Statement published 13 December 2021
In this statement, we set out our decision on the level of annual licence fees for the paired 2100 MHz spectrum.
In brief, we have decided:
- to set an annual licence fee of £0.561m per MHz for paired 2100 MHz spectrum; and
- to consult further on the unpaired 2100 MHz spectrum.
Ofcom is today launching a review of the annual licence fees we charge mobile network operators for use of three mobile spectrum bands (900 MHz, 1800 MHz and 2100 MHz).
Annual licence fees (ALFs) are fees we charge mobile network operators to use certain spectrum bands. They typically come into effect after a mobile operator’s licence won at auction has come to the end of the initial licence period. The fees are designed to ensure that the spectrum is used efficiently. We currently charge ALFs for three mobile spectrum bands (900 MHz, 1800 MHz and 2100 MHz).
On 28 March 2024, BT wrote to Ofcom to request a review of the ALFs we charge for 1800 MHz spectrum. We have now considered BT’s request, and we consider that the evidence suggests that a fee review is justified. As a result of the commonalities in the formula we use to set ALFs, we have decided to begin a review of all of the ALFs we currently charge (that is, ALFs for 900 MHz, 1800 MHz and 2100 MHz spectrum).
We expect to consult on our initial findings by the end of this calendar year. We welcome any additional evidence which stakeholders consider would assist us in this review.
