UK Mobile operators have to pay about five times the existing amount in spectrum licensing fees to the government, amidst concern that the rise in price will be passed on to the consumers and obstruct 4G investment.
The UK telecoms regulator said that the latest price hike mirrors market value.
As per the latest proposals, the annual licence fees will now be £309m, up from the existing annual total of about £64.4m, which will apply to spectrum that was offered by the government in the early existence of the mobile phone industry.
Ofcom’s 900 MHz and 1800 MHz spectrum bands, currently used by mobile network operators, to offer services including voice calls, 3G and some 4G.
Ofcom’s proposals come after Britain raised below £2.34bn in a 4G spectrum auction for airwaves to transmit high-speed mobile Internet traffic.
The latest move by Ofcom may be opposed by mobile networks including Vodafone, EE, O2 and Three, which have earlier threatened the telecoms regulator with suits over past decisions.
Vodafone said in a statement that it was disappointed that Ofcom is proposing a 430% increase in the fees which the company pays for the existing spectrum at a time when it is investing more than ever in vital national digital infrastructure.
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"The regulator should be encouraging such private sector investment in infrastructure and new services like 4G, which will benefit consumers, businesses and the wider British economy for many years to come," Vodafone said.
Upon the implementation of the new prices, Vodafone and O2’s individual fees would rise from £15.6m to £83.1m, while EE will have to pay £107.1m, Three to shell out £35.7m.
The European Union is also working on reducing roaming costs in a bid to trim down the so-called ‘bill shock.
