Analysis by Economic Insight persuades Ofcom to consider CPI measure for 3G spectrum licensee fee. Ofcom is currently considering the most appropriate approach for setting the licensee fee it will charge mobile network operators for use of 3G spectrum. A key component of this licensee fee is the assumed cost inflation measure. Whilst Ofcom had previously stated that it intended to use RPI, analysis by Economic Insight (undertaken on behalf of Hutchison Three) has led Ofcom to open a consultation as to whether CPI would be a more suitable measure. Ofcom’s consultation can be viewed here, and our report for Three can be downloaded here.
