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Read this: Ofcom - Summary

Summary: 1.2We concluded in the SRSP 2010 that where we authorise rights to use spectrum through licensing, we can employ three mechanisms for setting fees cost based pricing, administered incentive pricing and auctions. We also determined that cost based fees which reflect our spectrum management costs should apply to spectrum licence classes where AIP which is calculated based on the opportunity cost of the spectrum used is not appropriate. 1.3We signalled our intention to review cost based fees in our 2013/14 Annual Plan, and this document serves as the first in a series of cost based fee reviews. - link

Ofcom - Summary…

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