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Executive Summary

1.1 This Statement presents our decision to make new Wireless Telegraphy Regulations that are necessary to implement plans for the reform of licensing in the Business Radio (BR) sector. It addresses the issues raised by stakeholders in response to our consultation published in June 2008^(-1-) and explains that we have decided to proceed with the Regulations as proposed. The new Regulations, which are listed below, came into force on 29 August and can be found on the Office of Public Sector Information website^(-2-).

1.2 These are:

• The Wireless Telegraphy (Licence Charges) (Amendment) (No. 2) Regulations 2008 (SI No. 2106);
• The Wireless Telegraphy (Register) (Amendment) (No 2) Regulations 2008 (SI No.2104); and
• The Wireless Telegraphy (Spectrum Trading) (Amendment) (No 2) Regulations 2008 (SI No. 2105).

1.3 This Statement also provides an update on the next steps and indicative timing for the changes to the BR sector.

Background

1.4 The making of new Regulations was necessary to provide the legal foundation for the BR reform programme. The main changes, which were announced in our Statements^(-3-) of January 2007, are as follows:

• The removal of limitations on the type of business or radio traffic carried, we have created five new licence classes to replace the 21 classes which exist at the moment. This radical reduction in the number of separate licence classes will provide for a simpler licensing structure giving licensees greater flexibility in the ways they use their radio systems as well as increased freedom to change such use;
• The extension of spectrum trading to BR licence classes not currently tradable and to allow licensees to take advantage of a range of transfer options which are not permitted at the moment; and
• A new licence fee structure that supports the new licensing arrangements but is based on existing fees charges principles.

Decision on the new Regulations

1.5 In making our decision to bring the new Regulations into force we have taken account of the comments registered by Stakeholders during the June consultation. We received 12 responses, three of which were confidential. Non-confidential responses are published on Ofcom’s website^(-4-). One respondent commented only to support our proposals, three further respondents were supportive of our objectives but did raise some concerns.

1.6 We are grateful for these responses. Most of the issues raised had been previously considered and dealt with at the policy consultation stage. The main issue raised by the majority of respondents related to the publication of site location details for certain licensees where it was felt that this could expose a security risk to critical national infrastructure. We have considered this point before and we continue to believe that there are strong policy reasons for making information on licences available and doing so using the WT Act Register. The provision of information is an important component in enabling a secondary market for spectrum by enabling prospective purchasers to see details of assignments which could be available for trade. There are also wider benefits in making information available on existing use as this can support self-coordination, enable pre-application planning and assist innovation.

1.7 The Register will provide basic information about licences such as names, contact details, class of licence, frequencies and, where relevant, the geographical area of operation. We understand the concerns raised in relation to potential security risks and note that there are ongoing discussions within Government on this issue. However, we consider that it would not be appropriate to exclude the publication of certain information for specific licensees except where we are instructed by Government to do so.

Next Steps

1.8 We discussed the principles underpinning the BR reform programme in consultation documents^(-5-) and subsequent statements^(-6-), published in July 2006 and January 2007 respectively. In setting out our way forward, we explained that the timing for implementing the reform measures would be dependent upon:

• making new Regulations to give the changes legal effect;
• the implementation of new IT systems required to support the changes; and
• completion of the licence variation process necessary to migrate assignments from the existing licences to the new licences.

1.9 The new Regulations provide the legal basis necessary to enable the new liberalised licence types to be issued. However, this doesn’t, of itself, effect existing licences or the ability to issue new licences of the current types. The new regime will only come into effect when we:

• start issuing the new licences for new applications; and
• formally vary (a process taking a number of months to transfer existing licences to the new licence types) existing licence types to the new liberalised licence classes.

1.10 Once all existing licences are varied there will be no licences of the current types on issue and we will tidy up the Regulations to remove reference to the existing 21 licence classes.

1.11 The timing for switching over to the new regime is linked to the introduction of our new computer system which has been specifically designed to support the new licence classes. The “go-live” date for this new system is expected to be around the end of this year/early next year.

1.12 The variation process can begin before go-live, but can’t complete until the new system is up and running. We expect to start the process before the end of the year and will keep stakeholders appraised of developments and any changes to expected start date through our website^(-7-). We will include more details of the timing and arrangements for switchover to our new licensing system and the new arrangements for BR with the variation notice.

1.13 During the switchover period itself there will be a date after which all new applications will be processed and issued under the new licensing regime. We will publish further details of switchover arrangements and dates nearer the time.

Footnotes:

1.- “Notice of Ofcom’s proposals to make Wireless Telegraphy Regulations relating to Business Radio licences” http://www.ofcom.org.uk/consult/condocs/busrad/

2.- http://www.opsi.gov.uk/si/si-2008-index the Regulations are listed by their individual Statutory Instrument (SI) number.

3.- “A Statement on measures to liberalise and simplify Business Radio licensing (including measures to extend trading) http://www.ofcom.org.uk/consult/condocs/brtrading/statement and “Modifications to Spectrum Pricing: Statement” http://www.ofcom.org.uk/consult/condocs/pricing06/statement/

4.- http://www.ofcom.org.uk/consult/condocs/busrad/responses

5.- “Business Radio Trading and Liberalisation” http://www.ofcom.org.uk/consult/condocs/brtrading/ “Modifications to Spectrum Pricing” http://www.ofcom.org.uk/consult/condocs/pricing06/

6.- “A Statement on measures to liberalise and simplify Business Radio licensing (including measures to extend trading) http://www.ofcom.org.uk/consult/condocs/brtrading/statement and “Modifications to Spectrum Pricing: Statement” http://www.ofcom.org.uk/consult/condocs/pricing06/statement/

7.- http://www.ofcom.org.uk/radiocomms/ifi/licensing/classes/business_radio/

The full document is available below

• Business Radio Reform [pdf]
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