EE threat to rural 4G broadband if spectrum fees are quadrupled | Technology | The Guardian
The UK's largest mobile network wades into cost of living debate and may put further 4G investment on hold
Britain's largest mobile network EE has waded into the cost of living debate, saying if the government continues to raise spectrum fees and clamp down on mobile charges it will have to scale back plans to bring 4G mobile broadband to rural areas.
EE has been leading the push into mobile broadband but chief executive Olaf Swantee has told the Guardian his company may put further investment on hold.
"Something has to give in terms of the investment," he said. "It will be harder for me to maintain the current rollout of 4G. We will be forced to re-evaluate our 98% coverage target for the end of next year, and sparsely populated rural areas are, as we all know, at risk the most."
Politicians in Britain and Europe are helping families on squeezed incomes by making it easier to exit telecoms contracts, capping bills incurred on lost and stolen phones, stopping mobile companies charging for calls to freephone 0800 numbers and abolishing extra charges for using a phone abroad.
At the same time, the government is pushing for a fourfold increase in the annual rental fees mobile networks pay for spectrum. Ofcom wants to increase EE's spectrum rent from £25m to £107m a year, as outlined in a consultation that closes next week. The company is arguing it should pay no more than two or three times more.
Curbs on charges have been greeted as long overdue by consumers, but prices in Britain are lower than in Europe and America, and networks are warning that further political intervention could force them to pass the cost on to customers.
Kip Meek, public policy director at EE, said: "Can we pass that on to consumers? We don't want to pass that on to consumers. That feeds right into the cost of living debate. We are very anxious to persuade Ofcom that their current licence fee proposals need to come down."
EE, which controls a third of the market with 25 million customers, has brought 4G to 160 towns and cities and 70% of the population is within reach of its superfast service.
While discussions continue, the introduction of 4G is likely to slow, but one investment will go ahead regardless. EE wants to go back to basics and improve voice calls. Over the coming months, £275m will be spent replacing 50% of its voice equipment, some of which is perhaps ready to be consigned to a museum.
"If you visit some of the antennas in the UK you will find equipment that was developed when Margaret Thatcher was prime minister," said Swantee. "Because of years of under-investment, voice has been neglected and we are going to do something about that."
EE is aiming for 0.5% dropped calls and will publish its performance against that target. The average network drops 1%.
If EE is successful in lobbying for lower spectrum fees, it wants to supply not just mobile but home broadband over the air in remote regions where BT will find it too expensive to lay fibre optic cables. It has just spent £1m on 12 masts in the Northern Fells area of Cumbria that connect homes at average speeds of 24 megabits per second.
Swantee claims the £80m increase in his annual licence fee could pay for enough masts to bring superfast broadband to the whole of Wales. For now, the plan is to cover the rest of Cumbria and bring a signal to Bodmin Moor.
Hikers will be able to Tweet, Instagram and geolocate their beast of Bodmin sightings in real time.
"We are going to build a network that not just the company is proud of, but the country is proud of in a country, frankly, where most of the infrastructure is not really great," said Swantee, who is originally from Holland.
An Ofcom spokesperson said: "We await EE's response to Ofcom's public consultation on proposed licence fees. Mobile operators have known since 2010 that the licence fees would be revised to reflect full market value."
Quote:
The UK's largest mobile network wades into cost of living debate and may put further 4G investment on hold
Britain's largest mobile network EE has waded into the cost of living debate, saying if the government continues to raise spectrum fees and clamp down on mobile charges it will have to scale back plans to bring 4G mobile broadband to rural areas.
EE has been leading the push into mobile broadband but chief executive Olaf Swantee has told the Guardian his company may put further investment on hold.
"Something has to give in terms of the investment," he said. "It will be harder for me to maintain the current rollout of 4G. We will be forced to re-evaluate our 98% coverage target for the end of next year, and sparsely populated rural areas are, as we all know, at risk the most."
Politicians in Britain and Europe are helping families on squeezed incomes by making it easier to exit telecoms contracts, capping bills incurred on lost and stolen phones, stopping mobile companies charging for calls to freephone 0800 numbers and abolishing extra charges for using a phone abroad.
At the same time, the government is pushing for a fourfold increase in the annual rental fees mobile networks pay for spectrum. Ofcom wants to increase EE's spectrum rent from £25m to £107m a year, as outlined in a consultation that closes next week. The company is arguing it should pay no more than two or three times more.
Curbs on charges have been greeted as long overdue by consumers, but prices in Britain are lower than in Europe and America, and networks are warning that further political intervention could force them to pass the cost on to customers.
Kip Meek, public policy director at EE, said: "Can we pass that on to consumers? We don't want to pass that on to consumers. That feeds right into the cost of living debate. We are very anxious to persuade Ofcom that their current licence fee proposals need to come down."
EE, which controls a third of the market with 25 million customers, has brought 4G to 160 towns and cities and 70% of the population is within reach of its superfast service.
While discussions continue, the introduction of 4G is likely to slow, but one investment will go ahead regardless. EE wants to go back to basics and improve voice calls. Over the coming months, £275m will be spent replacing 50% of its voice equipment, some of which is perhaps ready to be consigned to a museum.
"If you visit some of the antennas in the UK you will find equipment that was developed when Margaret Thatcher was prime minister," said Swantee. "Because of years of under-investment, voice has been neglected and we are going to do something about that."
EE is aiming for 0.5% dropped calls and will publish its performance against that target. The average network drops 1%.
If EE is successful in lobbying for lower spectrum fees, it wants to supply not just mobile but home broadband over the air in remote regions where BT will find it too expensive to lay fibre optic cables. It has just spent £1m on 12 masts in the Northern Fells area of Cumbria that connect homes at average speeds of 24 megabits per second.
Swantee claims the £80m increase in his annual licence fee could pay for enough masts to bring superfast broadband to the whole of Wales. For now, the plan is to cover the rest of Cumbria and bring a signal to Bodmin Moor.
Hikers will be able to Tweet, Instagram and geolocate their beast of Bodmin sightings in real time.
"We are going to build a network that not just the company is proud of, but the country is proud of in a country, frankly, where most of the infrastructure is not really great," said Swantee, who is originally from Holland.
An Ofcom spokesperson said: "We await EE's response to Ofcom's public consultation on proposed licence fees. Mobile operators have known since 2010 that the licence fees would be revised to reflect full market value."