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Executive summary

1.1 This document considers the future arrangements for spectrum access by the Programme Making and Special Events (PMSE) sector.

1.2 PMSE is one of the key sectors using spectrum, and it makes a major contribution to the UK’s social, cultural and economic well-being. It comprises a very wide variety of organisations and individuals using spectrum for an equally wide variety of different uses. There are many thousands of business and professional users in broadcasting, entertainment, and events, and many more among charities and community organisations.

1.3 Ofcom recognises the contribution that the PMSE sector makes to the interests of both citizens and consumers and hopes to see this important constituency continue to thrive.

1.4 The way that we manage spectrum used by PMSE is therefore a very important issue. It is the purpose of this document to take forward the debate on how we can do this in a way that helps to ensure the spectrum is used efficiently, and that produces the best outcome for all citizens and consumers.

1.5 Spectrum is a scarce resource of enormous importance in a modern society. PMSE users currently have access to around 2.5GHz of spectrum in total, spread across a variety of bands. Most of this access is on a ‘secondary’ basis – meaning that there are primary users, such as defence or broadcasting, and that PMSE uses the bits of spectrum they do not require. In practice, most PMSE use at present is in the scarce lower frequencies, particularly the Ultra High Frequency (UHF) band shared with terrestrial television, where PMSE uses the spare (or interleaved) spectrum.

1.6 The main focus of this document is on the future arrangements for accessing this interleaved spectrum after digital switchover (DSO). This is because we think that this issue has been at the heart of recent debates over spectrum access for PMSE, following publication of our Digital Dividend Review consultation last December. We also think that if we can resolve this issue successfully, it could provide a model for the way in which future access is managed to other bands used by PMSE.

1.7 There are good reasons why we need to address this point now. The first is DSO, which requires wholesale change in the way that spectrum is used in the UHF band. DSO will create many new opportunities for using spectrum better, but it also creates the need to manage change carefully. The second, more fundamental, reason is that there is rising demand for spectrum from many different uses and users – including PMSE but also a wide array of other innovative technologies that could bring large benefits to citizens and consumers.

1.8 Ofcom’s general approach to spectrum management is to rely more on the market, and less on regulation, as the way to promote the best use of this valuable resource. We want to give users the flexibility to decide how spectrum should be used, and to change that use as technologies and consumers’ interests change. But we also recognise that the PMSE sector is in a different position from all other potential users of the UHF band – as long-established, existing users, with diverse and fragmented needs.

1.9 That is why in the DDR consultation, we proposed taking special measures to protect the interests of PMSE users, to reduce the risk of disruption to PMSE as existing users of the spectrum. In particular, we proposed auctioning one or more packages of interleaved spectrum with obligations to ensure continued access for PMSE users until at least the end of 2012. We also proposed continuing to reserve some spectrum at the top of this band (Channel 69) for PMSE, and suggested that we might reduce regulation by removing individual licensing of users in this channel provided they respected clear technical limits.

1.10 This document focuses on how PMSE users can access the digital interleaved spectrum after DSO. So it does not contain new proposals on other aspects of the DDR, like whether to reduce regulation in Channel 69. We will come back to these issues when we publish our statement and further detailed consultation on DDR later this year.

1.11 We can however reiterate our commitment to the many community organisations and others who rely on shared access to the UHF band that we will ensure this continues to be possible, whether under a licensed model (as now in Channel 69) or with the requirement for a licence removed.

1.12 Our proposals on PMSE attracted lively comment. We welcome the debate that has taken place, as it has helped us to understand more about the sector and how it sees its own capacity to manage change. Co-operation with PMSE users is a key element of our approach – both we and they will be more effective if we can work together.

1.13 This document examines the sector and the responses we received to the DDR. It also sets out our analysis of the underlying issues, and the challenges that need to be faced in extending a more flexible, market-based approach to the PMSE sector.

1.14 Our view remains that it is right to move towards a more market-based approach for managing the spectrum used by PMSE, and that this is very much in the interest of all citizens and consumers, including PMSE users. We must do this in a way that avoids disruption, but we also think that there is another key objective we must pursue – namely helping to increase the PMSE sector’s own ability to take part in a more market-based world.

1.15 This points to helping the PMSE sector to come together in a way that allows them to manage spectrum, and to get the most out of this valuable resource not just for PMSE but for all citizens and consumers.

1.16 We examine a wide range of options in light of these goals. We believe that the leading options are:

• auctioning the digital interleaved spectrum as proposed in the DDR but with a longer transition period during which the PMSE sector would have guaranteed access; this auction might involve a pre-qualification process designed to ensure that bidders have the skills and expertise to manage the spectrum efficiently, for PMSE use in particular; and
• awarding the digital interleaved spectrum by beauty contest, with criteria designed to ensure a good alignment between the interests of the winner and the PMSE sector; there would also be pricing and incentives to promote efficient use.

1.17 In both cases, we propose to postpone judgement on exactly how much of the digital interleaved spectrum would be awarded, although we are continuing to work on the assumption that there should be broadly sufficient capacity to allow existing PMSE use to be accommodated.

1.18 We also canvass the possibility that any band manager who emerges for DDR spectrum might also serve as an intermediary in respect of other bands used by the PMSE sector.

1.19 A lot more work will be required on these ideas and others in the document. We look forward to further engagement with both the PMSE community and with other spectrum users to help us to shape our thinking in this important area of spectrum policy and we hope that this consultation will help to move the debate forwards.

The full document is available below

• Programme-making and special events: future spectrum access [pdf]
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