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UK: Five-fold spectrum fee hike hits hard on mobile telcos

By  |  October 10, 2013

The largest mobile operators in the UK may soon be facing mobile spectrum licensing fees five times larger than those they currently pay, say reports.

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    Telecom watchdog Ofcom began a consultation on increasing the fees in efforts to have them reflect their market value. To do so, the regulator said in a statement it compared fees paid abroad, assessed domestic technical characteristics of the spectrum and took into account bids issued in the 4G auction.

    Unsurprisingly, major carriers like Vodafone are sounding off against the proposed hikes, releasing a statement expressing “disappointment” of Ofcom’s plans.

    Outlining plans to pump more than $1 billion into its network and bring 4G coverage to 98 percent of the population in the next two years, Vodafone denounced the fee hikes, saying Ofcom “should be encouraging such private sector investment in infrastructure and new services.”

    Other companies, including O2, said they would have to review the proposals in full before releasing a comment. Shareholders have until December 19 to respond.

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