Home > Consultations > Consultation Documents > The Wireless Telegraphy

Summary

1.1 Under the Communications Act 2003 (‘the 2003 Act’), Ofcom has the general duty to promote the optimal use of the spectrum. The Wireless Telegraphy Act 1998 (‘WT Act’) facilitated the use of market mechanisms in spectrum management for the first time in the UK. For non-auctioned spectrum, the WT Act enabled ‘Administered Incentive Pricing’ (AIP), whereby prices for annual licence fees are set above administrative cost to reflect a range of spectrum management objectives. These WT Act licence fees, set through AIP must be prescribed in regulations in the form of a statutory instrument.

1.2 The 2003 Act transferred responsibility for making regulations under the WT Act concerning fees to Ofcom. The pricing proposals outlined in Ofcom’s Statement entitled “Spectrum Pricing: A statement on proposals for setting Wireless Telegraphy Act licence fees (“Spectrum Pricing Statement”) published on 23 February 2005 http://www.ofcom.org.uk/consult/condocs/spec_pricing/ will take effect as the Wireless Telegraphy (Licence Charges) Regulations 2005 when they come into force.

1.3 The regulations which Ofcom proposes to make are set out in draft in Annex 3 for consultation. These regulations:

• Introduce a new set of fees for certain licence classes, including:

• Fixed Point to Point Links, where a new mechanism is introduced to encourage more effective spectrum use.
• Revised fees for Programme Making and Special Events, increased to help cover a shortfall in the recovery of direct costs.
• Some increases in minimum fee levels for Satellite Permanent Earth Stations to help cover a shortfall in the recovery of direct costs.
• Minor fee adjustments to Scanning Telemetry to reflect the phasing out of a previous transitional change.

• Consolidate and, in some cases simplify, presentation of existing fee levels, most notably:

• Business Radio classes brought under one combined sector.
• Fixed Wireless Access classes brought under one sector.
• Enable fee conditions to transfer with traded licences as if they were continuous, rather than as a new licence issue.

• A significant number of minor presentational clarifications to other existing classes.

• Introduce fees for some new licence classes:

• 5.8 GHz FWA (same fee as previous temporary charge introduced at end of 2003).
• 3.6-4.2 GHz FWA Jersey, Guernsey and Isle of Man.
• New satellite classes for Earth stations on Vessels, Earth stations on Aircraft, for Earth stations for non fixed satellite services and Earth stations for non-geostationary services.

1.4 Notice of these proposals is hereby given in accordance with section 403(4)(a) of the 2003 Act and published in accordance with section 404(4)(b) of the 2003 Act for a statutory consultation period of one month and one day, which ends on 24 March 2005.

1.5. In line with Ofcom’s overall approach to spectrum pricing, (ie continuing and widening the application of AIP), Ofcom is making detailed proposals to update the level of fees for certain licence classes (including those where AIP is not appropriate and also for new types of radio use), which would apply when the new regulations come into force. This document describes the changes which are proposed. The policy reasoning for the changes is described in detail in the Spectrum Pricing Statement. The key textual changes proposed in the draft Regulations are summarised in Figure 1.

Next steps

1.6 This consultation is open for comments until 24 March 2005. The new regulations will revoke the existing regulations and, amongst other things, make certain changes necessary to implement the policy decisions set out in the Spectrum Pricing Statement. Subject to considering any representations made during the consultation, Ofcom expects to make these regulations in April with a view to them coming into force in early May 2005.

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

• Notice of Ofcom’s proposals to make regulations: The Wireless Telegraphy (Licence Charges) Regulations 2005 [pdf]
  Full print version
• Responses

Back to top