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Executive summary

1.1 This document sets out Ofcom’s decision on the request from UK Broadband Limited (‘UK Broadband’) to vary its Wireless Telegraphy Public Fixed Wireless Operator 3.5 GHz licence (‘3.5 GHz licence’) in two ways:

• to allow technology and application neutrality; and
• to increase the permitted power limits.

Consultation on UK Broadband’s application for licence variation

1.2 On 18 June 2007 Ofcom published a consultation document^(-1-) (the ‘June consultation document’) assessing UK Broadband’s request and seeking comments from stakeholders on the issues raised.

1.3 The main points included in our assessment of a licence variation to allow technology and application neutrality were:

• UK Broadband’s licence did not limit the technologies it may use;
• there appeared to be no reason to refuse the variation of UK Broadband’s licence to remove the limitation to fixed applications;
• in our assessment we examined in particular the effects on consumers’ interests, the optimal use of the spectrum, competition related issues, the requirement to ensure that licence conditions are objectively justified and other legal considerations. We also examined the timing of the variation.

1.4 The main points in our assessment of the proposal on power limits were:

• there appeared to be no reason to refuse to increase the maximum in-band power level to +29 dBW/MHz except for mobile terminals, which should have a maximum in-band power limit of -5 dBW/MHz; and
• it was not appropriate to consider varying the out of block emission limits in UK Broadband’s licence, because of the uncertainty regarding equipment standards and the impact ongoing work within CEPT on the WAPECS Mandate could have on the technical regulatory environment for the 3.5 GHz band.

1.5 Our initial view was that the variation should be made as soon as practicable, subject to the outcome of the consultation. We asked for written views and comments on the issues raised in the consultation document to be made by 27 August 2007.

Responses to the consultation

1.6 We received 26 responses, four of which were submitted on a confidential basis. Just over half of the responses (14) supported the proposal to vary UK Broadband’s licence. (One response did not comment on the merits of the case for the proposed variation.) Support was mainly on the basis that competition in the provision of mobile and nomadic broadband would be enhanced, bringing benefits to consumers, and that the spectrum would be used more efficiently. Most of these responses were from equipment vendors or companies with an interest in providing broadband access. A number of them made the point that the 3.5 GHz band had been identified internationally as suitable for mobile broadband services.

1.7 A smaller number of respondents (seven) had reservations about the technical impact of the variation on other users. Four broadcasters plus JFMG were concerned that the variation would reduce the availability of spectrum in the 3.5 GHz band that is used for programme making and special events. The Satellite Action Planning Regulatory Group asked Ofcom to consider how to protect fixed satellite earth stations in the 3.6 to 4.2 GHz band from broadband wireless access systems operating below 3.6 GHz; its point was supported by Intellect.

1.8 Finally, four of the five mobile network operators (MNOs) opposed the variation for a variety of reasons, including saying that the variation should not be made before Ofcom had clarified the position on the liberalisation of conditions in 2G and 3G licences and/or on the 2.6 GHz award.

Ofcom’s decision

1.9 We have carefully considered all responses received. The main conclusions of our consideration are that if the proposed variation were made:

• consumers could benefit from the increased choice and competition that would follow from UK Broadband’s ability to offer a wider variety of services and UK Broadband would be able to make better use of the spectrum in responding to new consumer demands;
• competition in the mobile communications market is unlikely to be distorted and competition in the provision of broadband data services is likely to be enhanced; and
• there would be no disproportionate reduction in the spectrum quality of adjacent users, i.e. PMSE in 3.50 GHz to 3.58 GHz and FSS above 3.6 GHz.

1.10 We consider that the continuation of the restriction on mobile use in UK Broadband’s licence is not justified and our examination of responses suggests that there are no compelling reasons not to vary the licence as proposed in the June consultation document. We have therefore decided to vary UK Broadband’s licence as proposed in the June consultation document. As soon as practicable we will issue an amended licence to UK Broadband.

Footnotes:

1.- http://www.ofcom.org.uk/consult/condocs/bb_application/

The full document is available below

• UK Broadband application for licence variation [pdf]
  Full Print Version

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