Insights Ofcom consults on annual licence fees for 2100 MHz spectrum licences

Ofcom has published the proposed annual licence fees for spectrum licences in the 2100 MHz band. This spectrum was originally auctioned in 2000, with a fixed licence term of 20 years, to deliver 3G services. The licences, which are currently held by the four mobile network operators, include paired and unpaired spectrum.

In 2011, and following a UK Government direction, Ofcom varied the terms of these licences to make them indefinite and to require the payment of annual licence fees from 1 January 2022. The UK Government direction requires Ofcom to set annual licence fees that reflect the full market value of the spectrum.

Ofcom has proposed the following annual licence fees:

  • £0.567 million per MHz for the 119.1 MHz of paired 2100 MHz spectrum; and
  • £0.290 million per MHz for the 20.1 MHz of unpaired 2100 MHz spectrum.

Ofcom is also proposing that these fees increase by CPI each year.

The consultation closes at 5pm on 8 September 2021. To access the consultation, click here.