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Thursday, September 24, 2015

Ofcom trebles the annual licence fee for UK mobile networks

UK communications regulator Ofcom has decided that the annual mobile fees for mobile operators will treble, following a government direction that the fees should reflect ‘full market value’.

Ofcom has concluded that mobile operators should pay a combined annual total of £199.6m per year for the 900MHz and 1800MHz spectrum bands, which are used for 2G, 3G and 4G voice and data services.

The figure is 13% lower than Ofcom’s earlier proposals in February but more than three times the current fee. Half of the increase will be payable from 31st October 2015; the second phase will be effective a year later.

Philip Marnick, Ofcom’s Group Director of Spectrum, said “We have listened carefully to the arguments and evidence put forward by industry, and conducted a complex and comprehensive analysis to determine the new fees. The mobile industry has not previously had to pay market value for access to this spectrum, which is a valuable and finite resource, and the new fees reflect that value.”

Dan Howdle from consumer mobile and broadband advice site Cable.co.uk said "There can be absolutely no doubt as to the fairness of simply ensuring the UK's mobile network providers pay a fair price for what is absolutely a finite resource. But, of course, the money has to come from somewhere. And while, on paper, O2, Vodafone, Three and EE appear in arguably rude health from the perspective of their announced operating profits earlier this year, behind closed doors they are unlikely be happy to see their war chest diminished. That Ofcom is 'phasing in' the move to a yearly lump-sum payment for the licence fees will make it especially difficult to detect when, if and how these costs will be passed on to consumers, either directly or indirectly via the fees paid by mobile virtual network operators (MVNOs) such as Virgin Mobile and giffagaff to piggyback their network infrastructure."

[Ofcom statement]

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Opinion Articles

Beer o’clock

Beer o’clock

at Mobile World Congress 2014

James Rosewell writes:

I noticed a new phenomenon at Mobile World Congress this year: Beer O’Clock. Come 5pm Monday through Wednesday, companies with larger booths would break out the Cerveza, Vino, Cava and a small number of Orange juices. All very sociable and fun… until the music started.

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Last week at The Fonecast: 3rd March 2014

The more things change, the more they stay the same

Mark Bridge writes:

So, that’s another Mobile World Congress in the bag. Yes, it was bigger than ever. Just like last year. Just like the year before, too.

Author: The Fonecast
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IBM, smartphones and a graffiti wall: what's the real message?

Mark Bridge writes:

I was ready to poke fun at IBM for its sponsored graffiti wall at Mobile World Congress this year. Graffiti and IBM don't have a comfortable history, as anyone who remembers the Linux campaign from 2001 will tell you.

Author: The Fonecast
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Last week at The Fonecast: 24th February 2014

Are you ready?

Mark Bridge writes:

Some companies have saved their big announcements for the week of Mobile World Congress. Samsung and Nokia, for example. Others have issued a press release in advance.

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When customer service stops working: a complaint about Vodafone

Iain Graham writes:

Vodafone’s admission last week that ‘some customers’ may have been experiencing issues with mobile services came three weeks late for me. I’ve been having my own ongoing battle with the network since the beginning of the month.

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A month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

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