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On 11 December 2006, Ofcom published a consultation document on detailed proposals for the award of the three available spectrum bands, 2500-2690 MHz (“2.6GHz band”), 2010-2025 MHz (“2010MHz band”) and 2290-2300 MHz (“2290MHz band”), as well as two reports by Ofcom and Mason Communications Ltd on technical issues relevant to their use.

In March 2007, Ofcom received 35 responses to the consultation document. The responses raised a wide range of issues, including the technical and non-technical conditions of use, and the design and timing of the auction. The breadth of the responses is to be expected given the economic significance of the spectrum to the country and its commercial significance to many individual companies.

The nature and scope of these comments is such that we believe it appropriate for Ofcom to carry out further analysis and consultation before taking decisions. Accordingly, Ofcom intends to set out updated proposals in a further discussion document by the end of July 2007. Ofcom anticipates that this discussion document will cover a number of points including:

• the technical conditions for use of the bands, including the significance of compatibility considerations for flexibility in spectrum packaging and the significance of adjacent uses for the potential value of different frequencies within the bands (and, conversely, the effect of use of these bands on adjacent users);
• issues on the spectrum packaging and auction design.

This additional step is intended to facilitate further input into the design of the award and thereby contribute to the development of a robust and efficient award process

Ahead of publication of the discussion document and subsequently, Ofcom will continue to participate in the European regulatory discussions that are relevant to the 2.6 GHz and 2010 MHz band under the WAPECS initiative. These include work by:

• the SE42 working group of the CEPT, which was requested to develop least restrictive technical conditions for frequency bands addressed in the context of WAPECS (which include the 2.6GHz and 2010MHz bands) in response to a mandate from the European Commission by 29 July 2007;
• COCOM, which is working on a recommendation regarding non-technical licence conditions for WAPECS spectrum bands; and
• the RSC, which is due to consider the deliverables from CEPT and COCOM at its meetings in October and December.

Following publication of the discussion document, and subject to consideration of responses, Ofcom expects that it should be in a position to make decisions regarding the award of these bands by the end of 2007, with the publication of a statement, an Information Memorandum and draft regulations. On this basis, award(s) could take place in early 2008.

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