REGULATORY

Ofcom Sets Annual Licence Fees For Paired 2100 MHz Spectrum

By Emmanuel Oluebube, Correspondent UK

Ofcom has published the annual licence fees for the paired 2100 MHz spectrum band.

This spectrum was originally auctioned in 2000, with a fixed licence term of 20 years, to deliver 3G services. The licences, which are currently held by the four mobile network operators, include paired and unpaired spectrum.

In 2011, the TMT sector umpire varied the terms of these licences to make them indefinite and to require the payment of annual licence fees from 1 January 2022. 

Following consultation,Ofcom  has set an annual licence fee of £0.561m(US$743,914.05) per MHz for paired 2100 MHz spectrum. 

This means that, based on their current paired 2100 MHz spectrum holdings (and based on April 2021 prices), the mobile operators are required to pay the following annual licence fees:

EE: £22,440,000

O2: £11,220,000

Three: £16,549,500

Vodafone: £16,605,600

These fees will increase by CPI each year.

Further to consultation responses, Ofcom plans to consult further in the first half of 2022 on the future use of the unpaired 2100 MHz spectrum band, “and therefore we are not setting a fee for it in this statement,” it said.

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