EE, the largest mobile operator in the UK, said Ofcom – the UK telecoms regulator – has not gone far enough in trimming down its annual licence fee proposals for 1800MHz spectrum.

“Ofcom’s new annual licence fee proposals for 1800MHz spectrum remain unjustifiably high at three and a half times current levels,” an EE spokesperson told Mobile World Live.

Under Ofcom’s original licence fee proposals, published in October, EE was facing an annual fee of £107.1 million on its 1800MHz spectrum assets. The revised proposal brings it down to £86.4 million, but that’s still a big hike from the current £24.9 million.

EE has said that double the current level would be acceptable.

“[The proposals] fail to adequately address the impact of significantly higher licence fees on investment in mobile networks and on consumer pricing,” continued the EE spokesperson. “The proposals are out of touch with the consumer appetite for mobile coverage in even more places across the UK.”

When Ofcom published its October proposals, EE cut its 4G population coverage target (for end-2014) from 95 per cent to 90 per cent.

The 90 per cent target is unchanged after Ofcom’s latest proposal, although EE is still endeavouring to reach 98 per cent of the UK population with 4G by the end of 2015.

Ofcom’s revised licence fee proposals, which also cover 900MHz frequencies, were cautiously welcomed by the UK’s three other mobile network operators.

“Previous fee proposals would have hampered industry investment and put pressure on retail prices to the detriment of mobile phone customers,” an O2 spokesperson told Mobile World Live. “We’ll read through the revised proposals in the coming weeks.”

Vodafone said it would review the new consultation document and continue to talk with Ofcom. Three UK said it would do the same.

“We are still reviewing Ofcom’s proposals but the new consultation goes some way to bringing proposed fees for 1800MHz spectrum closer to its real value,” a Three UK spokesperson told Mobile World Live. “We will continue to work with Ofcom to develop a licence fee process which reflects the true value of different frequencies of spectrum.”

Ofcom hopes to have new licence fees in place next year following a consultation period on its revised proposals.