Following the publication of "Spectrum for Public Two way Paging (TWP). A consultative document on licensing and spectrum for two-way paging in the 867.6-868.0 MHz band and the use of the 169 MHz paging band", in October 1999 by the Radiocommunications Agency (RA), this notice details the outcome of the consultation concerning the promotion of new services utilising new technologies and provision of new services in the UK public paging market.

The main messages that came out of this consultation exercise were the need to secure the future of the Public Paging market in the United Kingdom and Europe and confirmation of the demand for new services, which will help facilitate the further growth of the paging market.

The majority of responses spoke in support of the DTI’s proposals. The general response was that the DTI is taking very proactive steps to assist the development of national paging in the UK. The proposals also welcomed DTI's support for the development of new services for both the business and consumer markets.

Commenting on the responses to the consultation exercise, Patricia Hewitt, Minister for Small Business and E-Commerce, said today:

""I am delighted that these proposals have been welcomed by the Paging Industry and manufacturers. The results of the consultation have confirmed the industry's view that there is demand for new paging services. Two Way Paging technology will open the paging market to competition and give greater consumer choice, and will also encourage the introduction of more spectrum- efficient technologies."

The Radiocommunications Agency (RA) received a total of seven responses to the consultation including UK Paging and Data Operators, Manufacturers, and UK and European Trade Associations. The text of the non confidential responses is published on the Agency's website (www.radio.gov.uk) or can be obtained from the RA by contacting Mr H Matharu on Tel No. 020 7211 0549, or email: harpreet.matharu@ra.gsi.gov.uk.

In analysing the responses, the Government has concluded that there is wide support for the proposals set out in the document. The Government is now able to confirm the following proposals:

It would be helpful if five copies of all applications could be sent to each address. An electronic version of your comments either on disk or via email would be appreciated.

Applications for National Two Way Paging Wireless Telegraphy Act Licences will need to include an outline business case which will need to demonstrate that the applicant has the necessary technical, financial and legal competencies to implement a national network in a timely manner, eg: within five years of an award of a licence, preferably within three years.

Any new applicants wishing to provide a national Two way paging service will also need to seek advice from the DTI's Communications and Industry Industries Division on acquiring a Telecommunications Act licence to enable them to provide a national telecommunications system.

It would also be helpful if a non-restricted summary of the application could be included for placing on the RA Web site (www.radio.gov.uk).

Application details will be made publicly available except where applicants indicate that their response or parts of it are confidential. Applicants are requested to separate any confidential material into a clearly marked confidential annex. Unconditional permission will be assumed unless the applicant expressly states otherwise. Any copyright attached to responses will be assumed to have been relinquished unless it is expressly reserved.

1. The consultation document has been widely acclaimed as a timely and constructive analysis of the current and future issues that confront the UK paging industry. The consultation received a total of 7 replies including UK operators, manufacturers and UK and European industry bodies.

2. The current UK and European public paging market provides only unidirectional messaging services, i.e. the paging terminal has no return path to acknowledge message reception or send user initiated messages. The lack of a two-way capability has been identified as a serious impediment to the range of services that paging operators need in order to develop to sustain recent impressive growth in demand for paging services, which reached approximately 40% per annum during the past two years. The number of paging customers in the UK is now approaching 2.5 million and projections indicate that this figure could rise to over 7 million users by the end of 2007 with the introduction of new services and facilities to customers. If the projections are realised this will make the United Kingdom one of the strongest and innovative paging markets in Europe.

3. Following the November 1997 consultation, UK paging networks have progressively increased alphanumeric messaging which is replacing tone and numeric paging. Projections presented to the RA by the United Kingdom Paging Industry Association (UKPIA), drawn from the uptake in paging using the new technologies, have shown that the spectrum requirement could be as large as an additional 4 MHz if the user base reaches the projected 7 million users by the end of 2007.

4. In Europe the Conference of European Posts and Telecommunication Administrations (CEPT)² had identified spectrum for return path channels for TWP and considered the relationship between (including the current usage) the 169 MHz ‘ERMES’ channels and the TWP channels. This action was intended to stimulate growth in paging services in Europe where restrictions on the paging market act as a barrier to competition. Within the European Union, the European Commission carried out a study³ in support of the initiative to stimulate growth and remove market barriers. Subsequently, Council Directive 90/544/EC recommended that the technology restrictions be removed from the ERMES Directive for Paging.

5. UK paging industry representative groups such as the United Kingdom Paging Industry Association (UKPIA) and European Paging Association (EPPA) have supported the removal of the technology restrictions in the ERMES band to stimulate further growth in the UK national paging market.

6. In October 1999, RA in conjunction with DTI Communications and Industry Industries Division sought to determine the wider views of the industry and published a consultative document on Spectrum For Two Way Paging (TWP). This document described the current state of the UK paging market and detailed the proposed future developments for the UK paging industry and for the development of two way paging services. The document made several specific proposals intended to address the immediate capacity problems and invited views from the industry on these proposals.

7. The outcome of the October 1999 consultation identified wide support for the development of TWP in the UK, making all existing UK Paging licences technology neutral, ceasing mandating ERMES technology in the 169 MHz band and awarding new TWP licences through open competition rather than a spectrum auction.