Temporary assignment of UHF analogue interleaved frequencies

Executive Summary

Executive Summary

1.1 Digital terrestrial television (DTT) in the UK remains an integral part of the broadcasting environment and increasingly so as digital switchover (DSO) starts in earnest later this year. However, even as DSO commences, the terrestrial landscape continues to evolve to enable higher bandwidth services through the adoption of new, more efficient digital broadcast technologies such as MPEG-4 and DVB-T2.

1.2 Our November 2007 consultation highlighted the opportunities presented by the new MPEG-4 and DVB-T2 technologies and our April 2008 Statement proposed a roadmap to realising these opportunities. In July this year legislation came into force which empowers Ofcom to implement that roadmap; that is, to upgrade Multiplex B (operated by BBC Free to View Limited), and to enable the launch of three HD services on the multiplex. The launch is expected to commence with the Granada television region in late 2009, with rollout thereafter following the DSO timetable which completes in 2012. However, this means that some parts of the UK will not have access to the new Multiplex B services for potentially up to three years after they first launch.

1.3 We noted in our April 2008 Statement that we would consider whether frequencies could be temporarily assigned to enable earlier access to the new services and that we would consult on this issue during 2008. Subsequently, the BBC requested that we consider temporarily assigning frequencies to enable a launch of the new Multiplex B services in some key areas ahead of DSO. This could materially increase the proportion of the UK’s population that has access to the new services between 2009 and completion of DSO in 2012.

1.4 This consultation outlines our spectrum management and other duties and the approach that we propose to adopt in responding to the BBC’s request. We discuss the frequency assignment framework within which temporary assignments for DTT broadcasting use would be made. To provide context we have applied the frequency assignment framework to a case study for London, to assess these impacts (in which we discuss the potential use of Channel 31 in London – one of the metropolitan areas identified by the BBC and one of the most congested geographic areas). The case study assesses impacts on existing spectrum users and concludes that, in this instance, the impacts would be minimal and therefore an assignment could be made. We intend to conduct a similar assessment for other requests and in some cases suitable frequencies may either not be available or carry power restrictions to avoid unacceptable interference to existing users. We invite comments on the proposed process of technically assessing these impacts.

1.5 Our analysis, informed by discussions with the BBC, other broadcasters and stakeholders, suggests the benefits to citizens and consumers of assigning frequencies to enable early launch are significant. The benefits, mainly to consumers, relate to early access to the new Multiplex B services sooner and to increased competition between receiver providers (potentially leading to a wider range of receiver product at lower prices). There are also likely to be producer benefits, to equipment manufacturers and to broadcasters although our analysis has not focused on these. We believe the benefits are likely to outweigh the costs associated with this policy including spectrum opportunity costs which we believe are low due to the circumstances of the frequencies in question. We are minded therefore to assign frequencies to enable the early launch of the new Multiplex B services ahead of DSO, subject to availability.

1.6 This document also sets out our proposed approach to other issues including spectrum pricing and licensing – in the context of the BBC’s request (should it decide to proceed), we propose to grant a new WTA licence to BBC Free to View Limited, and to vary its existing Multiplex B licence for the use of this spectrum. With respect to spectrum pricing, we have taken account of the specific circumstances of this temporary assignment in setting spectrum fees for that WTA licence in reaching a view that fees should be set on a cost recovery basis for the duration of these assignments.

1.7 Subject to the outcome of this consultation, we would expect to follow the approach outlined in this document in dealing with a formal request to temporarily assign frequencies from BBC (and to any future comparable requests).

1.8 This consultation closes on 19 November. We will consider responses at that time and intend to issue our Statement as soon as possible thereafter, which we expect will be in December 2008 or early in 2009.