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Spectrum Trading Consultation OF (Nov ) Spectrum Trading Consultation This document seeks your comments on proposals to introduce Spectrum Trading and to allow Wireless Telegraphy Act licence conditions to be changed. November Closing date for responses: Friday th February Spectrum Trading Consultation This document seeks your comments on proposals to introduce Spectrum Trading and to allow Wireless Telegraphy Act licence conditions to be changed. Contents This document seeks your comments on proposals to introduce spectrum trading and to allow Wireless Telegraphy Act licence conditions to be changed. Executive Summary . Ofcom . Responses to this consultation document How to respond Ofcom’s consultation standards . Background Need for spectrum trading and purpose of this consultation document Benefits of trading Consistency with broader spectrum management strategy Spectrum trading and advances in technology Statutory framework Results of previous consultations Further consultation and next steps . Introduction of Trading What this section covers Approach to trading Introduction of Spectrum Trading Liberalising the use of spectrum Phasing of introduction . Creation of tradable rights What this section covers Current licensing approach Definition of rights which may be traded Transmission rights Interference Licence term Licence termination Non spectrum-related licence conditions Spectrum Trading Consultation This document seeks your comments on proposals to introduce Spectrum Trading and to allow Wireless Telegraphy Act licence conditions to be changed. Market mechanisms What this section covers Ofcom’s role in the market Role of intermediaries Availability of trading information Trading processes Primary assignments . Regulation of radio spectrum What this section covers Change of use and reconfiguration of licences Interference management Investigations and dispute resolution Ensuring effective competition Spectrum pricing Taxation of trades . Trading proposals by licence product What this section covers Broadcasting Programme-making and special events Public wireless networks Private business systems Fixed terrestrial and satellite links Maritime and aviation Science and technology, and licence exempt spectrum Emergency services and Ministry of Defence Annexes A List of questions B Regulatory impact assessment C Definition of boundary conditions in ‘spectrum masks’ D Glossary Spectrum Trading Consultation This document seeks your comments on proposals to introduce Spectrum Trading and to allow Wireless Telegraphy Act licence conditions to be changed. Section Executive Summary 1.1 Ofcom is proposing to introduce spectrum trading. • faster access to new technologies; This consultation document sets out • cheaper prices for the most popular wireless our proposals. services; and • greater choice and greater competition for 1.2 Spectrum trading has been considered extensively wireless services. in this country in recent years, beginning with the Review of Radio Spectrum Management (the 1.5 Spectrum trading is a far-reaching new approach ‘Cave Review’) in March 2002, leading on to the to spectrum management. However, it may be consultation entitled ‘Implementing Spectrum insufficient alone to address all the complex Trading’ undertaken by the Radiocommunications requirements of spectrum usage. As such, Agency (RA) in July 2002. The introduction of Ofcom will use it in combination with other trading fulfils a Government commitment made in approaches to spectrum management where this is its response to the Cave Review in October 2002. required. In addition, Ofcom is open-minded about alternative approaches to spectrum 1.3 Ofcom is proposing two policies; spectrum trading, management that may emerge in future, such as and liberalisation of spectrum use. Spectrum the adoption of a ‘spectrum commons’ approach. trading will allow holders of Wireless Telegraphy The proposals in this document seek to allow Act (WT Act) licences to buy and sell all or part of alternative approaches to emerge in future if they their rights to use spectrum. Trading may involve become appropriate. the outright transfer of rights and obligations in relation to spectrum use, or a range of other 1.6 Ofcom proposes to introduce trading and the arrangements including leases and hires. liberalisation of spectrum use quickly and Liberalisation of spectrum use will provide a pragmatically, consistent with its statutory duties mechanism for licensees to change the use of their and powers. It will do so in a way that takes due licensed spectrum, subject to some constraints. account of existing licensees’ rights to spectrum use, and recognises a number of considerations 1.4 Today, the use of spectrum is restricted to which will affect the extent and speed of change. particular licensees, who are only permitted to use These factors include international constraints, it for particular uses. In future, the combination of such as international co-ordination agreements trading and liberalisation of spectrum use will and harmonisation arrangements, domestic policy enable spectrum to be used by those who value it considerations, and constraints which may arise most, and for those uses that offer most value. At from the physical characteristics of the spectrum, the same time, access to spectrum for public including interference management and co- services will be protected by necessary safeguards. ordination processes. In this way, trading and liberalisation of spectrum use will enable spectrum to migrate towards 1.7 With some exceptions, such as on-board aviation applications and users providing the greatest and maritime frequencies, Ofcom regards most benefit to the economy and society. They will help types of rights to use spectrum as tradable in optimise use of the finite spectrum resource for principle. Licence exempt spectrum is also not the benefit of UK consumers and citizens. In tradable, and Ofcom may designate more particular Ofcom believes these policies will yield spectrum as licence exempt in future as technology substantial benefits through: evolves. Having considered the current situation of Spectrum Trading Consultation This document seeks your comments on proposals to introduce Spectrum Trading and to allow Wireless Telegraphy Act licence conditions to be changed. spectrum in the UK and its statutory duties, 1.10 Parties to spectrum trades will be required to Ofcom is proposing a progressive roll-out of register most kinds of trade with Ofcom, who trading, and liberalisation, band by band, over a would then update the Spectrum Registry four-year period. accordingly. Ofcom proposes to make this process as simple as possible. 1.8 To allow trading and liberalisation of spectrum use to take place, Ofcom is proposing making certain 1.11 Ofcom is proposing to liberalise spectrum use by amendments to current WT Act licences, and providing a mechanism for licensees to reconfigure issuing policy guidance affecting them. At present, their licences, or change their use. However, the majority of licences are annually renewable or Ofcom has certain duties to manage interference may be revoked on relatively short notice, and are which require that proposed changes to the rights tightly defined in terms of the radio equipment and obligations under WT Act licences will need and nature of transmission. In future, where to be approved by Ofcom. Therefore, Ofcom is possible, Ofcom proposes to amend licences or proposing a two stage process. Ofcom will issue issue policy guidance to make licences more akin guidance on the extent of reconfiguration and to tradable assets: change of use it would in principle permit for each licence class. Licensees will then need Ofcom’s • by defining transmission rights more flexibly, approval for specific proposals. They will be in terms of emission levels at the boundaries required to demonstrate that any proposed change of licences (geographical and/or frequency is consistent with the terms of their licence boundaries), without reference to specific restricting their rights to transmit, and does not technologies; cause undue interference to other users. Before • by publishing a guidance level of interference approving a change, Ofcom will ensure that the for each licence class, and defining a mechanism proposed change does not conflict with the UK’s for dealing with any undue interference that a obligations to its neighbours under international licensee may experience from other authorised co-ordination agreements, with any directions users; and given by the Secretary of State, and in some cases • by defining an explicit notice period, of five with public policies Ofcom has adopted in years in most cases, that Ofcom would give accordance with its statutory duties. before the licence could be terminated (with some exceptions). 1.12 Ofcom will continue to police interference through investigation of complaints and enforcement of 1.9 Although it cannot fetter its ability to carry out its legislation relating to unlawful acts, as the RA does duties in relation to spectrum management, Ofcom today. However, a trading environment is likely to recognises that it needs to provide guidance about result in new types of dispute. Ofcom therefore the grounds upon which it may serve notice of proposes to use a dispute resolution procedure termination on licensees, in order to provide which encourages negotiation between affected certainty for making investment decisions. In parties as the primary means of resolving
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