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26|01|05

Ofcom launches spectrum liberalisation initiative

Ofcom today published the conclusions from its public consultation on spectrum liberalisation. The proposals were positively received; as a result, Ofcom will proceed with the first phase of liberalisation for holders of Business Radio, Fixed Wireless Access and Fixed Links licences. This represents the first phase of implementing spectrum liberalisation. Ofcom expects liberalisation to be extended to more licence classes later this year, with further classes to follow in 2006-08.

Radio spectrum is a vital resource which underpins the broadcast and telecommunications industries, as well as essential public services such as the emergency services and air traffic control. Section 3 of the Communications Act 2003 requires Ofcom to further the interests of citizens and consumers, where appropriate by promoting competition. The Act also requires Ofcom to secure the optimal use of the electro-magnetic spectrum.

Benefits of liberalisation

Most spectrum frequencies need to be licensed to protect against harmful interference between users. One of the roles of the regulator has been to specify how different bands of frequencies are to be used. However, Ofcom believes that reducing restrictions in Wireless Telegraphy Licences will allow greater flexibility to use spectrum in different ways, thereby promoting more efficient use of this valuable resource.

In August 2004 Ofcom announced new regulations to allow spectrum rights to be traded as part of a move from a command and control regulatory environment to a new market-led approach. Liberalisation will give licensees yet more control by allowing greater freedom to decide how frequencies are used.

Ofcom received 35 responses to the consultation, of which the broad majority supported Ofcom’s proposals concerning spectrum liberalisation. A number of detailed suggestions and comments were made, which are reflected in the conclusions published today.

Ofcom intends to retain necessary safeguards against interference , and in the early stages of liberalisation will evaluate applications on a case-by-case basis to help prevent any increase in harmful interference. However, later this year Ofcom will consult on proposals to make some licences more generically flexible. This will enable companies to change the use they make of spectrum without needing to apply to Ofcom for the right to do this.

Separately, Ofcom is seeking views on proposals to extend liberalisation and trading to spectrum used for mobile and wireless broadband services. That consultation was published on 13 January and closes on 24 March.

The full statement is available at http://www.ofcom.org.uk/consult/condocs/liberalisation/ and via the Related Items link on the right of this page.

Ends.

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