Economic Insight helps secure 13% lower annual licence fees for the mobile industry. Ofcom today published revised annual fees for mobile operators, determining the amount of money they must pay to use 900MHz and 1800MHz spectrum. In setting the new annual licence fees, Ofcom admitted that an appropriate starting point for calculating the discount rate is the cost of debt (lower polar case) plus 25% of the difference between the cost of debt (lower polar case) and the WACC (higher polar case). We advised Hutchison 3G (Three) on this matter.
