UK telecoms regulator Ofcom has set out a work schedule in its draft Annual Plan for the period April 2006 to March 2007. Top of a list of nine priorities is releasing and liberalising radio spectrum, and “…facilitating trading and raising awareness of the opportunities offered by a more market-led approach to spectrum management”.

In an annex to the draft, in a section titled ‘Enabling spectrum markets’ the regulator sets out its objectives as being to:
·        promote optimum use of spectrum through the establishment of a spectrum market and wider adoption of a market-led approach to spectrum management;
·        implement the recommendations of the Spectrum Framework Review;
·        introduce greater clarity regarding spectrum property rights associated with Wireless Telegraphy Act licences;
·        support achievement of a successfully functioning market in spectrum by a strategic approach to new spectrum release;
·        resolve key policy issues on application of administered incentive pricing to TV and radio broadcasting;
·        implement consistent pricing approach for business radio licences;
·        and introduce recognised spectrum access for radio astronomy.

Ofcom’s intended outputs are:
·        licence terms varied to allow greater flexibility of use/application (ie technology-neutral licences, where possible);
·        an easily accessible and comprehensive spectrum information resource;
·        a tradeable spectrum property right for the radio astronomy sector;
·        comprehensive audit of major spectrum holdings; identification of potential spectrum releases, with timescales and strategic action plan;
·        and delivery of a framework that encourages development of spectrum management organisations (SMOs).

Reponses to the draft programme by interested parties are invited by 10 February, 2006.

Another Ofcom initiative also countenances spectrum trading. In what is the first time that the UK regulator has adopted a co-ordinated approach with its Irish counterpart, the Commission for Communications Regulation (ComReg), to awarding spectrum in the island of Ireland , Ofcom has announced proposals to award licences to use spectrum frequencies in the 1,785 to 1,805MHz band. Spectrum in this band could be used for new services such as broadband wireless access (fixed and mobile (possibly read WiMAX for the latter)), digital video links, CCTV, mobile technologies and wireless microphones. The licences are expected to be awarded by auction in 2006.

The key elements of this proposed award are:
·        there will be a single licence awarded by ComReg in the Republic of Ireland and another soon after by Ofcom in Northern Ireland ;
·        both auctions will be decided by a single round of sealed bids and the winning bidder will pay the second highest price bid;
·        the licences will be technology and application neutral;
·        the Northern Ireland licence will be tradeable and have an indefinite term, with an initial minimum period of 15 years;
·        and the reserve price for the Northern Ireland licence will be £50,000 and €150,000 for the Irish licence.

Interestingly, the ComReg press statement omits the part about the licence being tradeable. Responses to this set of proposals are required by 02 March, 2006.

UnconFinnced
Some other Europeans are unconvinced of the benefits of spectrum trading. Finland , for one, doesn’t seem to be mad keen. At a meeting of European Union telecommunications ministers on 01 December in Brussels the country expressed its concern about market-based approaches to spectrum management. Susanna Huovinen, Finnish Minister of Transport and Communications, stressed the importance of discussing spectrum management at the European level.

While accepting that the development of information and communications technology sector could be promoted by efficient and flexible spectrum policy, Huovinen opined that the trading alternative involved a risk that spectrum would concentrate in the hands of only a few players and there could be speculation in the radio spectrum markets. That would mean that the basis of the spectrum policy would no longer be the services for the end-users but the competition would be steered by the value of ownership. And this might result in a smaller supply of high-quality and versatile communications services. A trend like that, suggested the Finnish delegation, might be reflected in television services, for example.

In a statement the Ministry of Transport and Communications said its views were shared by Finnish players in the communications market sector, but that Finland ’s views differed from the EU Commission’s plans that are included in the guidelines for Better Regulation in Electronic Communications Markets and Spectrum Policy.
John Williamson