There has been a considerable proliferation in the licence-exempt use of the radio spectrum in recent years, ranging from communications applications via personal and local area networks to radio frequency identity tags and remote locking systems. The pace of growth in this sector looks set to continue with the emergence of many new technologies for applications such as ultra-high-speed personal area networks, home automation and short-range anti-collision radar.
The Spectrum Framework Review (SFR) sets out Ofcom’s overall strategy for the management of spectrum through a market-based approach involving spectrum auctions, trading of licences, and spectrum liberalisation. It also outlines, at a high level, our approach to determining whether spectrum use should be licensed or licence-exempt, based on criteria such as economic value derived from spectrum, risk of congestion, required quality of service, and Ofcom’s legal and international obligations.
In accordance with our duties to maximise the value and efficiency derived from the spectrum, the SFR suggests that spectrum use should be licence-exempt if the value that is expected to be derived from the spectrum under such an approach is predicted to be greater than if spectrum use were licensed. It also notes that where harmful interference is unlikely (e.g. where the demand for spectrum in a given frequency band is less than the supply), then licensing may present an unnecessary overhead and a licence-exempt model may be more appropriate. These guidelines are taken as the starting point for this Licence-Exemption Framework Review (LEFR). All the measures proposed in this document are intended to further enhance the efficiency of the licence-exempt use of spectrum, increasing the value that it generates for the UK.