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06|07|06

Ofcom proposes deregulation of 50,000 spectrum licences

Ofcom today published proposals to streamline the licensing of private radio communications. These are used by a wide array of businesses, from taxi and courier firms to the major utilities and supermarket chains.

The proposals build on previous changes in Ofcom’s approach to the management of UK radio spectrum. These aim to reduce regulation and bring greater flexibility to spectrum use by moving to a market-led approach in place of command and control by the regulator.

The proposals published today include:

• REDUCED COMPLEXITY: 21 different types of licence, covering 50,000 licensees, will be replaced by three simple categories that reflect the basic characteristics of spectrum use;
• MORE FLEXIBILITY: within each category, existing restrictions on the permitted type of business radio use and technology will be removed, freeing use of the spectrum. Minimum technical conditions will remain in place to protect against harmful interference;
• SIMPLER ADMINISTRATION: in future 15,000 licensees will be able to apply online for at a flat fee of £75 for a five-year licence. This simple arrangement will replace annual renewals, on a variety of fees, for five different types of licence; and
• SPECTRUM TRADING: New types of licence will be tradeable in future, allowing licensees greater flexibility to acquire additional spectrum or to sell or lease spectrum assets that are no longer required.

The deadline for responses to the consultation is 15 September 2006. The full consultation can be found at http://www.ofcom.org.uk/consult/condocs/brtrading/

A related consultation sets out detailed proposals for amendments to fees for wireless telegraphy licences. Details of this consultation can be found at http://www.ofcom.org.uk/consult/condocs/pricing06/

Ends.

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