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Ofcom Spectrum pricing review for 900MHz & 1800MHz (may impact 4G roll out)

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Old 02-08-2014, 01:56
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




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Old 02-08-2014, 10:34
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Not sure why VF want to whinge about it, they've had years of relatively cheap spectrum. If they're using it to make a lot of money, it's time that the taxpayer got a bit of it.

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.
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Old 02-08-2014, 10:39
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EE's comment about not been able to get the targeted 98% coverage by the end of 2014 is smoke and mirrors..... they were never going to be able to do that any way.... they are just using the Ofcom proposals as a convenient excuse.
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Old 02-08-2014, 12:16
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On the slow down of the 4G rollout point- unless all mobile operators do this then it's a bit of an empty threat. If Three keep rolling out at the current rate and O2/Vodafone just stop Three will overtake them for coverage well within the year. This will not look good for either company.

That said, I do think that the current coverage claims for 4G will be revised down for all networks slightly.
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