The 2.4 GHz ISM band is globally harmonised and largely licence exempt for radiocommunication services. It offers over 80 MHz of bandwidth which can  be used by eligible applications on a substantially world-wide basis, without the need to apply, or pay, for an operating licence. As recent developments within the band have shown, these characteristics make the band extremely attractive to both suppliers and users of radio communications equipment. Today, the band looks set to see burgeoning growth within a diverse range of applications; from wireless modems, to RF identification devices, to corporate and domestic wireless networks. Such applications have the potential to deliver real benefits in both business and domestic environments, for example obviating the need for expensive and cumbersome cabling, or facilitating more flexible working arrangements.   Many thousands, and more probably millions, of individuals and organisations stand to gain in the UK alone from these  social and economic benefits However, these benefits can only be fully realised if the potential future congestion and current licensing uncertainty relating to certain uses of the band are resolved.

Following a wide ranging consultation with public and private sector organisations having an interest in the band, this study, undertaken by Aegis Systems Ltd, has identified a number of issues which seem likely to affect the future efficiency and effectiveness with which the band may be used. Foremost amongst these is the current use of the band by 3 types of outdoor system, two of which (ENG/OB and RFA) are licensed, and one of which (the use of outdoor RLANs) is not. Recognising the quality of service problems likely to result from the continued, simultaneous use of the band by these outdoor applications, the study recommends that this situation be addressed boldly - by refarming two of these three applications.  ENG/OB has a historic claim to the band as it requires the non-line of sight capability that is a fundamental characteristic of frequencies below 3 GHz. RFA networks involve a substantial capital investment in equipment that can not be readily modified to operate in other frequency bands.  Refarming costs are likely to have a significant adverse bearing on the competitive position  of RFA networks, where equipment might otherwise be deployed over a period of ten years or more. Outdoor RLANs offer an innovative and (for users) economically attractive use of the band, though in some cases (notably where services are being provided to third parties) their legitimacy can be questioned. There are therefore well founded  arguments both for and against a decision to refarm any of these applications and any decision  is likely to prove both difficult and contentious. Nevertheless, it is clear from the study that such a decision must be made if the quality of all three services is not to suffer in the longer term. 

A specific recommendation in this regard has not been made in this report, since there are a number of potentially conflicting economic, political  and regulatory issues, outside the scope of this study, that must be taken into account.  It is recommended that a policy review  should commence as a matter of urgency with a view to reaching a decision on the future of these three outdoor services within the band. A second broad area of concern raised by the study is the use of devices operating in the band on a licence exempt basis, as part of a public telecommunication system.  This has the potential to undermine the business case of the both the 3G licensees, and future RFA licensees. The study offers a number of policy options that might be introduced in order to help maintain some order in what is an inherently anarchic band. Refarming options for each of the three outdoor applications are examined and in each case potentially  suitable spectrum is identified (though the final choice will be subject to more detailed, engineering analysis). A variety of mitigation techniques to enhance the viability of system coexistence are proposed and a number of licensing options discussed.

The study concludes that the 2.4GHz ISM band offers significant potential for development and use to the overall benefit of the UK, and that it is likely to see substantial growth in both the density and diversity of innovative applications which it accommodates. The band offers major opportunities, but some urgent, and difficult, policy issues must be addressed in the very near future if at least some of this opportunity is not to be lost.