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3 - POLICY |
3.1.1 The Radiocommunications Agency's approach to the regulation of the radio spectrum
The Agency manages the civil radio spectrum to ensure it is used in the most efficient and effective way to the overall benefit of the UK. Without proper planning and management, the radio signals from different users and services, both internationally and nationally, would interfere with each other and, above a certain level of interference, radio would become ineffective as a means of communication. Management is achieved within the UK through controlling use of the spectrum by licensing under the WT Acts and, in appropriate cases, licence exemption. Licensing and licence exemption enable technical parameters, including transmission powers and standards for equipment, to be specified and enforced to the benefit of all radio spectrum users.
A wide range of licences are issued by the Agency to cover many different uses of radio. The processes for application and issue of licences vary depending on the class of licence required, and the more general licence type into which the licence class falls. Some types of licence are available on a "first come, first served" basis though where limited spectrum is made available for commercially provided services, it is usual to award licences via some form of competitive process.
The Wireless Telegraphy Act 1998 introduced powers for the Secretary of State to set charges for licences to take account of spectrum management and economic factors rather than the cost of issuing a licence. This form of administrative spectrum pricing may be used as an alternative for licences which are not auctioned.
Since 1998, the Government has been introducing administrative spectrum pricing sector by sector for most classes of WT licence in annual stages each July. Details of the background to the stage proposed for July 2001 were included in a consultation paper issued in December 2000 entitled "Spectrum Pricing: Third Stage Update and Consultation". This paper is available from the Agency's Library (Tel: +44 (0)20 7211 0505/0502) or on the Agency website. Details of the charges for each class of licence from July 2001 are also available from the same sources. Under these proposals some charges are being increased and others decreased according to such factors as supply and demand, exclusivity and congestion of use as appropriate. Further changes to administrative charges for non-auctioned licences are likely to occur in future years, but subject to further consultation exercises.
The likely success or otherwise of an application depends on several factors including, most importantly, the availability of suitable spectrum. A full list of all licence classes is contained in the Agency Information Sheet RA2 which is available on the Agency website. This Information Sheet also gives telephone numbers for enquirers seeking further information and details of application procedures. Recipients may particularly wish to seek further information on the licence classes that fall within the "Fixed Links" licence type.
3.1.2 Oftel's approach to the regulation of telecommunications
This section summarises recent regulatory initiatives undertaken by Oftel in the UK telecommunications market.
Oftel's goal as set out in its strategy statement: "Achieving the best deal for telecoms consumers" (January 2000), available on Oftel's website, is supported by the four outcome-based objectives:
3.1.2.1 Relevant Oftel consultations
Oftel's goal is to achieve the best deal for the customer in terms of quality, choice and value for money. Consultation on potential and current regulatory developments is seen as an essential element of the regulatory process if Oftel is to understand the views of all interested parties. It is aimed at all parties with a potential interest in the relevant issue, including consumers and other users, and operators, service providers and manufacturers.
The T Act, and some of the T Act Licences, incorporates requirements for formal consultation in respect of certain specific regulatory activities. However, Oftel regards formal consultation as the minimum required. In general, Oftel will consult in such a way as to give interested parties ample opportunity to make representations. Oftel also aims to make sure that, through the consultative process, interested parties have access to enough information to enable them to make meaningful representations.
3.1.2.2 Local loop unbundling (LLU)
Oftel concluded in November 1999 (Access to Bandwidth: Delivering Competition for the Information Age) that the opening up of the local loop was necessary in order to introduce competition into the provision of higher bandwidth services such as high speed always-on Internet access and video on demand. Digital subscriber line (DSL) technology enables higher bandwidth access to be delivered over ordinary copper telephone lines.
Licence Condition 83 (which came into effect on 8 August 2000) gave effect to the requirement for BT to provide co-location. The key provisions of the condition are the requirements to provide individual loops to other operators, to provide co-location of equipment by operators in BT's local exchanges, to enable Oftel to set the price of unbundled loops and for Oftel to resolve any disputes brought to it over the provision of loops and associated services. In addition, EC Regulation 2887/2000 on LLU came into force in January 2001 and provided a firm EU-wide legal framework. All requirements under this Regulation are in place in the UK.
Oftel has used its powers to determine the rental prices for local loops and announced these in December 2000 (Determination under condition 83.16 of BT's licence relating to the charges for the provision of metallic path facilities and associated internal tie circuits). These charges, along with other charges for LLU services, can be found on BT's website at www.btinterconnect.com
In order to test the procedures for LLU, four trial sites have been set up. These are at Battersea, Leeds, Edinburgh and Belfast. Battersea, Leeds and Edinburgh have physical co-location, where the operators are housed within a BT exchange, while Leeds and Belfast have distant location connections, the operator being connected to the exchange by use of a tie cable. Trial services are now being provided from these sites and over 100 unbundled lines are in operation.
The first commercial LLU service was provisioned in April 2001 from a distant location site in the Portsmouth area. Since then, BT has completed a total of 41 distant sites. The build of physical co-location rooms is underway at 13 BT exchanges, the first of which are due to be completed by September 2001.
Operators are now able to place orders under a "business as usual" basis. This means that they can order co-location facilities for any BT exchange at any time they wish. Oftel has carried out a number of investigations, includin consideration
of the cost of physical and distant co-location, duct sharing, co-mingling, service level agreements and alleged undue discrimination between LLU and BT's ADSL roll out.
On June 27 2001, Oftel published a number of measures to clarify BT's provision of facilities for LLU. The measures published related to site clearance, pricing of shared access, co-mingling and the availability of co-location facilities. The relevant consultation documents, guidelines, and draft Directions can be found on Oftel's website.
Details of the progress of the investigations and further information on LLU can be found on the LLU Fact Sheet which is available from OFTEL's website at www.oftel.gov.uk/publications/local_loop/llufacts/llufacts0701.htm
3.1.2.3 Wholesale DSL
Currently, the principal means of obtaining higher bandwidth DSL services is by using BT's wholesale DSL products. BT made a commercial decision to roll out DSL and its wholesale products are available to all service providers, including its own service provider business, BTopenworld, on the same terms and conditions. BT launched the first of its wholesale products in June 2000. BT has 'enabled' over 900 of its exchanges so that the end-users attached to that exchange are able to upgrade to DSL services. By September 2001 BT expects to have upgraded 1000 exchanges which serve approximately 60% of UK households. Service providers purchase DSL wholesale products from BT and, using upgraded loops, sell them on to end-user consumers/businesses to provide DSL services. BT now has over 100 service provider customers. The total number of end-users as at August 2001 was approximately 76,000.
Oftel is investigating a number of issues in connection with BT's provision of wholesale DSL products, including the terms and conditions on which the products are offered, an alleged margin squeeze between the wholesale price and the retail price offered by BT's retail business and the availability of rate-adaptive technology (which extends the reach of DSL from the exchange). On 6 March 2001, Oftel issued a Direction requiring BT to negotiate with two operators with a view to agreeing an interconnection product. The parties failed to negotiate the product in the prescribed period, and the remaining areas of dispute have now been referred to Oftel for determination. Oftel is monitoring the roll-out of DSL more generally by meeting with and inviting feedback from the industry, and by meeting with BT regularly to ensure that all service providers are able to compete fairly.
3.1.2.4 Oftel's review of leased lines
Following a consultation document in August 2000, National Leased Lines: Effective competition review and policy options, and a request from Energis to issue a Direction under the Interconnection Directive relating to part leased lines, Oftel published National Leased Lines: Statement and draft Direction in December 2000. The Statement set out the two stage process that Oftel would follow in its policy relating to national leased lines.
Stage 1 of the process was set out in the December Statement and draft Direction. The Statement presented Oftel's conclusions that binding retail price controls should not be imposed on BT's prices for retail leased lines. Oftel also concluded that partial private circuits are interconnection services within the scope of the Interconnection Directive. Therefore BT must provide such services on non-discriminatory terms and at cost-oriented prices. Oftel believes that this will enhance competition in both the wholesale and retail leased lines markets. The Draft Direction proposed would require BT to offer to provide wholesale part leased lines at all digital bandwidths and set a deadline by which BT and the operators should agree the terms and conditions for such products.
A Direction was issued by the Director General under Condition 45.2 on 29 March 2001 requiring BT to offer to enter into an agreement for interconnection of part leased lines with BT's Applicable Systems. Following negotiations between BT and the ten operators named in the Direction, wholesale part leased lines were launched by BT on 1 August 2001.
Stage 2 of Oftel's policy process relating to leased lines will set out its conclusions on whether or not there is a need to regulate wholesale prices for some or all part leased lines. In deciding its policy in this regard Oftel will take account of the outcome of the Direction and its further analysis of the state of competition in part leased lines. Oftel plans to publish a further statement towards the end of 2001.
3.1.2.5 Open access to communications networks: Ensuring competition in the provision of services
Oftel confirmed its preliminary view that cable operators do not possess market power in the relevant markets. Hence, regulation to require open access to cable networks is not necessary at present. Companies are free however to agree commercial terms for access to cable networks, and competition will help ensure these terms are reasonable.
As well as being used to promote effective competition, open access obligations may also be appropriate for public policy reasons, eg to ensure universal availability of public service broadcasting. Such public policy goals do not fall within the remit of Oftel's statement, however, which considers the question of open access for competition reasons only. Oftel will, however, continue to work closely with other regulators, the ITC in particular, to ensure a coherent approach to regulation.
3.1.2.6 Price control review
In February 2001, Oftel published "Proposals for Network Charge and Retail Price Controls from 2001" following a third round of consultation on the measures to be introduced when the current controls ended in mid-2001.
Oftel recognised that competition in the retail market has increased, and is expected to continue to increase. Oftel also noted that prices for basic telephony services had fallen throughout the period of the price control, partly through the operation of the price cap and partly through the effects of competition for higher spending customers. However, BT's overall level of profitability exceeded what BT requires to cover its full costs and make a reasonable return. Oftel, therefore, concluded that competition has not increased to the extent that would allow it to remove the retail price controls currently in place.
In view of the considerable uncertainty surrounding the impact of competition on BT in the immediate future, Oftel proposed that the current retail price controls should be extended until the end of July 2002. This would enable Oftel to review the impact on the market of continuing infrastructure competition, carrier pre-selection, indirect access, LLU and mobile substitution. If the review suggested that competition had not become fully effective, and appeared unlikely to become so in the near future, Oftel would consider whether further price controls or other measures to stimulate competition, such as the introduction of a cost-based access product, were needed. Oftel published a consultation document on 31 July 2001 (Competition in the provision of fixed telephony services) which is the formal trigger for the start of the review and invites contributions from stakeholders concerning definition of the relevant markets and competitiveness in those markets. A formal consultative document will follow by December 2001 setting out proposals for future arrangements (further price cap arrangements or the end of such controls).
The present Network Charge Control arrangements are set to end on 30 September 2001. In the light of responses to the earlier consultative documents, and market analysis, Oftel has concluded that competition has not increased to the extent that would allow it to remove the controls introduced in 1997. The new Network Charge Controls will take effect from 1 October 2001 to 30 September 2005. These controls are based on the extent of competition in the relevant interconnection market and the structure of the controls should be the same as the present structure.
3.1.2.7 Universal telecommunication services
The ability to get access to a telephone is important for full social and economic inclusion in society - it would be unfortunate to be excluded because of living in a remote rural area, because of being poor, or because of being old or having a disability. It is to the benefit of all telephone users to have as many other people as possible on the network. That is why Oftel, in common with other telecoms regulators around the world, and as prescribed by EC Directives, pursues a policy of "universal service".
What this means is that a basic level of service is provided to everybody at the same affordable price no matter where they live. In the UK, the obligation to provide this service is placed on BT (and, in Hull, Kingston Communications). BT and Kingston are also obliged to provide a network of public call boxes and, where necessary, to provide special schemes designed to make telephony more affordable for those who are on low incomes or who use the telephone only from time to time.
Oftel launched a review of universal service in July 1999. It had three broad elements:
could the existing regime be improved?
should the burden of being a universal service provider be re-evaluated?
should the level of universal service be raised?
Review of Universal Telecommunications Services was published in September 2000, setting out initial conclusions and asking for further comments. Oftel proposes to issue a statement in autumn 2001 which will set out the level for universal service from September 2001.
3.1.2.8 Regulatory framework for BT
In order to assist the regulator in identifying unfair subsidies, cross-subsidies, instances of undue preference or undue discrimination, provisions in BT's T Act Licence require it to separate, for regulatory purposes (by keeping separate accounts), its activities in major areas of the telecommunications market from its other activities.
There are currently six regulatory defined Businesses: Access; Network; Retail; Apparatus Supply Business; Supplemental Services Business; and Residual.
The prime objective of accounting separation is to ensure (for the confidence of all other market participants) that BT Network's services should be demonstrated to be supplied to other operators on the same basis as they are to BT Retail. BT's T Act Licence includes provisions to identify, and remedy if necessary, unfair cross subsidies between any of the six defined Businesses, with the exception of the Residual Business.
The Residual Business includes all other activities not covered by the other five Businesses.
BT has announced that it intends to restructure the BT Group, including the possible de-merger of wireless. The regulatory implications of any such changes will need to be considered by Oftel and DTI.
3.1.2.9 Numbering and number portability
3.1.2.9.1 Numbering plans
PTO T Act Licences contain a Relevant Numbering Condition ("RNC"), entitling the holder to reservation of blocks of telephone numbers for allocation to customers. The terms and conditions of reservation can be accessed through the Oftel website.
Oftel is responsible for administering the telephone numbers reserved for any particular operator. Numbers are usually reserved for operators in blocks of 10,000; more than one block may be reserved by a single operator at any one time. As the reserved numbers are allocated to customers, operators may apply to Oftel for further blocks. The costs of administering the allocation of numbers are currently included in the payment for the T Act Licence (however, the DTI and Oftel are considering mechanisms for introducing charges for numbers - see below).
3.1.2.9.2 Number portability
Number portability is a facility provided by one operator to another, which enables customers to keep the same telephone numbers when switching their business between different operators. Changing number can be a major inconvenience for customers and a barrier that prevents them from exercising choice and taking advantage of growing competition in the telecommunications markets. Number portability was introduced in the UK from 1996 through amendments to T Act Licences, obliging operators to export numbers to a requesting operator which is able and willing to provide the same in return. Mobile number portability was implemented in 1999 in much the same way.
European legislation now provides that subscribers who so request can retain their numbers on the fixed public telephone network independent of the organisation providing the service. This covers all UK numbering ranges except mobile and paging services. Implementing regulations came into force in January 2000. European legislation, extending portability to mobiles, is currently being drafted.
3.1.2.9.3 Charging for numbers
Oftel is responsible for the allocation and structure of telephone numbers in the UK. Oftel currently has no powers to charge for commercially valuable ("golden") numbers.
The Trade and Industry Select Committee ("TISC") reported on telephone numbering on 10 February 1999. The Committee stated that it believed telephone numbers to be a national resource and that income derived from them should be returned to the public purse. It recommended that Oftel, working with Ministers, should bring forward legislative proposals to clarify the ownership of telephone numbers and to permit number charging and individual number allocations.
In May 1999 Oftel published a statement on Developing Numbering Administration and Freephone Numbering. Its stated objectives were to introduce number charging for blocks and code allocations, introduce individual number allocation, and develop rights and obligations of use for numbers.
Currently, the DTI and Oftel are considering the best means to introduce charging for number blocks, individual 08 and 09 numbers and for "golden" numbers in the 08 and 09 range. While charges for number blocks and individual 08 and 09 numbers are likely to reflect administrative costs incurred by Oftel, "golden" numbers may be charged at a premium to this.
3.1.2.10 Essential Requirements project within Oftel
The Essential Requirements condition (Condition 20) is in all fixed network operator licences, and relates, amongst other requirements, to the obligations on operators to maintain network security and integrity. Oftel has set up the Essential Requirements project with the aim of publishing guidelines for consultation on these aspects of Condition 20 by the end of September 2001. An Industry task group has been set up to advise Oftel on these guidelines under the auspices of the Network Interoperability Consultative Committee (NICC), and its work was drawing to a close in summer 2001. Oftel has also been working with the Industry task group to develop non-discriminatory criteria for the restriction of network access on the basis of network security and integrity as described in Condition 20.
3.1.3 OFCOM and the Independent Spectrum Review
The radio spectrum is an essential raw material but the amount of spectrum available is finite. The next decade will see significant growth and innovation in wireless communications. While the UK has been successful in making spectrum available for new services, it is essential that the framework for spectrum management keeps up with the pace of change if the UK is to remain at the forefront of the information revolution. To help it move forward in this area, the Government has commissioned an independent review of spectrum management, to report to the Chancellor and to the Secretary of State for Trade and Industry by the end of 2001. On 18 June 2001, the review published a consultation paper which set out its initial analysis along with suggested approaches on which the review will be consulting in the next few months. This can be found at www.spectrumreview.radio.gov.uk The outcome of the review, because of its timing, is unlikely to affect the current award process for 28 GHz Licences. However, applicants may wish to consult this document.
The Communications White Paper CM 5010 was published on 12 December 2000. It is available from The Stationery Office and at www.communicationswhitepaper.gov.uk Amongst other issues, the White Paper proposed a radical reform of the structure of UK communications regulation, including merging the primary existing sectoral regulators (including the Radiocommunications Agency) to form a new regulator, OFCOM. Background to the formation of OFCOM can be found at www.ofcom.gov.uk
The Government is now working on implementation of the White Paper policy proposals, many of which will require primary legislation. The Queen's Speech on 20 June 2001 stated that a draft bill to create a single regulator for the media and communications industries and to reform the broadcasting and telecommunications regulations would be published during the current Parliamentary Session. A draft Communications Bill is likely, therefore, to be published early in 2002. On 12 July 2001, the Government introduced the Office of Communications Bill into the House of Lords to establish OFCOM in an embryonic form. OFCOM will not, however, assume any regulatory functions until the Communications Bill has itself received Royal Assent at a later date.
3.1.4 The EU regulatory regime and the 1999 review of EU communications legislation
As a member of the EU, the United Kingdom is subject to EU legislation. Further details are given in Appendix C, Section C3.1.
Many of the directives comprising the 1998 package that opened up the EU's telecommunications markets to competition include provisions requiring their re-evaluation by the EC Commission by the end of 1999. [Consultants have been engaged on some 16 studies to look at the details, and the exercise has been expanded to incorporate the Commission's follow-up to its Green Paper on the convergence of the telecommunications, media and information technology sectors. The resultant "1999 review" will lead to the negotiation of a new framework for EU communications legislation that is expected to come into force from around 2003.]
3.2 Co-ordination requirements
Co-ordination requirement can be broken into a number of both national and international requirements. On a national basis, the Agency will require that Access Point Transceivers and/or associated terminals are co-ordinated through the National Frequency Assignment Panel ("NFAP") to ensure, as far as possible, that radio services can co-exist and are protected. If transceivers have certain technical parameters, then UK site clearance may also be required. NFAP and Site Clearance procedures are established through the National Frequency Planning Group, run under the auspices of the Cabinet Office. Technical documents explaining the procedures and documents required for NFAP and Site Clearance, can be obtained from the BFWA technical section of the Agency website.
Once the national registration procedures have been completed, then the Agency will undertake its international duties. This may require that details of UK based transmitters, in certain circumstances, be communicated to neighbouring Administrations where it has been calculated that coverage overlaps their territory. The Agency will under take these functions. The Agency will also notify the use of specific assignments to the International Telecommunications Union, as per the procedures contained within the Radio Regulations.
3.2.1 Co-ordination with other services in the 28GHz band
The 28GHz band (27.5-29.5GHz) which is shown in the frequency allocation tables, of the Radio Regulations, is allocated to the Fixed Service (FS), Fixed Satellite Service (FSS) and the Mobile Service, on a primary basis, i.e. no one service has priority over another. Within the UK there are no current plans to allow mobile use of the 28GHz band. However, co-ordination may be required with the FSS, in the form of earth stations addressing both geo-stationary and non geo-stationary satellites. To date in the UK there have not been any applications for co-ordinated satellite earth stations, operating in the 28GHz band, and a moratorium is currently in force for the application and deployment of fixed satellite earth stations in the bands 28.000 to 28.500GHz and 29.000 to 29.500GHz. This position will be reviewed at the end of the Auction process, (estimated to be mid-October 2002). Should any co-ordination be necessary with transmitting earth stations on an international basis, then it will be carried out in accordance with the established Radio Regulations Appendix S7.
3.2.2 Co-ordination with other administrations
Co-ordination will need to be carried out with neighbouring administrations where UK borders are common or geographically close. Some of these administrations are Eire, France, Belgium and the Netherlands. Co-ordination will also be required with the UK dependencies of the Channel Islands and the Isle of Man. This issue is commonly addressed through bilateral negotiations, which usually leads to a Memorandum of Understanding (MoU) being drawn up between the UK and a particular administration or administrations. In those cases, the radio equipment will have to be operated in compliance with any such agreement as notified by the Agency, on behalf of the Secretary of State.
3.2.3 Inter-operator co-ordination
Deployment of FWA services by operators will require that they (the Licensee) take account of co-ordination issues, between neighbouring BFWA systems. This obliges them to consider that their service(s) are operated in such a manner so as to minimise interference to their geographical BFWA neighbours. Following discussions in international fora and independent technical studies, the Agency has published an information sheet, which suggests co-ordination guidelines, to operators. These details are contained in RA information sheet RA390 "Inter-operator Co-existence and Co-ordination Guidelines for BFWA Systems Operating in the Band 27.5 - 29.5GHz".
3.3 Test and Development licences
The Agency issues short term licences for testing and development of equipment and services in a range of frequency bands, known as Test and Development Licence (T and D). These may, for example, be for systems that are designed for export markets as well as UK markets. Such Licences are issued with the agreement and consent of other licensed users of the frequency band in question. At the time of issue of a BFWA Licence, there maybe several T and D licences in force in the auction spectrum. The BFWA Licensee will have the option to require the Agency to terminate any of the T and D licences, in their licensed spectrum.
3.4.1 Appeals process
The DTI has a procedure for appealing against certain regulatory decisions in the field of telecommunications. This procedure was introduced by amending the T Act and the WT Act by regulations under section 2(2) of the European Communities Act 1972 (The Telecommunications (Appeals) Regulations 1999 (SI 1999/3180)). Subject to the leave of the court, a person who is aggrieved by certain specified decisions of the Secretary of State or the Director General is able to appeal to the court on the grounds of material error of law, fact or procedure, or other material illegality. The court has the power to quash the decision or dismiss the appeal and may refer it back to the decision-maker to be considered again in accordance with the findings of the court.
The types of decision which are subject to the procedure are set out in the sections of the respective Acts. These include decisions in relation to the issue, content and revocation of both T Act Licences and Licences under the WT Acts. The procedure also applies to other decisions under the T Act or the WT Acts in respect of which the rights or interests of a person who is or wishes to be authorised by a T Act Licence or a Licence under the WT Acts are materially affected.
3.4.2 Infrastructure sharing and planning
3.4.2.1 Collocation and facility sharing
The Government strongly encourages network operators to share masts and/or sites where possible and subject to any inter-operator radio co-existence issues, in order to minimise the environmental impact of networks. This also reduces the cost of deploying a network. The T Act Licences issued to existing operators and to any new applicant which apply the Code to the operator contain a condition in Schedule 4 of such Licences that, before erecting a new mast, the operator must first have investigated the possibility of using an existing mast belonging to that operator or to any other person, replacing an existing mast with one for joint use with others or erecting one for shared use. The Government expects that operators should provide evidence to local planning authorities that they have carefully considered the use of existing masts, buildings and other structures before seeking to erect any new telecommunications mast. If the evidence is not considered satisfactory, the planning authority may be justified in refusing consent for the development.
Current site sharing agreements are a result of commercial agreements with the owner of the site entered into by all the sharing operators. Network operators enter into such agreements with other network operators and site owners. This includes local authorities, the emergency services and a number of other private and public sector organisations. They have standard written agreements that detail the commercial terms and conditions for site sharing.
Under regulation 10 of the Telecommunications (Interconnection) Regulations 1997 (SI 1997/2931), the Director General has the ability to intervene to resolve disputes over collocation and facility sharing. He may also specify facility or property sharing arrangements (including physical collocation) after an appropriate period of public consultation. Under the terms of PTO T Act Licences and certain other T Act Licences, operators are required to comply with any such decision or specification made by the Director General.
3.4.2.2 Existing planning regulations
In England, amendments to Part 24 of the GPDO came into force on 22 August 2001. The associated planning guidance is set out in Planning Policy Guidance note 8 'Telecommunications' (2001) (PPG8). In Wales, planning guidance can be found in Planning Guidance (Wales): Planning Policy, First Revision, (April 1999) supplemented by Technical Advice Note (Wales) 19, Telecommunications, (August 1998) and Welsh Office Circular 29/99. The guidance makes clear that the Government's general planning policy is to facilitate the rollout of telecommunications networks whilst at the same time protecting the environment. In order to strike the correct balance, telecommunications operators and local planning authorities are encouraged to work together to achieve the best environmental solution for the installation of network equipment. This will involve careful consideration of both location (including the practicability of sharing an existing mast or siting antennas on an existing building or other structure) and design through pre-roll-out and pre-application discussions.
Current Scottish planning policy on radio telecommunications is contained in National Planning Policy Guideline (NPPG) 19. The policy is to enable the telecommunications industry to expand and diversify, while at the same time minimising the environmental impact. Guidance on the implementation of the planning controls is contained in Scottish Executive Development Department Circular 5/2001. Advice on the siting and design of radio telecommunications equipment is contained in Planning Advice Note (PAN) 62.
The installation of any telecommunications mast in England or Wales will normally require an application to the relevant local planning authority as follows:
Guidance on the operation of the prior approval procedures is set out for England in Annex 1 to PPG8 and for Wales in Welsh Office Circular 29/99. In addition, the DTLR (formerly DETR) and the National Assembly for Wales have published a Code of Best Practice on telecommunications prior approval procedures as applied to mast/tower development. The Government expects local planning authorities and code system operators involved in the installation of masts to follow the good practice guidance given in the Code. The Code is currently being updated.
In Scotland there is no prior approval system of any kind associated with the permitted development rights for telecommunication code system operators. In Scotland, permitted development rights are set out in Part 20 of the Town and Country Planning (General Permitted Development) (Scotland) Order 1992 (SI 1992/223) which was amended by the Town and Country Planning (General Permitted Development) (Scotland) Amendment (No. 2) Order 2001 (SSI 2001/266). The main features of the changes are: planning permission will be required for any ground based mast erected for the support of antennas; an increase in the number of designated areas within which permitted development rights are restricted; tighter control on apparatus on buildings; and a requirement to give planning authorities 28 days notice of the installation of equipment housing or antennas under permitted development rights.
In Scotland, the Scottish Executive is developing detailed policy proposals for changes to the SSSI system in the light of responses to last year's "People and Nature" SSSI consultation paper.
3.4.3 Health issues
BFWA operators should comply with the regulatory regime in place in the UK which is described below, but they should also be aware of the wider context in which the existing regulations operate.
Operators have responsibilities under Health and Safety legislation and exposure guidelines. The operators of any telecommunications apparatus must abide by the Health and Safety at Work Act 1974. They have a responsibility under this Act, and the Management of Health and Safety at Work Regulations 1999 (SI 1999/3242), to assess any risk to health and safety which may arise, including an assessment of likely exposure levels, any risk of established health effects from exposure to electromagnetic fields (EMFs), and to take any appropriate corresponding measures to restrict public access (e.g. through suitable locked and signed anti-personnel barriers). When assessing compliance with health and safety legislation the Health and Safety Executive refers to the Guidelines for restriction produced by the National Radiological Protection Board (NRPB). These are designed to prevent the occurrence of established health effects.
The NRPB, who provide advice on exposure to EMFs, have set guidelines (the "NRPB Guidelines") with which networks should comply. The NRPB Guidelines can be found in the "Board Statement on Restrictions on Human Exposure to Static and Time Varying Electromagnetic Fields and Radiation" (NRPB Statement by the National Radiological Protection Board: restrictions on human exposure to static and time varying electromagnetic fields and radiation. Doc NRPB 4, No5, 1-5,1993).
Network operators should also consider any future need to comply with the European Union "Proposal for a Council Recommendation on the Limitation of Exposure of the General Public to Electromagnetic Fields 0 Hz - 300GHz", which was adopted on 12 July 1999. The Recommendation adopts the exposure limits recommended by the International Committee on Non-Ionizing Radiation Protection (ICNIRP). (ICNIRP Guidelines for limiting exposure to time-varying electric, magnetic and electromagnetic fields (up to 300 GHz). Health Phys. 74, No4, 494-522 (1998)).
Unlike the NRPB Guidelines, ICNIRP has adopted more restrictive limits on exposure for the public compared to its limits for workers. Advice on the ICNIRP Guidelines, including a comparison between the NRPB Guidelines and ICNIRP has been provided by NRPB (Board Statement: "Advice on the 1998 ICNIRP Guidelines for Limiting Exposure to Time-varying Electric, Magnetic and Electromagnetic Fields (up to 300 GHz)". Volume 10 No 2 1999).
For BFWA at 28 GHz, the ICNIRP guidelines for the public exposure are tougher by a factor of ten, than those of the NRPB. There is no statutory requirement to comply with the ICNIRP guidelines in England, and currently in Wales. In Scotland, and in future expected also for Wales, planning regulations require, where development relates to the installation of an antenna, a declaration that the proposed equipment is designed to be in full compliance with the ICNIRP Guidelines as expressed in the EU Recommendation. The Government has asked NRPB for advice on the various options for implementation of the Recommendation and the NRPB is currently undertaking a scientific review to support its advice. A provision of the Recommendation calls for Member States to provide information and prepare reports on experience obtained with the Recommendation within three years.
The Independent Expert Group on Mobile Phones (IEGMP)
In response to public concern about exposure to electromagnetic fields from mobile communications equipment Tessa Jowell, the then Minister for Public Health asked the NRPB to set up an independent expert group to assess the current state of research into possible health risks from mobile phones. Chaired by Sir William Stewart, the Group comprised experts from medical, scientific and communications backgrounds and two lay members. The Group undertook a thorough review of the scientific evidence as well as anecdotal evidence from the general public, including concerns about adverse health effects of base stations in the vicinity of the witnesses' homes or schools, was considered. The IEGMP report and recommendations (also referred to as the "Stewart report") and the Government response were published on 11 May 2000.
Although the IEGMP only looked at mobile phone technology some of its recommendations, particularly those concerning planning, may impact on other wireless telecommunications infrastructure, including BFWA, particularly if site sharing is proposed. The IEGMP also made recommendations on a national database of base station sites, of clearly defined exclusion zones, and audit of sites to ensure compliance with the exposure guidelines.
The Government has accepted the Group's recommendation that mobile base stations should, as a precautionary measure, meet the ICNIRP guidelines for limiting exposure. The full report and recommendations of the IEGMP can be found at: www.iegmp.org.uk and the Government response at: www.doh.gov.uk/mobile.htm
3.4.4 Tax relief on BFWA spectrum licences
Tax relief is available for the cost of acquiring WT Act Licences under Section 87 and Schedule 23 of the Finance Act 2000. Relief is given as costs are written off over time in accordance with normal accounting practice.
In March 2001, the Inland Revenue published a consultation document entitled "Taxation of Intellectual Property, Goodwill and other Intangible Assets: The New Regime". The document, which may be viewed on the Inland Revenue website at www.ir.gov.uk/consult_new/intprop.pdf, stated that the assets covered by the Finance Act 2000 legislation would be incorporated within the proposed new tax regime for intangible assets.
This information is only published here for general guidance and the responsibility for the tax treatment of licence payments rests with each applicant alone. Accordingly, each applicant should take independent tax advice on such treatment, which may vary with the circumstances and location of the applicant.
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