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Ofcom Spectrum pricing review for 900MHz & 1800MHz (may impact 4G roll out)
Everything Goes
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Ofcom has “rethought” the fees that UK mobile networks pay for their 900MHz and 1800MHz spectrum, based on the industry's reaction to its latest proposal. Which has now been modified to £246.8m per year.
Mobile network operators currently pay an annual combined total of £24.8m per year for 900 MHz spectrum and £39.7m for 1800 MHz spectrum.
Ofcom is proposing to charge Vodafone and O2 £65.8m each per year in license fees for 900MHz and 1800MHz spectrum. EE £86.4m, and Three £28.8m will be charged for 1800MHz.
Ofcom says that how operators choose to finance this – which is around £3 per subscriber per year – is, of course, down to the individual operators.
Also worth remembering O2s so called 4G obligation is not actually a 4G obligation at all. Its only to provide 98% coverage at 2Mbps or above and doesn't have to provide any 4G at all.
EE and Vodafone have warned this will slow down 4G roll out. So we may well see more legal challenges. Heaven knows what O2 will do
http://www.theregister.co.uk/2014/08/01/ofcom_900mhz_1800mhz_spectrum_price_hike_600_per_cent/
http://www.mobiletoday.co.uk/news-list/news/industry/30324/ofcom-announces-cut-to-proposed-mobile-operator-charges.aspx
http://www.ispreview.co.uk/index.php/2014/08/ee-confirms-uk-4g-rollout-delay-blames-threat-licence-fee-hike.html
http://forums.digitalspy.co.uk/showthread.php?t=1937180
Mobile network operators currently pay an annual combined total of £24.8m per year for 900 MHz spectrum and £39.7m for 1800 MHz spectrum.
Ofcom is proposing to charge Vodafone and O2 £65.8m each per year in license fees for 900MHz and 1800MHz spectrum. EE £86.4m, and Three £28.8m will be charged for 1800MHz.
Ofcom says that how operators choose to finance this – which is around £3 per subscriber per year – is, of course, down to the individual operators.
Also worth remembering O2s so called 4G obligation is not actually a 4G obligation at all. Its only to provide 98% coverage at 2Mbps or above and doesn't have to provide any 4G at all.
EE and Vodafone have warned this will slow down 4G roll out. So we may well see more legal challenges. Heaven knows what O2 will do
http://www.theregister.co.uk/2014/08/01/ofcom_900mhz_1800mhz_spectrum_price_hike_600_per_cent/
http://www.mobiletoday.co.uk/news-list/news/industry/30324/ofcom-announces-cut-to-proposed-mobile-operator-charges.aspx
http://www.ispreview.co.uk/index.php/2014/08/ee-confirms-uk-4g-rollout-delay-blames-threat-licence-fee-hike.html
http://forums.digitalspy.co.uk/showthread.php?t=1937180
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Comments
Did Ofcom ever lower the totally obscene 3G licence payments? Never understood why that was a great idea to let the operators pay billions for licences leaving no money to build a network to use it.
That said, I do think that the current coverage claims for 4G will be revised down for all networks slightly.