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Executive Summary

1.1 This document addresses the arrangements for authorising the use of spectrum in the UK for terrestrial mobile networks (Complementary Ground Component, “CGC”) that complement 2 GHz mobile satellite systems (MSS) operating in the frequency bands 1980-2010 MHz and 2170 – 2200 MHz (“the 2 GHz MSS bands”). It comprises:

• A Statement on the policy issues raised in our first consultation on this subject ; and
• A further consultation on the detailed terms and conditions of such authorisations.

1.2 The award of the 2GHz spectrum to MSS operators will take place in 2009 under a European selection and authorisation process provided for by Decision No 626/2008/EC , made under Article 95 of the European Treaty that was adopted jointly by the European Parliament and Council and published in July 2008.

Statement

1.3 The Statement in section 5 sets out Ofcom’s decisions in respect of the high level policy issues raised in the first consultation on the authorisation of CGC. In particular, we have concluded that the CGC authorisation will:

• be in the form of a spectrum access licence using standard terms and conditions, but with the addition of the specific conditions imposed by Decision No 626/2008/EC;
• be awarded, on application, to the MSS operators that are selected under the EU selection & authorisation process;
• be available for a fixed term which will be 18 years from the publication date of the EU selection decision;
• be service and technology neutral, to the extent possible within the constraints of the RSC Decision and Decision No 626/2008/EC2;
• authorise only the set of frequencies that the applicant applies to use for CGC in the UK;
• be tradable, using the form of a concurrent trade in which the MSS operator has to retain a concurrent licence itself;
• be available to the selected MSS operators from the date of the EU selection decision and in advance of the commercial launch of the satellite component (which could be up to 24 months after the decision);
• incur a licence fee based on the principle of AIP, although we have still to decide on the level of AIP, which we will do as part of a future Statement.

Second consultation

1.4 Sections 6 and 7 of this document address the two remaining areas on which we need to consult on the authorisation of CGC in the UK:

• The approach for reflecting in the CGC Licence the specific conditions that are required by Decision No 626/2008/EC; and
• The technical conditions that should attach to the CGC licence.

1.5 Decision No 626/2008/EC sets out a number of common conditions that must be applied to the successful MSS applicants as part of their authorisation. In order for the UK to fulfil this obligation, we expect to be given a new power to authorise the 2GHz MSS satellite service by the Department for Business Enterprise and Regulatory Reform (BERR) through a Statutory Instrument under the European Communities Act 1972. We anticipate a separate consultation on this issue later in the year. It is expected that the resulting satellite authorisation will support the UK’s monitoring and enforcement obligations under Decision No 626/2008/EC, and will require the MSS operator to report against the milestones achieved and commitments made under the selection and authorisation process.

1.6 Decision No 626/2008/EC also includes a number of common conditions that must be applied to the CGC authorisation itself. Section 6 of this document therefore consults on the manner in which we propose to do this. For the most part, this can be achieved by the straightforward addition of the Decision requirements to the terms of the CGC licence. We propose to include a condition enabling us to revoke or vary the CGC licence if the associated MSS satellite authorisation is no longer in place. We also propose some additional reporting requirements on the CGC operator in order to support out monitoring obligation. In addition, we consider that it would be beneficial, and in keeping with our duties to promote efficient use of spectrum, for the CGC licences to be awarded on a nation-wide basis.

1.7 Section 7 consults on the technical conditions that should attach to the CGC licence. It sets out two options for the approach to defining the technical conditions included in the CGC licence:

• One option based on Spectrum Usage Rights (SUR) that provides hard limits for the aggregate PFD (Power Flux Density) for operation both in-band and out-of band; and
• A second option based on block edge masks and maximum transmitter power for the individual base stations.

1.8 The proposed technical conditions for the CGC Licence are based on the assumption that the technical characteristics of the base station and handset equipment likely to be deployed in the CGC bands are similar to those used in the adjacent terrestrial mobile bands, as borne out by the current draft block edge masks in the draft CGC standards currently under development in ETSI. In the case of the spectrum mask option for defining the transmission rights of the CGC licensee, we have also drawn heavily on the compatibility studies carried out for the 2.6 GHz award which analysed interference scenarios between adjacent services with very similar technical characteristics to those envisaged for 2 GHz.

Next Steps

1.9 Given the relatively narrow scope of this second consultation, we are providing for a consultation period of four weeks in line with our consultation guidelines . The closing date for this consultation is 1 December 2008.

1.10 Following consideration of the responses to this consultation, we plan to publish a Statement around the end of this year setting out our decisions on the detailed terms and conditions of the CGC Licences. We will also issue a statement concerning the level of AIP fees either as part of the same statement or subsequently in the form of a separate statement.

1.11 We will separately consult on changes to a number of regulations which will be required to implement these decisions and make the CGC licences available.

1.12 We will also consult on the licence exemption of the satellite and CGC handsets once harmonised standards for these terminals are available.

1.13 As noted above, we anticipate that a separate consultation will take place on the arrangements for authorisation in the UK of the satellite systems of the successful MSS operators.

• Authorisation of terrestrial mobile networks complementary to 2GHz mobile satellite systems [pdf]
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