Spectrum Framework Review for the Public Sector

Summary

Summary

Introduction

1.1 We consulted last year on a new spectrum framework for the public sector (SFRPS) and published a statement on 31 January 2008 announcing our intention to make regulations to allow public bodies to hold and trade recognised spectrum access (RSA) . This document gives notice of and consults on our intention to make the necessary regulations and an order for the 406.1-430 MHz band as the first step.

1.2 It also consults on the technical conditions to be included in the initial grant of RSA. Without suitable technical conditions, a change of use following spectrum release or sharing could give rise to unacceptable interference. Our proposals are intended to allow flexibility for desirable changes while ensuring that users, including the Cospas-Sarsat satellite emergency position-indicating radio system, are not affected by unacceptable levels of interference.

Radio spectrum is a valuable and limited resource

1.3 The radio spectrum is a valuable and limited resource that underpins an estimated 3% of UK GDP . Demand is exceeding availability in the most sought-after frequency bands. We are using market mechanisms such as incentive pricing, auctions and trading to meet this demand and secure the best use of the spectrum for citizens and consumers.

Managing and using public sector spectrum holdings more efficiently

1.4 The public sector has extensive spectrum holdings amounting to about half of the spectrum below 15 GHz with a value that could exceed £20bn . In view of the economic and social value of radio spectrum, it is essential that public sector holdings are managed and used as efficiently as possible. In 2004, the Government commissioned Professor Martin Cave to review major spectrum holdings with the aim of releasing the maximum amount of spectrum to the market and increasing opportunities for innovation in wireless services. Following his December 2005 report, the Independent Audit of Spectrum Holdings, the Government, supported by Ofcom, committed to a programme for improving the efficiency with which public bodies manage and use their spectrum holdings .

1.5 A key element of the programme involves giving public bodies enhanced incentives and opportunities to use spectrum efficiently by enabling them to trade their holdings through the market. The regulations that this document consults on will make this possible by allowing the formalisation of certain public sector holdings as grants of tradable and technology and application neutral RSA.

1.6 The Ministry of Defence (MOD) is committed to releasing a significant proportion of its spectrum holdings, which are the largest in the public sector, and is consulting on its plans . The MOD’s consultation gives further details of its proposals.

Ofcom is working with the Government to facilitate change

1.7 We are working closely with government departments and other public bodies to construct the new framework for public sector spectrum management. The regulations and order described in this document are a key element of that new framework.

1.8 In line with our previous statement, we intend to phase in the new framework beginning with the 406.1-430 MHz band, which the MOD has proposed as an early candidate for selective spectrum release or sharing.

1.9 Extension of the reforms will be synchronised with the MOD’s release programme and with progress by government departments in agreeing procedures for managing and releasing spectrum shared by the MOD and other public bodies.

1.10 The document outlines the process for trading RSA and converting it to licences so that the spectrum can be released to and used by commercial operators. This is based on existing trading procedures and encompasses a variety of different types of trading: total or partial and outright or concurrent. We propose to create a new licence product for licences formed following transfers of RSA.