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Spectrum Management Under the Microscope Julian McGougan, Head of Public Policy 27th November 2009 Spectrum Liberalisation seminar, Westminster
Is there a housing shortage? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Is spectrum scarce? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
But there is an ARTIFICIAL spectrum shortage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How few Ofcom spectrum auctions to date? No 0.0 2 √ 16 DDR (interleaved) Feb 2009 No 8.3 1 √ 15 L-Band May 2008 A little 1.4 10 √ √ 15 10-40 GHz Feb 2008 ? 0.4 1 √ 15 1785-1805 MHz May 2007 Yes, lots 1.5 1 √ 15 412 MHz Oct 2006 Some 3.8 12 √ 10 DECT guard band May 2006 Regional National Anything deployed yet? Amount raised (£ m) Number of licensees Geographic licence areas Minimum Licence term Spectrum Date
The dilemma for Ofcom’s Spectrum Policy Group ,[object Object],[object Object],[object Object],[object Object]
So how could Ofcom help more demand for spectrum to be met? INCREASING DIFFICULTY “ Use it or lose it” obligations (but for how long could spectrum be unused before it’s hoarding?) Threat of competition law (but how to define a spectrum market?) OR JUST GET MORE SPECTRUM INTO THE MARKET ! Discourage hoarding ,[object Object],[object Object],[object Object],[object Object],[object Object],Address incorrect price signals in AIP Publish more information about tradable licences (TLCs, usage data). Reduce number of steps involved in a trade. Introduce legally secure leasing. Lower barriers to trading and leasing Publish current licence expiry dates. Put in place a predictable means of licence extension (Cap and collar? Choice of AIP or lump sum?) with an appeals mechanism on the price quoted. Don’t discourage investment in spectrum Tools Objective
And then there’s the spectrum in public sector hands… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why band managers are important ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Predicting some future spectrum trends ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Some perverse outcomes of Ofcom’s spectrum management ,[object Object],[object Object],[object Object],[object Object]
A key strategic decision for Ofcom (one of many!) ,[object Object],[object Object],[object Object],More flexibility for users, who could react to requirements better - so spectrum better utilised? Short-term licences (on AIP) with annual break points Security of tenure encourages investment. Unwanted spectrum not likely to come back to Ofcom’s “cupboard” anytime soon (perhaps stagger term expiry dates cf property leases), aiding secondary market. Long-term licences (up-front payment)

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UK Spectrum Management

  • 1. Spectrum Management Under the Microscope Julian McGougan, Head of Public Policy 27th November 2009 Spectrum Liberalisation seminar, Westminster
  • 2.
  • 3.
  • 4.
  • 5. How few Ofcom spectrum auctions to date? No 0.0 2 √ 16 DDR (interleaved) Feb 2009 No 8.3 1 √ 15 L-Band May 2008 A little 1.4 10 √ √ 15 10-40 GHz Feb 2008 ? 0.4 1 √ 15 1785-1805 MHz May 2007 Yes, lots 1.5 1 √ 15 412 MHz Oct 2006 Some 3.8 12 √ 10 DECT guard band May 2006 Regional National Anything deployed yet? Amount raised (£ m) Number of licensees Geographic licence areas Minimum Licence term Spectrum Date
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.