Spectrum pricing

On 29th March Ofcom published a consultation setting out the guiding principles that will be used to set fees for access to radio spectrum in the future. These principles and the methodology that Ofcom uses to set spectrum fees are explained, along with the approach to planning future reviews of fees in specific sectors. It does not make detailed fee proposals for individual sectors.

The consultation can be found here.

Why have we done this review?

The purpose of this review is to explain and to consult on how we propose to set spectrum charges in future. It is intended to clarify certain issues that stakeholders have raised with us, and to reduce uncertainty about the direction of future pricing policy.

Some of the principles and practices discussed have evolved over time in relation to specific sectors and licence classes. As a result not all of our principles or methodologies have been implemented, in full, for all licence classes. We propose to continue to apply these refinements systematically in future and in a way that takes full account of the specific characteristics and circumstances of each sector.

What does the review cover?

The review covers the general principles and methodology that we use to set spectrum fees, known generically as ‘spectrum pricing’, including fees that reflect our costs. It is relevant to the numerous commercial and public sector organisations throughout the economy that use, or wish to use, radio spectrum to provide a wide range of services.

Stakeholder engagement

We intend to hold a set of stakeholder workshops, similar to those we held as part of the pre-consultation, in order to present our proposals. This will also provide an opportunity for stakeholder to raise any questions they have on the specifics of these proposals. We plan to hold three ½ day workshops, grouped according to the licensed use of spectrum, as we anticipate common themes of interest between these stakeholder groupings:

• Workshop 1: Fixed link & space services: 19th April 10 – 12pm at Riverside House, followed by a sandwich lunch
• Workshop 2: Business Radio and others: 20th April, 12 – 2pm at Riverside House, followed by a sandwich lunch
• Workshop 3: Mobile Network Operators and auctioned spectrum: 26th April 10 – 12pm at Riverside House, followed by a sandwich lunch.

The content presented at these workshops will be identical and stakeholders should receive invitations shortly. If any stakeholder has not received an invitation and wishes to attend, could they please contact SRSP.Enquiries@ofcom.org.uk.

A further series of workshops at Ofcom's National offices have been scheduled that will cover the same material as those held in London to which all stakeholders are welcome to attend:

Belfast: 10th May, 11 – 13:30pm, by video-conference call (a light lunch will be provided)

Cardiff: 11th May, 11.00 – 13.30pm (a light lunch will be provided)

Glasgow: 14th May:11 – 13:30pm (a light lunch will be provided)

Any stakeholders interested in attending any of these workshops please contact in the first instance SRSP.Enquiries@Ofcom.org.uk