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- BT has asked Ofcom to review the fees charged for use of the 1800 MHz spectrum
- Ofcom charges licence fees to companies for using three spectrum bands
Ofcom plans to review the annual licence fees it charges mobile network operators (MNOs) for using mobile spectrum bands.
This follows a request from telecoms giant BT, which in March urged the regulator to look into the fees charged for use of the 1,800MHz spectrum.
The media regulator currently charges licence fees to companies including EE, Vodafone and O2 to use three bands of spectrum: 900MHz, 1,800MHz and 2,100MHz.
Research: Ofcom plans to review the annual licence fees it charges mobile network operators (MNOs) for using mobile spectrum bands
Ofcom says they are designed to ensure spectrum is used efficiently, but MNOs often complain they reduce profitability by increasing operating costs.
They also say the tariffs hamper investment in important projects, such as standalone 5G networks, which MNOs in several countries, including Spain, South Korea and the United States, have already launched.
A report by Mobile UK, the trade body for MNOs, published in July 2023, claimed that MNOs paid a total of £204m in annual licence fees in 2021 and more than £292m the following year.
He suggested two alternatives to mobile spectrum pricing that he believes will help the UK Government meet its goals outlined in its Wireless Infrastructure Strategy to expand 4G and 5G coverage.
One of these is the no-cost licence system, whereby Ofcom would not charge fees higher than the initial amounts paid for the spectrum.
The other is targeted tariff cuts, which Mobile UK says would “minimise the distorting impact” of licence fees.
Ofcom said it expected to consult on its initial findings by the end of 2024 and would “welcome any additional evidence that stakeholders feel would assist us in this review”.
The watchdog’s announcement comes a day after it fined BT £17.5m for failings when its emergency call-handling service suffered a major disruption last year.
BT, which operates the 999 system, suffered a network outage on 25 June 2023, lasting more than ten hours and resulting in almost 14,000 failed call attempts.
An Ofcom investigation found the FTSE 100 company lacked adequate warning systems and procedures to determine the scope and cause of the incident and identify mitigating actions.
It also found that BT’s disaster recovery platform lacked the “capacity and functionality to deal with a level of demand that could reasonably be expected.”
As a result, people with hearing and speech difficulties were unable to make phone calls, putting them at greater risk of harm.
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