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Ofcom published the Spectrum Usage Rights (SURs) consultation document on 12 April 2006 and received a range of responses. These were summarised in a note on the way ahead that we published in July this year. In that note, we said that we would hold a workshop to further consider issues raised by stakeholders. We have now held that workshop and this note provides a further update on how we will progress SURs.

Many important issues were raised in the consultation and discussed at the workshop. Ofcom is encouraged by the feedback from stakeholders in its belief that the SUR concept has potential to foster flexibility in spectrum use and promote innovation and competition and intends to progress its consideration of SURs. However, it accepts the widely expressed view that it will be important to clarify various detailed regulatory and technical issues associated with the practical application of SURs before confirming the overall approach. These issues include the manner in which the SUR parameters will be calculated and the format of a licence expressed in SUR terms.

Our views are that these issues can best be clarified by applying SURs to a forthcoming licence award rather than in converting existing licences. The latter would raise additional issues, for example if not all licensees in the band wish to change at the same time. However, Ofcom will consider any request to vary current licences to the SUR format in accordance with its statutory duties, subject to consultation as appropriate with other licensees that might be affected.

Ofcom accordingly proposes to focus further work on developing specific proposals for SURs on one or more forthcoming spectrum awards. Detailed proposals for the terms of possible SURs will be developed and presented alongside those for the more conventional spectrum mask approach, as part of the planned consultation process for these awards. It is likely that either or both of the 1452-1492MHz or 2500-2690MHz awards will present a suitable opportunity.

In the mean time Ofcom does not expect to publish any statement on the more general application of SURs, although it will continue to engage with stakeholders on the development of SURs as the opportunity and need arise.

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