This document sets out Ofcom's decisions for the award of wireless telegraphy licences for use of this spectrum band. The Information Memorandum for this award is published separately.
Ofcom’s Spectrum Framework Review: Implementation Plan (‘SFR: IP’), issued on 13 January 2005, included provisional proposals for awarding a wireless telegraphy licence with rights to use the spectrum available in the band 410-415 MHz paired with 420-425 MHz. The spectrum available for award in the band was subsequently modified following discussions with MOD and Ofcom’s decision to make spectrum available in exceptional circumstances for the emergency services. (The emergency services have been assigned 410-412 MHz paired with 420-422 MHz and the remaining one MHz pair (414-415 MHz/424-425 MHz) will be for defence use under MOD’s management.) As a result, the band 412-414 MHz paired with 422-424 MHz (‘the Band’) is now being made available for commercial use. This band is the subject of the award process covered by this document.
Following consideration of the responses to the proposals in the SFR:IP, Ofcom published, on 13 October 2005, a consultation document setting out its detailed proposals for awarding a wireless telegraphy licence to use the Band (the “October Consultation”). It has now considered carefully the responses received to that consultation, the feedback it received during a public seminar held on 7 November 2005 relating to its proposals and a further seminar held on 10 February 2006 at which Ofcom presented its preliminary conclusions in respect of the consultation responses. This statement sets out Ofcom’s conclusions on the wide range of matters raised in the October Consultation. Ofcom has decided to amend its proposals in a number of ways, the key ones being:
- the spectrum packaging. The proposal in the October Consultation was for a single UK licence of 2x2 MHz. This has been modified so that four spectrum lots each of 2x500 kHz will be auctioned. Each lot will be for UK coverage.
- the auction design. The auction will be a modification of the proposal in the October Consultation for a single round sealed bid auction. It will be designed to allow bidding for combinations of lots that meet bidders’ different requirements. Each winning bidder will be awarded a licence for the combination of lots for which it has submitted a winning bid.
Ofcom is publishing, at the same time as this statement, the following documents that are also relevant to this award process:
- an Information Memorandum, which sets out relevant information that interested parties should take into account when considering their possible participation in the award process. It includes a description of the spectrum packaging and the auction format and rules; and
- a Notice of Ofcom’s proposal to make four statutory instruments in relation to the award process in accordance with sections 394 and 395 of the Communications Act 2003. These statutory instruments include the auction regulations, regulations extending spectrum trading to the band, regulations to allow for publication of the identity and terms of the licences in the band and an order limiting the number of licences in the band.
Interested parties are advised to familiarise themselves with the auction regulations, in particular the rules that prevent association and collusion between bidders.
Ofcom intends to start the award process in mid-2006.