Ofcom Looking To Increase Annual Spectrum Fees
News: UK telecoms watchdog Ofcom has published a consultation on increasing the annual licence fees for 900MHz and 1800MHz spectrum bands, reports Cellular-News. The regulator's review follows the government's request that the fees should reflect full market value. The country's telecom companies currently pay a combined total of US$39.63mn per year for 900MHz spectrum and US$63.44mn for 1800MHz spectrum. The review, which is likely to come into effect in 2014, will see licence fees raised to US$221.33mn per year for 900MHz spectrum and US$272.35mn for 1800MHz spectrum.
BMI View: The UK telecoms market is mature with high penetration of all services, and a good roll-out of next generation services. As a result of its maturity the UK market has diminished opportunities for subscription growth, and operator strategies reflect this by increasingly focusing on value generation from subscriptions. In the mobile market this means operators are focused on rolling out LTE, with three networks operational from the end of August 2013, as well as VAS such as mobile advertising and payments. Meanwhile, in the fixed broadband sector, operators continue to target the converged services market through the provision of triple- and quad-play packages, with BSkyB the outperformer in this area since 2010.