U.K. LTE Auctions Begins

The U.K. auction of spectrum intended to support new Long Term Evolution networks in that country have formally begun. 

And observers expect a bifurcated strategy to emerge, with the leading national mobile service providers, including Vodafone, O2 , Three and EE, largely competing for the 800-MHz frequencies most suitable to national coverage, even in less dense areas.


On the other hand, three potential new providers, including  BT, PCCW and MLL, are expected to bid for the higher frequencies more suitable for denser areas and cities. 

The primary issue of coverage suggests the current national providers want to replicate their 3G coverage when adding LTE. 

The new providers presumably will favor business plans that include wholesale, such as selling LTE capacity to other carriers in heavy-traffic areas, enterprise and business services. In other words, the 2.6-GHz frequencies will lead to building of networks whose primary value is "capacity," not "coverage."

The spectrum will almost double the frequencies available for U.K. mobile broadband  services.