Independent review of radio spectrum management

							        Independent review of radio
            spectrum management:
               presentation to the RA Mobile Services
                                   Committee meeting
                                        12 July 2001

                                              Daniel Storey
                                    Secretary to the Review


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                Overview
• Rationale: why the review
• Terms of reference: what’s in, what’s out
• Consultation process




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                     Rationale
• Why review?
     – Radio spectrum a finite resource facing
       increasing demands
     – So greater premium on encouraging
       dynamically efficient use across the spectrum
     – RA achieved much in spectrum management
       innovation in recent years: opportunity to look
       forward to future framework

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                     Rationale
• Why now?
     – 3G auction a £22 billion ‘wake up call’ to
       Government and business: spectrum
       management matters
     – Communications Bill and OFCOM creation:
       opportunity to set statutory framework
     – convergence of data, communication and
       entertainment services, challenging current
       approach to spectrum and broadcast regulation
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      Terms of reference: what’s in
• “The review will advise on the principles that
  should govern spectrum management, and what
  more needs to be done to ensure that all users,
  including non-commercial users, are focused on
  using their spectrum in the most efficient way
  possible. In doing so, it will consider the use of
  spectrum management tools such as spectrum
  valuation, pricing and trading.”


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      Terms of reference: what’s in
• “The recommendations that the review
  produces need to be practical as well as
  desirable. It will consider not only
  analytical issues but also the incentives
  facing different users and realistic
  mechanisms for improving spectrum
  management”.

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    Terms of reference: what’s out
• The Review will not
     – revisit decisions about the creation of OFCOM
       and the transfer of spectrum management
       functions to the unified regulator
     – make recommendations on the resourcing and
       internal organisation of RA/OFCOM activities
       devoted to spectrum management


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               Consultation process
• Initial round of consultation meetings, April-May
• Review consultation paper published 18 June [@
  www.spectrumreview.radio.gov.uk]
• Responses sought by 17 August
• Bilateral meetings with interested parties, July-
  September
• Report to DTI and Treasury Ministers, December
  2001

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               Consultation paper
• Guiding principle: all users should face
  some financial incentive reflecting
  opportunity cost of spectrum
• Non-commercial users:
     – application tailored to particular sector
     – focus on scope for spectrum charging in
       broadcasting, defence and some aeronautical
       services to encourage efficiency and sharing
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 Consultation paper: market mechanisms

• Spectrum auctions: supportive - but how to
  release more spectrum into the market
• Spectrum trading: supportive - but
  restrictions on use hinder trading,
  innovation, new entrants
• Spectrum pricing: supportive - but really a
  substitute for auctions and trading

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           Consultation paper: other issues

• Transparency: spectrum licence assignment
  register?
• Delegation: scope for commercial band
  managers?
• Deregulation: scope for commercial
  services in licence-exempt spectrum?


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