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23|11|04

Ofcom publishes strategic review of spectrum management

Ofcom is the regulator and competition authority for the broadcast media and telecommunications industries. A key natural resource that underpins each of these industries, as well as essential organisations such as the emergency services and air traffic control, is the radio spectrum.

In parallel with its reviews of Public Service Broadcasting and the telecommunications market, Ofcom has today published the Spectrum Framework Review - its strategy for securing the optimal use of the civilian radio spectrum. The proposals will enable radio spectrum licence holders to make more efficient use of their spectrum allocation and encourage innovation and investment in wireless communications services across the UK.

Spectrum has traditionally been centrally allocated and managed by the regulator. However, demand for spectrum has increased dramatically in recent years and centralised administration has resulted in an inefficient system which has limited the innovation and development of higher-value services.

The Spectrum Framework Review sets out four key recommendations to address this problem:

1. Allow the market to decide the best use for new spectrum allocations.
2. Allow licence holders to trade spectrum in an open market and change the use they make of spectrum rights to develop new technologies and offer different services to customers (also known as liberalisation).
3. Clearly define the rights of spectrum users, giving them the confidence to plan for the future.
4. Increase the amount of licence-exempt spectrum which allows businesses to develop and bring to market new technologies and services without the need for a licence.

Ofcom will, over time, apply this market-led approach to over 70% of the radio spectrum (currently 0%). However, it must continue to maintain control over spectrum licences where:

• Signals cross international boundaries;
• International mobility is critical, or
• The UK has agreed to harmonise spectrum use in line with important multi-national accords.

Ofcom will continue to monitor and act against interference between spectrum users. It will introduce trading and liberalisation in a phased way, intervening where necessary to make sure that these initiatives do not result in excessive harmful interference for other users.

Ofcom Chief Executive Stephen Carter said, “Broadcasters and telecommunications providers are rapidly moving towards a digital future.”

He added: “This market-led approach to spectrum management will reward innovation and extract the maximum value for customers from this important resource.”

The closing date for responses is 15th February 2005. The document can be found at www.ofcom.org.uk.

Background

The proposals announced today provide an overarching framework that encompass an array of announcements that we have made, and will continue to make, regarding spectrum management.

1) August 2004
Statement on spectrum trading which allows licence holders to buy and sell their rights in an open market. The preceding consultation generally received strong support from stakeholders. For details, see http://www.ofcom.org.uk/media_office/latest_news/nr_20040806.

2) September 2004
Consultation on spectrum liberalisation setting out proposals for removing unnecessary restrictions so that licensees can change their use of spectrum. The consultation closed on November 12 and Ofcom is currently evaluating responses. For details, see http://www.ofcom.org.uk/media_office/latest_news/20040917_nr.

3) Today
Publication of Ofcom’s Spectrum Framework Review, bringing together Ofcom’s policies on spectrum trading and liberalisation within the context of a broader strategy on all spectrum management issues.

4) November 2004
Publication of spectrum trading regulations to govern the new tradable spectrum market.

5) December 2004
Formal launch of spectrum trading in the UK, beginning with the following licence classes:

• Analogue public-access mobile radio
• National paging
• Data networks
• National and regional private business radio
• Common base stations
• Fixed wireless access
• Scanning telemetry
• Fixed terrestrial links

6) Winter 2004
Ofcom will publish an implementation plan outlining how it intends to apply the principles contained within the Spectrum Framework Review to a number of spectrum bands that are due to be brought to market in the next few years. Shortly afterwards, Ofcom will address the subject of Ultra Wideband and investigate the advantages and disadvantages of allowing its deployment in the UK.

7) From 2005
Additional licence classes will become tradeable and liberalised. Ofcom will also continue to bring to market released and returned spectrum allocations.

The Spectrum Framework Review builds on the findings of the 2002 independent review of radio spectrum management led by Professor Martin Cave and commissioned by the Department of Trade and Industry and HM Treasury. Those findings were subsequently reflected in the Communications Act 2003.

Section 3 of the Communications Act 2003 requires Ofcom to secure the optimal use of the radio spectrum. Section 154 of the Act instructs Ofcom to have regard to the desirability of promoting the economic benefit that may arise from wireless telegraphy, as well as innovation and competition in the provision of electronic communications services.

Ends.

NOTES FOR EDITORS AND CSEs

Ofcom is the independent regulator and competition authority for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services.

For further details please visit www.ofcom.org.uk.

CONTACT

Ofcom Media Office
mediaoffice@ofcom.org.uk
(+44) (0)20 7981 3033

This document published today is available on Ofcom's website - see Related Items.

Ends.

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