Radiocommunications Agency Appoints Financial Adviser for Third Generation Telecoms Licensing Process

DTI Press Notice - 28 January 1998

The Radiocommunications Agency (RA) has appointed N M Rothschild & Sons Limited (Rothschilds) to advise on the possible auction of spectrum licences for Universal Mobile Telecommunications Service (UMTS), the third generation of mobile telecommunications. This is a key step towards the Government's and industry's shared goal of early licensing certainty for UMTS.

Rothschilds will provide a range of assistance including advice on the feasibility and timescale of an auction, and on policy issues affecting auction design. If the Government decides to proceed with an auction during the financial year 1998-99, Rothschilds will undertake the marketing and run the auction itself.

Any auction remains subject to the completion of Parliamentary consideration of, and Royal Assent being given to, the Wireless Telegraphy Bill. The Bill requires secondary legislation to be laid before Parliament setting out the framework for the auction.

Notes for Editors

1. The Radiocommunications Agency is an Executive Agency of the Department of Trade and Industry.

2. Quotient Communications Limited, in conjunction with Ovum Limited, are advising RA on technical aspects of spectrum requirements for UMTS. RA has also appointed University College London to advise on auction design, with a team headed by Professor Binmore at the ESRC Centre for Economic Learning and Social Evolution. Other team members include Professors Borgers, Bulow, Jehiel and Klemperer. Legal advisers are also likely to be appointed.

3. The Wireless Telegraphy Bill, currently before Parliament, includes provisions to allow spectrum licences to be auctioned. Auctions can have a number of important advantages for spectrum management, securing openness, transparency, speed and economic efficiency while providing valuable market information. However, they are not suitable in all circumstances, for example where the number of bidders is equal to or less than the number of licences available.

4. The Department of Trade and Industry published a consultation document "Multimedia Communications on the Move" in July 1997. It included the proposal that an auction would be the fairest and most effective way of assigning spectrum licences for UMTS. The 35 written responses to the document are being considered. The document and the responses are available on the RA's Web site at www.radio.gov.uk

  Mobile Phones for the Next Generation - Multimedia Communications On The Move, consultation document available in .pdf (127 KB) and Word 6.0 (204 KB).

  Click here to go to index of responses.

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