Economic Insight’s analysis helps save UK mobile industry £62m a year. Ofcom’s latest proposals in relation to the setting of the license fees for 1800 and 900 MHZ spectrum translate to an annual saving to the operators of £62m relative to its original proposals. A key driver of the reduction is Ofcom’s proposal to use a ‘cost of debt’, rather than WACC, for deriving the fees. Here our report for Three Mobile, which argued that the spectrum should be assumed to be 100% debt financed, was a critical piece of evidence. We are continuing to advise Three on this matter.
