New Regulations: OFCOMs Licence Charges for Mobile Frequency Bands

The UK's Office of Communications (OFCOM) has unveiled the Wireless Telegraphy (Licence Charges for the 900 MHz and 1800 MHz Frequency Band) Regulations 2025, set to commence on 30th September 2025. Here's what you need to know:

What's Changing?

1. Licence Fees Introduction: From 31st October 2025, telecom companies holding licences for the 900 MHz and 1800 MHz frequency bands will be subject to annual charges. These fees are calculated based on the spectrum used and adjusted for inflation using the Consumer Prices Index (CPI).

2. Formula for Fees: The fees are computed with a specific formula considering the number of kilohertz authorised and the CPI. This ensures charges reflect current economic conditions and are fair across the board.

3. Payment Flexibility: OFCOM offers the flexibility of paying these charges in 12 monthly instalments. Licensees can opt for this arrangement by notifying OFCOM, easing the financial burden on businesses.

4. Revoking Old Regulations: The new regulations replace the 2018 rules, but any outstanding payments from the old system remain collectible.

Why Does This Matter?

For telecom operators, this change means a predictable and systematic approach to licence fees, crucial for financial planning and operations in a rapidly evolving industry. Moreover, the option to pay in instalments offers a practical solution for managing financial resources efficiently.

Impact on the Industry

While OFCOM hasn't published a specific impact assessment for these regulations, they have provided insights through public consultations and policy statements. These aim to ensure that the charges remain fair and do not stifle innovation or growth within the telecommunications sector.

Conclusion

OFCOM's updated regulations signify a structured approach to managing the UK's radio spectrum, aligning with economic conditions while providing financial flexibility to telecom operators. As these changes take effect, stakeholders will need to adjust their strategies accordingly to comply with the new financial obligations.