In August 2004 Ofcom published a statement setting out the process through which spectrum trading will be introduced in the UK and proposing a timetable for the phased introduction of trading to different licence classes. This was followed, in September 2004, by a consultation on spectrum liberalisation which considered the extent to which and how liberalisation should be implemented in the UK over the next 2-3 years. A key goal of the introduction of trading and liberalisation is that it should help to promote effective competition in the markets in which spectrum is used and thereby encourage efficient use of spectrum.
Under the EC Framework Directive, which was implemented in the UK in July 2003, Ofcom has a duty to ensure that competition is not distorted as a result of any spectrum trading transaction. Ofcom published a consultation document in June 2004 which considered how Ofcom should ensure effective competition following the introduction of spectrum trading. This proposed that Ofcom should rely on existing competition law to deal with distortions of competition.
This statement sets out Ofcom’s policy, having taken account of comments received from stakeholders in response to the June consultation. It confirms Ofcom’s view that the existing legal framework – the Competition Act 1998, supplemented by the Communications Act 2003 and the Enterprise Act 2002 where applicable – is sufficient to ensure effective competition following the introduction of spectrum trading. As a result, Ofcom does not intend to introduce any form of ex ante competition check as part of the trading process.