Ofcom has rejected calls from some operators to abandon the upcoming 5G spectrum auction in favor of an award process and will launch tenders on the air in January 2021. The auction will see 80 MHz of 700 MHz spectrum and 120 MHz of 3.6 frequencies. -3.8 GHz available for 5G networks. This equates to an 18% increase in the amount of spectrum available to operators. The process has already been delayed by the coronavirus pandemic, but several networks have raised concerns. O2 had opposed the two-stage element of the auction. The main stage will see participants bid for separate lots of spectrum and the allocation stage will determine specific frequencies. Operators will be able to negotiate among themselves so that their new spectrum is adjacent to existing frequencies. O2 wanted the spectrum to be harmonized into contiguous blocks to avoid this process. Vodafone went further and requested an administrative process instead of an auction. Last month, the UK government banned operators from buying telecoms equipment from Huawei by the end of the year and also told them to retire existing 5G kit made by the company by 2027. Nick Jeffrey, CEO of Vodafone UK, said that the measure would consume financial and technical resources that could have been spent on network infrastructure. The government has not indicated that financial support will be provided to compensate operators for the additional costs incurred. However, Jeffrey believes that a different approach to spectrum allocation could help alleviate some of the costs. Instead of "bidding" on the spectrum, Vodafone is proposing that operators receive a share of the airwaves in exchange for the reserve price. This would reduce the cost of spectrum, helping operators but reducing revenue generated by the treasury. While other countries use a spectrum allocation model, the government's approach to auctions is much more pragmatic than it was in the heady days of the 3G era. While an auction is still believed to provide reasonable value for public resources, it is increasingly recognized that the indirect benefits of mobile connectivity to the economy outweigh the direct financial gain from licences. Ofcom told operators that there is no administrative process that meets their obligations to maximize the potential of a scarce resource like spectrum. He added that maximizing revenue was never his priority and that he did not have the authority to do so. "Demand for internet access on the go is skyrocketing, and the pandemic has only increased the importance of mobile services for individuals and businesses," said Philip Marnick, Head of Ofcom's Spectrum Group. . "The rapid release of these airwaves will bring a much-needed increase in capacity, helping mobile customers get better service."