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Home > Spectrum > Information for Radiocomms Licences > Spectrum Trading and Liberalisation > Trading Guidance Notes > What can I trade?
What can I trade?
Which licence classes will be available for trading?
Certain fixed wireless access, business radio and fixed link licence classes are the first licence classes where trading is authorised, as of December 2004. Services covered by these licences include broadband access services to businesses and consumers, a wide range of business radio services, for example transport organisations (e.g. Network Rail, AA) and the utilities (e.g. British Gas), and point-to-point communication links.
Figure 1 below lists all licence classes being made tradable in December 2004.
Licence sector |
Licence class |
Types of Trade |
Frequencies |
|---|---|---|---|
Public Mobile Operator |
|
Outright Concurrent Partial trade - Spectrum segmentation to 12.5 kHz |
Excludes:
|
Private Business Radio |
|
Outright Concurrent Partial trade - Spectrum segmentation to 12.5 kHz |
Excludes:
|
Fixed Wireless Access (FWA) |
|
Outright Concurrent Partial - Spectrum and geographical. |
|
| Fixed Wireless Access (FWA) |
|
Outright Concurrent |
|
Fixed Services |
|
Outright Concurrent Partial trade - Spectrum segmentation to 12.5 kHz |
|
Fixed Services |
|
Outright Concurrent Partial trade – Partial Transfer of individual links under a licence |
|
| Mobile & Broadband | 1785MHz NI Award | Partial Trade Total Trade Concurrent Outright |
|
| Mobile & Broadband | Concurrent Spectrum Access (1781.7-1785/1876.7-1880MHz) |
Outright |
|
| Mobile & Broadband | Spectrum Access for frequencies for 412-414MHz | Partial Trade |
|
Further information on these licence classes can be found in the Trading Statement in section 4 and Annex C. A schedule of the licence classes and frequency bands can also be found in the Trading Regulations.
A Statement on Spectrum Trading ( 6 August 2004 ) – Section
4 and Annex C
Please see 'Related Items'.
The
Trading Regulations – Wireless
telegraphy (Spectrum Trading) Regulations December 2004
http://www.ofcom.org.uk/radiocomms/ifi/trading/legislation/
What types of transfer are possible?
Ofcom has introduced transfer options under the Trading Regulations which offer flexibility to parties interested in trading rights arising under WT Act licences. In addition to an outright total transfer (where all the rights and obligations of a licence transfer from one party to another), the Trading Regulations permit other transfer options. These are:
- concurrent transfers – the transfer of the rights and obligations under the licence such that the transferred rights and obligations become rights and obligations of the transferee while continuing to be rights and obligations of the person making the transfer; and
- partial transfers – the transfer of only some rights and obligations under the licence. This will result in a licence being partitioned (divided) into two distinct licences. Partial transfers may be outright or concurrent.
The types of transfer options available will be determined by the licence class. Figure 1 above summarises these options.
A Statement on Spectrum Trading ( 6 August 2004 ) – Section
4 and Annex C
Please see 'Related Items'.
What is the difference between an outright transfer and a concurrent transfer?
With an outright transfer, the rights and obligations of the person making the transfer become the rights and obligations of the transferee to the exclusion of the person making the transfer. After such a transfer, the original licensee (that traded the licence) no longer has any rights and/or obligations under the traded licence.
In contrast, with a concurrent transfer, the transferred rights and obligations become rights and obligations of the transferee while continuing, concurrently, to be rights and obligations of the person making the transfer. Such a transfer enables licensees to share rights to use spectrum. The number of concurrent licence holders is not limited in the regulations, and so joint holdings by three or more licensees might be possible. Where a licence is held concurrently by a number of licensees, the consent all those licensees to the transfer will be necessary to complete a subsequent trade. Additionally, under such a holding all licensees will be responsible for complying with licence obligations, including the obligation to pay the licence fee.
Regulation 4 of the Spectrum Trading Regulations authorises both outright and concurrent transfers.
A Statement on Spectrum Trading ( 6 August 2004 ) – Section
3
Please see 'Related Items'.
The Trading Regulations – Wireless
telegraphy (Spectrum Trading) Regulations December 2004
http://www.ofcom.org.uk/radiocomms/ifi/trading/legislation/
What is meant by partial transfer?
As well as allowing parties to trade all the rights and obligations under a licence, Ofcom is permitting the transfer of only some rights and obligations in certain cases. This will result in the rights and obligations under the licence being partitioned (divided) into two distinct licences. The rights to use spectrum can be partitioned by frequency, geography or time.
What kind of partial transfers are allowed and in which licence classes?
At first, only certain types of licence can be partitioned. This will be extended in future as new systems come on stream within Ofcom. These new systems are required to ensure that partitioning of licences in this way does not result in increased interference.
Type of partitioning |
Permitted in licence classes (in 2004) |
Plans for licence classes (in 2005+ ) |
|---|---|---|
Partitioning by frequency |
All licence classes that are tradable in 2004, other than Fixed Wireless Access licences operating in the 3.6 GHz band. |
Explore and introduce progressively more flexible options for partitioning (e.g. 6.25 kHz blocks) |
Partitioning by geography |
Fixed Wireless Access licences operating in the 3.4 GHz band and Broadband Fixed Wireless Access licences operating in the 28 GHz band. |
Extend to include the Analogue PAMR, National Paging, Data Network and National and Regional PBR licences. |
Partitioning by time |
Not permitted. |
Permit temporal partitioning (licensing systems allowing) in the form of: time-limited transfers of spectrum, for set times of the week, or for a specified time. |
Please note that the specific types of trade permitted in the tradable licence classes for this year is specified in greater detail in Figure 1, Question 12. Regulation 6 of the Spectrum Trading Regulations sets out the ‘partial transfer of rights and obligations arising by virtue of a wireless telegraphy licence’ – thereby authorising the transfer of parts of a licence.
A Statement on Spectrum Trading ( 6 August 2004 ) – Section
3
Please see 'Related Items'.
The Trading Regulations – Wireless
telegraphy (Spectrum Trading) Regulations December 2004
http://www.ofcom.org.uk/radiocomms/ifi/trading/legislation/
Can I do other types of partial transfers besides the ones mentioned here?
Other types of partial transfer may be possible but will have to be effected by first partitioning the licence into two or more licences using the licence variation process (as part of spectrum liberalisation), followed by the transfer of one or more of the resulting parts. This two-stage process is required to enable Ofcom to consider fully the interference impact of the proposed partition on other users of the spectrum.
For more detailed information on the licence variation process, please consult the Liberalisation Guidance Notes published on the spectrum trading and liberalisation homepage2005.(see related items)
Can I combine these different types of transfers?
Total or partial transfers may be either “outright” or “concurrent”. The exhibit below gives some illustrative examples of the types of transfers that are possible.
In future, will Ofcom allow alternative types of trading transaction?
Ofcom believes that the range of permitted transfers will support a variety of commercial arrangements between parties. However, the market may seek to create new types of trading transaction, which would benefit from the availability of further types of transfer. Provided that such new types of transfer can be accommodated within the Trading Regulations, and there is sufficient evidence of the benefits of such additional transfer types, Ofcom would be willing to consider amending the Trading Regulations to authorise such additional types of transfer at a later date.
A Statement on Spectrum Trading ( 6 August 2004 ) – Section
3
Please see 'Related Items'.
What if a company which holds a WT Act licence is taken over by another company?
A licensee which is a corporate entity and which is subject to take-over by share purchase will not have to notify a transfer to Ofcom. However, where a company sells its business, which includes the business relating to the WT Act licence, the licence holder will have to follow the spectrum trading process as set out in these guidance notes in order to transfer the WT Act licences.
Do I have to trade if my licence is in a tradable licence class?
No, trading in rights and obligations under a WT act licence is entirely voluntary. Being able to trade a WT Act licence is a right of a licence holder; it is under no circumstances an obligation.
Footnote:
1:- Spectrum
Framework Review (SFR), Ofcom, December 2004.
Please see 'Related Items'.
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