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Ofcom have raised over £1.35 Billion with the latest sale for 5G licences to the UK networks, let’s explore the chances of UK consumers having 5G coverage, and the relative cost of 5G mobile data in the UK.
It’s important when looking at what 5G coverage UK consumers can expect, to separate both rural and urban based users, explain how 5G signal boosters are important and explain why Ofcom has a very strict policy on the specifications for 5G signal Boosters.
5G monthly costs for UK mobile phone users
What should the average Vodafone, o2, EE or Three UK customer expect from the mobile operators and their MVNOs in terms of performance and price for 5G mobile phone coverage.
Firstly the price for a 5G licence was much lower than the fees achieved by Ofcom for the previous auctions held by Ofcom to sell off the mobile phone spectrum. The lower competition or at least the inability of the companies to bid as high as they did for the previous UK mobile licences is the key factor in the final cost to mobile users for the 5G licences.
This lower cost of the bandwidth in turn has immediate effects on the UK consumer. There is a larger percentage of overall funds to help the speed of roll out, the less money spent on licensing the more capital investment there is for the 5G mobile data infrastructure.
Some EU countries have built in the need to meet certain coverage of rural areas in order to be awarded a licence, most however have focused on selling the bands at auction to the highest bidders
The reduced licence fees means the UK consumer can expect to get 5G at a low monthly fee!
5G speed for mobile phone users
Now, what about the speed that can be expected from the 5G mobile data service in the UK once it is deployed.
This will depend on a few factors,
- The width of the band being used, the more bandwidth the more users it can fit in, having a 10MHz bandwidth v’s a 5MHz band width is a bit like having a doubledecker bus, the 10MHz band allows you to make more room for the data!
- The next and possible most important factor is the frequency used by the mobile phone operator for 5G. The higher the band frequency the higher the amount of data it can carry, hence the higher the speeds. Presently the majority of 5G in the UK is on 700 MHz and 2600 MHz bands. The highest spectrum that has been licensed but not yet rolled out is from 3.4MHz to 3.8MHz, with this frequency being the most recent to be auctioned and licensed by Ofcom.
The higher band 2600MHz is like the analogy of an ocean cruise liner able to travel faster, handle much more consumers and in the case of 5G, their traffic requirements, that is the reason the higher frequencies are used by the mobile phone networks in high population areas like cities and towns. By rolling out the higher frequency 5G mobile network operators can process a lot more traffic, making room for the huge number of users in a small area v’s the 700MHz which is more like the aforementioned James Bond speed boat, able to travel further at high speeds but can only handle a small number of passengers.
The 700MHz is also being pushed by governments to ensure the network operators cater to the more rural 5G client and their 5G rural coverage requirements. Where there are homes and businesses further from the cell tower, the 700MHz can reach them, helping the government and Ofcom meet the aim of having 99% coverage across the UK.
The latest auction results for networks on the 700MHz & higher bands are below
- EE – 723-733 MHz and 778-788 MHz;738-758 MHz; and 3680-3720 MHz.
- Three – 713-723 MHz and 768-778 MHz.
- 02 Telefónica – 703-713 MHz and 758-768 MHz; and 3760-3800 MHz.
- Vodafone – 3720-3760 MHz.
Ofcom have raised over £1 Billion from the networks above with the 5G auction, this is why Ofcom police the spectrum, keeping it safe from interference. They will prosecute those who use illegal amplifiers, this is why it’s important to buy from a UK based legitimate company who specialise in Ofcom compliant 5G signal boosters.
- EE UK has been awarded two 10MHz of paired frequency spectrum in the 700MHz band at auction for £280M. EE also has 20MHz of supplementary downlink spectrum in the 700MHz band at a cost of £4M; and for the future roll out 40MHz in the 3.6-3.8 GHz band at a cost of £168M.
- Three was also awarded two 10MHz of paired frequency spectrum in the 700MHz band at auction for £280M. They did not receive the higher 3700MHz bands. As they are merging with Vodafone, this is likely the reason to not have invested in the higher bands
- O2, as its parent company Telefónica UK Limited, has been awarded two 10MHz of paired frequency spectrum in the 700MHz band at auction, again for £280M.
- Vodafone has been awarded two 10MHz of paired frequency spectrum in the 700MHz band at a cost of £280M; and most importantly 40MHz in the 3.6-3.8 GHz band at a cost of £168M
Now that the above frequencies have been awarded, its time to explore what effect that will have for 5G mobile phone users across the UK
5G Coverage across rural UK areas
The two main 5G bands in the UK at present are 700MHz and 2600MHz. 5G Using 700MHz travels 3.5 times further than the 2600MHz 5G band. This means where 2600MHz 5G travels 4 miles, the 700MHz travels 14 miles from the tower. Ensuring 5G can travel to remote areas of the UK means the lower band frequency is key. The diagram below shows the distance that each frequency travels relative to each other.
Source Verizon
The UK has assigned a bandwidth of 80MHz in the 700MHz range and the full 400MHz in the 3.4 to 3.8MHz range. It has yet to assign any in the mmWave band. Only Croatia, Denmark, Estonia, Finland, Greece, Italy, Slovenia and Spain have released the mmWave band at the time of October 2024.
mmWave band UK 5G v’s The rest of Europe
5G coverage across the UK and Europe was at 82% by the end of 2023 as predicted by the ETNO, state of telecommunications with an investment of over 30 Billion having been invested in 5G mobile data infrastructure across the region.
Billions spent to date on 5G mobile coverage across Europe & the UK by region
Source Analysys Mason 2023
Low take up of 5G licences by the Mobile Network Operators
The majority of industry experts, myself included, believe the prices paid in the early 2000’s way overinflated the value of the licence, operators overpaid, the result was that the price to the end mobile phone user was higher than it should have been, the data speed less than expected and the technology resulting in a lower take up.
There are a number of 5G licences in the latest round of auctions that have not been sold, as bids by the operators did not meet expectations.
The facts behind this drop off in value for the licence can easily be seen in the overall market capitalization of the world leader, Vodafone. The overall value of Vodafone has dropped sharply from the dizzy heights in value and indeed the investors and shareholders no longer have the appetite to pay the huge licence fees paid in 1999 to 2003, with the intention to pass the cost on to the end consumer.
Source companiesmarketcap.com
As a result of the drop in revenues made possible from the auctions, the national regulators such as Ofcom are charging for not only the licence fees, but have also looked at how they can encourage the networks to give better outdoor coverage to remote rural areas instead of higher pricing.
5G Signal booster as required by Ofcom
This is one of the main reasons the 5G signal boosters have become listed by Ofcom and the standard for a 5G booster has been outlined in their 5G booster guidelines in 2022.
A 5G booster must;
- Use 17dB or lower power levels
- Have a narrow frequency band
- Internal noise filters and switch off mechanisms to protect the networks
The 700MHz range booster is so valuable to the end consumer, it will help the networks service 5G to remote areas, but once 5G meets foil backed insulation it will be blocked and no coverage will be possible inside the house. The easy solution to no 5G indoor coverage is to fit a Mobile Signal Booster, either a commercial 5G signal booster system or a self-installed Huaptec signal booster, which is Ofcom compliant.
As previously mentioned the 5G across 700MHz, like a speed boat, can travel further on the same amount of fuel starting out but can carry much less passengers than the 2600MHz large size cruise ship. It will make the trip to the front door easily, but you may need a signal booster to have 5G inside !
AI and 5G Networks energy consumption
The use of AI in order to make a more sustainable 5G network is becoming a reality, according to the ETNO, the need for new architectures like open RAN and 5G to operate at low energy consumption levels will be heavily dependent on AI.
AI is also expected to ensure faster data package transfer across the 5G infrastructure, the UK mobile network operators use of AI and automation means the operations of the 5G networks will be faster and more efficient. Ideally, together with lower licence fees it will also further reduce the cost of 5G to the networks, these cost savings can be passed on to the end consumer to ensure 5G signal coverage and lower data bundle pricing by the mobile networks.
The ETNO in its 2024 report started “An important one is AI/ML, which can be used to ensure that automation is intelligent, and that it is applied to predictive scenarios such as preventative maintenance, or dynamic switching of a user’s connection to the most robust link available”
5G should be faster, more readily available and cheaper to the end client however without a signal inside your home you will not be able to avail of the 5G mobile data.
The 5G signal booster from Huaptec is the best 5G home booster available at present in the UK while the commercial units available vary. It’s best to get advice from an expert about which 5G booster to employ in your business, for a commercial set-up.
Thank you and please contact mobile signal solutions for all things 5G, our team of experts are here to help you have 5G signal for your home or business!