Mobile Phones for the Next Generation Multimedia Communications on the Move

Press Release - 31 July 1997

The framework for licensing operators to provide the UK's Third Generation of mobile communications systems for the next millennium was launched in a consultation document today by Mrs Barbara Roche, Minister for Industry.

Speaking today, Mrs Roche said:

"European operators and manufacturers have succeeded in setting the world standard in mobile telecommunications technology. The UK has been at the forefront in Europe in establishing both First Generation analogue systems and Second Generation digital GSM systems; I am delighted that now we will be the first country in Europe to start the process of consulting on the licensing of Third Generation networks.

"The next generation of mobile phones will provide high speed access to a large number of entertainment and information services, such as:

• business services, including virtual banking, on-line billing and full mobile office services
• home shopping
• real time video, including video conferencing and on-line entertainment
• the wealth of material on the Internet

"This consultation document sets out to describe how the next generation of mobile networks might look and a framework for licensing. We want this to be market driven and competitive. We set out the Government's plans which are expected to lead to the award of several Third Generation licences.

"Customer demands for mobile communications are becoming more sophisticated and there is pressure for mobile networks to provide wideband, high quality interactive services which are being offered by fixed networks.

"These customers also want to be able to have their mobile telecommunications needs met wherever they are, not just locally but globally. This is the challenge that incoming Third Generation mobile operators must address.

"Mobile communications is a fast moving, high capital intensive market and the Government, operators and manufacturers must all now look to the future. The Government is determined that the UK should play a leading role in this future, both within Europe and internationally. We must capitalise on the lead Europe has established around the world through pioneering the GSM standard. The Government also supports the European initiative on UMTS Standardisation, and expects these standards to be adopted for Third Generation systems within Europe.

"Successful operators should have licensing certainty before the end of the next financial year, leaving the winners well placed to take a world lead in the development of Third Generation standards, offer full multimedia services to mobile customers, and to participate in the many licensing opportunities arising overseas over the next few years.

"We wish to give careful consideration to the assignment of spectrum to Third Generation operators. With the passage of the Wireless Telegraphy Bill 1997 through Parliament, the Government proposes to offer spectrum to operators by auction.

"The plans that the Government have set out today will enable us all to look forward to exciting prospects in terms of new jobs, new technology, new services and substantial investment which is offered by the early implementation of Third Generation systems in this country.

Notes to Editors

1. The DTI issued on 13 February an industry discussion document which was prepared by the UK Third Generation Advisory Group (UKTAG). The closing date for comments was 31 May and as foreshadowed in that document, the DTI consultation document issued today, "Multimedia Communications On the Move", has been prepared taking into account of the comments which have been received.
2. The DTI consultation document seeks views from all interested parties on a number of Government proposals. The main proposals are:

• subject to the successful passage of the Wireless Telegraphy 1997 Bill, the spectrum for Third Generation should be offered by auction during financial year 1998-99. The main stages of an auction are set out, and licences with a proposed duration of 15 years should be awarded to the successful bidders following the auction,
• spectrum issues are considered in detail. On the basis of the widely held industry view that a Third Generation operator will need some 2 x 20 MHz of spectrum, and that paired spectrum is limited to 2 x 60 MHz, it is initially considered that at least three Third Generation licences will be available to provide services on a national basis. Views are being sought on spectrum requirements as well as on detailed spectrum planning for the Third Generation systems,
• the Government proposes that, subject to meeting pre-qualification criteria to enter the auction, any individual company or consortia, including BT and the existing four mobile phone operators, should be eligible to bid,
• the Government would welcome bids from new entrants to mobile communications in the UK. In order to ensure a level competitive playing field, the Government proposes that all Third Generation operators should be required by a condition in their licence to enter into national roaming agreements with each other from the start. This means that if a customer is not in range of his own operator's network, then he could seek to roam onto another Third Generation operator's network in the UK to complete his call.
• all previous mobile phone licences have included a coverage and roll-out target in order that operators make both effective use of the spectrum, and also provide a reasonable level of service to their customers who rightly expect to be able to use their phones as widely as possible. The Government proposes to apply a coverage and roll-out obligation for Third Generation services of 80% of the population, six years after the commencement of service. On the basis of commencing service in 2002, the target date to meet would be December 2007.

4. Written comments should be sent to the DTI by 17 October 1997.

Download the consulatation document "Multimedia Communications On The Move" available in .PDF and Word 6.0 (126 Kb)

Additional copies of the consultation document can be obtained by contacting 020-7215 1785 or from the RA Library

Press Enquiries: 020 7215 5961
(Out of Hours: 020 7215 5110/5600)

Public Enquiries: 020-7215 5000

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