Ofcom publishes strategic review
of spectrum management
Ofcom is the regulator and competition authority for the broadcast media
and telecommunications industries. A key natural resource that underpins
each of these industries, as well as essential organisations such as the
emergency services and air traffic control, is the radio spectrum.
In parallel with its reviews of Public Service Broadcasting and the telecommunications
market, Ofcom has today published the Spectrum Framework Review - its
strategy for securing the optimal use of the civilian radio spectrum.
The proposals will enable radio spectrum licence holders to make more
efficient use of their spectrum allocation and encourage innovation and
investment in wireless communications services across the UK.
Spectrum has traditionally been centrally allocated and managed by the
regulator. However, demand for spectrum has increased dramatically in
recent years and centralised administration has resulted in an inefficient
system which has limited the innovation and development of higher-value
services.
The Spectrum Framework Review sets out four key recommendations to address
this problem:
1. Allow the market to decide the best use for new spectrum allocations.
2. Allow licence holders to trade spectrum in an open market and change
the use they make of spectrum rights to develop new technologies and offer
different services to customers (also known as liberalisation).
3. Clearly define the rights of spectrum users, giving them the confidence
to plan for the future.
4. Increase the amount of licence-exempt spectrum which allows businesses
to develop and bring to market new technologies and services without the
need for a licence.
Ofcom will, over time, apply this market-led approach to over 70% of
the radio spectrum (currently 0%). However, it must continue to maintain
control over spectrum licences where:
• Signals cross international boundaries;
• International mobility is critical, or
• The UK has agreed to harmonise spectrum use in line with important
multi-national accords.
Ofcom will continue to monitor and act against interference between spectrum
users. It will introduce trading and liberalisation in a phased way, intervening
where necessary to make sure that these initiatives do not result in excessive
harmful interference for other users.
Ofcom Chief Executive Stephen Carter said, “Broadcasters and telecommunications
providers are rapidly moving towards a digital future.”
He added: “This market-led approach to spectrum management will
reward innovation and extract the maximum value for customers from this
important resource.”
BACKGROUND
The proposals announced today provide an overarching framework that encompasses
an array of announcements that we have made, and will continue to make,
regarding spectrum management.
1) August 2004
Statement on spectrum trading which allows licence holders to buy and
sell their rights in an open market. The preceding consultation generally
received strong support from stakeholders. For details, click
here.
2) September 2004
Consultation on spectrum liberalisation setting out proposals for removing
unnecessary restrictions so that licensees can change their use of spectrum.
The consultation closed on November 12 and Ofcom is currently evaluating
responses. For details, click
here.
4) Today
Publication of Ofcom’s Spectrum Framework Review, bringing together
Ofcom’s policies on spectrum trading and liberalisation within the
context of a broader strategy on all spectrum management issues.
3) November 2004
Publication of spectrum trading regulations to govern the new tradable
spectrum market.
5) December 2004
Formal launch of spectrum trading in the UK, beginning with the following
licence classes:
• Analogue public-access mobile radio
• National paging
• Data networks
• National and regional private business radio
• Common base stations
• Fixed wireless access
• Scanning telemetry
• Fixed terrestrial links
6) Winter 2004
Ofcom will publish an implementation plan outlining how it intends to
apply the principles contained within the Spectrum Framework Review to
a number of spectrum bands that are due to be brought to market in the
next few years. Shortly afterwards, Ofcom will address the subject of
Ultra Wideband and investigate the advantages and disadvantages of allowing
its deployment in the UK.
7) From 2005
Additional licence classes will become tradable and liberalised. Ofcom
will also continue to bring to market released and returned spectrum allocations.
The Spectrum Framework Review builds on the findings of the 2002 independent
review of radio spectrum management led by Professor Martin Cave and commissioned
by the Department of Trade and Industry and HM Treasury. Those findings
were subsequently reflected in the Communications Act 2003.
Section 3 of the Communications Act 2003 requires Ofcom to secure the
optimal use of the radio spectrum. Section 154 of the Act instructs Ofcom
to have regard to the desirability of promoting the economic benefit that
may arise from wireless telegraphy, as well as innovation and competition
in the provision of electronic communications services.
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