UK Starts Consultation on Revamping Radio Spectrum Management

­The UK's government has launched a consultation setting out its intention to implement a series of recommendations made by the Independent Spectrum Broker (ISB), Kip Meek, on how to make the best use of radio spectrum.

Minister for Digital Britain, Stephen Timms said: "This package will free up the airwaves for the expansion of wireless and 3G services, increasing their reach to consumers and businesses across as much as 90 per cent of the country, including rural communities.

"I would also like to thank Kip Meek who has had to weigh up very complex issues in producing a report which marks a clear way forward."

The Digital Britain report welcomed a number of recommendations made by Kip Meek in his report of May 2009. However, further work was carried out to resolve some technical issues. Kip Meek's final proposals are published today alongside the consultation.

The Government now intends to implement these proposals through a Direction to Ofcom. Before doing so, it is obliged to consult on the Direction and has published its consultation today. Stakeholders are invited to put forward their views ahead of the deadline of 8 January 2010.
Notes to editors

Proposals in detail:

The proposals address a series of areas. Firstly, they plan to make the 3G license term indefinite, which is said to encourage greater investment in 3G services. This will increase 3G coverage to 90% of the UK population. An annual fee (Administered Incentive Pricing) will be applied, reflecting full market value, from 2021.

Also, the Government will work with Ofcom to free-up the 800MHz spectrum, that will be released through Digital Television Switchover, as soon as possible. There will then be a coordinated auction of the radio spectrum, along with 2.6Ghz spectrum, which will be aimed at the use of TDD (Time Division Duplex) for WiMAX networks.

There will also be coverage conditions to operators that acquire 800MHz or hold re-awarded 900MHz spectrum to deliver mobile broadband to rural areas and hard-to-reach areas

Most significantly though, the proposals include liberalising existing 2G (900MHz and 1800MHz) spectrum held by current mobile operators, making licences indefinite and tradable. This will allow operators to reallocate their use of these frequencies for 3G technologies. AIP will be revised to reflect the market value of that spectrum.

The caps for the Combined Auction are as follows:

• a temporary cap on overall mobile suitable spectrum holding per operator at 2 x 65MHz
• a second temporary cap on the current holders of sub 1GHz spectrum of 2 x 17.5 MHz. Any bid by them for additional sub-1GHz spectrum at 800MHz that is successful will require the holder to relinquish an amount of 900MHz spectrum equivalent to the amount of spectrum that is acquired
• a third temporary cap on overall 2G spectrum, so that an entity who has more than 2 x 25MHz and who acquires additional spectrum in the combined auction, will be required to relinquish 2 x 5MHz of spectrum into the auction.

Posted to the site on 16th October 2009