UK telecom operators can now save significantly on their spectrum costs following Ofcom’s decision to revise annual licence fees (ALFs) for key frequency bands.
Ofcom will reduce fees by 26 percent for the 900 MHz band to £1.032 million per MHz and for the 1800 MHz band to £0.760 million per MHz.
Although fees for the 2100 MHz band will increase slightly by 6 percent to £0.722 million per MHz, the overall effect is a reduction in total fees paid by operators from around £325 million to £265 million annually.
This change, which reflects updated estimates of forward-looking market value, will save mobile network operators a combined £60 million per year. The savings vary by operator depending on their spectrum holdings but are expected to strengthen investment capacity across the UK telecom sector once implemented through new regulations later this year.
Changes in mobile trading
Ofcom has proposed changes to the Mobile Trading Regulations to ease the process of spectrum trading in the UK. Currently, licensees holding 900 MHz and 1800 MHz spectrum must pay all outstanding Annual Licence Fee (ALF) instalments before trading their spectrum. This upfront payment requirement, intended to secure fee collection, has been seen as a barrier to spectrum trades.
Ofcom now plans to amend Regulation 6 of the Mobile Trading Regulations to remove this requirement, allowing trades to proceed without paying all instalments in advance. The proposal aims to facilitate more efficient spectrum use, with Ofcom assessing the financial risk of potential default as low and manageable.
Additionally, the changes include aligning the rules for 2100 MHz spectrum with those for 900 and 1800 MHz, and updating outdated references to the 2011 Licence Charges Regulations, which have been replaced.
Ofcom believes these regulatory updates will streamline trading processes, remove unnecessary financial burdens, and support more dynamic allocation of spectrum. The consultation on these proposed amendments is open until 12 September 2025.
TelecomLead.com News Desk
