New award for 28 GHz licences

The consultation proposes opening a new award process, maintaining the current framework. In line with recommendations made by Professor Martin Cave in the independent Review of Spectrum Management, it is proposing to offer licences without restrictions on purpose of use or "use it or lose it" clauses.

Delivering broadband through wireless services is a key part of the Government's strategy to make broadband as widely available as possible. Removing the restrictions, on purpose of use and the "use it or lose it" clause, will allow operators a more flexible use of the spectrum. The proposals aim to improve the business case and achieve a more efficient use of the spectrum by allowing operators to develop services when and where there is a demand for them.

The current award process opened in October 2001 and closed on 14 October 2002. The new award process is scheduled to begin in the new year.

Notes

1. The Radiocommunications Agency auctioned three spectrum licences in the 28 GHz band in 11 English regions and Scotland, Wales and Northern Ireland. The auction began on 10 November and ended on 20 November 2000. A second award process was opened on 15 October 2001 to make available the remaining unsold licences. This award process closed on 14 October 2002.

2. The consultation proposes the removal of the restrictions on purpose of use and the "use it or lose it" clause. The purpose of use requirement restricts licensees to using the spectrum for connecting end users to a telecommunications network, with data rates of at least 2 megabits per second on demand. The "use it or lose it" clause required licence holders to establish a network that would serve 10% of businesses within the licence region within 18 months. Existing licence holders were obliged to meet this target by 30 June 2002, but earlier this year the Secretary of State used her discretion to extend this clause to a further 18 months.

3. The Radiocommunications Agency is an executive agency of the Department of Trade and Industry, and it is responsible for the management of civil radio spectrum. The Government is proposing to make the Radiocommunications Agency part of OFCOM.