Radio-Spectrum Management
The radio spectrum is a key resource for many new and developing
technology-based industries. At the same time, it is a vital input into the
delivery of many public services. The management and development of the
spectrum will therefore play an important role in creating a knowledge-driven
economy and society. To help ensure that the spectrum management
framework is at the forefront of change, the Chancellor of the Exchequer and
Secretary of State for Trade and Industry commissioned Professor Martin Cave1
in March 2001 to lead an independent review of radio spectrum
management.
The use of radio spectrum has become an integral part of society’s
infrastructure. For decades, viewers have taken for granted the reception of
clear TV signals, travellers have relied upon assured communications and
radio-location for aircraft, and all citizens have benefited from radio
connectivity for the public safety services. More recently, the phenomenal
growth in personal mobile communications has turned wireless access via
mobile phones from a luxury to a necessity for many people.
This value to individuals, businesses and the public sector of access to radio
spectrum is becoming increasingly recognised. Radio makes a substantial and
increasing contribution to the economy. Recent studies by the
Radiocommunications Agency show that even for selected sectors of the
economy3, the value of radio to the economy as a whole exceeds £20 billion
per annum4, over two per cent of UK output. Success in managing access to
radio spectrum should thus boost the performance of the UK economy.
Looking forward, spectrum is an essential raw material for many of the UK’s
most promising industries of the future. Wherever consumers demand mobile
and ubiquitous access to communications, wireless products using radio
signals will provide the solution. Radio is a uniquely versatile communications
medium, essential to connecting up the information society. New products
and services typically complement rather than replace existing ones, so adding
to the demands on the radio spectrum. Furthermore, the boundaries between
new services are blurring, transcending current business models, reducing the
predictability of spectrum use, and challenging current regulatory
categorisations.
8. So spectrum management is becoming simultaneously more difficult and
more important. But the UK is well placed to respond to this regulatory
challenge. The Radiocommunications Agency has a well-deserved reputation
as one of the most forward-looking and progressive spectrum managers in
the world, having enabled the development of flourishing wireless services in
one of the world’s most congested radio environments. In recent years, it has
garnered valuable experience of the new market-based tools introduced under
the Wireless Telegraphy 1998. The Communications Bill and prospective
unified regulator provide a further opportunity to refine the regulatory
‘toolbox’ and make cross-sectoral regulation more effective.
9. The review’s purpose at this juncture is to look forward to the principles which
should guide the Government and Ofcom in managing access to the radio
spectrum in the years ahead, in order to derive most value from this national
asset for the UK as a whole. The review aims to build on the UK’s experience
to date, which reflects a strong central regulatory approach to mandating
spectrum use for particular purposes, and co-ordinating users to minimise
2
3 Principally mobile telephony, broadcasting, satellite, fixed links, private mobile radio, but excluding commercial aviation,
defence and consumer benefits of some low power devices.
4 The Economic Impact of Radio, A Study by the Radiocommunications Agency, February 2001.
harmful interference. But market mechanisms should play a much broader
role in allocating and assigning spectrum to its best use, building on
regulatory foundations which are essential for any market to work efficiently.
Spectrum management objectives
Economic efficiency
• Market allocation of spectrum to users, and to uses, that derive higher value
from the resource.
• Provide for responsiveness and flexibility to changes in markets and technologies,
accommodating new services as these become technically and commercially
feasible.
• Transactions costs, entry barriers and other constraints on a competitive efficient
market should be minimised.
Technical efficiency
• Intensive use of scarce spectrum consistent with adherence to technical
interference limits.
• Promote development and introduction of new spectrum-saving technologies
where the cost of such technologies is justified by the value of the spectrum
saved.
Public policy
• Consistent with Government policy towards broadcasting, competition in the
telecoms market, and consumer choice.
• Safeguard interests of spectrum use for efficient functioning of defence,
emergency and other public services.
• Changes to UK spectrum use should remain consistent with the UK’s
international and European obligations.
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