes to 4g.

Until now, they, and Vodafone, have had the benefit of 900mhz and the better penetration it provides... Once the 800mhz lots are out - and assuming another operator gets their hands on one, the playing field will be changed irreversably.
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Old 12-11-2012, 14:13
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Hahaha.

Ofcom should've shown some teeth and made coverage obligations. I have faith that EE/Three will do a good job, but you can see it now can't you? Five years down the line...O2 dragging their heels with a dismal 70% coverage.

So are we expecting each operator to get one of those lots each?
It looks as if you are successful in getting 2 lots at 800MHz you will have coverage obligations. If you get 1 lot you wont. Additionally there 14 Paired lots at 2.6GHz and 9 Unpaired lots at 2.6GHz.

800MHz useful for wide area coverage and 2.6GHz small area coverage (urban).

To make things more complex the Networks will be able to use 2.1Ghz for 4G from June 2014 at the latest. This is presently used for 3G. Plus 1800MHz for 4G as well.
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Old 12-11-2012, 16:54
legends wear 7
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What are the coverage obligations?
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Old 12-11-2012, 19:22
wavejockglw
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Daftest thread title on DS in years considering O2 have joined with Vodafone and they have both made a very clear LTE rollout commitment.

Both companies have already started installing equipment to deliver LTE and with promises of mid 2013 they would have to have done if the auction is in January 2013.

The O2 and Vodafone plans have been widely publicised so why anyone would start a thread about delays keeping any of those networks happy is questionable especially when others have been handed an advantage.

A wind-up of sorts maybe?

It'll be interesting to see what the networks end up with. The most valuable spectrum is the 850Mhz range which has the potential to penetrate buildings in urban areas but also to cover wide rural areas with fewer base stations. 2600MHz will work pretty well in cities with dense population but will not be great for covering wide geographic areas. EE and 3 already have spectrum for LTE at 1800MHz and that will be taken account of in the bidding process so the allocation of the 850Mhz spectrum will be interesting.
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Old 12-11-2012, 19:38
legends wear 7
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Looking at the documentation vodafone and O2 are limited to no more than 2x10mhz at 800MHz

Can't see either bidding for anything but the 800 range tbh
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Old 12-11-2012, 21:06
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Maybe they've got that lot of 2x5 specially in mind for O2 haha. They haven't needed to force any other network to meet any coverage requirements before, only 1.

Fun times, and to think it's 30 days away. It's come around quick hasn't it.
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Old 13-11-2012, 00:10
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Daftest thread title on DS in years considering O2 have joined with Vodafone and they have both made a very clear LTE rollout commitment.

Both companies have already started installing equipment to deliver LTE and with promises of mid 2013 they would have to have done if the auction is in January 2013.

The O2 and Vodafone plans have been widely publicised so why anyone would start a thread about delays keeping any of those networks happy is questionable especially when others have been handed an advantage.

A wind-up of sorts maybe?

It'll be interesting to see what the networks end up with. The most valuable spectrum is the 850Mhz range which has the potential to penetrate buildings in urban areas but also to cover wide rural areas with fewer base stations. 2600MHz will work pretty well in cities with dense population but will not be great for covering wide geographic areas. EE and 3 already have spectrum for LTE at 1800MHz and that will be taken account of in the bidding process so the allocation of the 850Mhz spectrum will be interesting.
O2 and coverage roll out commitment in the same sentence PMSL
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Old 13-11-2012, 00:34
DevonBloke
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Anyone know which networks are more financially able to outbid another? Will any networks be restricted in what they can bid for?
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Old 13-11-2012, 00:40
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Anyone know which networks are more financially able to outbid another? Will any networks be restricted in what they can bid for?
There is a cap:

The spectrum cap rule
24.—(1) The spectrum cap rule consists of the two requirements on spectrum holdings.
(2) The first requirement is that a bidder’s post-award spectrum holdings may not amount to total rights of use of more than—
(a) two hundred and ten megahertz of frequencies in the frequency bands set out in List A in Schedule 3, if the bidder’s post-award spectrum holdings do not include rights of use of frequencies in the frequency band 2570 MHz to 2615 MHz; or
(b) two hundred and fifteen megahertz of frequencies in the frequency bands set out in List A in Schedule 3, if the bidder’s post-award spectrum holdings do include rights of use of frequencies in the frequency band 2570 MHz to 2615 MHz.
(3) The second requirement is that a bidder’s post-award spectrum holdings may not amount to total rights of use of more than fifty five megahertz of frequencies in the frequency bands set out in List B in Schedule 3.
(4) “Post-award spectrum holdings”, in relation to a bidder, means—
(a) the bidder’s recorded spectrum holdings; and
(b) rights of use of frequencies that the bidder acquires under this award process.
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Old 13-11-2012, 00:44
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What are the coverage obligations?
98% coverage referring to the number of people who should be able to get 4G inside their home, rising to 99% when outdoors.
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Old 13-11-2012, 00:47
The Lord Lucan
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Out of the 4 networks Voda has the biggest pockets, probably EE next depending on how much 4G has already cost them but they do have Three's cash to burn seeing they will have handed over the cash for the 1800 spectrum. However i wouldn't bet on those 4 being the only bidders.Virgin, BT, China Mobile and a few others could shock one of the big 4.

I'm a bit confused though is it:
800 MHz paired frequency lot 1
791-796 and 832-837
800 MHz paired frequency lot 2
796-801 and 837-842
800 MHz paired frequency lot 3
801-806 and 842-847
800 MHz paired frequency lot 4
806-811 and 847-852

PLUS another 10Mhz 800 slot with the coverage obligation?

Or just the table of 4 to mix and match from?

The coverage obligation is 95% of each nation (population or terrain?) ie Wales, Scotland etc.
With a minimum 98% pop coverage overall clause it seems. Don't think it states a date.
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Old 13-11-2012, 00:50
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There is a cap:

The spectrum cap rule
24.—(1) The spectrum cap rule consists of the two requirements on spectrum holdings.
(2) The first requirement is that a bidder’s post-award spectrum holdings may not amount to total rights of use of more than—
(a) two hundred and ten megahertz of frequencies in the frequency bands set out in List A in Schedule 3, if the bidder’s post-award spectrum holdings do not include rights of use of frequencies in the frequency band 2570 MHz to 2615 MHz; or
(b) two hundred and fifteen megahertz of frequencies in the frequency bands set out in List A in Schedule 3, if the bidder’s post-award spectrum holdings do include rights of use of frequencies in the frequency band 2570 MHz to 2615 MHz.
(3) The second requirement is that a bidder’s post-award spectrum holdings may not amount to total rights of use of more than fifty five megahertz of frequencies in the frequency bands set out in List B in Schedule 3.
(4) “Post-award spectrum holdings”, in relation to a bidder, means—
(a) the bidder’s recorded spectrum holdings; and
(b) rights of use of frequencies that the bidder acquires under this award process.
Can I have that in English mate? Hahaha!
Sorry, been a very long day, I appear to have drunk more red wine than I intended and all those points make very heavy reading
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Old 13-11-2012, 01:04
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Can I have that in English mate? Hahaha!
Sorry, been a very long day, I appear to have drunk more red wine than I intended and all those points make very heavy reading
There is a cap of 210MHz (excluding low powered frequencies at 2.6GHz)
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Old 13-11-2012, 01:11
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Out of the 4 networks Voda has the biggest pockets, probably EE next depending on how much 4G has already cost them but they do have Three's cash to burn seeing they will have handed over the cash for the 1800 spectrum. However i wouldn't bet on those 4 being the only bidders.Virgin, BT, China Mobile and a few others could shock one of the big 4.

I'm a bit confused though is it:
800 MHz paired frequency lot 1
791-796 and 832-837
800 MHz paired frequency lot 2
796-801 and 837-842
800 MHz paired frequency lot 3
801-806 and 842-847
800 MHz paired frequency lot 4
806-811 and 847-852

PLUS another 10Mhz 800 slot with the coverage obligation?

Or just the table of 4 to mix and match from?

The coverage obligation is 95% of each nation (population or terrain?) ie Wales, Scotland etc.
With a minimum 98% pop coverage overall clause it seems. Don't think it states a date.
Win 1 lot at 800MHz and there will be no coverage obligation (yippe says O2)

Win 2 at 800MHz and there will be a coverage obligation (boohoo says O2)

[] supported our decision to set the reserve price for the A(ii) lot, i.e. 800 MHz with coverage obligation, at a discount against the reserve price for an equivalent amount of spectrum in A(i) lots, i.e. 800 MHz without coverage obligation. However, it considered that the coverage obligation set out in the Auction Statement is more onerous than Ofcom suggests as it includes a 95% coverage requirement in every nation (in addition to the requirement for 98% coverage of the UK population). [] argued that the cost of such obligation will be significantly higher than the £200m used by Ofcom.
http://stakeholders.ofcom.org.uk/bin.../statement.pdf
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Old 13-11-2012, 01:13
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There is a cap of 210MHz (excluding low powered frequencies at 2.6GHz)
Thank you.
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Old 13-11-2012, 01:40
The Lord Lucan
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Not a lot of spectrum on the table then.. I'm hoping EE gets the 10Mhz slot as they could do the coverage obligation and also it would be an up yours to O2/Voda for causing so much hassle and having 900 for so long.
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Old 13-11-2012, 15:49
DevonBloke
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Sorry, what is (or will be) the coverage obligation?
Surely EE's 1800 network will nearly cover the obligation.
I'm assuming here that EE's current plan to have every cell with 3G will be pretty much the same for LTE?
After the 2G refresh every cell will be LTEable. That's not really a word is it.
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Old 13-11-2012, 16:06
jabbamk1
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Out of the 4 networks Voda has the biggest pockets, probably EE next depending on how much 4G has already cost them but they do have Three's cash to burn seeing they will have handed over the cash for the 1800 spectrum. However i wouldn't bet on those 4 being the only bidders.Virgin, BT, China Mobile and a few others could shock one of the big 4.
.
I'm confused, why China Mobile?
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