Regulator Ofcom has proposed slashing the fees it charges mobile network operators to the tune of £40 million.
Fees, paid by BT Group PLC (LSE:BT.A) and Vodafone Group PLC (LSE:VOD) and other groups to use certain radio frequencies, could be slashed by as much as 21%, Ofcom said Friday.
Operators collectively pay around £320 million in the fees, which go to the Treasury.
Those paid to use the 900 megahertz (MHz) and 1800 MHz spectrums would be cut by 21%, Ofcom proposed, with cuts of 12% floated for the 2100 MHz spectrum.
“The amount of the reduction varies by operator because they hold different amounts of spectrum in each of the bands,” Ofcom said.
Ofcom’s review of the charges follows calls by BT over “possible material misalignment” between the fees and underlying market values of the spectrums.
BT shares gained 0.3% on Friday, while Vodafone moved 0.4% higher.