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Introduction

1.1 The radio spectrum is a scare resource of enormous importance in the modern world. In the UK, uses of spectrum like mobile communications and broadcasting account for about 3% of the economy. Spectrum is also used as an essential input into numerous public services, from defence to the emergency services and from scientific research to transport.

1.2 The rising importance of spectrum means that the way it is managed is a vital issue for advanced economies around the world. We recognise the significance of efficient spectrum use to the UK economy. Hence, one of our most important objectives is to ensure that the use of spectrum delivers as many benefits as possible to the UK’s citizens and consumers.

1.3 In our Spectrum Framework Review Statement[^(-1-)] (SFR), published on 28 June 2005, we set out our plans to release more spectrum to the market, liberalise the use of spectrum and enable spectrum trading. We refined this view in our Annual Plan 2007/8: Regulating for Convergence[^(-2-)] by recognising the increasing importance of wireless platforms and services. We identified a key policy commitment to drive forward a market-based approach to spectrum by continuing to reduce the restrictions on how spectrum can be used, promoting spectrum trading and making more spectrum available.

The digital dividend

1.4 It is generally agreed that the most attractive spectrum lies between 200 MHz and 1 GHz. This offers the right combination of range (propagation) and capacity (bandwidth) to deliver high-quality, cost-effective services on a nationwide basis. Currently, nearly half of this spectrum —368 MHz —is used to broadcast analogue television.

1.5 The UK’s analogue-television signal will be switched off, region by region, between 2008 and 2012. The Government has already decided that 256 MHz of spectrum will be used for digital terrestrial television (DTT) from Digital Switchover (DSO). The remaining 112 MHz of spectrum will be released at DSO for new uses. Two adjacent 8 MHz blocks of spectrum also have the potential to be cleared and released at or around the same time as the rest of this spectrum. These are channel 36 (currently used for airport radar) and channel 69 (currently used for programme-making and special events —PMSE). These two channels, taken with the spectrum cleared by DSO, provide a total of 128 MHz of spectrum that will ultimately be available on a nationwide basis. This is the digital dividend.

1.6 Because of its physical properties, the digital dividend is one of the most valuable spectrum bands likely to be available in the foreseeable future.

The Digital Dividend Review

1.7 The Digital Dividend Review (DDR) addresses how this spectrum should be awarded and for what uses. It is one of the most important issues that Ofcom faces.

1.8 We published proposals on 19 December 2006[^(-3-)] and consulted on them until 20 March 2007. Fundamentally, we proposed releasing this spectrum in a way that would allow users flexibility to decide how, for what and by whom it was used. In line with the SFR, we proposed to do this by adopting a market-based, technology and service-neutral approach while acknowledging the fundamental responsibilities of regulation: to prevent one use of spectrum interfering harmfully with another and to ensure fair and effective competition.

1.9 Our key objective in releasing the digital dividend is to maximise the value that the use of this spectrum is likely to bring to society over time. To assist us in meeting this objective, we carried out a considerable amount of analysis and research in the years before publishing our proposals. The results were set out in annexes[^(-4-)] to the consultation document. The key components were:

• technical analysis of the ways in which the spectrum could be used;
• extensive research into consumers’ interest in various potential uses;
• an assessment of the potential demand for different services;
• modelling of the likely value of the spectrum to consumers and businesses and society more generally; and
• consideration of the options for packaging the spectrum and designing an auction.

The purpose of this document

1.10 Our proposals drew significant and extensive comment from stakeholders ranging from public-service broadcasters (PSBs) and mobile-network operators (MNOs) to equipment manufacturers, consumer and advisory groups, public bodies, Members of Parliament and individuals. In total, we received around 750 responses. We are extremely grateful to all those who took the time and effort to convey their views to us.

1.11 Those responses have given us a large amount of information and alternative options to consider.

1.12 The purpose of this document is to provide stakeholders with:

• a summary of responses;
• information on the additional work that we are undertaking to progress the DDR; and
• the revised timetable to which we are working.

The structure of this document

1.13 Section 2 provides a summary of our key proposals and the responses that we received.

1.14 Section 3 describes the additional work that we are undertaking and the revised timetable to which we are working.

1.15 Annex 1 sets out the list of questions that we asked in our consultation document.

1.16 Annex 2 lists those organisations (i.e. excluding individuals) who responded to the consultation.

Footnotes:

1.- www.ofcom.org.uk/consult/condocs/sfr/sfr/sfr_statement.

2.- www.ofcom.org.uk/about/accoun/reports_plans/annual_plan0708/statement/annplan0708.pdf.

3.- www.ofcom.org.uk/consult/condocs/ddr/ddrmain.pdf.

4.- www.ofcom.org.uk/consult/condocs/ddr/ddr_annexed.pdf.

The full document is available below

• Digital Dividend Review - Summary of consultation responses and revised timetable [pdf]
  Full Print Version

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