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Cell community firms might see their prices diminished by about £40 million a yr after Ofcom proposed slicing a few of the annual charges it costs them.
The regulator presently makes firms reminiscent of BT and Vodafone pay annual licence charges to make use of sure radio frequencies, generally known as spectrum bands.
The charges come to about £320 million per yr and are paid to the Treasury.
Ofcom stated on Friday that it might cut back the charges by about 21% for the 900 megahertz and 1800 MHz spectrums.
In the meantime, for the 2100 MHz spectrum it might lower the annual charges by 12%.
The reductions would see cell phone operators pay about £40 million much less, with value reductions for every operator.
The quantity of the discount varies by operator as a result of they maintain completely different quantities of spectrum in every of the bands.
Ofcom’s resolution to overview how a lot operators pay for the bands got here after a request by telecoms big BT.
Ofcom says the charges are designed to make sure the spectrum is used effectively.
However firms usually complain that they cut back profitability by growing working prices.
It’s unclear whether or not the discount in charges can be handed on to shoppers within the type of decrease costs.
Earlier in December, Vodafone and Three got the inexperienced mild to merge into one firm.
The deal was authorized by the competitors watchdog on the situation each firms agree to speculate billions to roll out a mixed 5G community throughout the UK, the watchdog stated.
The businesses have additionally been informed to supply shorter-term buyer protections which might require the merged firm to cap sure cell tariffs for 3 years.
Vodafone and Three’s merger will create the UK’s largest cell operator, with some 27 million prospects.
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The Impartial
#Ofcom #proposes #slashing #cell #community #operator #licence #charges
Alex Daniel , 2024-12-13 11:18:00