Ofcom and ComReg propose co-ordinated spectrum awards in Ireland

Ofcom, together with ComReg – the Commission for Communication Regulation in the Republic of Ireland - today announced proposals to award licences to use spectrum frequencies in the band 1785-1805MHz.

This marks the first time the two regulators have adopted a coordinated approach to awarding spectrum to benefit businesses and consumers throughout the island of Ireland.

Section 3(2) of the Communications Act 2003 requires Ofcom to secure the optimal use of the spectrum and section 154 of the Act instructs Ofcom to have regard to the extent to which the spectrum is available for use. In January 2005 Ofcom published the Spectrum Framework Review: Implementation Plan (SFR:IP) which proposed a number of awards across a wide range of the spectrum.

Spectrum in the 1785-1805MHz band could be used for innovative new services such as broadband wireless access (fixed and mobile), digital video links, CCTV, mobile technologies and wireless microphones. The licences are expected to be awarded by auction in 2006.

The key elements of the award are:
• there will be a single licence awarded by ComReg in the Republic of Ireland and another soon after by Ofcom in Northern Ireland;

• both auctions will be decided by a single round of sealed bids and the winning bidder will pay the second highest price bid;

• the licences will be technology and application neutral;

• the Northern Ireland licence will be tradeable and have an indefinite term, with an initial minimum period of 15 years; and

• the reserve price for the Northern Ireland licence will be £50,000.

CROSS BORDER INTEGRATION

Radio waves can cross national borders which can present difficult challenges when assigning spectrum in the Republic of Ireland and Northern Ireland. For the first time, Ofcom and ComReg have come together to ensure that the key elements of each award, whilst legally separate in each jurisdiction, will be identical so far as practical.

This will allow operators to use the spectrum more efficiently and to take advantage of economies of scale across a larger market. Consumers could have access to identical services that are provided seamlessly on both sides of the border. An integrated award process might also enable cost-effective provision of wireless services to remote border areas and encourage more balanced regional development.

NEXT STEPS

The deadline for responses to this consultation is 2 March 2006. After considering responses to the consultation, Ofcom will aim to publish the following ahead of an auction:

• a statement on the responses to the consultation;

• an Information Memorandum with details of the award procedure and rules, licence conditions and other information of interest to potential bidders; and

• draft UK regulations setting out the auction rules and the mechanisms allowing trading in these bands in Northern Ireland.

The document can be found at www.ofcom.org.uk.