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Issued: 29 September 2004
Closing date for responses: 1 November 2004

Summary

One of Ofcom’s duties under the Communications Act 2003 (the “Act”) is to ensure the optimal use of the radio spectrum in order to further the interests of citizens and consumers. This has become increasingly difficult in recent decades as the demand for spectrum has grown for existing uses, and entirely new uses of spectrum have developed. As a result, spectrum management has increasingly involved finding ways of allocating spectrum most efficiently between competing uses and users.

Ofcom is committed to the development of new approaches to management of the radio spectrum which will help to promote innovation and competition in the provision of wireless services across the UK . A key aspect of this is the introduction of spectrum trading which will allow holders of wireless telegraphy licences to transfer to third parties some or all of the rights and associated obligations they enjoy as a result of those licences. This will help to optimise the use of the finite spectrum resource by enabling spectrum to migrate to users that will use it most efficiently, thus benefiting the UK economy. (Wireless telegraphy licences are granted by Ofcom under section 1 of the Wireless Telegraphy Act 1949. Under that section it is a criminal offence to use a station or apparatus for wireless telegraphy (transmission) except where authorised by a licence or exemption regulation.)

In November 2003 Ofcom published a Consultation Document on Spectrum Trading ^(-1-).

Following feedback from this consultation exercise, Ofcom published a Statement ^(-2-), in August 2004, explaining that spectrum trading will be introduced in the UK through a phased approach, starting from the end of 2004. The statement set out the licence classes that would be included in the first phase, the types of transfer that will be permitted for each of these classes and described the process that should be followed to enact a trade. In addition, the statement explained the steps that Ofcom will take to facilitate the trading process, including publication of relevant information in a wireless telegraphy register and modification of licences.

In order to introduce a spectrum trading regime Ofcom must make regulations under the powers conferred by section 168 of the Act. The regulations which Ofcom proposes to make are set out in Annex 3.

In addition, in order to establish and maintain the wireless telegraphy register Ofcom must make regulations under section 170 of the Act. The regulations which Ofcom proposes to make are set out in Annex 4. The register will enable information about wireless telegraphy licences that was previously confidential to be published. The register will provide basic information about licences and licensees such as names, contact details, class of licence, the band(s) of frequencies and, where appropriate, the geographical area of operation.

The August 2004 statement explained what would be covered by each of these regulations. In addition, Ofcom included preliminary drafts of the two regulations as an annex to the statement and invited initial comments on these preliminary drafts by 31 August 2004 . These comments have been taken into account and the drafting of the proposed regulations has been amended slightly. We also explained that Ofcom would publish the draft regulations for one month statutory consultation in September and that consequently stakeholders would have another opportunity to comment at this point.

The full text of this document is available in PDF format via the link at the top right of the page.

• Notice of Ofcom's proposals to make regulations: Spectrum Trading and the Wireless Telegraphy Register [pdf]

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