Insights Ofcom announces annual licence fees that mobile operators will pay for 900 and 1800 MHZ spectrum

The operators use these spectrum bands to provide mobile voice and data services, using a mix of 2G, 3G and 4G technologies.

In June 2018, Ofcom published a consultation on the proposed licence fees that should apply for these spectrum bands. Following consideration of the responses, the regulator has concluded that the appropriate annual licence fees for these bands (expressed in April 2018 prices) are:

  • £0.093 million per MHz of 900 MHz spectrum; and
  • £0.805 million per MHz of 1800 MHz spectrum.

Ofcom is also consulting on the level of annual licence fees that should apply for the 40 MHz of spectrum in the 3.4 GHz band, and 80 MHz in the 3.6 GHz band, that are licensed to UK Broadband, which is owned by Hutchison 3G UK Ltd.

Ofcom is proposing that the fees for both 3.4 GHz and 3.6 GHz spectrum would be £0.358 million per MHz. While it proposes to apply the fees for 3.4 GHz spectrum as soon as possible, Ofcom plans to phase in the increase in fees for 3.6 GHz spectrum over the period to mid-2020. The consultation runs until 11 February 2019. To access the consultation, click here.