20 October 2025
The long-awaited mmWave auction in the UK has concluded! While it may not have made major headlines, this award quietly achieved what spectrum auctions are meant to do: allocate spectrum efficiently, transparently, and at sensible prices.
The results were that VodafoneThree, EE, and VMO2 each acquired 800MHz in the 26GHz band, at the reserve price of GBP8m. Whilst in the 40GHz band, each MNO acquired 1000MHz at the reserve price of GBP5m.
Enough spectrum for everyone
One of the most important factors behind this smooth outcome was the abundance of available spectrum. With 2400MHz in 26GHz and 3000MHz in 40GHz, there was enough spectrum for each operator to secure a meaningful share. The large quantity effectively removed the risk of scarcity — and with it, incentives for bidders to drive up prices.
Low price is not a sign of failure
Too often, regulators set reserve prices so high that they discourage participation, leading to unsold spectrum. This is especially true for mmWave spectrum, where many auctions resulted in unsold spectrum in recent years.
In contrast, the UK regulator – Ofcom – set modest reserve prices – GBP2m per 200MHz in 26GHz and GBP1m per 200MHz in 40GHz. A key objective for any regulator should be to sell all the available spectrum and not to maximise revenue. Ofcom achieved precisely that.
The auction’s swift conclusion should not be mistaken for a lack of competitive design. The absence of spectrum caps and low reserve prices allowed the three mobile operators to compete for additional spectrum as well as the potential for entrant bidders. The rapid conclusion simply reflects the modest value of marginal spectrum when there is plenty of spectrum supply in an auction.
Is this the new benchmark for mmWave spectrum?
Prices for mmWave spectrum have reduced dramatically over time. Between 2018-2020, this spectrum sold in South Korea and the US at much higher prices. Even in Europe, this spectrum was historically sold at many multiples of what the UK operators just paid (e.g. Italy).
The falling prices for mmWave spectrum reflect the mobile operators’ current demand for this spectrum – relatively modest given its limited propagation and the availability of better alternatives such as C-band.
