Frequently Asked Questions About FWA in the 3.4 & 10 GHz Bands From the FWACC Meeting on 25 October 2000

1. Does the RA intend to award 3.4 and 10 GHz spectrum at the same time?

The RA is planning to deliver 3.4 and 10 at the same time. The RA has not yet formed a view on whether the award for 3.4 and 10 GHz will be linked in some way. The RA, in conjunction with its financial and economic advisers, is reviewing the issue through the economic and market studies.

2. When does the RA intend to announce the format of the allocation process for the award of licences in 3.4 and 10 GHz?

The RA intends to publish an Information Memorandum in late February 2001 with the award of licences taking place in May/June 2001.

3. Will the Government prescribe a duplex spacing that is different to that used in Europe?

The current duplex spacing requirement is 51 MHz and the RA does not intend to alter that requirement in the short to medium term, although it may revisit the issue in the longer term. The RA is mindful of CEPT’s base recommendations with respect to duplex spacing and the RA welcomes the industry’s view on the UK’s current requirement.

4. The RA’s consultation document on 3.4 GHz spectrum suggested that 3.4 could not be awarded by auction because of Ministry of Defence (MoD) issues. Is that still the case?

The RA is in discussions with its colleagues in MoD on the appropriate award process. The RA is also discussing with MoD how to bring regulatory certainty to civil and military users of 3.4 and 10.

5. How will the Government deal with incumbents and new licensees in the 10 GHz band?

The RA intends to act in a fair, reasonable and non-discriminatory manner in relation to the procedure for the award of the new licences as required by the Licensing Directive.

6. Will the Government insist on roll out or use it or lose it obligations in the licences for 3.4 and 10 GHz?

The Government is keen to see that the 3.4 and 10 GHz spectrum is used, and used efficiently. It is looking at the different mechanisms by which it can encourage the use of spectrum but has not yet come to any conclusions.

7. Will licences be regional or national?

No decisions have yet been taken on whether the RA will award regional or national licences.

8. Will the Government prescribe the technology to be used at 3.4 and 10 GHz?

The government tries to take a technology neutral approach in its licensing and it is minded to do so here, pending the results of the technical studies by WS Atkins. The RA is also mindful of the potential pitfalls if a co-frequency and/or co-coverage approach were adopted, as a means of promoting competition. Again, the studies by WS Atkins will take this into account.

9. Has WS Atkins’ modelling to date been based on the existing of line of sight technology for FWA?

Yes. However, equipment suppliers are invited to contact the RA on 020 7211 0211or Bérangère Mira-Smith (WS Atkins) on 01372 726140, if they have any new technologies of which it should be aware, so they may be taken into account during the modelling exercises

10. Is the emphasis on "economic value" in WS Atkins' presentation on 25 October 2000 an indicator of the Government’s expectation of the licence fee, however realised, by auction or beauty contest?

No. The RA has not determined the licence fees for 3.4 and 10 GHz spectrum, however realised, by auction or beauty contest. The RA’s purpose is to promote the efficient and effective use of the spectrum by maximising the benefits or value of the spectrum, and the RA intends to do this by carrying out the economic studies required to award the spectrum.

11. Has the RA considered de-regulating the 3.4 and 10 GHz bands?

The RA has not considered de-regulating the 3.4 and 10 GHz bands. Use of these bands is shared between the MoD and commercial operators. The RA is of the view that unregulated use of these shared bands would be unmanageable.

12. How will the 5 GHz consultation process, where there have been proposals to de-regulate that band, affect the award of 3.4 and 10 GHz?

The RA is looking at this issue and will consider the impact of discussions concerning de-regulation at 5 GHz within the framework for delivery of 3.4 and 10 GHz.

13. Will the RA consider mesh networks?

Yes. However, the RA tries to take a neutral approach in its licensing and is minded to do so here, pending the results of technical studies by WS Atkins.

14. Will the RA use a beauty contest or an auction to re-allocate the 3.4 and 10 GHz spectrum?

Both an auction and comparative selection are under consideration as the RA tries to determine how best to maximise use of the available spectrum. If comparative selection is used, the RA will draw upon the experience in other European countries to make the award process as effective and legally robust as possible. The RA welcomes the views of the industry on how best to structure an award process if comparative selection is used.

15. Will the RA consider the issue of using Time Division Duplexing (TDD) rather than Frequency Division Duplexing (FDD) in the 3.4 and 10 GHz band?

The RA will explore the issue with MoD, and the RA welcomes the views of industry. However, the RA tries to take a technology neutral approach in its licensing and is minded to do so here, pending the results of the technical studies by WS Atkins.

16. Has the RA considered the issue of spectrum pricing on the award of 3.4 and 10 GHz?

If the RA does award spectrum in 3.4 or 10 by comparative selection, the RA will produce estimates of the spectrum's value, using tested market values. The industry will have an opportunity in the FWACC on 3.4 and 10 GHz to comment on these estimates. Any conclusions will then be fed into the review of fixed wireless access spectrum pricing taking place next year.

17. Has the RA considered the impact of spectrum trading on the award of licences for 3.4 and 10 GHz?

The RA is looking seriously at spectrum trading and how it is treated through the award process for 3.4 and 10 GHz. The RA’s Spectrum Management Advisory Group is looking at the wider issues involving spectrum trading and has produced a paper on this issue entitled Spectrum Management Advisory Group: Position Paper on Spectrum Trading, which may be found on the RA’s website at www.radio.gov.uk.

18. When does the RA intend to provide information on what systems are operating in the bands across 3.4 and 10 GHz?

The RA is conducting a full UK-wide survey of spectrum across the bands, including interference scenarios, and it intends to publish this information in the Information Memorandum. The RA is also exploring with the MoD whether the RA can give information about the technical characteristics of the other systems used in the bands.

19. Will the Government make licences service specific?

At this stage, the RA does not see a justification for licences with service specifications. However, the RA is open to the views of industry and welcomes its comments.

20. How can interested parties participate in WS Atkins’ qualitative market research exercise?