Price hikes expected as UK spectrum charges set to be passed on to operators
Mobile telephone bills are expected to rise after Ofcom, the telecoms regulator, has announced significant price hikes for operators on UK airwaves.
The cost for using the UK spectrum could rise by up to three times for some operators.
Ofcom is set to take in £199.6m a year from higher prices, the Telegraph reports, up from its current income of £64.4m a year.
The price hikes will cost operators more in accordance with how much bandwidth they use.
Vodaphone and O2 will see their bills almost triple from £15.6m to £49.6m, EE’s fees will go up from £24.9m to £75m and Three’s charges will rise from £8.3m to £25m.
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.”
The new fee structure will be implemented by the end of October 2016.