Ref: 65/01
Date: 28 September 2001

Oftel has today published its response to the independent review of the radio spectrum headed by Professor Martin Cave.

Oftel’s view is that the way spectrum is managed will have important consequences for future competitiveness of the UK’s electronic communications. Oftel believes that a move to a more market-based management regime is essential; the Radiocommunications Agency has already started to adopt this approach.

The way in which the spectrum is managed will be a key task for the new converged regulator, OFCOM. Oftel believes that by focusing on the use of spectrum to promote competition, consumers will benefit in terms of quality, choice, and value for money.

David Edmonds, Director General of Telecommunications, said today,

"Oftel welcomes the Government’s initiative in setting up the Cave review.

"Oftel believes that the current way of central allocation and assignment has been successful in the past. The Radiocommunications Agency is to be congratulated in moving as swiftly as it has to make market based mechanisms possible.

"However, the pace of technological change, and the ever increasing demand for spectrum require a continuing development and further implementation of such policies if UK competitiveness is not to suffer in the medium to long term.

"Oftel will continue to actively contribute to the review of the radio spectrum. Oftel looks forward to working with the Government and fellow regulators in the implementation of decisions on its conclusions in the run up to OFCOM."

Notes to Editors:

1. A copy of Oftel’s response is available on Oftel’s website at www.oftel.gov.uk/publications/oftel_response/2001/spec0901.htm. Copies are available to the media from Oftel’s Press Office on 020 7634 8991 and to the general public from the Research and Intelligence Unit on 020 7634 8761.

2. The joint DTI-HM Treasury review was first announced in the Pre-Budget Report, November 2000. The review remit and the appointment of Professor Martin Cave were announced in March 2001. The review is due to report to DTI and H M Treasury Ministers by the end of 2001.

3. The review's remit is set out at Cave review website www.spectrumreview.radio.gov.uk.

4. Professor Martin Cave, Professor of Economics and Vice-Principal at Brunel University, has published on a wide range of subjects, including telecommunications regulation and spectrum management as well as competition policy and higher education. He has also advised Oftel and a number of regulatory bodies. He is a member of the Competition Commission.

5. The Communications White Paper was published in December 2000 by the Department for Trade and Industry, and the Department for Culture, Media and Sport. It sets out the institutional framework for communications regulation, including the establishment of a single regulator for the sector. This single regulator will incorporate Oftel and the spectrum management functions of the Radiocommunications Agency.