AfterDawn: Tech news

UK spectrum price hike talk stuns mobile operators

Written by James Delahunty (Google+) @ 10 Oct 2013 21:53

UK spectrum price hike talk stuns mobile operators Mobile operators in Britain have been stunned by proposed increases in the license fees they must pay to use spectrum in the country.
If they were to go through, Britain's major mobile service providers could see their license fees rise more than 400 percent. Vodafone, for example, would see its fee rise from 15.6 million, to 83.1 million, while EE would jump from 24.9 million to 107.1 million. Three would see its rates rise from 8.3 million to 35.7 million.

Ofcom justifies the proposal based on the rates paid by operators in equivalent European markets, arguing that by comparison the rates in the UK are very low.

But operators told the BBC that the hike was excessive, with Vodafone saying it was disappointed. Others fear that the cost increase may pass on to consumers.

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

"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."

JP Morgan appeared to play down the possibility however, saying in an advisory note that competitiveness in the mobile market would stop the cost from passing down.

Tags: Ofcom UK
Previous Next  
Comments have been disabled for this article.

Latest news

Intel announces: First commercial 5G modem in development Intel announces: First commercial 5G modem in development (20 Nov 2017 16:46)
The world's second largest semiconductor manufacturer, Intel, has announced a major project in mobile chips. The company has introduced a future portfolio for commercial 5G modems. According ....
1 user comment
CCleaner becomes adware, here's how to avoid Avast ads CCleaner becomes adware, here's how to avoid Avast ads (20 Nov 2017 13:00)
One of the more popular Windows cleanup tools, CCleaner, has added Avast ads on to their software. After being acquired by Avast, CCleaner wants you to install the virus protection suite along ....
3 user comments
Tesla's power pack charges your phone like a Supercharger Tesla's power pack charges your phone like a Supercharger (18 Nov 2017 13:25)
Tesla announced yesterday two incredible products that are due in two or three years. However, you might not have the money, nor the interest, to buy either Tesla Semi or Roadster, but there ....
Apple's newest product misses the entire holiday season, hits the stores in early 2018 Apple's newest product misses the entire holiday season, hits the stores in early 2018 (18 Nov 2017 12:20)
Apple has decided to push back one of the products originally revealed nearly 6 months ago in WWDC. The smart speaker, dubbed HomePod, has been delayed further and won't be seen in stores this ....
1 user comment
Tesla unveils two new vehicles, electric semi and super-fast new Roadster Tesla unveils two new vehicles, electric semi and super-fast new Roadster (17 Nov 2017 10:53)
Tesla has today announced two new vehicle prototypes that will bring the total number of Tesla cars, and now trucks, to six. As expected Tesla unveiled their "beastly" semi-truck the first time ....
1 user comment

News archive