Q&As

Q.

Can a company registered outside the UK apply for the award?

A.

Regulation 4(1) of the Award Regulations provides that only a body corporate may apply for a Licence in the award process for licences in the frequency bands 1781.7-1785 MHz and 1876.7-1880 MHz.

Ofcom does not believe that this requirement means that only companies registered in the United Kingdom may apply for a Licence. However, it is the responsibility of parties with an interest in the award to make their own assessment of how the legal framework, including the Award Regulations, applies to their specific circumstances, taking their own advice as appropriate.

Q.

What fees are relevant to a licence for use of the Spectrum Bands?

A.

To be granted a Licence, according to the requirements of the Award Regulations , a party must pay a sum specified in the Award Regulations . The Licence fee determined in the award is the only fee imposed by Ofcom for spectrum use for the initial term of 10 years.

In addition to this sum, a licensee in the Spectrum Bands should be aware of two other types of fees or charges imposed by Ofcom.

a) Fees in respect of spectrum

Fees in respect of spectrum after the initial term of a Licence are described at paragraph 3.14 of the Information Memorandum for the award.

b) Administrative charges for networks and services and broadcasting

Ofcom has set out the principles according to which it will charge annual administrative charge to relevant companies in its Statement of Charging Principles.

Ofcom has also published a statement on the designation of providers (of electronic communication networks, services or associated facilities) who must pay administrative charges to Ofcom, and guidelines on the definition of relevant activity in that respect.

It is the responsibility of interested parties to determine how the provisions described in these documents apply to their specific circumstances.

Q.

Does a licence for use of the Spectrum Bands allow use in UK territorial waters, the Channel Islands or the Isle of Man?

A.

As set out at paragraphs 3.28 and 3.29 in the Information Memorandum for the award and paragraph 17 of the Licence at Annex 1, the Licences only authorise use of the Spectrum Bands in the United Kingdom. This does not include the territorial waters of the United Kingdom. The Licences do not authorise use of the Spectrum Bands in the any of the Channel Islands or the Isle of Man.

Q.

What are the relevant technical criteria for cross-border coordination?

A.

Ofcom has identified existing cross border coordination agreements in the Information Memorandum at paragraph 6.26 and certain requirements on Licensees at paragraph 6.29. The existing Memoranda of Understanding with the Republic of Ireland and France relevant to the Spectrum Bands are available on the spectrum awards section of the Ofcom website.

Q.

Will mobile number portability codes be available for licensees in the Spectrum Bands?

A.

A mobile number portability code is a routing prefix, allocated to a unique electronic communication services provider, which is added to calls to a ported mobile number to identify that provider and direct calls as required. Ofcom has currently designated 10 codes in the format 799X for this purpose. At present, seven of these codes are already allocated to providers. However, there is no intrinsic shortage of codes which can be used for this purpose as new ones may be created if appropriate.

Mobile number portability codes are made available for allocation by being set out in the National Telephone Numbering Plan. As at March 2006 Ofcom is considering what proposals it could make to designate a new set of mobile number portability codes in the Plan. Such a change to the Plan would require a statutory consultation for a minimum period of one month. Ofcom expects to consult in March 2006 on this minor change to the Plan along with some other amendment proposals relating to the availability of specific subranges of numbers. As a result of this consultation, the supply of mobile number portability codes could be expanded to meet future demand.

As at March 2006 Ofcom is also considering its wider programme of work on mobile number portability, including issues such as the time required to complete a port in the UK. Further proposals may therefore be brought forward in due course.

Q.

In my application form, do I have to include minority shareholders or companies in the applicant’s group which do not hold shares in the applicant?

A.

You should determine which companies, whether they are minority shareholders or whether they do not hold shares in the applicant, are members of your applicant's bidder group according to the Award Regulations, taking your own advice as appropriate.

The definitions of bidder group, associate and material interest are provided in regulation 2 of the Award Regulations and you will note for example that material interest is not limited to the proportion of shares held.

However you will also note that, according to these definitions, only persons which hold a material interest in the applicant are members of the applicant's bidder group as associates; companies subsidiary to associates are not themselves associates, and therefore not automatically members of the applicant's bidder group, unless they themselves have a material interest in the applicant.