Total Telecom – 4 5G Fanfare – Will overpaying for spectrum come back to haunt the UK’s big 4?

“The 3.4GHz spectrum band is hugely important for 5G, as it lets operators add extra capacity to their existing networks without having to add many new base station sites. This explains why the operators’ bids for this band were so much higher than expected,” he said.
 Despite the necessity of investing in spectrum, Nordstrom fears that paying an inflated price at auction will leave operators needing to claw back revenue elsewhere in order to renovate their existing networks.
“That operators paid higher than expected prices is good for HM Treasury but not so good for consumers, as it leaves the operators with less money to invest in their 5G networks and services. In today’s market, operators are capex constrained. It would have made more sense for Ofcom to agree a set 5G licence fee with each operator, which would then leave them with more money to invest in their networks,” he said.
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Light Reading - UK's £1.4B '5G' Auction Looks Bad for Industry

The 3.4GHz spectrum band is hugely important for 5G, as it lets operators add extra capacity to their existing networks without having to add many new basestation sites,” said Bengt Nordström, the CEO of the Northstream consulting business, in emailed comments. “This explains why the operators’ bids for this band were so much higher than expected.”… In [...]
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