LONDON (Alliance News) - UK telecoms regulator Ofcom Friday proposed revised licence fees for mobile spectrum which will significantly increase the amounts mobile operators pay for their spectrum capacity, although they are lower than previous proposals made in October 2013.
Ofcom was directed by the UK government in 2010 to review fees to reflect their full market value. The regulator said that it had built on earlier analysis after considering responses from stakeholders, leading to a lower, revised proposal.
Mobile network operators Vodafone Group PLC, Telefónica O2 UK, EE Ltd, and Hutchinson 3G UK Ltd currently pay a total of GBP24.8 million a year for the 900 megahertz spectrum and GBP39.7 million for the 1800 megahertz spectrum.
Under the proposals made on Friday, they would pay a total of GBP109.3 million per year for the 900 megahertz band, and GBP137.5 million for the 1800 megahertz spectrum.
The regulator said that it had reviewed responses, and updated its analysis of bids made in the 4G auction for the 800 megahertz and 2.6 gigahertz spectrum bands, its interpretation of international benchmarks, and its calculation to convert the total value of the spectrum into a yearly fee over 20 years.
Whilst the new proposed fees are significantly higher than the mobile operators currently pay, they are lower than its proposals last October. At that time, the regulator proposed fees of GBP138.5 million per year for the 900 megahertz band, and GBP170.4 million for the 1800 megahertz band.
Ofcom is conducting a further consultation on the proposals which closes September 26, and expects to publish its final decision on the fees "around the turn of the year."
The new fees are likely to come into effect in 2015.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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