New Charges On Mobile Phones

The Wireless Telegraphy and Radio Spectrum Bill could cost mobile phone users an extra 10p a week. It may also lead to the cost of using minicab radio systems rising by the equivalent of 50p a week.

But Downing Street sources predicted that in both cases the industry may be able to absorb the cost rather than pass it on the customer.

The Bill, based on plans drawn up by the last government but never put into practice, could raise more than £1 billion for the Treasury.

The measure will not be among the main body of 22 bills in the Queen's Speech.

Instead it is one of four additional bills that will be legislated upon if there is sufficient parliamentary time.

In the past, charges for licences for using the radio airwaves were based on the recovery of the administrative costs.

Under the new measure, for the first time the link between costs and the licence fees will be broken and in future they will take into account the economic value to the user.

Initially, the higher charges would be limited to those parts of the country where there is congestion of usage.

To begin with around 80% of current users are unlikely to be affected by the higher charges, although they could apply as more licences are brought on stream.

As well as raising revenue, the Bill is aimed at encouraging more efficient use of the radio spectra, especially where there is currently congestion.