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New Voice for Users of Radio Spectrum |
Press Notice - 29 October l997
A new voice for industry in key decisions on the radio spectrum, on which billions of pounds and thousands of jobs could depend, was announced today by John Battle MP, Minister for Science, Energy and Industry.
Speaking in the second reading of the Wireless Telegraphy Bill, he stressed the importance of the radio spectrum to the economy, to consumers and to jobs and announced the establishment of the Spectrum Management Advisory Group (SMAG). SMAG would advise Ministers on strategic spectrum management issues and would play an important role in developing the application of spectrum pricing. Mr Battle said:
"I am pleased to announce today the establishment of a high level spectrum management advisory group which will be drawn from radio users. This will benefit industry and users of the radio spectrum by bringing an informed industry perspective into the very heart of the policy-making process."
The SMAG will initially report to Barbara Roche, Minister responsible for the Radiocommunications Agency.
Notes for Editors
1 Independent consultants have estimated that, in 1995/96, radio made a substantial and fast-growing contribution to the economy of:
£13bn to GDP, increasing at over £1bn a year;
competitiveness and other user benefits of £12-15bn;
410,000 jobs, growing at a rate of 1,000 jobs a week.
It was further estimated that spectrum congestion, by delaying the introduction of new services, could cost the economy £billions in GDP and consumer benefits and thousands of jobs.
2 The Wireless Telegraphy Bill, subject to its passage through Parliament and it being given Royal Assent, will allow pricing to be used as a spectrum management tool to tackle spectrum shortages and congestion and to provide the headroom for growth and innovation in radio services. It provides for fees to be set by regulation to reflect the value of the spectrum (‘administrative pricing’) and spectrum auctions. The Bill was introduced in, and completed its passage through, the House of Lords before the summer recess.
3 The Bill contains enabling powers and does not specify detailed fee levels. These will be determined by regulations made under the Bill. A consultative document, "Implementing Spectrum Pricing", was issued on 29 May to seek views on detailed administrative pricing proposals. Over 60 responses were received from a broad cross-section of radio users. The majority endorsed spectrum pricing in principle and there was recognition of the progress that had been made.
4 A document summarising the responses is available from the Radiocommunications Agency’s Library and Information Service (telephone 020-7211 0500, fax 020-7211 0507). The document, together with the responses in full, except for commercially sensitive material, is available on the Agency’s Internet site.
5 With Barbara Roche as the responsible DTI Minister, the proposed Spectrum Management Advisory Group will have as its terms of reference:
The role of the Spectrum Management Advisory Group (SMAG) is to provide independent, strategic advice on spectrum management policy issues to the responsible DTI Minister and the Radiocommunications Agency.
In particular the SMAG should advise on:
(i) the RA’s spectrum strategy, major national allocation decisions and the application of spectrum pricing; and
(ii) the policy objectives to be pursued in relevant international fora (e.g. ITU, CEPT and ETSI).
In undertaking this role SMAG will need to take account of Government policy on telecommunications, broadcasting and defence and international treaty obligations.
Appointments to the committee will be made by the Minister responsible for the Radiocommunications Agency, Barbara Roche. SMAG will have an independent chairman and up to ten members drawn from users of the radio spectrum, related industries and other representative organisations. Key criteria for membership will be the ability to: take a longer term strategic view; set aside sectional interest in favour of policies for the most effective overall use of spectrum; and take account of the interests of users, manufacturers and other organisations and groups. The Agency’s Chief Executive will also be member of the committee. Collectively the group should be respected by the Agency’s customers as having the ability to contribute effectively on a broad range of policy issues and enable technical and economic considerations to be taken into account. The chairman and members will be announced shortly.
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