19th Feb 2015 13:58
LONDON (Alliance News) - UK telecommunications regulator Ofcom Thursday has launched a consultation on whether the new obligation for network operators to provide voice coverage across 90% of the UK's landmass should affect how much they will pay for their revised annual licence fees.
The 90% obligation was agreed between the mobile network oeprators and the UK government last December. Ofcom says that whilst there could be incremental costs incurred by the mobile operators to meet this obligation, "it is unlikely to have a material effect on the market value of the spectrum."
However, it is said it is "open to considering alternative views before reaching a final decision."
Ofcom has set out provisional decisions on the revised licence fees, setting out total fees of GBP223 million per year, 10% lower than what it proposed last August, although still significantly increased from what the network operators are currently paying.
The new proposals for the networks are as follows:
| Vodafone | Telefónica | EE* | H3G* | Total |
Current | £15.6m | £15.6m | £24.9m | £8.3m | £64.4m |
Proposed in August 2014 | £65.8m | £65.8m | £86.4m | £28.8m | £246.7m |
Provisional decision before considering the impact of the new geographic coverage obligation | £61.2m | £61.2m | £75.6m | £25.2m | £223.3m |
Shares in BT are trading up 0.3% at 436.50 pence Thursday afternoon, while shares in Vodafone are trading up 1.3% at 228.30 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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