Notice of Ofcom's proposal to make regulations in connection with Recognised Spectrum Access (RSA) for radio astronomy

Executive Summary

Summary

1.1 This document provides formal notice of Ofcom’s proposals to introduce the RSA regime by making various RSA Regulations in connection with radio astronomy. This is the first application of RSA under the new powers introduced by the Communications Act 2003 (the “Act”). The deadline for responses is 15 December 2006.

1.2 One of Ofcom’s duties under the Act is to secure the optimal use of the radio spectrum in order to further the interests of citizens and consumers. This has become more challenging in recent years as demand for spectrum has grown. As set out in various publications , Ofcom is making increasing use of market mechanisms as the best means of achieving its spectrum management aims. RSA is a development of this policy.

1.3 Ofcom consulted in April 2005 (the “Consultation”) on the principles of applying RSA to radio astronomy and sought views on a range of related issues including the fee basis, security of tenure and application of spectrum trading. Ofcom considered the responses to the Consultation and published a policy statement on 17 October 2005 (the “Statement”), setting out its conclusions on these issues as follows:

• RSA will be an appropriate spectrum management tool for radio astronomy services;
• fees for RSA should be set on the basis of opportunity cost to make transparent the economic cost of making spectrum available for radio astronomy and assist rational and informed decision making, and to provide appropriate incentives for radio astronomers to use spectrum efficiently;
• RSA will initially only address in-band interference issues, and Ofcom will continue its work to address sharing issues arising from out-of-band issues;
• holders will acquire RSA for an indefinite terms, with 5 years’ minimum notice of variation or revocation of the RSA except in specified circumstances;
• in bands used for radio astronomy and in which alternative use of the spectrum is permitted by the International Radio Regulations, the RSA fees should be set by Administrative Incentive Pricing (AIP) based on the opportunity cost of denying the spectrum to alternative services;
• were radio astronomers to relinquish their use of any part of the spectrum they currently use, whether on a national or regional basis and apply for a change of use, Ofcom would consider each request for change of use in accordance with Ofcom’s liberalisation policy. Ofcom favours maximum flexibility in how spectrum is used but would check in particular that any change of use was compatible with the UK’s international obligations and did not cause an unacceptable increase in interference for neighbouring spectrum users; and
• it is desirable in principle for radio astronomy to be tradable to give increased incentives for spectrum efficiency. However, the incentive effect will depend on whether or not the radio astronomy community is allowed to retain the proceeds of trading.

1.4 In relation to radio astronomy where RSA has been applied for and granted for particular frequency bands and geographic locations, this means that Ofcom would endeavour to avoid licensing terrestrial services that would block out observations of radio emissions from space in areas where radio astronomy observations are carried out.

1.5 This will give radio astronomers greater certainty about the quality of the spectrum they use and allow market mechanisms to be applied to promote optimal use of the radio spectrum in line with the principles set out by the Independent Audit of Spectrum Holdings (the Cave Audit) in December 2005, endorsed and accepted by the Government in its response in March 2006 .

1.6 The proposed regulations are intended to give effect to the policies announced in Ofcom’s Statement. There are several sets of regulations that Ofcom proposes to make in this connection. This Notice seeks views on

• the main Regulations establishing the circumstances in which Ofcom will grant RSA and the terms and conditions that may be applied to RSA grants (the “RSA Regulations”) (see Annex 4);
• a proposed Limitations Order restricting RSA grants to existing uses of radio astronomy (see Annex 5);
• an amendment to the Wireless Telegraphy (Register) Regulations 2004 to enable Ofcom to publish details of RSA grants Ofcom may make (see Annex 6); and
• the proposed RSA Charges Regulations (see Annex 7).

1.7 By way of additional background and reference, this document also includes an example of the proposed form that RSA will take in Annex 9, although this will not form part of the regulations.

1.8 The proposed regulations define:

• the frequencies and locations where RSA for radio astronomy is to be introduced;
• the restrictions and conditions to which a grant may be made subject;
• requirements which must be met before a grant is made;
• time limits for dealing with applications for a grant of RSA;
• the details of RSA grants that will be made available on the existing wireless telegraphy register; and
• charges that may be made in respect to the issue, variation and renewal of charging of RSA grants.

1.9 The initial RSA regulations will not allow RSA to be traded or converted to a licence. However, as outlined in the Consultation and Statement, it remains Ofcom’s intention to make RSA tradable and convertible in due course.

1.10 This Notification document is structured as follows.

• Section 2 notifies Ofcom’s intention to make various Regulations in relation to RSA and includes details of how to make representations to Ofcom with respect to the proposals;
• Section 3 discusses the general background to radio astronomy and RSA;
• Section 4 provides an overview of the legal and regulatory framework associated with RSA and restates Ofcom’s policy position with respect to RSA;
• Section 5 discusses the general effect of each of the proposed regulations;
• Section 6 discusses the proposed RSA grant template document;
• Annexes 1 through 3 explain how to respond to this consultation and Ofcom’s consultation principles;
• Annex 4 contains the proposed Regulations setting out the processes that will apply in relation to RSA for radio astronomy;
• Annex 5 sets out the proposed Limitations Order restricting the initial grants of RSA to existing radio astronomy sites and to frequencies already in use for radio astronomy purposes;
• Annex 6 sets out the proposed amending Regulations to incorporate RSA grants on the existing Wireless Telegraphy Register;
• Annex 7 contains the proposed Regulations relating to the charges for RSA;
• Annex 8 contains the Regulatory Impact Assessment for each of the proposed Regulations;
• Annex 9 includes an example of a proposed RSA grant document;
• Annex 10 includes examples of AIP calculations; and
• Annex 11 describes Ofcom’s approach to using AIP.