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Summary

1.1 On 29 September 2004, Ofcom published a consultation document on Spectrum Pricing . In that document, Ofcom set out its proposals for setting fees for licences granted under the Wireless Telegraphy Act 1949 (“wireless telegraphy licences”) by exercising its powers under the Wireless Telegraphy Act 1998 (the “1998 Act”). The consultation document also set out Ofcom’s proposals for using ‘Administered Incentive Pricing’ (“AIP”) in respect of certain fees, as well as its proposals for amending the methodology for determining AIP. The consultation period closed on December 3 2004. Ofcom received a total of 37 responses, of which 35 are considered in this statement. Two responses focussed solely on broadcasting issues, which are not addressed in this document.

1.2 This statement sets out Ofcom’s policy decisions in respect of these proposals. In making its policy decisions, Ofcom has carefully considered every representation about the proposals that it has received from stakeholders. Ofcom’s views on the consultation responses are set out in section 3 of this statement, and in further detail at Annex 2. Ofcom’s policy decisions can broadly be divided into the following three subjects where Ofcom has:

• considered applying the use of AIP for setting annual fees for certain wireless telegraphy licences;
• updated the level of fees (including for those wireless telegraphy licences where AIP is not appropriate and also for new types of radio use);
• tidied up licence classes as a result of, for instance, restructuring and removal of licence classes to facilitate spectrum trading and liberalisation.

1.3 Ofcom’s proposals in respect of the longer term issue of applying AIP in the broadcasting industry (see section 8 of the Spectrum Pricing consultation document) are not addressed in this statement, Ofcom expects to issue a further document in relation to these issues later in 2005. In that document, Ofcom will set out its views on the responses already received on this matter.

1.4 To give legal effect to the above-mentioned policy decisions (together with certain modifications to the proposals made following the consultation), Ofcom must make regulations using its powers (exercisable by statutory instrument) under 1998 Act (as amended by the Communications Act 2003, the “2003 Act”). To achieve this, Ofcom is publishing, in parallel with this statement, a Notice of Ofcom’s proposals to make regulations under section 403 of the 2003 Act (in the form of a consultation document on the draft Wireless Telegraphy (Licence Charges) Regulations 2005 (the “Licence Charges Regulations”) on 23 February 2005. That consultation is open for comments until 24 March 2005.

The text of the full document is available in PDF format below.

• Spectrum pricing : A statement on proposals for setting Wireless Telegraphy Act licence fees [pdf]
  Full print version

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