Spectrum Framework Review for the Public Sector

Statement published 04|02|09

Summary

1.1 This statement confirms that, following consultation^(-1-), Ofcom has made regulations and an order^(-2-) to introduce tradable recognised spectrum access (RSA) for Crown bodies in the 406.1-430 MHz frequency band (the ‘406.1 band’) and to make radio astronomy RSA tradable in certain other bands. The regulations and order were made on 9 January 2009 and took effect on 23 January.

1.2 It also explains how we intend to proceed in determining the technical limits that will apply to grants of RSA in the 406.1 band. This is the first stage of our Spectrum Framework Review for the Public Sector (SFRPS), which will put in place a new framework to enable government departments and other public bodies to manage and use the radio spectrum better.

Background

1.3 The radio spectrum is a limited and valuable resource. The public sector holds around half of the frequencies below 15 GHz. It is important that these extensive holdings are managed effectively and used efficiently in order to meet rising demand, including from new commercial services. In March 2006, the government, with Ofcom’s support, accepted the recommendations of the Independent Audit of Spectrum Holdings^(-3-) by Professor Martin Cave to reform public sector spectrum management. A key recommendation was to make public sector spectrum holdings^(-4-) tradable in order to provide incentives and opportunities to promote greater efficiency in their use.

1.4 We subsequently consulted^(-5-) on proposals to give effect to this policy by formalising the government’s spectrum holdings as tradable RSA in a phased manner. Having carefully considered the responses, we decided^(-6-) to proceed with the policy beginning with the 406.1 band, which has been identified by the Ministry of Defence (MOD)^(-7-) as an early candidate for release or sharing through the market.

Consultation on the regulations and order

1.5 On 20 June 2008, we published a consultation document, referenced at footnote 1, on draft regulations and an order to give effect to the policy. The responses, other than those for which confidentiality was requested, were placed on our website^(-8-). Many respondents commented on more general aspects of our SFRPS, its application to frequencies other than the 406.1 band or the introduction of administered incentive pricing (AIP) in the maritime and aeronautical sectors, on which we have been consulting separately^(-9-). Most of the remaining comments concerned the technical limits to be applied to grants of RSA rather than the drafting of the regulations and order themselves.

Our decision to make the regulations and order

1.6 Having considered the responses, we decided to proceed to make the regulations and order substantially in the form of the drafts on which we consulted. However, we amended the draft trading regulations to allow holders of RSA and licences greater flexibility in how they may divide their spectrum holdings if they wish to trade only part and also made editorial drafting changes.

The rest of this document

1.7 Section 2 provides the background to the SFRPS.

1.8 Section 3 explains the general effect of the regulations and order and our conclusions on the comments received on the drafts.

1.9 Section 4 sets out the position on our consideration of the technical conditions for grants of RSA in the 406.1 band and how we intend to proceed.

1.10 The annexes present final drafts of the regulations and order and regulatory impact assessments (RIAs) as follows.

• Annexes 1 and 2: the Wireless Telegraphy (Crown Recognised Spectrum Access) Regulations 2009 and RIA
• Annexes 3 and 4: the Wireless Telegraphy (Limitation of Number of Grants of Crown Recognised Spectrum Access) Order 2009 and RIA
• Annex 5 and 6: the Wireless Telegraphy (Recognised Spectrum Access and Licence) (Spectrum Trading) Regulations 2009 and RIA
• Annexes 7 and 8: the Wireless Telegraphy (Register) (Amendment) Regulations 2009 and RIA

Footnotes:

1. -http://www.ofcom.org.uk/consult/condocs/sfrps08/sfrps08.pdf

2. - The regulations and order may be found at: http://www.opsi.gov.uk/si/si2009/uksi_20090014_en_1
http://www.opsi.gov.uk/si/si2009/uksi_20090015_en_1
http://www.opsi.gov.uk/si/si2009/uksi_20090016_en_1
http://www.opsi.gov.uk/si/si2009/uksi_20090017_en_1

3. -www.spectrumaudit.org.uk

4. -These are defined to include spectrum used by the civil aviation and maritime sectors, which were included in the scope of the Independent Audit.

5. -http://www.ofcom.org.uk/consult/condocs/sfrps/sfrps.pdf

6.- http://www.ofcom.org.uk/consult/condocs/sfrps/statement/statement.pdf

7. -http://www.mod.uk/NR/rdonlyres/8B9CFFD1-6C36-476A-A6C3-8A3E5635DC55/0/dsm_consultation_report.pdf

8. -http://www.ofcom.org.uk/consult/condocs/sfrps08/responses/

9. -http://www.ofcom.org.uk/consult/condocs/aip/