Introduction of New Pricing Arrangements Under Wireless Telegraphy ACT 1998

DTI Press Release - 25 March 1998

Proposals for new fee structures for Public Mobile Services and new "On-Site Private Business Radio" are set out in a consultation paper issued today by the Radiocommunications Agency. Building on the concepts set out in the consultation paper "Implementing Spectrum Pricing" issued in May 1997, this paper also sets out the outline steps for further fee regulations over the next three years and a timetable for further consultation.

In relation to Public Mobile Services, licence fees for the operators of cellular and PCN mobile telephony services will rise by 120% in July, but this is anticipated to have little effect on subscribers. The increases start to reflect the value of spectrum used.

For on-site users of Private Business radio a flat licence fee of £125 per site is being introduced, resulting in a reduction for many users.

Notes to Editors

1. The Wireless Telegraphy Act 1998 received Royal Assent on 18 March, and comes into force on 18 June (DTI Press Notice P/98/216).

2. Currently, on-site users pay the same fees as other standard private business licence fees. That is £140 for the first ten mobiles licensed, and greater sums for more mobiles, in bands, and may cover more than one site. The new proposals will result in reduction for most users who have single sites, but may mean an increase for users with multiple sites, reflecting the greater use of radio spectrum.

3. The May 1997 Consultation Document reflected on the theme of rebalancing fees to be fairer and to tackle the worst distortions of the current cost based fee regime. Presently, large telecommunication operators pay far less for a given amount of spectrum than small businesses do. To redress this imbalance, it is proposed to increase licence fees to the telecommunication service operators, but this increase is expected to equate to only 4p per subscriber per week.

4. Two further consultation documents are to be issued this year consultation further changes to licence fees in 1999 and 2000 respectively.

5. For copies of the consultation document issued today contact Matthew Neal at the Radiocommunications Agency

Tel: 020 7211 0191
Fax: 020 7211 0118

  Top