Fees for Wireless Telegraphy Act licences

Ofcom is responsible for authorising civil use of the radio spectrum and achieves this by granting wireless telegraphy licences under the Wireless Telegraphy Act 2006 (the “WT Act”) and by making regulations exempting users of particular equipment from the requirement to hold such a licence.

Under section 12 of the WT Act we must prescribe in regulations (see ‘Reference Information’ section below) the sums payable in respect of wireless telegraphy licences other than those awarded by auction.

Administered Incentive Pricing (AIP) and cost-based fees

TThe WT Act enables us to recover the cost of managing WT Act licences by prescribing regulations under section 12 but, under section 13, it also permits the use of market mechanisms. For non-auctioned spectrum, the WT Act permits us to use Administered Incentive Pricing (AIP) and cost-based fees. We have published information about our policy and methodology for such fees.

Mobile cellular fees

Most mobile spectrum licences are still within the initial periods granted under award processes and are not subject to further spectrum fees until these periods expire.

However, spectrum in the 900 and 1800 MHz frequency bands that was licensed before the use of spectrum auctions is subject to annual payment of spectrum fees. In 2010, the Government directed Ofcom to revise the fees for 900 MHz and 1800 MHz spectrum licences to reflect the full market value of those frequencies. Since then, the 2100 MHz band awarded in April 2000 has passed the end of its initial licensing period and has also become subject to fees.

Ofcom consulted in June 2018 on Annual Licence Fees for 900 MHz and 1800 MHz frequency bands and in July 2021 on Annual Licence Fees for 2100 MHz spectrum, which have now been implemented.

Channel Islands and Isle of Man

The fees payable in respect of Wireless Telegraphy Act licences granted by Ofcom in Crown Dependencies are also set out in the licence charges regulations. Other non-WT charges that may be set by local regulators (JCRA-Jersey, GCRA-Guernsey or CURA-Isle of Man) or any of the island Governments are outside Ofcom’s remit and enquiries should be directed to the relevant authority concerned.

Other fees

Under the Communications Act 2003, administrative charges for the Networks and Services sector may also be payable, as set out in Ofcom’s tariff tables. These tables include also the fees for companies granted powers under the Electronic Communications Code.

Reference information