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BT.A Bt Group Plc

110.20
0.95 (0.87%)
Last Updated: 09:39:32
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Share Name Share Symbol Market Type Share ISIN Share Description
Bt Group Plc LSE:BT.A London Ordinary Share GB0030913577 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.95 0.87% 110.20 110.25 110.30 110.50 109.20 110.00 1,277,423 09:39:32
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Phone Comm Ex Radiotelephone 20.92B 1.91B 0.1916 5.75 10.95B

Ofcom Lowers Estimate of Mobile Network Operators' Licence Fees -- Update

19/02/2015 12:24pm

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By Ian Walker

LONDON--The U.K. Office of Communications, or Ofcom, once again lowered its estimate of annual license fees to be paid by mobile network operators on Thursday.

The regulator expects the fees to be around 223 million pounds ($340.24 million) a year, which is 10% lower than the GBP246.7 million forecast last August.

Ofcom had already lowered its forecast in August from its October 2013 estimate of around GBP309 million, citing further analysis and responses from stakeholders.

Ofcom, the independent regulator and competition authority for the U.K communications industries, said the new figures are based on a smaller discount rate the operators pay when they buy a license at auction for both 900 MHz and 1800 MHz bands, and a lower assessment of the market value of the 1800 MHz band.

Mobile network operators currently pay an annual fee of GBP64.4 million, which is being reviewed.

The U.K. government had directed Ofcom in 2010 to revise fees paid for the 900 MHz and 1800 MHz spectrum bands to reflect full market value, after completion of the 4G auction in February 2013. The two bands are used to provide voice and data services using a mix of 2G, 3G and 4G technologies.

EE, H3G, Telefonica and Vodafone agreed with the U.K. government last December to provide geographic voice coverage across 90% of the U.K. landmass by the end of 2017, and this was implemented through a variation of the mobile network operators' licences in January.

Under the new guidance, which is still subject to further review, Vodafone and Telefonica will each pay GBP61.2 million, down from GBP65.8 million estimated last August, while EE and H3G will pay GBP75.6 million and GBP25.2 million respectively, down from GBP86.4 million and GBP28.8 million.

Ofcom said its initial view is that while there could be incremental costs incurred by the mobile operators in meeting the coverage obligation, it is unlikely to have a material effect on the market value of the spectrum.

However, the regulator said it is open to considering alternative views before reaching a final decision. It has therefore published a consultation on the matter, which closes on April 17.

Ofcom will then make a final decision on the revised annual licence fees, which will likely to come into effect later this year, it said.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

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