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Third Generation mobile Licensing: the UK approach

Third Generation mobile Licensing: the UK approach. Jane Humphreys Radiocommunications Agency, UK. When will it happen ?. EU UMTS Decision requires services to be possible by 1 January 2002, and hence licensing arrangements to be determined by 1 January 2000.

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Third Generation mobile Licensing: the UK approach

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  1. Third Generation mobile Licensing: the UK approach Jane Humphreys Radiocommunications Agency, UK

  2. When will it happen ? • EU UMTS Decision requires services to be possible by 1 January 2002, and hence licensing arrangements to be determined by 1 January 2000. • Roll-out to consumers expected in 2002, with complete networks by the middle of the next decade. • UK intends to be in first wave of 3G licensing in Europe: aims to auction licences in early 2000.

  3. How do we proceed? • Setting objectives • Packaging licences • Levelling the playing field • Awarding licences

  4. Setting objectives The objectives of the UK Government • Overall aim is to secure, for the long-term benefit of UK consumers and the national economy, the timely and economically advantageous development and sustained provision of UMTS services in the UK

  5. Setting objectives Within that, Government’s objectives are to • utilise the available UMTS spectrum with optimum efficiency • promote effective and sustainable competition for the provision of UMTS services • subject to the above objectives, design an auction which is best judged to realise the full economic value to consumers, industry and the taxpayer of the spectrum.

  6. Packaging licences • We have available 155 MHz of spectrum split into four chunks: • 2 chunks of 60 MHz (the “paired” bands) • 1 chunk of 20 MHz and 1 chunk of 15 MHz (the “unpaired” bands)

  7. Packaging licences • Most efficient spectrum use requires thinking through use of unpaired as well as paired spectrum. • What packages can we offer for public operators? • What about licence-exempt use?

  8. Packaging licences • 3 licences of 2x10 MHz paired spectrum and 5 MHz unpaired spectrum • 1 licence of 2x15 MHz paired spectrum • 1 licence of 2x15 MHz paired spectrum and 5 MHz unpaired spectrum • 15 MHz for licence-exempt use

  9. Packaging licences Other key licence terms • Area where 80% of population live to be covered by 31 December 2007 • Licences to last for 20 years

  10. Levelling the playing field • Roaming (new entrants say they need access to second generation networks). • Infrastructure sharing. • Reserving spectrum

  11. Awarding licences • Auctions • Beauty contests

  12. Awarding licences Well-designed auctions: • give new entrants a fairer chance • should be less prone to legal challenge • result in spectrum being assigned and used efficiently • result in the taxpayer sharing in the value of the national resource which spectrum represents.

  13. Awarding licences Beauty contests • Need clearly stated assessment criteria • Take time to carry out proper evaluation against criteria • Both criteria and evaluation open to serious risk of legal challenge • Lack objectivity and transparency

  14. Awarding licences By auction • The UK’s first auction of spectrum licences under legislation which came into force June 1998 • Simultaneous, multi-round process as used by FCC. • Modified to include ratcheting reserve prices to avoid significant differences between winning price for new entrants and for existing operators.

  15. Making it happen The legislative framework • Regulations under s3 of the Wireless Telegraphy Act 1998 set the framework. • A Notice issued under the Regulations sets out the details of how to run the auction. • An Information Memorandum will set out the terms of the sale in non-statutory form

  16. Making it happen Next stages May 1999 Informal consultation on Regs and Notice September 1999 Regulations made October 1999 Information memorandum issued December 1999 Applications to bid submitted January 2000 Prequalifiers notified Auction begins

  17. Important Notice • This presentation is made available by the UK Radiocommunications Agency (the “RA”) on the express understanding that it is for information purposes only. It is not intended to form the basis of any investment decision and should not be considered as a recommendation by the Secretary of State, the RA or their advisors to participate in an auction for the allocation of radio spectrum. Neither the RA nor any of its advisors makes any representation or warranty or accepts any responsibility as to the accuracy or completeness of the information contained in this presentation and any liability in respect of any such information or any inaccuracy in, or omission from this presentation is hereby expressly disclaimed. Recipients of this presentation should seek their own professional financial, legal, tax or other advice in order to make an independent assessment of the potential value of an allocation of radio spectrum by auction.

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