Welcome to the MacNN Forums.

If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

You are here: MacNN Forums > News > Tech News > British carriers face higher spectrum charges under new proposals

British carriers face higher spectrum charges under new proposals
Thread Tools
MacNN Staff
Join Date: Jul 2012
Status: Offline
Reply With Quote
Oct 10, 2013, 07:56 AM
Carriers in the United Kingdom will be forced to pay more for its spectrum, if a regulator gets its way. A consultation by Ofcom states that it hopes to increase the annual license fees for 900MHz and 1800MHz spectrum in the country, with carriers facing the prospect of paying more than four times as much for already-allocated spectrum.

The changes in pricing stem from an instruction from the British government in late 2010 to update fees to reflect the full market value of the 900MHz and 1800MHz bands, taking into account the payments for licenses in the 4G spectrum auction and prices paid by carriers for similar bandwidth abroad. At present, the networks pay a total of £24.8 million ($39.5 million) per year for the 900MHz range and £39.7 million ($63.3 million) for the 1800MHz allocations, but the proposals put these up to £138.5 million ($220.9 million) and £170.4 million ($271.8 million) per year respectively.

On a carrier-specific level, EE and sub-brands T-Mobile and Orange are hit the hardest, with the proposed fees more than quadrupling to £107.1 million ($170.8 million). Vodafone and O2 will both be expected to pay £83.1 million ($132.6 million) per year instead of the current £15.6 million ($24.9 million) they individually pay. Three will go from paying £8.3 million ($13.2 million) to £35.7 million ($57 million) under the proposals. The rates will also most likely increase every year, due to its connection to the Retail Price Index.

While it is thought that the extra charges could be passed onto the phone bills of customers, the carriers still have a chance to fight the fees. The consultation closes on December 19th, giving carriers time to reply to Ofcom's proposals and potentially lower them before they are expected to come into force next year.
Thread Tools
Forum Links
Forum Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On
Privacy Policy
All times are GMT -4. The time now is 05:44 PM.
All contents of these forums © 1995-2015 MacNN. All rights reserved.
Branding + Design: www.gesamtbild.com
vBulletin v.3.8.8 © 2000-2015, Jelsoft Enterprises Ltd., Content Relevant URLs by vBSEO 3.3.2