Authorisation of terrestrial mobile networks complementary to 2 GHz mobile satellite systems

Summary

Summary

1.1 This consultation considers the licensing arrangements that should be applied to base stations associated with Complementary Ground Components (CGC) operating as integral parts of 2 GHz mobile satellite systems.

1.2 The European Commission has adopted a Decision that designates the frequency bands 1980-2010 and 2170-2200 MHz to mobile satellite services including those which operate complementary ground components as an integral part. The Decision requires that Member States make the spectrum available for such use including granting applications for operation of CGC systems. A separate EC Decision is being prepared which will establish a pan-European process for the selection and authorisation of mobile satellite systems operating at these frequencies. This Decision is expected to be in place by the first half of 2008 and the selection process itself concluded by the first quarter 2009.

1.3 Some of the prospective MSS operators are considering whether to include CGC within their system designs and have requested an early indication of the regulatory framework for implementing CGC in the UK. As a terrestrial use of spectrum, the use of CGC within the UK will require authorisation under the Wireless Telegraphy Act 2006, and in accordance with European law.

1.4 This document considers options for the authorisation of CGC in the UK. In sum, it proposes that:

• Applications for authorisation of CGC base stations may only be submitted by those MSS operators selected under the EC administered selection and authorisation process.
• Licences for CGC will therefore be awarded by an administrative assignment to those MSS operators.
• Applications for grant of a CGC licence may not be submitted until completion of the EC administered selection and authorisation process.
• However, the CGC may be brought into operation in the UK before launch and operation of the associated satellite network, within a time period to be specified by us.
• Licences awarded for CGC should be technology and service neutral and be tradable, and should not contain any coverage requirements.
• The terms and conditions of the CGC licence will need to be consistent with any obligations arising from relevant EC Decisions. In particular, the duration of the CGC licence should be consistent with the duration of the selection under the pan-European process.
• We should apply Administered Incentive Pricing (AIP) to licences awarded for CGC in order to encourage efficient use of spectrum.
• We should set AIP at a level consistent with current rates of AIP for other comparable bands around 2GHz. We consider the relevant benchmark rates to be in the region of £554,000-713,000 per 2x1MHz, and propose a rate of around £554,000 per 2x1MHz.