UK's New Wireless Spectrum Charges Could Result in Mobile Tariff Increases

UK's New Wireless Spectrum Charges Could Result in Mobile Tariff Increases Image Credit: Vodafone

UK's telecoms regulator, Ofcom last week announced the increase of wireless spectrum charges in the country. The hike, which will see Operators paying three times the current rate will allow the regulator to pocket close to 200 million pounds a year (£199.6m) from all four mobile operators in the country, Vodafone, O2, EE and Three. 

The sudden increase could results in the increase in mobile bills as Operators have not ruled out raising prices to absorb the cost of the new fees.

Ofcom concluded that mobile operators should pay a combined annual total of £80.3m for the 900 MHz band, and £119.3m for the 1800 MHz band. The fees are paid annually by mobile network operators for the 900 MHz and 1800 MHz spectrum bands, which they use to provide voice and data services using a mix of 2G, 3G and 4G technologies. 

Philip Marnick, Ofcom’s Group Director of Spectrum
We have listened carefully to the arguments and evidence put forward by industry, and conducted a complex and comprehensive analysis to determine the new fees. The mobile industry has not previously had to pay market value for access to this spectrum, which is a valuable and finite resource, and the new fees reflect that value.

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