INFORMATION MEMORANDUM

Multimedia Access Auction of 28 GHz Broadband Fixed Wireless Access Spectrum Licences - Information Memorandum

Important Notice

This Information Memorandum ("Memorandum") has been prepared on behalf of the Secretary of State for Trade and Industry (the "Secretary of State") by the Radiocommunications Agency ("the Agency") in connection with the proposed sale of WT Act Licences in the 28GHz band, to establish, install and use radio systems for the purpose of delivering Broadband Fixed Wireless Access (BFWA) services to end users (the "Licences"). Throughout this Memorandum, any references to the Agency or, where appropriate "the Auctioneer", may be taken to mean the person acting for, or on behalf of, the Secretary of State. Terms and expressions used in this Important Notice are as defined in Appendix D of this Memorandum.

This Memorandum is for information purposes only. It is made available on the express understanding that it will be used for the sole purpose of assisting the Recipient in deciding whether it wishes to proceed with a further investigation of possible acquisition of Licences. This Memorandum is not intended to form any part of the basis of any investment decision or other evaluation or any decision to apply for a Licence and should not be considered as a recommendation by the Secretary of State, the Agency or the Secretary of State's other advisers to any Recipient of this Memorandum to participate in the award process. Each Recipient must make its own independent assessment of the potential value of a BFWA Licence after making such investigation as it may deem necessary in order to determine whether to apply for a Licence. All information contained in this Memorandum is subject to updating and amendment.

While the information contained in this Memorandum is believed to be accurate at the time of printing, it has not been independently verified by the Agency and neither the Secretary of State, nor any of the Secretary of State's advisers or any of their respective directors, partners, officers or employees make any representation or warranty (express or implied) nor accept nor will accept any responsibility or liability as to, or in relation to, the accuracy or completeness of the information contained in this Memorandum or any other written or oral information made available to any interested party or its advisers and any liability in respect of any such information or any inaccuracy in this Memorandum, or omission from this Memorandum, is expressly disclaimed. In particular, but without prejudice to the generality of the foregoing, no representation or warranty is given in this Memorandum as to the achievement or reasonableness of any future projections, estimates, prospects or returns.

This Memorandum does not constitute an offer or invitation to apply for a Licence, nor does it constitute the basis of any contract that may be concluded in relation to the award of BFWA Licences.

Recipients are not to construe the content of this Memorandum, or any other communication by or on behalf of, the Secretary of State, or any of her other advisers, as financial, legal, tax or other advice. Accordingly, each Recipient should consult its own professional advisers as to financial, legal, tax and other matters concerning any potential participation in the award process for BFWA Licences.

The Agency's principal website may be found at www.radio.gov.uk BFWA has a hyperlink button from the Agency homepage leading to the BFWA pages. These contain detailed information and reports for each Region and Licence available for applications and details of applications received. A copy of this Memorandum is available on the BFWA pages. In the event of any discrepancy between the electronic and printed versions, the printed version is definitive.

Following the issue of this Memorandum, the Agency may publish further information and guidance. All requests for information will be handled in line with The code of practice on access to government information, and the Agency may publish (including on the Internet), in whole or in part, questions received from Recipients and the answers provided unless confidentiality has been requested. The identity of those asking the questions will not be published without the questioner's permission.

Recipients are encouraged to register their e-mail address with the Agency so as to receive notifications of the publication of further information automatically, but it remains their responsibility to check the Agency website for updates. Registration of address should be made by e-mail to: bfwa@ra.gsi.gov.uk

CONTENTS

1.	Executive summary

1.1	Introduction

1.2	BFWA and policy background
1.2.1	Overview of BFWA
1.2.2	BFWA technology
1.2.3	Other fixed broadband access technologies
1.2.4	Other fixed wireless access technologies

1.3	The Licences

1.4	Regulatory and associated policy issues
1.4.1	UK background
1.4.2	The Government's broadband strategy
1.4.3	The Government's targets on Internet access
1.4.4	European background
1.4.5	Infrastructure sharing and planning
1.4.6	Health issues

1.5	The Licence award process
1.5.1	The Application stage
1.5.2	The Pre-qualification stage
1.5.3	The Primary Bid stage
1.5.4	The Multiple-round Auction stage
1.5.5	The Grant stage
1.5.6	Payment terms
1.5.7	The timetable
1.5.8	Application instructions, enquiries and further information

2.	The Licences

2.1	Introduction
2.1.1	Availability of WT Act Licences
2.1.2	Licensing of BFWA operators

2.2	WT Act Licences
2.2.1	Licence conditions
2.2.2	Alternative uses of BFWA spectrum
2.2.3	Trading and assignment of WT Act Licences
2.2.4	The Channel Islands and Isle of Man
2.2.5	Technical conditions

2.3	T Act Licences
2.3.1	Licence conditions
2.3.2	Telecommunications Code Powers
2.3.3	Consultation process
2.3.4	Ability to assign T Act Licences
2.3.5	Interconnection rights and obligations

2.4	Broadcasting Act Licences

3.	Policy

3.1	Regulatory issues
3.1.1	The Radiocommunications Agency's approach to the regulation to the radio spectrum
3.1.2	Oftel's approach to the regulation of telecommunications
3.1.3	OFCOM and the Independent Spectrum Review
3.1.4	The EU regulatory regime and the 1999 review of EU communications legislation

3.2	Co-ordination requirements
3.2.1	Co-ordination with other services in the 28GHz band
3.2.2	Co-ordination with other administrations
3.2.3	Inter-operator co-ordination

3.3	Test and development licences

3.4	Associated policy issues
3.4.1	Appeals process
3.4.2	Infrastructure sharing and planning
3.4.3	Health issues
3.4.4	Tax relief on BFWA spectrum Licences

4.	The Award Process

4.1	Wireless Telegraphy Act Regulations and Notice

4.2	Timetable

4.3	Rules governing activities of Bidders and their Candidate Groups
4.3.1	Confidential information
4.3.2	Anti-competitive activity
4.3.3	Directors and employees
4.3.4	Candidate Groups
4.3.5	Changes to Candidate Groups
4.3.6	Advisers to the Government

4.4	Application stage
4.4.1	Application requirements
4.4.2	Form of responses and procedures for submission
4.4.3	Deposits

4.5	Pre-qualification stage
4.5.1	Pre-qualification tests
4.5.2	Announcement of Qualified Bidders
4.5.3	Associated Bidders

4.6	Primary Bid stage

4.7	Multiple-round Auction stage
4.7.1	Notification of start of a Multiple-round Auction
4.7.2	Multiple-round Auction design
4.7.3	Bidding mechanics
4.7.4	Information on the progress of a Multiple-round Auction
4.7.5	Announcement of successful Bidders
4.7.6	Communications with the Auctioneer
4.7.7	Restart of the Auction in the event of the exclusion of a Bidder
4.7.8	Penalties and forfeiture of Deposits
4.7.9	Location

4.8	Grant stage
4.8.1	Notification of pre-conditions
4.8.2	Payment options
4.8.3	Payment
4.8.4	Guarantee
4.8.5	Method and timing of payment
4.8.6	Issue of Licence