Licensed mmWave: Opportunity or overhead?

Following Ofcom’s latest spectrum auction, EE, O2, and VodafoneThree have each secured new mmWave spectrum – 800 MHz in the 26 GHz band and 1 GHz in the 40 GHz band – committing to pay £13 million each for this spectrum. The £39 million auction signals a major step in strengthening 5G capacity in the 68 designated high-density areas.

This development paves the way for faster, more resilient wireless broadband experiences. This opens doors to next-generation connectivity models such as Fixed Wireless Access (FWA). mmWave bands, particularly 26 GHz and 40 GHz.

The 26 GHz and 40 GHz bands together account for about 57% of all licensed UK spectrum (excluding the EHF bands). So, with 3 GHz of spectrum available in each band and a technology-neutral licensing model, these frequencies are designed for high-density, high-demand environments where sub-6 GHz simply runs out of room.

While fiber remains the long-term backbone of UK connectivity, licensed mmWave provides a faster, more flexible route to deliver gigabit-capable connectivity, particularly in dense urban areas where fiber deployment can be slow and expensive. With fiber deployments facing physical and economic constraints in many urban environments, FWA emerges as a flexible, high-speed alternative that can accelerate coverage, power AI-driven innovation and future-proof enterprise networks.

Shared Access (SAL) and Local Access (LAL) licenses for smaller providers

Ofcom’s two-tier licensing model has redefined how smaller operators can access and monetize high-capacity spectrum. The SAL offers an affordable, predictable path for WISPs and alternative operators – with fixed annual fees, indefinite renewals, and immediate deployment rights. It’s designed for scalability in suburban and rural markets, giving providers the confidence to expand coverage without major capital exposure.

Meanwhile, the LAL, while more complex, provides flexibility in high-density areas where shared access is restricted. The model can enable temporary use of unused spectrum held by mobile network operators, creating short-term opportunities for targeted enterprise or private 5G projects.

Combined, SAL and LAL provide a more inclusive framework – empowering small enterprises to participate in the mmWave ecosystem without the prohibitive costs of full-scale spectrum auctions.

Licensed spectrum: Reliable and scalable

Licensed spectrum fundamentally changes the economics and credibility of wireless internet service providers (WISPs). It eliminates the unpredictability of interference common in unlicensed bands, creating cleaner and more stable network conditions – a must for enterprise-grade and gigabit-class services.

This is especially important when competing against fiber-based broadband. This consistency allows WISPs to position themselves as credible fiber alternatives, capable of delivering the performance and uptime required in today’s digital economy.

From an investment point of view, holding licensed spectrum reflects a commitment to long-term stability. Banks and investors view the use of licensed spectrum as a cornerstone of carrier-grade service, which assures regulatory protection against signal disruption, competitive erosion, countering subscriber churn, making business models and ARPU forecasts more robust.

Key challenges and how new innovations are addressing them

Operating at mmWave frequencies has traditionally come with constraints: limited line-of-sight range, higher equipment costs, and sensitivity to environmental factors like rain, plus an inability to penetrate within buildings. However, modern radio design and implementation advancements are assisting network operators and system integrators in dodging some of these constraints.

New 3GPP-compliant, self-aligning radios and intelligent network management systems are simplifying deployment, improving link stability, and reducing operational overheads.

At the same time, advanced planning tools and adaptive beamforming technologies are enhancing planning precision and ensuring reliable link performance, even in difficult terrains. On the commercial side, the availability of flexible licensing models and modular deployment strategies allows WISPs to scale networks incrementally, aligning investment with demand.

Together, these innovations are changing mmWave from a niche technology into a viable, cost-effective platform for high-capacity wireless service delivery.

Telco-as-a-Service (TaaS) and neutral host models

The UK’s changing mmWave space is giving rise to a new era of collaboration between large spectrum holders and agile connectivity providers. TaaS and neutral host models are redefining how network infrastructure and spectrum are shared, shifting the industry away from ownership toward partnership.

Under these models, larger operators holding spectrum licenses can offer access to radio spectrum assets, infrastructure, and even core network capabilities as a managed service to smaller operators. Conversely, WISPs owning SALs in rural areas could offer their Gbps of deployed capacity back to larger operators as a TaaS play.

This flexible approach offers a two-way street that helps the larger license holders monetize underutilised assets while enabling smaller players to deliver services in markets that might otherwise be inaccessible.

For WISPs, it also means faster entry into high-density areas without the cost and complexity of acquiring exclusive licenses. Meanwhile, enterprises can benefit from access to bespoke private 5G or FWA solutions through a single, flexible platform.

Ultimately, TaaS and neutral hosts are transforming licensed mmWave from a closed ecosystem into a collaborative space – where connectivity is turning into a service more akin to a utility, not just a spectrum asset.

Licensed mmWave isn’t an overhead – it’s an enabler. It may not be the simplest route to connectivity – but it is becoming one of the most strategic.

Rather than viewing licensing as an administrative overhead, forward-thinking WISPs and enterprises are treating it as a catalyst for innovation. It provides an opportunity to deliver fiber-grade performance without the constraints.