Mobile phone operators react to proposed Ofcom price hike

Networks have hit out at Ofcom’s proposal for increased annual licence fees, calling the plans “excessive”.

This week, Ofcom published a consultation on revising annual licence fees for certain mobile spectrum bands, which could see networks pay more than four times the current amount to use the radio spectrum.

Mobile network operators currently pay a combined total of £24.8 million per year for 900 MHz spectrum and £39.7 million for 1800 MHz spectrum. Revised propositions would see networks pay £138.5 million per year for 900 MHz spectrum and £170.4 million for 1800 MHz spectrum.

Vodafone and O2 would both pay £83.1 million, while EE would pay £107 million, and Three £35.7 million.

“The size of these figures may come as bad news to the mobile networks, but more worryingly could sound alarm bells for consumers,” Adam Kirby, telecoms expert at uSwitch.com told the BBC.

“The proposed new costs reflect a huge leap in the amount networks will have to pay the regulator for using the spectrum – our concern is that it will be consumers who are left to foot the bill.”

Subject to the consultation, new annual licence fees are likely to come into effect next year.