5G regulation and law in United Kingdom

1. What is the state of 5G deployment in your country?

5G networks have been commercially available in the UK since 2019. Major mobile network operators have been gradually rolling out 5G services to cities and towns across the country. Deployment is still ongoing, with some areas yet to receive 5G coverage. However, most major cities and towns now have 5G coverage from at least one network operator.

5G roll-out has rapidly increased: the level of coverage provided outside of premises by at least one mobile network operator is now at 67-77% (up from 42-57% last year). This coverage is supported by 5G deployments on a total of around 12,000 sites, almost double the amount we reported last year.

5G rollout is expanding
EE, Virgin Media O2, Three and Vodafone have continued to extend their 5G networks across the UK, and we are reporting individual mobile network operator (MNO) coverage for the first time, based on the High to Very High Confidence range which we established in 2021. These ranges cover an increasing probability that the coverage predicted by MNOs will translate into coverage on the ground. As noted above, the level of coverage provided outside of premises by at least one mobile network operator across this range is now at 67-77% (up from 42-57% last year). The coverage provided outside of premises from individual MNOs ranges from 39-58% at High Confidence, with a range of 31-45% at our Very High Confidence level. Though most 5G sites are focused around busy urban areas - providing additional capacity to existing mobile data services - we’re now seeing coverage extending into smaller towns and other high footfall locations. The distribution of this investment remains broadly similar to last year, with 86% of sites in England, 8% in Scotland, 4% in Wales and 2% in Northern Ireland.

Several companies have already launched 5G, but not in every city. Providers are rolling out the new network in the United Kingdom throughout 2023.

EE launched their network in mid-2019, 5G is now live in over 50% of the UK population, and the plan is to cover the whole country by 2028.

O2 network currently covers around 750 towns and cities. Check current coverage here.

The company offers unlimited data on their 5G plans, and several 5G devices.

The network is also used by Tesco Mobile, which began offering 5G in March 2020 in parts of several cities.

Vodafone 5G originally launched in just a handful of locations on 3 July 2019, but has since expanded to include over 200 locations.

Through its MVNO partnership with Vodafone, Virgin Media also offers 5G services. The network went live in January 2021, in 100 locations.

Three UK subscribers who want 5G at home can subscribe to their 5G broadband plan, which provides unlimited data on a 12-month contract. Installation is performed via a plug-and-play hub.

Mobile 5G is available from Three U.K. via monthly, SIM only, and pay-as-you-go plans.

BT customers can access 5G in dozens of towns and cities, including London, Birmingham, Manchester, Edinburgh, Cardiff, Belfast, Glasgow, Newcastle, Leeds, Liverpool, Hull, Sunderland, Sheffield, Nottingham, Leicester, and Coventry.

Other coverage areas include London’s Waterloo and Euston stations, Cardiff Central station, Glasgow’s Bath Street and St Enoch Square, Belfast’s Kingspan Stadium, and Coventry’s Council House and Cathedral ruins.

See BT's 5G coverage map for a visual look at where you can get 5G in the UK.

Sky Mobile

Sky Mobile has 5G access in parts of dozens of cities, including Belfast, Cardiff, Edinburgh, London, Slough, Leeds, Leicester, Lisburn, Manchester, Birmingham, Glasgow, Liverpool, Newcastle, Bradford, Sheffield, Coventry, Nottingham, Norwich, Bristol, Derby, and Stoke.

In 2018, CityFibre and Arqiva announced details about the country's largest 5G small cell pilot trial in the London Borough of Hammersmith and Fulham. The companies created a 15km high-density fibre network which provides the bandwidth for mobile network operators to explore 5G.

2. Are telecoms companies monetising 5G investments - or are the services provided to consumers at similar prices to 4G? 

Telecom companies in the UK are attempting to monetise their 5G investments; however, the prices for 5G services and devices are currently often higher compared to 4G. The deployment of 5G networks and the development of new 5G devices is more expensive, which has led to higher prices for consumers. However, this may change as 5G technology becomes more widely available and the costs associated with it decrease. Some operators may also offer promotions and discounts to attract customers to their 5G networks. The exact pricing strategies of individual companies depends on factors such as competition and market conditions, as well as their own business objectives.

Vodafone’s 5G pricing is the same as using a 4G network.

3. Has 5G been launched for industrial purposes? For which sectors?

Yes, 5G technology has been launched in the UK for both consumer and industrial purposes. It is being used across sectors including healthcare, manufacturing, transportation, and entertainment. The high speed and low latency offered by 5G are enabling new and innovative use cases in these industries, such as remote surgery, autonomous vehicles, and augmented reality experiences.

4. What is being done to ensure that a wide range of operators and industrial companies, from small to large, have access to frequencies?

The communications regulator, Ofcom, is responsible for managing the country's radio spectrum, which includes allocating frequencies to different operators and industrial companies. To ensure a wide range of operators have access to frequencies, Ofcom uses a mix of licensing and spectrum sharing arrangements. For example, it uses auctions to allocate valuable spectrum for mobile services, and it allows shared use of spectrum in some bands for lower-powered devices, such as Wi-Fi. 

Stadiums, airports, and other special premises can access frequencies for their own use. For example, airports can use spectrum for air traffic control, and stadiums can use it for event management, public Wi-Fi, and other purposes. However, the availability and use of frequencies for these types of premises will depend on the specific circumstances and the frequency bands in question.

To help promote innovation, in 2019 Ofcom decided to open up airwaves that previously could only be used by certain businesses and organisations, also allowing access to airwaves that are licensed to mobile companies, but which are not being used by them.
Under the new sharing framework, these airwaves are available for local use by organisations such as small businesses or start-ups, with safeguards to ensure that no interference is caused to existing users.

This has paved the way for a number of new services.

  • Manufacturers can set up connected factories – using reliable, high-speed wireless networks to connect, control and monitor machinery.
  • Farmers can set up their own local network across large sites, improving communications between people and connected agricultural devices – used for monitoring livestock and crops, irrigation systems and smart tractors.
  • Business parks can set up their own networks without needing to rely on existing mobile and broadband coverage.
  • Holiday parks could help their visitors stay connected during their break, by setting up local mobile broadband networks.
    Shopping centres, transport hubs and logistics companies might also be interested in setting up their own local networks.

5G is already being used and tested across a number of sectors, benefiting people and businesses.
For example, one local council has installed 5G nodes on lamp posts to create a network aimed at helping social care patients. So far it has helped to keep patients and their families connected via virtual reality, as well as enabling biomonitors to detect whether patients are dehydrated. It is also being used to connect video systems that allow pharmacists to remotely check whether patients are taking their medication.

5G is also being used in farming – with one example being autonomous farming machinery. Machines scour the field using a video sensor, and apply fertilisers and pesticides where they’re needed. This helps to save resources and boost efficiency.

5G can also enable manufacturers to use smart machinery, providing and reacting to real-time data to improve efficiency.

Transport networks, local authorities and other public bodies could use it to improve public services like parking, traffic management and street lighting.

It could also bring major changes to healthcare. For example, by enabling technology that allows medical students to practise surgery in a connected, virtual reality environment that reflects a real-life experience – even allowing them to ‘feel’ the surgery they are training to deliver.
One mobile network is currently trialling ‘smart ambulances’ equipped with 5G technology, which will explore how patients could be treated in an emergency by connecting paramedics with hospital staff.

5. What public tenders have awarded spectrum licences? 

2018 auction

 

 

Ofcom has yet to release any of the millimetre Wave (mmW) bands for operators, which exist at much higher frequencies.

Ofcom is working on freeing up 168MHz of spectrum between 7.9GHz and 8.4GHz, and 2.25GHz of spectrum between 24.25GHz and 26.5GHz. Additionally, it plans to make the 1492-1517MHz band available for future wireless broadband services by December 2022.

There may yet be additional auctions beyond all this, as Ofcom has identified the 26GHz band (24.25-27.5GHz) as the next priority for global harmonisation, which it put forward for use at WRC-19 (World Radiocommunications Conference 2019), where the motion was supported.

As of May 2022, Ofcom has again highlighted the 26GHz band (24.25-27.5GHz), along with the 40GHz (40.5 to 43.5GHz) one, with plans – following consultation – to make this spectrum available for 5G use in 2024 – though delays are possible.
Ofcom is also considering the 37-43.5 and 66-71GHz bands, and potentially also the 32GHz (31.8 – 33.4GHz) band.

These higher frequency bands (known as mmWave or millimetre wave) are key to harnessing the full speed and potential of 5G, so networks will probably be keen to access them, given that they don’t have any mmWave spectrum yet.

Note however that not all of this spectrum will necessarily be ‘auctioned’ as such. Some might be offered on a first come, first served basis.

5.1 What were the criteria for awarding each of the tenders?

The criteria for awarding each of the 5G spectrum auctions in the UK would vary depending on the specific auction. In general, the awarding of spectrum licences was determined by the regulatory authority (Ofcom) based on a combination of factors, including the amount of financial bid and the technical and operational capabilities of the bidding company to provide high-quality 5G services.

Other factors considered in awarding the tenders include the bidder's spectrum portfolio, their coverage plans and the potential competition impact of the award. Ofcom is responsible for ensuring that the awards are made in the best interests of consumers and the overall objective of a competitive market.

The criteria used by Ofcom were based on several factors, including:

  1. Technical capability: The bidder's ability to provide the necessary technical capability to deliver the 5G service.
  2. Coverage: The bidder's plans for coverage of the 5G network and the population that would be served by it.
  3. Spectrum usage: The bidder's plans for using the spectrum efficiently and in a way that would benefit consumers and the wider economy.
  4. Value for money: The bidder's proposals for the amount they would pay for the spectrum, as well as their business plans and proposals for investing in the network.
  5. Financial stability: The bidder's financial stability and ability to meet the conditions of the auction and provide the 5G services.
  6. These criteria were used to assess the bids and determine which bidders would be awarded the spectrum licences.

5.2 What are the conditions of the spectrum licence? 

The conditions of the 5G spectrum licences are set by Ofcom. Some of the key conditions include:

  1. Roll-out: Licence holders are required to roll out their 5G networks to specific geographic areas within a set timeframe, with a focus on delivering coverage to rural and hard-to-reach areas.
  2. Sharing: Licence holders may be required to share their spectrum with other operators, to ensure that the 5G network is used efficiently and to promote competition in the market.
  3. Interoperability: Licence holders are required to ensure that their 5G networks are interoperable with other networks, to enable seamless roaming for consumers and reduce barriers to entry for new operators.
  4. Spectrum usage: Licence holders are required to use the spectrum for the purposes for which it was awarded and not to use it for any other purposes.
  5. Transparency: Licence holders are required to provide transparent information on their network deployment and coverage, to enable Ofcom to monitor their progress and ensure that they are meeting their obligations.

5.3 What is the price and how is it calculated?

The price of the 5G spectrum auction is determined through a multi-round auction process. The process was designed to allocate the available spectrum to the bidders who valued it the most and were willing to pay the highest price for it.

A brief overview of the process is:

  1. Bidding rounds: The auction consists of multiple bidding rounds, during which bidders place sealed bids for the available spectrum. The number of rounds is determined by Ofcom, and depends on the number of bidders and the complexity of the auction.
  2. Bid evaluation: After each round, Ofcom evaluates the bids and updates the prices of the available spectrum. The prices are increased in each subsequent round until no further bids are received.
  3. Final allocation: Once the auction has been completed, Ofcom allocates the spectrum to the winning bidders and announces the final prices.

More generally, the prices for the 5G spectrum are subject to regulatory caps and minimum reserve prices set by Ofcom, to ensure that the auction is fair and transparent.

6. Is there a long-term spectrum plan or announcements for future tenders? 

There may be additional auctions, as Ofcom has identified the 26GHz band (24.25-27.5GHz) as the next priority for global harmonisation, which it put forward for use at WRC-19 (World Radiocommunications Conference 2019), where the motion was supported.

As of May 2022, Ofcom has again highlighted the 26GHz band (24.25-27.5GHz), along with the 40GHz (40.5 to 43.5GHz) one, with plans – following consultation – to make this spectrum available for 5G use in 2024 – though delays are possible.

Ofcom is also considering the 37-43.5 and 66-71GHz bands, and potentially also the 32GHz (31.8 – 33.4GHz) band.

These higher frequency bands (known as mmWave or millimetre wave) are key to harnessing the full speed and potential of 5G, so networks will probably be keen to access them, given that they don’t have any mmWave spectrum yet.

Note however that not all of this spectrum will necessarily be ‘auctioned’ as such. Some might be offered on a first come, first served basis.

7. If 5G specific rules are drafted, what do they say?

Yes, there are specific rules related to 5G technology. These rules are primarily set by, Ofcom, and are designed to ensure that 5G networks are deployed in a way that is fair, secure, and in the interests of consumers.

Some of the key 5G-specific rules include:

  • Spectrum allocation: Ofcom is responsible for allocating the spectrum that is needed for 5G services. The allocation of spectrum is done through auctions, and the rules for these auctions are set by Ofcom.
  • Security requirements: The government has set security requirements for the deployment of 5G networks, including restrictions on the involvement of certain suppliers, such as Huawei.
  • Access and Interoperability: As mentioned earlier, Ofcom's General Condition 9 (GC9) sets out the rules for granting access to 5G networks and infrastructure, to ensure that competitors have fair and reasonable access to these networks.
  • Consumer protection: Ofcom has set rules to protect consumers, such as those related to the quality of service, pricing, and advertising.

These rules are designed to ensure that the deployment of 5G technology in the UK is done in a way that is fair, secure, and in the interests of consumers. Ofcom has the powers to enforce these rules and impose penalties for non-compliance.

8. What focused 5G network or spectrum sharing regulation exists?

As with the implementation of any new technology, there have been some issues with the implementation of 5G projects. Some of the key challenges have included:

  • Spectrum allocation: The government has allocated spectrum for 5G use through auctions, which has resulted in high costs for operators, which they pass on to consumers.
  • Technical difficulties: There have been technical difficulties in deploying 5G networks, particularly in rural areas, where there is a lack of infrastructure and the cost of building new infrastructure is high.
  • Security concerns: There have been concerns about the security of 5G networks,    
    particularly in relation to the involvement of certain suppliers, such as Huawei. The government has decided to limit the involvement of Huawei in 5G networks due to security concerns.
  • Regarding non-compliance with 5G concessions’ obligations, we are not aware of any recent decisions. However, Ofcom has the power to enforce compliance with obligations and impose penalties for non-compliance.

In conclusion, while there have been some challenges with 5G implementation, the government and regulator are working to address these and promote roll-out.

9. Are 5G network sharing or spectrum sharing agreements in place? 

Shared access licences are available in four frequency bands (1800 MHz, 2300 MHz, 3800-4200 MHz and 24.25 – 26.5 GHz), which support mobile technologies including 5G, and can be used for both private and business use.

10. What are or will be the rules for granting competitors access to new 5G networks once they are deployed?

5G Create is part of the government’s GBP 200m investment in testbeds and trials to explore new ways that 5G can boost productivity, grow existing businesses or spark new ones. In the competition’s second round, DCMS has provided GBP 15.2m to be shared across the nine projects with the remaining GBP 13.1m coming from project partners.

Five of the projects will also test out the technical possibilities of Open RAN - an alternative way of building telecoms networks that allows for greater interoperability of radio equipment between vendors and will give operators more choice and flexibility as they roll out 5G infrastructure.

The adoption of Open RAN forms a key element of the government’s 5G Diversification Strategy which aims to boost diversity, competition and security in the digital infrastructure supply chain.

11. What comments have been made regarding 5G cyber-security and possible use of Chinese technology, including regulation?

Ofcom is responsible for ensuring that competitors have fair and reasonable access to new 5G networks once they are deployed. The rules for granting access are set out in Ofcom's General Condition 9 (GC9), which applies to all electronic communications networks and services.

Under GC9, network operators must provide access to their infrastructure, such as masts and ducts, on reasonable and non-discriminatory terms. This is designed to ensure that other operators, such as mobile virtual network operators (MVNOs), can provide their own services to customers using the infrastructure.

Ofcom also has powers to impose additional access and interoperability obligations on specific operators, if it determines that these are necessary for competition and the interests of consumers.

In summary, there are regulations in place to ensure that competitors have fair and reasonable access to new 5G networks, with the aim of promoting competition and protecting the interests of consumers.

12. What comments have been made regarding 5G cyber-security and possible use of Chinese technology, including regulation?

Huawei equipment will be completely removed from 5G networks by the end of 2027, following new advice produced by the National Cyber Security Centre (NCSC) on the impact of US sanctions against the telecommunications vendor.  There has been a total ban on the purchase of any new 5G Huawei equipment since 31 December 2020.

The decision was taken in a meeting of the National Security Council in response to US sanctions imposed on Huawei in May, 2021 after the UK’s initial decision on high-risk vendors.

Portrait ofChris Watson
Chris Watson
Partner
London