Before the second award process for 28 GHz BFWA licences, which ended in October 2002, the Agency produced extensive information – including economic profiles of the regions where licences were available – for prospective applicants

1.4 Sound broadcasting
The demand for spectrum for analogue sound broadcasting services in the FM band remains strong, and it is increasingly difficult to find frequencies for new services. As well as the range of BBC national and local services, there are now twice as many commercial radio licences as in 1990.

The Communications Bill provides for a new tier of 'access radio'; the FM Review, commissioned jointly by the Agency, the BBC and the Radio Authority, fed into this. During 2002-03 we also carried out an examination, with the Radio Authority, of the technical practicability of using shortwave spectrum for UK short-distance broadcasting; Ofcom will take forward the licensing of this resource.

National multiplexes (the BBC and commercial) are transmitting digital VHF, and the Radio Authority is licensing sub-national multiplexes at the rate of about one per month. Prices for both in-home and in-car equipment are falling and take-up is increasing.

The international agreements concerning the sharing of spectrum in the L band were concluded this year. Ofcom will take over the consideration of licensing this resource, which is due to be empty of fixed links by 2007. Proposed uses of the band include:

[	overcoming VHF spectrum limitations in parts of the country for local digital radio;
[	more digital radio multiplexes;
[	more generic mobile multimedia services, using the Eureka 147 technology flexibly for a range of sound broadcasting, data and video services; and
[	more flexible use of broadcasting satellite services.

Work is now complete in the International Telecommunication Union (ITU) on recommended standards for digital radio in the HF band. This is likely to generate considerable interest in re-planning not only the shortwave bands but also the MF and LF bands for digital use; the Agency is supporting these activities to improve the attractiveness of this spectrum.

Steve Culling (right) from the Agency's North West England office assisting a customer at the City of Manchester Stadium in the build-up to the Commonwealth Games in July/August 2002

1.5 Television broadcasting
Around 40% of UK households now watch digital television over cable, satellite and terrestrial platforms. The Independent Television Commission (ITC) is working with the BBC, other broadcasters and the Agency to boost the coverage of digital terrestrial television (DTT) and improve robustness of reception, while ensuring minimal interference to analogue television. The Agency is working to support these objectives and to gain international co-ordination of our DTT networks.

This year, Ministers announced the terms on which the six digital television multiplexes will use spectrum after switchover. This is part of the Digital TV Action Plan – a strategy to deliver an all-digital environment for television, involving broadcasters, regulators, the Government, manufacturers, retailers and viewer organisations. The ITC and the BBC were told to plan the multiplexes in no more than 32 of the currently available 46 channels. Spectrum planners, led by the ITC and including the Agency, are developing the details of these plans.

The Agency is also preparing for an ITU Regional Radio Conference, to be held in two parts in 2004 and 2005-06, which will revise the Stockholm 1961 Agreement. This work is being conducted within the Spectrum Strategy Committee, and involves all parties (broadcasting and others) with an interest in the VHF and UHF broadcasting bands. The conference will set out the way that broadcasting spectrum in these bands will be shared and planned between administrations, taking into account the needs of other users (including some unique to the UK). The UK aims to gain an equitable share of the spectrum, enabling the implementation of our plans for the six digital multiplexes and also the fullest use of the spectrum released on switchover (both nationwide cleared spectrum and channels interleaved with the six multiplexes).

It is premature to consider possible uses of the spectrum freed up by the closure of analogue transmissions, although options include more digital multiplexes, mobile television, programme-making, data delivery, mobile multimedia and various other 'converged' services.

1.6 Programme-Making and Special Events (PMSE)
In April 2002, JFMG Ltd was awarded the contract to manage the spectrum devoted to PMSE. A high point of the year was the successful planning and management of the vast array of spectrum requirements and usage at the Commonwealth Games.

The pressure on the spectrum is growing because more programmes, events and shows are being made, and more spectrum is required for each of them. More annual events (not only the British Grand Prix) are taking on the characteristics of 'special' events, requiring careful management of spectrum use and the 'borrowing' of spectrum from other users (e.g. for broadcasters' requirements) so that all users are catered for as fairly as possible and without interference.

At the same time, the supply of spectrum is being affected by decisions on spectrum for other services such as broadband and digital television. The Agency is providing some replacement spectrum and considering how to manage the supply/demand balance efficiently in future (by promoting more efficient digital technology, spectrum pricing etc.)

1.7 Fixed wireless access (FWA) at 3.4 GHz
After consulting on the availability of spectrum at 3.4 GHz and 10 GHz, we made the final arrangements in May 2002 for awarding licences in the 3.4 GHz band. The award of 10 GHz licences was separated from this process, allowing further studies to be carried out. We decided to award 15 regional licences by auction in the 3.4 GHz band; this will take place in May 2003.

We are continuing to investigate whether spectrum in the 3.6 to 4.2 GHz band can be made available for FWA, based on an economic and technical assessment of the options. Sharing and co-ordination studies are under way, and a consultation is expected in the second half of 2003.

1.8 Fixed terrestrial and satellite links
The Agency works to maximise the amount of spectrum available for fixed-link operators. We aim to ensure that the requirements of technologies such as 3G mobile operations can be met, while also introducing tailored management arrangements for the fixed services spectrum allocations (thus allowing existing infrastructure networks to expand).

Throughout 2002-03, the UK's Fixed Satellite Service and Fixed Service international interests were protected and promoted within the ITU and the European Conference of Postal and Telecommunications Administrations (CEPT).

Agreement was reached on closedown dates for the remaining high-power 2 GHz trans-horizon systems operating between Scotland and North Sea oil rigs in the UK sector. The last such link will be replaced by alternative systems in 2008, removing a potential constraint on the mobile services moving into this band.

Discussions for the Agency to resume managing the 18 GHz band, currently self-managed by a major operator, went well. This band will pass into Agency management in 2003 as scheduled, completing the take-back programme.

The 58 GHz unco-ordinated frequency band was deregulated – see Section 1.9. Negotiations on future management arrangements for scanning telemetry spectrum in the 450 to 470 MHz band are on course for agreement and implementation in 2003-04.

The medium-term plan ensuring fair and equitable access to the general pool of fixed-links spectrum, as agreed with industry via the Fixed Link Co-ordination Committee, is steadily being implemented. As noted in last year's Annual Report, two-thirds of the 32 GHz, 52 GHz and 55 GHz frequency bands are being held back to allow scope for testing innovative assignment and/or allocation processes that may supplement the traditional approach of allowing different uses to share the same bands.

The Agency is helping to develop a UK position, taking into account the interests of the fixed-link industry, on whether to permit ultra wide band (UWB) motor vehicle radars to use spectrum from 21.5 to 26.5 GHz ('24 GHz'). If permission is granted, a significant number of currently assigned fixed links in the band may need to be moved, at considerable cost to the operators.

We are also helping the European Telecommunications Standards Institute (ETSI) to rationalise the many digital fixed radio standards into a single, multi-part harmonised standard. This will simplify and speed up the drafting process for revising standards within ETSI, and will help industry to distinguish the relevant R&TTE Directive requirements.

Action is under way to open a new band for high-density, high-capacity, fixed point-to-point links between 64 GHz and 66 GHz (the 65 GHz band), which will be subject to a light licensing regime. We anticipate that each operator will hold a single licence covering all its 65 GHz links; each link will be registered and co-ordinated by the operator itself through an online system.

Two new online computer tools, e-Flatco and SatClear, became operational this year. They allow, respectively, fast clearance of Transportable Earth Stations and the registration of Network (formerly VSAT) terminals without the day-to-day involvement of the Agency's assignment and licensing staff.

The spectrum pricing algorithms for Permanent and Transportable Earth Stations, implemented by the July 2001 Fees Regulations, required only minor adjustment and simplification this year. After discussion with industry representatives, a further algorithm to cover Network licences was agreed and implemented.

Demand for new terrestrial links remained buoyant during the year at more than 450 per month. The total number of current licensees and licensed links is shown in Table 1.

Table 1: Fixed Links/Space Service licences on issue at 31 March 2003

Description	Number of licences	Number of links/stations
Fixed Services
Fixed Links (not at 58 GHz)	368	32,256
Fixed Millimetric Radio Relay Link (58 GHz)1	0	0
Scanning Telemetry Link	66	9,738
Point-to-Multipoint (31 GHz)	81	107
Space Services
Permanent Earth Station2	174	323
Transportable Earth Station (three classes)3	91	173
Network licence (formerly VSAT)	37	See4

Notes

1 The 58 GHz band is now licence-exempt.
2 Permanent Earth Station licences are now issued on the basis of one licence for each site containing earth stations (not one licence per earth station).
3 The Transportable Earth Station licensing regime was reorganised during 2002-03.
4 One Network licence is now issued for each network; approximately 14,088 subscribed terminals are associated with these licences.

1.9 Licence-exempt public telecommunications
Under the new European Directives, the Agency must scrutinise the need on spectrum management grounds for spectrum use to be licensed; if interference to other services is likely to be small, licence-exemption should be considered.

Following a consultation exercise in October 2001, two significant exemption regulations were brought into force this year. The first, in July 2002, exempted public services using the 2.4 GHz band for low-powered wireless local area networks (WLANs).

The second, in February 2003, updated and consolidated all the existing regulations. WLANs operating in accordance with UK Radio Interface Requirement 2006 in Bands A and B at 5 GHz, as well as two new mobile satellite networks and unco-ordinated fixed links at 58 GHz, were exempted from licensing.

The 5 GHz bands primarily enable the use of WLANs to deliver broadband internet access in public areas and/or private networks – see Section 1.12.

1.10 Terrestrial Trunked Radio (TETRA)
In the UK, Public Access Mobile Radio (PAMR) using the digital TETRA standard operates in the 410 to 430 MHz European harmonised band. Dolphin, the national TETRA operator, currently has 2 x 4 MHz providing 160 channels.

This year Dolphin was awarded a further licence to provide a national high-speed data system using the TETRA Advanced Packet Service (TAPS) standard. The new service will use 2 x 4 MHz in the European 900 MHz TETRA band; this will enhance the existing TETRA system, affording data rates comparable with the General Packet Radio Service (GPRS).

The work on clearing military communications services out of the 410 to 430 MHz band continued through the year and is now nearly complete, with only residual services remaining.

1.11 Public mobile telephony: 3G networks
Network trials by the UK operators continued during 2002-03, and Hutchison 3G (now branded '3') soft-launched its service in the spring of 2003. The other operators are expected to launch later this year or in 2004.

Harmonisation and standardisation development continued within the ITU and the 3rd Generation Partnership Project (3GPP). Within Europe, Project Team 1 of CEPT's Electronic Communications Committee (CEPT ECC PT1) delivered a Report and associated Decision required under the European Commission Mandate on the expansion spectrum (2500 to 2690 MHz) for 3G (IMT-2000) systems. These were completed in November 2002, and were considered and endorsed by the Commission's Radio Spectrum Committee (see Section 9.5) and the ECC.

A further mandate on the detailed spectrum pairing arrangements is currently being considered; once agreed, this will be addressed by CEPT ECC PT1, which will also be the European co-ordinating body for agreeing common positions within ITU-R – see Section 9.1.

1.12 Private business systems
The spectrum access regulations for WLANs were a major area of work during 2002-03. Bands A and B are now available (see Section 1.9) and proving very popular, and further sharing studies and rules for FWA are being developed in order to provide access to Band C.

Within the cross-Government Public Safety Spectrum Policy Group, the Agency worked to ensure that the public safety services radio network (Airwave) is correctly co-ordinated with other users and our European neighbours. As a result, a number of licences were issued for both the terrestrial network and the development of an air-ground-air network.

Other important public services such as bus and coach radio systems are being developed to meet the requirements of the Real Time Passenger Information initiative. An innovative time-division standard was developed to aid the introduction of low-cost data applications for taxis, private hire and other dispatch-type uses.

Another important issue this year was the new National Rail GSM-R licence for England. This will gradually replace the communications systems to and from locomotives, and will carry some signalling information.

Projects such as the Mobile Assignment Technical System (MASTS) are now well under development, and will pave the way for spectrum to be assigned rapidly for wide-area PBR services. This system will be available for thorough testing in the licensing centres later this year, and for online assignments next year.

The Agency commissioned a report, 'Keeping Britain Working: Maintaining the social benefits of private mobile radio within a market based system', from the Social Market Foundation. The report is available from the Agency Library.

"In its first 12 months, the new Foundation licence attracted 3,500 people to amateur radio for the first time."

3G mobile telephone networks – the first of which, '3', launched its service in early 2003 – can deliver a variety of services including digital maps to help users find their way anywhere in Britain

1.13 Amateur Radio
The key event of 2002 was the introduction of the Foundation licence. In its first 12 months, 6,300 licences were issued, of which 3,500 were to people new to amateur radio. (The rest were issued to existing class B licensees who wished to gain access to the HF bands.)

Andrew Finch – the 5,000th amateur radio licensee – and his parents, flanked by the Agency's Alan Betts (left) and Bob Whelan (right), President of the Radio Society of Great Britain, at a presentation in October 2002

It is most rewarding that, of the 700 newcomers who were due to renew their licences in the first three months of 2003, only 11 failed to do so.

The revised intermediate licence syllabus was published towards the end of 2002-03, and two pilot exams involving 150 candidates were held. Congratulations are due to the clubs and societies providing training and examination facilities, which have been key to the scheme's success.

1.14 CB
The number of licensed Citizens' Band (CB) enthusiasts has fallen from 300,000 at its peak to only 23,000. In line with the European Authorisation Directive, we consider CB to be a candidate for deregulation (i.e. the removal of the need for individual licences). A consultation document was issued in March 2003, seeking CB users' views on proposals to deregulate from July 2004 and to close the 40 'UK only' channels from July 2010 (making those frequencies available for alternative use). Under these proposals, the remaining 40 CEPT (Pan-European) CB channels will continue.

1.15 Maritime and aeronautical licensing
This year, the Agency continued to raise awareness of aeronautical and maritime radio and associated licensing issues among the UK maritime and aeronautical communities, attending a number of events.

We carried out a comprehensive project on the characteristics of radars, to investigate the factors and limitations affecting spectrum usage. The study employed a variety of methods, including a measurement campaign as well as technical evaluations and analyses. We expect that the resulting information will enable radar spectrum bands to be better managed, and (in the longer term) will assist in examining the potential for reducing bandwidth requirements and re-evaluating spectrum pricing for radars.

Maritime
The Maritime and Coastguard Agency (MCA) made good progress towards updating the licence details of its systems, beginning with its fleet and then its Coastal Station Radios (CSRs) and Navigational Aids. We are also working with the Royal National Lifeboat Institution to update the licensing of its systems; this will avoid potential problems caused by the UK's decision to begin recycling vessel callsigns and Maritime Mobile Service Identity (MMSI) numbers in 2003.

The contracted-out licensing of ships' radio systems continues to work well. The Radio Licensing Centre fulfils this role, consistently meeting its performance targets.

Two new licence categories were introduced this year. The Coastal Station Radio Training Establishment (CSR TE) licence allows marine radio units to be set up on land, enabling maritime radio procedures to be taught. The Maritime Radio Suppliers licence enables businesses to install, test, repair and/or demonstrate maritime radio transmitting/receiving equipment. This work may be performed at the licensee's main place of business, on board UK vessels owned by the licensee's customers (not at sea), and at special events such as boat shows – provided that we are notified in advance.

Much of the year was spent preparing for the 2003 World Radiocommunication Conference (WRC-03). Key developments for the Agency were:

[	making a key contribution to work in CEPT and ITU fora to shore up European proposals promoting the use of the Global Maritime Distress and Safety System (GMDSS); and
[	helping to secure a common European position in addressing the potential shortfall of MMSI numbers;

The Agency and the MCA were co-sponsors of a US/UK joint maritime radar trial to determine the effects of simulated radiolocation (and other) interfering signals into maritime radars. The results were favourable for supporting radiolocation as a primary allocation in the 3 GHz band, along with the incumbent radionavigation service allocation – an issue that will be debated at WRC-03.

Aeronautical
Contracted-out day-to-day licensing of aeronautical radio, operated on the Agency's behalf by the Civil Aviation Authority (CAA), took off to an excellent start. The collaboration with CAA helps to consolidate licensing operations for the sector, and provides an effectively unified point of contact for the customer.

As in other areas, much of our aeronautical work was in preparation for WRC-03. We were instrumental in securing a common European proposal for enabling the use of 108 to 117.975 MHz (for augmentation data) in Global Navigation Satellite Systems (GNSS). A contribution to CEPT sought to amend the spurious emission limits in the Radio Regulations, to cater for a further type of radar. We also helped to develop a European position striking the balance in a proposal relating to the future use of the 5091 to 5150 MHz band by Microwave Landing Systems and the Non-Geostationary Orbit Mobile Satellite Service feeder links.

Table 2: Number of licences on issue at 31 March 2003

Licence sector/category		2003	2002
	Aeronautical Ground Stations:
	AGS (General Aviation)	328	325
	AGS (Operations Control)	787	710
	AGS (Air Traffic and Ground Movement Control)	206	196
	AGS (Airfield Flight Information Service)1	115	30
	Aeronautical Ground Stations subtotal	1,436	1,261
	Aircraft:
	Aircraft	7,298	6,471
	Aircraft Transportable	1,367	1,347
	Aircraft subtotal	8,665	7,818
	Aeronautical Navigational Aids and Radar	360	276
	Aeronautical total	10,461	9,355
	Amateur:
	Amateur Radio A	29,440	30,549
	Amateur Radio B	22,269	23,146
	Amateur Radio A/B2	0	391
	Amateur Radio Intermediate A3	234	230
	Amateur Radio Intermediate B4	2,291	2,504
	Foundation Licence	6,738	0
	Amateur subtotal	60,972	56,820
	Citizens' Band Radio	23,109	25,969
	Amateur and CB total	84,081	82,789
	Transmission of Terrestrial UHF TV Services	2	2
	Transmission of National and Local Broadcasting Services	217	236
	Restricted Radio Services Transmission5	362	723
	Restricted Television Services Transmission	29	25
	Digital radio	41	0
	Access radio6	19	0
	Broadcasting total	670	986
	Fixed Links	368	368
	Fixed Millimetric Radio-Relay Link (58 GHz)8	0	210
	Scanning Telemetry Link	66	4
	Point-to-Multipoint	81	6
	Fixed Services total	515	68
	Maritime Radio Suppliers	72	34
	Coastal Station Radio:
	CSR (UK)	507	558
	CSR (Marina)	431	442
	CSR (International)	492	464
	CSR Training Establishment	20	2
	Coastal Station Radio subtotal	1,450	1,466
	Ship Radio (including Ship Portable Radio):
	Charities	436	332
	Others	62,046	58,618
	Ship Radio subtotal	62,482	58,950
	Maritime Radio Navigational Aids and Radar	78	65
	Differential Global Positioning System	21	23
	Maritime total	64,103	60,538
	PBR UK General and Private Mobile Radio (Standard)	3,106	3,200
	On-Site PBR (Speech and Data Systems)	26,036	26,092
	Private Mobile Radio Road Construction	6	7
	On-Site PBR (Local Communications Systems)	1,777	1,862
	Wide Area PBR (One-Way Paging and Speech Systems)	334	340
	Police and Fire Service Comprehensive Radio	118	120
	Wide Area PBR (Speech and Data Systems)	12,770	13,241
	National and Regional PBR	58	59
	PBR Suppliers	468	484
	On-Site PBR (Hospital Paging and Emergency Speech Systems)	473	458
	On-Site PBR (One-Way Paging and Speech Systems)	1,893	1,754
	Wide Area PBR (Distress Alarm Systems)	18	12
	Self-Select PBR (One-Way Paging Systems)	7,834	7,502
	Private Business Radio total	54,891	55,131
	Programme Making and Special Events9	2,324	2,150
	Programme Making total	2,324	2,150
	Common Base Station Operator	716	793
	Public Wide Area Paging Networks	5	6
	Public Mobile Data (Non-Voice)	5	5
	Public Access Mobile Radio	5	7
	2G Cellular Telephones	4	4
	3G Cellular Telephones	5	5
	TETRA Digital PAMR	2	1
	Asset Tracking	1	1
	Channel Islands and Isle of Man Cellular Telephones	4	3
	Fixed Wireless Access	3	4
	Band One	6	6
	Remote Meter Reading	2	2
	Public Telecommunications Networks Mobile Communications total	758	837
	Permanent Earth Station	174	397
	Transportable Earth Station11	91	52
	Network licence (formerly VSAT)	37	46
	Space Services total	302	495
	Testing and Development	368	371
	Radar Level Gauge	376	313
	Unspecified Operational Radio Use	7	6
	Unspecified Temporary Radio Use	35	14
	Technology Development total	786	704
	GRAND TOTAL	218,891	213,666

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