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UK Confirms Plans for LTE/Digital Dividend Radio Spectrum Auctions
The UK's telecoms regulator is to auction off radio spectrum in the 2.6GHz and 800MHz bands - as soon as possible - the UK government has announced today. The spectrum modernisation programme will be implemented under a Direction to the telecoms regulator Ofcom, which has been laid in Parliament.
The new Direction is a simplified version of that proposed by the previous government and measures include requiring Ofcom to co-ordinate a combined auction of 2.6GHz and 800MHz spectrum as soon as possible.
Ofcom will also be required to carry out a competitive assessment of future 3G and 4G markets, including the potential for new entrants. Their assessment will inform the design of the auction for the above mentioned radio spectrum.
The government plan also calls for a liberalising of 2G spectrum at 900MHz and 1800MHz, implementing the EU's revised GSM directive to allow operators to use these frequencies for 3G technologies;
As expected, the proposal will also make the existing 3G licences indefinite. They will also be made tradable, and be subject to an annual fee when the current licenses expire in 2021.
The Minister for Communications, Ed Vaizey also announced funding for a compensation package to support the Programme Making and Special Events users (PMSE) who are moving out of the 800MHz spectrum. The funding will make a significant contribution to the costs of the PMSE community in upgrading equipment to suit their new operating frequency.
The new package will ensure PMSE companies can invest in equipment suitable for the Channel 38 frequency, from 2012 when they are moved out of Channel 69 (800MHz frequency)
This offer has been made because PMSE users had an expectation to use Channel 69 until at least 2018. However, this was brought forward to 2012 under revised proposals and the compensation therefore reflects the need for PMSE users to invest in new equipment earlier than originally envisaged.
The support provided will not take into account the age of the equipment that requires upgrading, although the equipment will need to be in working order. Ofcom will be providing further details on the package shortly.
The decision is in line with the announcement that funding would be provided to clear the 800MHz spectrum that will be freed up as part of the Digital Switchover programme.
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