Ofcom has today published its decision to alter
the annual licence fees (ALFs) paid by mobile networks for using
certain spectrum bands. The changes, which follow a consultation,
will save the mobile operators an estimated combined total of
£60m a year.
We charge mobile network operators annual licence fees for using
three bands of spectrum (900 MHz, 1800 MHz and 2100 MHz). The
fees currently total approximately £325m per year and go to HM
Treasury.
To ensure that spectrum is used efficiently, we aim to set ALFs
based on an estimate of the forward-looking market value of the
spectrum in each of the bands.
Our decision
In line with our proposed approach at consultation, we are
reducing fees for two spectrum bands and narrowly raising fees in
one band.
However, having considered the responses to our consultation, the
reductions to fees we are making for 900 MHz and 1800 MHz will be
slightly larger, and the increase in fees for 2100 MHz will be
slightly smaller, than we originally proposed.
We will therefore:
- reduce the fees for 900 MHz spectrum to £1.032m per MHz (a
26% reduction from current levels);
- reduce the fees for 1800 MHz spectrum to £0.760m per MHz
(also a 26% reduction from current levels); and
- will increase fees for 2100 MHz spectrum to £0.722m per MHz
(a 6% increase from current levels).
While the amount of money saved by each mobile network operator
will vary because they hold different amounts of spectrum in each
of these bands, all operators will benefit from these changes,
strengthening their ability to invest in the UK.
We will make the Regulations that will give effect to our
decisions later this year.
Mobile trading regulations
Separately, we are today opening a consultation on
amending the Mobile Trading Regulations.
Our proposed change would remove the requirement that mobile
network operators pay all instalments of their ALFs before
trading spectrum they hold. This would remove a potential barrier
to spectrum trading, which could encourage efficient use of
spectrum.
We welcome responses on our consultation by 12 September 2025.
