Appendix 7 - Private Business Radio

Your views on the proposals set out in this document are sought by 31 December 1999. Comments should be sent to the address below. It would be helpful if lengthy written documents could be sent via email of on disk in Word 7:

 Contact Details:

David Thomas
Radiocommunications Agency,
Wyndham House,
189 Marsh Wall,
London,
E14 9SX.

Email: dave.thomas@ra.gsi.gov.uk

Fax: 020 7211 0182

Appendix 7 Private Business Radio

Spectrum Pricing for the Private Business Radio sector was initially implemented through the introduction of the PBR On- Site licence in July 1998 and progressed further in July 1999 through the introduction of the new PBR National, Regional and Wide Area licences. It is proposed to extend Spectrum Pricing to all other licence products in the PBR sector, in this third stage, whilst continuing the rationalisation of the PBR licences, outlined in previous Spectrum Pricing consultations. The Agency does not intend to introduce any fee increases in the PBR sector for those licences introduced in the first two stages, but proposes to introduce changes in the remaining areas:

Following the principles of Spectrum Pricing established in 1998 and 1999, the pricing of PBR Paging licences will depend on the characteristics of radio use, (i.e. geographical location, type of use and the degree of congestion of radio band). Heavily Congested and Congested areas are those already identified within the PBR sector within (10 km x 10 km areas) National Grid Squares. Heavily congested = TQ 200 700; TQ 200 800; TQ 300 700; TQ 300 800. Congested areas = TQ 100 700; TQ 100 800; TQ 200 900; TQ 300 900; TQ 400 700; TQ 400 800. Channels contained within VHF High Band, UHF Band I or UHF Band II, will attract an increased fee when used within any of these congested areas. All other bands are considered to be non-congested throughout the in the UK. The proposed pricing of paging licences, which reflect these factors and the frequency assignment process used by the Agency, is illustrated in Table 1.

The PMR Road Construction licence authorises the use of radio at road construction sites where contracts have been awarded by the Department of Transport; the Scottish Executive Development Department and the National Assembly for Wales. It is proposed that this licence would become a member of a new Licence Class containing PBR Pre-assigned frequencies.

The current annual licence fee of £750 enables use on a nation-wide basis, (apart from Northern Ireland). This licence is comparable to a UK National Exclusive Licence; albeit on a shared sector basis. The seven dual frequency channels allocated to this licence when shared amongst the current number of licensees gives a spectrum pricing licence of approximately £2000. As with the established practice for other licence categories, which have sustained a substantial increase in the transition to Spectrum Pricing, it is proposed that the licence fee increase should be phased from its current rate to the new rate over three successive annual Fees Order. So that the fee in the year 2000 = £1,000; 2001 = £1,500; 2002 = £2,000.

Local Authority Emergency Alarms are simplex PBR Wide Area systems, which are subject to individual frequency assignment. It is proposed to re-classify this licence as PBR Distress Alarms, within the PBR Wide Area Licence Class. In arriving at a Spectrum Pricing fee, the calculation assumes that the channels are occupied at the lowest level of channel exclusivity established for PBR Wide Area licences in Spectrum Pricing Phase 2. This will be further modified through the operation of this service on simplex channels. This calculation, gives a proposed licence fee to operate in Phase 3 as £100 for congested bands in Heavily Congested areas (as identified in Paragraph 2 above) and a minimum fee of £75 for all other locations; this compares with a current flat rate fee of £200.

This radio service is currently contained within the Private Mobile Radio (Standard) licence and stations may be installed and used anywhere within the United Kingdom or within a particular area of the United Kingdom. There are approximately 4,000 licensees holding UK General licences. However, it is thought that a number of these are inappropriate and licensees ought to hold PBR Wide Area or On-Site licence to match their actual usage. The Agency therefore proposes to conduct a thorough review to bring these users onto more appropriate charging mechanisms already established in Spectrum Pricing Phases 1 and 2, and the new PBR Pre-assigned Frequency Licence class. New UK General Service licensees will be able to be assigned directly to this new Licence Class; as will existing licensees who can agree with the Agency their correct classification before the completion of the review.

The pricing of this licence cannot be accurately determined until further resolution can be given to the total number of licensees who might be contained in the new PBR ‘Pre-Assigned’ Frequency Licence Class. However, it is anticipated that the Spectrum Pricing based fee will be no more than £150.

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