Networks unhappy with Ofcom over planned price hike

Jordan O'Brien
October 11, 2013

Do you enjoy the price you pay for your smartphone, or would you rather pay a little less? Well, you might be forced to pay a little more under plans proposed by Ofcom to increase the price it charges network operators for using the radio spectrum.

Ofcom’s proposals would force mobile network operators to pay more than four times the amount they pay now to use the spectrum, a move that is widely speculated as a ploy to reclaim money lost from the 4G sale.

Vodafone has been strong in its response to the plans, telling the BBC that it is “disappointed” by the proposals, although EE took a more level head stressing that “there must be a balance between licence fees and the critical 4G network investment consumers and businesses are demanding to drive growth and jobs for the UK economy”

O2 and Vodafone would experience an identical rise, from the £15.6m the two networks pay now, all the way to £83.1m, although EE will see its price into the nine digits, at £107.1m.

Ofcom has stressed that the extra pricing shouldn’t affect customers, although some analysts have worried that this may happen regardless. The regulator does however stress that the price is very similar to that of elsewhere in Europe.

About the Author

Jordan O'Brien

Technology Journalist with an unhealthy obsession with trains and American TV. Attempts satire far too often. (+44) 020 7324 3502

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