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The Transfer of licences

Radio users can only obtain access to the spectrum through a Wireless Telegraphy licence unless it is a part of the spectrum that is exempted from needing a licence.

In December 2004, certain fixed wireless access, business radio and fixed link licence classes became tradable. Spectrum trading allows the holders of these licences, granted by Ofcom under section 1 of the Wireless Telegraphy Act 2006 to transfer all or part of their rights and obligations under their licences to another party. Ofcom will use spectrum trading as an additional market based spectrum management tool, to complement spectrum pricing. For more information see

http://www.ofcom.org.uk/radiocomms/ifi/trading/tradingguide/

Spectrum trading is much more efficient when used in conjunction with spectrum liberalisation. Spectrum liberalisation allows greater freedom to decide how to use spectrum. Traditionally, wireless telegraphy licences have specified the use to which spectrum can be put and the means by which that spectrum can be exploited, including details of the services that can be offered and the wireless technology and its operating parameters. Spectrum liberalisation involves the reduction or removal of these restrictions . In January 2005,Spectrum liberalisation was introduced in Business Radio, Fixed Wireless Access and Fixed Links sectors for more information see;

http://www.ofcom.org.uk/radiocomms/ifi/trading/libguide/intro

It is anticipated that the market, once active, will provide an additional source of spectrum. Licensees would be able to transfer assignments more easily, e.g. when businesses change hands. Initially, trading will only apply to certain radio classes.

It should be noted though that spectrum trading will complement and not replace regulatory procedures already in place. These procedures are needed to ensure compliance with international obligations and safeguard spectrum access to essential services and small businesses.

Can licences be taken over?

As outlined in the previous section, Ofcom has introduced procedures for trading the right of certain licence classes. For classes where trading has not yet been introduced, the following paragraphs still apply.

Radio systems may be bought/sold but depending on circumstances may not be re-licensable. The intention to take-over should be notified to Ofcom in advance for a ruling on that point. Frequencies may or may not be re-licensed to a new person/company/other corporate body. There is no obligation on Ofcom to re-licence. Take-overs of radio systems and frequencies are often referred to incorrectly as take-overs of licences.

The current arrangement is that the licence is revoked (the licence of the current holder), and a new licence issued by Ofcom for the prospective owner. Because in essence this is a ‘take-over’ of the service, confusion can occur, and on occasion this technicality can be important.

It should be noted then, that as the licence is technically revoked and a new one issued, spectrum management policies/requirements may mean that the same (or any) frequencies are not available to the future owner. Accordingly, transferability of identical frequency and continuity of technical parameters or equipment in service is not guaranteed (e.g. parameters may need to meet more recent guidelines). However, Ofcom generally does undertake to make every attempt to provide authorisation for the same frequency/technical parameters/equipment in service where possible.

The only difference to this ‘take-over’ procedure is where the prospective owner already holds a licence of the same class as that being taken over. If this is the case then the new assignments/services can simply be added to the existing licence, with no need for an entirely new licence to be issued (although in some cases a new licence will be needed. Again transferability is not guaranteed.

What is required when ‘taking over’ a licence?

To take over a service a new licensee must:

Fulfil the criteria required that is to be issued with a licence.

Complete the relevant application form.

Pay the relevant licence fee (either on takeover, or at renewal date if Ofcom so agree).

Obtain consent in writing from all of the previous licensees or their legal representative agreeing to the take-over and send it to Ofcom. If written consent cannot be supplied, the new licensee must provide a statutory declaration explaining why it cannot be supplied, together with any supporting evidence.

What is a statutory declaration?

A statutory declaration is a voluntary declaration taken by a solicitor or other authorised person. A false statement made in a statutory declaration is an offence under Section 5 of the Perjury Act 1911.

Streamlining ‘take-overs’ at renewal:

The take-over of a licensed service of one customer from another comprises two stages:

• Licence revocation
• New licence application processing

As the bulk of take-overs are notified at renewal, to make the overall process simpler to administer the reverse of the renewal notice provides a form for requesting a take-over. The form will capture the prospective licensee's customer details, together with a signed declaration from the existing licensee agreeing to the take-over. This method has a number of benefits:

• Licensing Units spend less time processing and monitoring take-over requests.
• The process is shortened because the customer is not sent a separate application form to complete.
• The occurrence of licences having to be suspended from revocation while the take-over is progressed is reduced.

However it should be noted that this streamlined take-over service at renewal is only available on some licences at present.

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