Fears are growing that UK mobile users could be hit by a sharp hike in 3G and 4G rates, after communications regulator Ofcom published swinging increases in the charges operators will have to pay to license mobile spectrum.
The concerns stem from Ofcom's new consultation on revising annual licence fees for the 900 MHz and 1800 MHz spectrum bands, currently used by mobile network operators. These bands are used for voice calls, 3G and some 4G services.
To calculate the full market value of the spectrum, Ofcom said it has analysed the sums paid in the 4G auction, compared the amounts bid in overseas spectrum auctions and assessed the technical and commercial characteristics of the UK spectrum bands.
This has produced revised proposed total fees payable by mobile network operators of £138.5m per year for 900 MHz spectrum and £170.4m for 1800 MHz spectrum.
This means that, for example, Vodafone's fees will jump from £15.6m to £83.1m. O2's cost would go from £15.6m to £83.1m, while EE will see its current £24.9m cost quadruple to £107.1m.
In December 2010, the government directed Ofcom to revise these fees so that they reflect full market value. This, the regulator argues, required that, in setting these fees, it should have "particular regard" to the sums bid for licences in the 4G auction for 800 MHz and 2.6 GHz spectrum, which Ofcom completed earlier this year.
Mobile network operators currently pay a combined total of £24.8m per year for 900 MHz spectrum and £39.7m for 1800 MHz spectrum.
Subject to the current consultation, new annual licence fees are likely to come into effect next year.
Andoid Games
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