Government announces results of the consultation "Public Wireless Networks - Exemption of User Stations"

Press release - 18 July 2003

The Consultation "Public Wireless Networks - Exemption of User Stations" was launched on 4 November 2002 and concluded on 21 February 2003. It sought views on proposals to amend the Wireless Telegraphy (Exemption) Regulations 1999 (SI 1999/930)(1) (the Regulations) to clarify the status of end-user equipment connecting to networks including so-called "GSM Gateways". A total of 33 responses were received from a variety of Industry / businesses, network operators and Government Departments.

The Government confirms:

that the definition of "User Station" will be extended to cover any customer of the network, irrespective of its fixed or mobile status; and that the general restriction of provision of services to third parties over exempt devices, except where otherwise specifically provided for in the Regulations, will be retained.

User devices connecting to networks may be mobile, fixed or portable depending on the type of application. The Government concludes that the current definition of "User Station" in schedule 3 of the Regulations may be ambiguous and when next revised, the Regulations will be clarified to cover both fixed and mobile user devices. This supports the majority of responses to the first proposal and enables the use of Gateway devices by private users.

Many responses from small businesses also supported the second proposal, to remove the restriction in Regulation 4(2) on the carriage of third party traffic over exempt devices. However the benefits of this are mitigated by the fact that the operators' ability to comply with their Regulatory requirements with regard to
emergency calls and security concerns are impaired and that the resulting use of spectrum is very inefficient. After considerable discussion with manufacturers and users of Gateway equipment and considering technical and other information supplied by them, the Government concludes that the restriction must be retained.

Mobile Network Operators ("MNO's") licensed under the Wireless Telegraphy Act 1949 can use their own (or third party) equipment in accordance with their licences in order to provide a telecommunication service. In some circumstances, MNO's may be able to consider purchasing products or services from Gateway Operators
for use under the auspices of MNO licences. Although a commercial matter for the companies concerned, the Government encourages the MNOs and Gateway Operators to consider ways to address pragmatically
existing uses of equipment that continue not to meet the requirement for exemption.

Notes for Editors

1. The radio spectrum is a finite resource, and RA is responsible for ensuring that it is used efficiently to meet current and future demand. By managing the spectrum, RA can ensure increased efficiency
of spectrum use, and users can gain social and economic benefits.

2. GSM gateway technology enables a call from a fixed point to be routed directly via a GSM link to a GSM network. This makes the call appear to the network to have originated from another mobile of the
same network, so it enjoys a cheaper call rate. The Gateway also results in mobile consumers being unable to use services that they would expect to be able to use including: returning a missed call; sending an SMS; screening unwanted or malicious calls (call rejection); and using CLI to manage costs when roaming / receiving
calls from overseas (deciding whether to accept the call).

3. Accepting Proposal 1 will legitimise a number of applications that have already developed outside the current regulatory framework such as ATM banking machines, vending machines and credit card authorisation terminals. It will also allow companies to connect their own fixed user station equipment to PABX systems for their own
private use. An amendment to The Wireless Telegraphy (Exemption) Regulation 2003 (SI 2003/74) Statutory Instrument will be prepared and published in due course, meanwhile the Government will continue
to forbear enforcement action against qualifying user devices.

4. Rejecting Proposal 2 confirms that use of terminal equipment to provide commercial third-party telecommunications services is not authorised by the Exemption and hence remains illegal. The commercial
use of licensed spectrum is authorised only by the licences of network operators, who may purchase equipment or services from other companies subject to fulfilling legal and Regulatory requirements
placed on them.

Any enquiries to:

Department of Trade and Industry
7th Floor
1 Victoria Street
London SW1H 0ET

Public Enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215 6740
(for those with hearing impairment)
www.dti.gov.uk

(1) This Regulation was revised and amended during the course of the
consultation to implement other measures and was replaced by The
Wireless Telegraphy (Exemption) Regulation 2003 (SI 2003/74).

P/2003/414