Deregulation in wireless
communications services
Friday 17 September 2004
Ofcom today announced proposals that will allow users and providers of
wireless communications services greater flexibility in changing the way
they use their licences governing access to the airwaves.
Providers of a broad range of services - from taxi two-way radios to
mobile phones, TV and radio and radar - are required to hold Wireless
Telegraphy Act licences. Those licences set out specific limitations on
the kind of services offered on specified bands of radio frequencies within
the electromagnetic spectrum. Wireless Telegraphy Act licences
are divided into the following sectors:
* Aeronautical and Maritime
* Amateur and Citizens Band
* Broadband Fixed Wireless Access
* Broadcasting
* Fixed Wireless Services
* Business Radio
* Programme Making and Special Events
* Public Wireless Networks
* Satellites
* Space Science
* Non-Operational Licencing
Regulators have traditionally adopted a 'command and control' approach
in dictating Wireless Telegraphy Act licence terms, imposing a variety
of restrictions depending on the service. Ofcom proposes instead to introduce
greater flexibility by reducing restrictions on type of use.
Under the proposals, which are subject to public consultation, three
key licence types - Business Radio, Fixed Wireless Access and Fixed Wireless
Services - will be addressed as a priority. Holders of these licence types
could benefit from these changes before the end of 2004.
Section 3 of the Communications Act 2003 requires Ofcom to secure the
optimal use of the electro-magnetic spectrum and to secure a wide range
of electronic communications services throughout the United Kingdom.
Ofcom's latest proposals are part of its wider policy to reduce the role
of the regulator and give more responsibility to the market for deciding
how spectrum should be used. Ofcom believes that these proposals will
benefit consumers and businesses by encouraging greater innovation and
enabling greater competition between providers, thereby helping to drive
down prices and increase the scope for new services to come to market.
Ofcom also recognises that increased flexibility could lead to an increase
in interference between different users' transmissions. The proposals
outline various measures that will enable the regulator to maintain control
over interference to avoid disruption to services.
The closing date for responses to the consultation is 12TH NOVEMBER
2004.
BACKGROUND
The electromagnetic spectrum - a range of radio frequencies over which
numerous kinds of wireless services are received and transmitted - is
a finite resource which plays an integral role in the day-to-day lives
of many individuals and organisations. There is increasing demand for
access to it from private and commercial organisations, as well as the
armed forces and emergency services who share it with them.
This consultation follows a statement made by Ofcom in August laying
out a timetable for the launch of spectrum trading in the UK. This will
allow companies and individuals holding spectrum licences to buy and sell
their rights in an open market.
Both initiatives build on the findings of the 2002 independent review
ofradio spectrum led by Professor Martin Cave and commissioned by theDepartment
of Trade and Industry and HM Treasury. Those findings were
subsequently reflected in the Communications Act 2003.
Spectrum trading and liberalisation will make it easier for businessesto
develop higher-value applications to run over their spectrum allocation
or to sell their licence in an open market to a company that is better
placed to use it. Ofcom plans to publish proposals on bands used for mobile
services before the end of 2004.
PREVENTING INTERFERENCE
Spectrum liberalisation is not without risk, as radio signals can interfere
with each other, resulting in a poor experience for the user and loss
of revenue for the operator. To offset this risk, Ofcom intends to begin
by looking at licence change applications on a case-by-case basis to determine
the potential for interference.
|
