Home > Media and Analysts > News Release Archive > 2005 > Jul > 28|07|05

28|07|05

Ofcom publishes proposals on spectrum auctions

Section 3(2) of the Communications Act 2003 requires Ofcom to secure the optimal use of the spectrum and the availability of a wide range of electronic communications services. In January 2005 Ofcom consulted on its Spectrum Framework Review: Implementation Plan, proposing a number of awards across a wide range of the spectrum, and received numerous responses.

Ofcom today published proposals to award a number of low-power Wireless Telegraphy Act licences via a spectrum auction. The spectrum band 1781.7-1785MHz, paired with 1876.7-1880MHz, will be awarded on a technology and application-neutral basis in 2005-06.

A number of organisations have expressed interest in these particular frequency bands. They suggested the bands could be used for a range of applications, such as private GSM networks in office buildings or campuses, noting that most mobile phones in current use can tune to these frequencies.

Ofcom is now taking the award of these bands forward. Its proposals are intended to facilitate competition and innovation, while giving the market the freedom to decide on the technology and services used in the bands. The key elements of the proposed award are:

• the licences will be low-power;
• between 5 and 10 licences will be awarded - the precise number will be determined by bids made in the auction;
• licensees will have concurrent rights, with equal access to the whole of the bands in the UK on a shared basis;
• the licences will be technology and application neutral; though some technical parameters will be applied, based on the GSM specification;
• each licence will be tradeable and have an indefinite term, but no less than 10 years
• the auction will be decided by a single round of sealed bids; and
• bidders will pay the amount they bid, and will be able to acquire a maximum of one licence only.

Next steps

The closing date for responses to the public consultation is 16 September 2005. Ofcom then expects to publish the following in time for an auction in 2005-06:

• an Information Memorandum with details of the award procedure and rules, licence conditions and other information pertinent to potential bidders; and
• draft regulations setting out the auction rules and the mechanisms allowing trading in these bands.

Ofcom is also planning to hold a seminar with interested parties before the end of the consultation.

Spectrum Framework Review: Implementation Plan (SFR:IP) – Interim Statement

Separately, Ofcom has also published an update today on how it plans to move forward a range of other issues discussed in its SFR:IP consultation document (13 January 2005).

In light of the responses received, Ofcom has set out the next steps it is planning to take on each of the fifteen bands identified in the award programme. These include detailed consultation documents over the coming months on potential awards at:

• 410-415/420-425 MHz;
• 872-876/917-921 MHz;
• 1452-1492 MHz (L-Band);
• a proposal for possible simultaneous awards in Northern Ireland and the Republic of Ireland, at 1785-1805 MHz; and
• 10GHz, 28 GHz, 32 GHz, and 40GHz.

The Interim Statement also sets out the latest position in relation to European regulatory discussions on other bands including 2010-2025 MHz and 2500-2690 MHz. Ofcom will await resolution of these issues before bringing forward further proposals in the UK on these bands.

The SFR:IP consultation also addressed the extension of spectrum trading and liberalisation to existing mobile licences. Ofcom is still considering the responses to the complex issues raised in the document and this statement does not further discuss its policy proposals in this area. Ofcom expects to consult further on these issues before the end of 2005.

Both documents can be found at www.ofcom.org.uk.

Ends.

Back to top