Programme-making and special events : future spectrum management, access and availability

Interim Statement published 15|04|10

Executive summary

1.1 This interim statement sets out decisions we have taken about future spectrum management, access and availability for programme-making and special events (PMSE).

Future spectrum management

1.2 In December 2007, we concluded the long-term interests of PMSE users would best be served if they moved to a market-based approach to spectrum. To enable this to happen, we decided to appoint a band manager with obligations to meet their reasonable demand but incentives to find alternative uses of the spectrum awarded to it. We published consultations on the detailed design of the band-manager award in July 2008 and June 2009. Separately, we consulted in May 2009 on making spectrum available for wireless communications at the London 2012 Olympic Games and Paralympic Games. Respondents noted the need for effective cooperation between us and the band manager and questioned the relationship between our timetable for that award and the licensing arrangements for the Olympics.

1.3 In the light of our consultations and the responses we received, we have decided to defer the band-manager award until after the Olympics. This is in part because of the outstanding complexities of the award itself. But it is particularly because we consider there would be insufficient time to develop, test and implement the necessary arrangements between us and the band manager to coordinate spectrum use in London without an unacceptable risk of disruption to the Olympics.

1.4 We continue to believe band management is the best long-term approach to PMSE spectrum access and expect the delay will give us the time we need to deal with these complexities. We anticipate returning to it after the Olympics in 2012.

1.5 We are currently assessing the options for PMSE spectrum management in the interim period before we restart the band-manager award. We see a choice between continuing to outsource the granting of licences, as is currently the case, or carrying out this function ourselvesboth options we are confident can deliver the service PMSE users have come to expect. At the forefront of our considerations are the twin objectives of minimising disruption for PMSE users and risks for the Olympics.

Future spectrum access

1.6 Some of our proposals concerned the terms of PMSE spectrum access rather than the institutional arrangements for managing it. Where relevant, we will take these forward as they contribute to meeting our key objectives for the PMSE sector in their own right. Specifically, we will:

• confirm the spectrum that will be available for PMSE use;
• decide when and how we will introduce fees for PMSE spectrum use based on administered incentive pricing (AIP) to reflect its opportunity cost;
• confirm the block-edge masks (BEMs) that will serve as technical licence conditions (TLCs) for use of this spectrum; and
• determine the process by which we would permit non-PMSE use.

1.7 In particular, we have identified security of tenure as critical to a functioning market for PMSE spectrum access. PMSE users also consider this to be a key issue, which has been brought into sharp relief by our decision to clear them from channel 69. We had indicated the band managers obligations to PMSE users would last until 2018, but many stakeholders argued this was unsatisfactory because equipment lifecycles often exceed 10 years and a fixed cut-off date would act as a cliff-edge. We accept both these arguments, and our final decisions on this issue will set out arrangements to provide greater security of tenure for PMSE users than we have indicated to date.

Future spectrum availability

1.8 On 30 June 2009, we published a statement setting out our decision to clear the 800 MHz band and release it for new services. This means PMSE users of channel 69 must move to alternative spectrum. We committed to putting in place arrangements to move these users with the minimum of disruption, confirming channel 38 as the replacement for channel 69 and maintaining PMSE access to channel 69 until at least 1 January 2012.

1.9 With regard to the timing of clearing channel 69, we have decided:

• PMSE users will retain primary access to channel 69 until at least 1 July 2012 in all of the UK and at least 1 October 2012 in London, Northern Ireland and the northeast of England (the Tyne Tees television region);
• we will determine in 2011 the date for completing clearing channel 69 as more information will be available on the likely timing of new services being rolled out in the 800 MHz band; and
• the final date for clearance will remain no later than 31 December 2012.

1.10 Recognising the different types of PMSE use of channel 69, the availability of channel 38 and the suitability of other spectrum available for PMSE, we:

• set out the options for moving to replacement spectrum and when users might make the move; and
• explain the shared-licensing arrangements we introduced for channel 38 in January 2010 to allow similar utility as channel 69.

1.11 Addressing the broader picture of PMSE spectrum availability, we confirm we plan to publish information on the availability of interleaved spectrum for PMSE after digital switchover (DSO) later this year following the conclusion of international negotiations to clear the 800 MHz band. Based on a provisional technical assessment, we expect there to be more than sufficient spectrum to meet historic peak demand.

1.12 This interim statement does not address the issue of funding. Final decisions on the nature and level of this are a matter for the Government. We await these decisions.

Next steps

1.13 We expect to take and publish decisions about future PMSE spectrum management and access by July 2010 at the latest (but not necessarily at the same time).

The full document is available below