 |
Annual Report & Accounts 1997-98 |
|
Annual Report & Accounts 1997-98 |
"Radio is a uniquely versatile communications medium. It is vital to the full realisation of the Government's vision of the Information Age and the Department of Trade and Industry's aims of increasing UK competitiveness and scientific excellence, generating sustainable growth, good jobs, opportunities and enhanced quality of life for all by fostering strong markets, modern companies and an enterprising nation. But this cannot happen without effective management of the radio spectrum resource. The Agency's work is therefore crucial to the continuing development of one of the most dynamic and successful sectors of the economy and contributes directly to wealth creation, competition, quality and choice.
It is fitting in this, the first Annual Report since my appointment in May 1998, to pay tribute to the many achievements of my distinguished predecessor, Jim Norton. Under his stewardship, the Agency has made considerable progress in becoming a more effective, customer-oriented and open organisation, despite the inevitable disruption of relocation. "
This has been a year of substantial growth.
Gross Income - Continuing Operations
£'000
1998 46,007
1997 42,608
The importance of radio
to the economy
The second survey of the Economic Impact of the Radio Spectrum in the UK, published in May 1997, confirmed the importance of radio to the economy and the dynamism of radio-based industries. The study estimated that, in 1995/96, radio-based services contributed no less than:
The challenge the Agency faced and met was to provide the spectrum needed to fuel this double-digit growth rate while itself undergoing a process of development and change.
Finance
The Agency's intention is to break even in accruals terms, as reported in the Income and Expenditure Account. The surplus for the year was £1.689m, compared to the 1996/97 result of £2.021m. Increases in income, notably in the Fixed Services and Public Mobile Communications sectors, were more than offset by increased expenditure, including preparations for spectrum pricing. This was the last year that the break-even target will apply, because the Wireless Telegraphy Act 1998 removes the Agency from the overall application of the Treasury's Fees and Charges regime.
In cash terms, the Agency generated a surplus of £5.916m, compared with £1.957m in 1996/97. This was comfortably in excess of our net running costs control target of £3.096m. Our target of a 4% improvement in financial efficiency was also achieved.
Customers
We have continued the emphasis on openness, transparency and accountability. Our programme of regular consultations with customers has continued through:
The recent establishment of the Spectrum Management Advisory Group (SMAG), chaired by Dr John Forrest, marks a significant enhancement of these arrangements and will ensure that the voice of the customer is at the heart of Agency policies. SMAG represents a wide range of users' interests and will have direct access to Ministers to provide an independent strategic input to spectrum policy, including spectrum pricing.
In addition, following a recommendation of the Stage 3 Spectrum Review, the arrangements for spectrum management within Government have also been refined. A new UK Spectrum Strategy Committee has been set up and this interdepartmental committee will provide an official forum for the determination of national policies covering all radio spectrum matters, civil and military.
The Agency has continued to work internationally to promote the interests of UK radio users by maintaining its leadership role within Europe through CEPT (the Conference of European Postal and Telecommunications Administrations) and on the wider stage of the International Telecommunications Union. In particular, the Agency played a key role in securing a successful outcome to the 1997 World Radio Conference in Geneva while protecting and advancing key UK and European interests.
Internal Processes
Business processes
The Agency has continued the process of fundamentally changing its core business processes
to respond to the new challenge of spectrum pricing and to simplify and rationalise
licensing. RULES (RA unified licensing executive system), which will bring together our
licensing databases, maintained good progress and is expected to enter its implementation
phase at the end of this financial year and the start of the next.
Information Systems Strategic Partnership
During the year the Agency progressed to near-completion the complex negotiations to
establish an Information Systems Strategic Partnership. I am pleased to be able to report
that an agreement to form a unique Government partnership with private enterprise was
signed on 8 June 1998. This important development will benefit the Agency and our
customers. By providing new systems development and support, it will enable us to improve
our service and value for money. It will also allow us to exploit our expertise and
international reputation in spectrum management by assisting other administrations on a
commercial basis. I look forward to working with our partners CMG plc, to make the joint
venture a success.
Internal organisation
The Agency has taken further the programme of internal reorganisation begun in the
previous year. It has been reconfigured into Business Units based on the key components of
our business and customer needs. The Management Board has been reduced in size with
Directors' responsibilities defined on the basis of functions (Spectrum Policy, Spectrum
Services, Customer Services and Corporate Services & Facilities) rather than the type
of radio application. Greater responsibility has been delegated to the Managers of the
Business Units and their staff, who are closer to their customers, both internal and
external. This new structure provides a more rational allocation of responsibilities,
frees Directors to concentrate on strategic issues and empowers staff to provide a better
and more responsive service.
Innovation and Learning
Economic and market analysis
The second economic impact study, mentioned above, has confirmed the considerable and
growing contribution that radio makes to the economy.
As a key part of a more proactive approach to spectrum management and to provide a basis for the implementation of spectrum pricing, the Agency is defining its key markets through a programme of focused market analysis, highlighting areas of current, and anticipated, spectrum congestion. Studies covering public mobile communications, private business radio and point-to-point fixed links have so far been undertaken and completed. The results have been shared with industry and will feed into the Spectrum Strategy.
Investors in People (IiP)
The Agency remains committed to a process of major cultural change based on a focused
programme of management development targeted at unleashing the ideas and creative talents
of staff at all levels. IiP accreditation is an important part of this process and the
Agency has stated its commitment to becoming accredited. Much progress has been made.
During the year, two IiP questionnaires were conducted, from which a wealth of useful
information has been extracted. The Agency is continuing to work towards accreditation,
not as an end in itself but as a means to enhance the development and training of our
staff and ultimately to improve further the service we give to our broad range of
customers and to Ministers.
The Way Ahead
It is my privilege to be leading the Agency at a time of unparalleled opportunity and challenge. Demand continues to rise for spectrum to enable existing services to grow and new services to be introduced. The pace of technical change is likely to quicken as users increasingly require and expect the mobile delivery of services such as access to the Internet. The introduction of digital technology is eroding traditional demarcations between telecommunications and broadcasting and bringing about the convergence of hitherto separate services. The Government is considering how to keep the regulatory framework, of which spectrum management is an important component, effective and up to date. The Agency is playing a full part in this process.
In consultation with staff and with the endorsement of Ministers, the Agency has produced its vision for the new millennium, Vision 2000. As reported below, our vision for the year 2000 is to achieve optimal management of the UK spectrum in accordance with a clear strategic plan which balances supply and demand. The record of the last year provides a solid basis of accomplishment from which to turn Vision 2000 into reality.
David Hendon
Vision 2000
This statement is our vision for the Radiocommunications Agency in the year 2000. It is based on contributions from staff throughout the Agency, has been prepared in consultation with them and the Agency's management and has been endorsed by Ministers.
As our collective vision, this forms the basis for our strategies, plans and objectives for the next three years for the overall Agency and for each of our Business Units as well as providing the framework for the personal achievement plans of each member of staff.
We will be managing the UK radio spectrum optimally in accordance
with a clear strategic plan which balances (as far as possible) supply and demand
and which takes a balanced and well-judged account of
We will achieve this by full and appropriate use of:
We will have interdepartmental agreement to the plan, which
will be seen as supportive of Government policies in a wide range of fields;
be valued by customers as a sound basis for their future planning; and achieve
an appropriate balance between the often conflicting needs of users.
We will have a reputation internationally as an imaginative
and open-minded spectrum manager, vigorous in our support of rational spectrum
allocation decisions but alert to political sensitivities.
We will have a clear and comprehensive range of licence
products which meets the needs of customers, and clear arrangements in place
for dealing with novel and difficult cases and for encouraging innovation. We
will be seen as effective enforcers by protecting users' interests through keeping
the spectrum clean.
We will have modern management information systems which
will be fully integrated with our spectrum assignment and accounting systems.
These will be supported by common procedures to enable us to provide high quality
information and a consistent and efficient service to customers; and by effective
change management processes to enable us to respond appropriately to developments
in policies, markets, technologies and customer needs.
We will be a caring and considerate employer with Investors
in People accreditation. We will have a highly motivated and professional staff
working co-operatively and flexibly to maintain our high standards of service
and our key role as strategic managers of the spectrum with a reputation for
integrity, independence and impartiality.
|
