Recommendation 21

Ofcom has yet to determine many of the details of the fee regime, including the period over which set-up costs will be recovered; the revenue threshold at which firms start to pay fees; and the fee rates payable. It had also yet to undertake financial modelling to inform the design of the fee regime.47 Ofcom explained that, before it sets up the fee regime, the Act requires it to produce advice for the Secretary of State on revenue thresholds, which will require consultation, and to publish a statement of charging principles that sets out how Ofcom has calculated the fees for each year. Ofcom expects that the fees are likely to be index-linked, but is still working out the details.48