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Ofcom to review MNO licence fees

Regulator expected to consult on initial findings by end of 2024.

Ofcom has announced plans to review the annual licence fees it charges MNOs for using mobile spectrum bands.

It follows a request by BT in March to look at the fees charged for using the 1800MHz spectrum.

The regulator currently charges licence fees to the MNOs for using the 900 MHz, 1800 MHz, and 2100 MHz spectrum bands.

Ofcom has said that the fees are designed to ensure the spectrum is used efficiently.

However, MNOs often argue that they increase operating costs, thus reducing returns and investment in projects such as 5G standalone networks. 

According to a report by Mobile UK, the trade body for MNOs, published in July 2023, MNOs paid a combined £204 million in annual licence fees in 2021 and more than £292 million in 2022. 

Ofcom said that it anticipated consulting on its initial findings by the end of 2024 and would “welcome any additional evidence which stakeholders consider would assist us in this review”.

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