Authorisation of terrestrial mobile networks complementary to 2 GHz mobile satellite systems (MSS)

Statement published 17|07|09

Executive Summary

1.1 This Statement concludes on the terms and conditions for the spectrum access licence for terrestrial mobile networks (Complementary Ground Components “CGC”) that complement 2 GHz mobile satellite systems (“MSS”) operating in the frequency bands 1980 – 2010 MHz and 2170 – 2200 MHz (“the 2 GHz spectrum”).

1.2 The European Commission announced the results of the EC administered selection and authorisation process (“the EU process”) provided for by Decision No. 626/2008/EC (“the EU Decision”) on 14 May 2009. Inmarsat Ventures Ltd and Solaris Mobile Ltd were selected under this process. Decision No. 2009/449/EC (“the EC Selection Decision”) of 13 May 2009 confirmed the selection of both operators and identified the specific frequency bands awarded to each operator.

1.3 The formal Selection Decision was published in the Official Journal (“the OJ”) of the European Union on 12 June 2009. In conjunction with the EU Decision, the EC Selection Decision requires that Member States grant the selected MSS operators an authorisation for CGC for their territory, with the terms and conditions of such authorisations to be determined by national and community law as well as the EU Decision.

1.4 In this Statement we have concluded that we will proceed on the detailed terms and conditions for licensing CGC broadly in line with the proposals we made in our joint Statement and consultation document published on 3rd November 2008.

1.5 On the issue of whether to base the CGC technical transmission rights on SUR or a spectrum mask approach, we have concluded that we will proceed on the basis of spectrum masks. We have also concluded that we will use the technical limits proposed in our consultation, with the addition of two further limits:

• An in-band limit of 58 dBm/MHz EIRP, which will allow for carriers having a bandwidth of less than 5 MHz; and
• An out of band limit of -38 dBm/MHz, above 2210 MHz, to facilitate use of PMSE above 2210 MHz.

1.6 The full set of terms and conditions that will apply to the CGC Licences are provided as Annex 5.

1.7 On the issue of the level of the CGC Licence fee we have concluded that we will proceed on the basis of a fee level of £554,000 per 2 x 1 MHz nationwide and that we will only authorise the specific frequencies requested by the MSS operators for use by the CGC. Therefore the CGC Licence fee will be calculated on the basis of the amount of spectrum used by the CGC and not to the full frequency assignment at the satellite level.

1.8 We recognise that there may well be a need to review the AIP fee rate for these CGC licences in due course as the passage of time reveals more information in relation to those factors which are currently subject to considerable uncertainty. However, we need to balance this potential need for review against the desirability of providing the MSS / CGC operators with a reasonable period of certainty over the fee rates that they will face. Accordingly, we do not intend to carry out a review of the CGC licence fee rate before 5 years from the date of this Statement, with one exception, so as to provide an appropriate degree of stability for MSS/ CGC operators. The exception is that we will consider reviewing the rate downwards before this 5 year period has elapsed if, once the European regulatory position and associated market developments have become a little clearer, we are presented with clear and compelling evidence that the rate of £554,000 per 2 x 1 MHz is preventing this spectrum from being brought into efficient use.

1.9 On a related issue, we confirm our understanding of the EU Decision’s requirement for the CGC to remain integral with the MSS. In particular, it is necessary for the frequency assignment to the CGC and satellite components to be managed by the MSS, in order to manage the risk of interference between the CGC and the satellite. However, in our view, it is not necessary to restrict the CGC to provide the same service, application or content as the satellite component.

Next Steps

1.10 To enable us to issue CGC licences, it will be necessary for Ofcom to make changes to a number of Statutory Instruments. We will publish a notice to consult on these changes shortly.

1.11 In addition, we are examining, with the Department for Business Innovation and Skills (“BIS”), the need for any actions arising from Article 7 of the EU Decision in relation to authorisation of the selected MSS satellite operators. Any such authorisation is likely to be based on a Statutory Instrument adopted by BIS under the European Communities Act 1972.