Ofcom announces plans for further spectrum auction

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.

In July 2005 Ofcom announced plans for its first spectrum auction. It has today published proposals for the award of another band - 412-414MHz paired with 422-424MHz - that will be auctioned in spring 2006 on a technology and service-neutral basis.

Following an independent market study earlier this year, Ofcom has identified a wide range of potential uses for this spectrum, including Private Mobile Radio (PMR), Public Access Mobile Radio (PAMR) and Programme Making and Special Events (PMSE). The award process is intended to give maximum freedom to the market to decide on the type of use and the technology used.

The key elements of the proposed award are:

* one licence will be offered to cover all of the UK;
* the licence will be tradeable and have an indefinite term, with an initial minimum period of 15 years;
* the licence will be technology and application neutral;
* the licensee will be required to co-ordinate with the Ministry of Defence's use of neighbouring frequencies;
* the auction will be decided by a single round of sealed bids; and
* the reserve price will be £50,000.

NEXT STEPS
The deadline for responses to this consultation is 24 November 2005. After considering responses to the consultation, Ofcom will aim to publish the following early in 2006 ahead of an auction in the spring:

* 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 regulations setting out the auction rules and the mechanisms allowing trading in these bands.

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

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