British Mobile Services Providers Face Fee HikeAdded: Wednesday, October 30th, 2013
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According to media reports, British mobile network operators may face a 4-fold increase in license fees to rent the radio spectrum. These plans were revealed by Ofcom.
The watchdog confirmed that the new fees were in line with what other states paid. Moreover, the group believed that the UK operators had been getting off lightly for a long time. The United Kingdom raised a less-than-expected £2.34 billion in a 4G spectrum auction for airwaves in order to carry high-speed mobile broadband traffic, so it seems that Ofcom is looking to make up the shortfall.
The largest broadband providers Vodafone, Telefonica’s O2, EE and H3G pay around £64.5 million pounds altogether for using the 900 megahertz and 1800 megahertz spectrum bands. It was estimated that any changes would result in a £309 million increase.
According to Ofcom, spectrum is a valuable and finite national resource, and that is why charging for it might incentivize the optimal use of frequencies. In the meantime, the telcos can blame the UK government for the rent hike. Apparently, the government asked the watchdog to recalculate the fees to reflect “full market value”, and the latter said the new rules were expected to take effect in 2014 after a consultation period which will end in December.
The mobile companies keep reviewing the new bill, but Vodafone has already expressed its discontent after Ofcom was proposing a 430% increase in its fees. Maybe it believes that the regulator should be encouraging such private sector investment in infrastructure and new services – for example, 4G.
October 30th,2013Posted by:
Wednesday, October 30th, 2013
|Bet its the customers phone bills are going up in price|
|life is so expensive in the uk gas ,electric ,petrol.i cant afford to go dogging anymore|
|posted by (2013-10-31 11:58:31)|
|maybe vodafone can offer to pay it then as they dont pay tax in the united kingdom, so it can be a good will gesture to its customers...lololol|
|posted by (2013-10-31 20:41:42)|
|Cry me a river, cellular telecoms. All over the world, one of the most frequent government give-aways to business are slices of the spectrum. It's embarrassing how little these companies pay for the rights to these different frequencies. Pass a law that raises the rates to what they should be and requires the companies to eat the cost without passing it on to consumers. Cellular profit margins are among the highest of all sectors, if I remember correctly. Having them pay a fair price for the natural resources they exploit to charge customers an arm and a leg for doesn't sound like an outrageous proposition.|
|I agree with ofcom however every year with out fail the major mobile providers have been putting up customers bills, now i'm with virgin and have the same issue however if you sign a contract for 12,18 or 24 months then your bill should not rise however it still does cos of inflation so reading above i dread to think how much they will put there customers line rental up by because as always its the customers that foot the bill|
|We are so lucky in Australia. My carrier iinet charge me $20 per month for my mobile phone which gives me $1,000:00 free calls iinet to iinet and $450:00 free calls to any other provider. Great service provider and they will call you back if their lines are busy.||
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