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Executive summary

1.1 Ofcom’s Spectrum Framework Review: Implementation Plan (‘SFR: IP’) , issued on 13 January 2005, included provisional proposals on the award of wireless telegraphy licences for 10 GHz, 28 GHz, 32 GHz and 40 GHz (the ‘spectrum bands’). These bands are the subject of the award process covered by this document.

1.2 Following consideration of responses to the proposals in the SFR: IP, on 29 June 2006 Ofcom published a consultation document setting out its detailed proposals for awarding wireless telegraphy licences to use the spectrum bands 10 GHz, 28 GHz and 32 GHz and to defer the award of 40 GHz (the ‘June consultation’ ). Ofcom held a public seminar on the proposals on 28 July. In the light of points raised in responses to its proposals, Ofcom published a discussion document on 11 January 2007 (the ‘January discussion document’ ) that proposed revised packaging of the spectrum available in the 10 GHz band, inclusion of the 40 GHz band in the award and the award of licences by a combinatorial clock auction. It held a public seminar on 30 January 2007 to present these further proposals. Ofcom published a further discussion document on 15 March 2007 (the ‘March discussion document’ ) that set out some options for making the 10 GHz available for use at the Olympic Games and Paralympic Games in 2012. This statement sets out Ofcom’s conclusions on the matters raised in the June consultation and in the January and March discussion documents and in responses to the proposals made in them.

1.3 Ofcom has decided to amend the proposals set out in the June consultation so that the key elements of the award will be as follows:

• Ofcom will hold an auction in late 2007 or early 2008 for the award of UK wireless telegraphy licences to use the spectrum bands 10 GHz, 28 GHz, 32 GHz and 40 GHz.
• The auction will take the form of a combinatorial clock auction.
• The spectrum lots to be auctioned will be mainly for UK coverage but three lots in 28 GHz will have varying degrees of geographical coverage.
• The licences will have an indefinite term with a minimum period of fifteen years (during which time Ofcom’s powers to revoke will be limited).
• The licences will be tradable.
• The licences will be technology and application neutral, except for licences for 10 GHz frequencies, which will be restricted to fixed systems and wireless cameras.

1.4 Ofcom is publishing, at the same time as this statement, the following documents that are also relevant to this award process:

• an information memorandum, which sets out relevant information that interested parties should take into account when considering their possible participation in the award process; and
• a notice of Ofcom’s proposal to make four statutory instruments in relation to the award process in accordance with section 122 of the Wireless Telegraphy Act 2006. These statutory instruments include the auction regulations, regulations extending spectrum trading to the bands, regulations to allow for publication of the identity and terms of the licences in the bands and an order limiting the number of licences in the bands.

1.5 Interested parties are advised to familiarise themselves with the auction regulations, in particular the rules that prevent association and collusion between bidders.

1.6 Ofcom intends to start the award process by the end of 2007 or early 2008.

• Award of available Spectrum:10, 28, 32 and 40GHz Bands - Statement [pdf]
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