Ofcom simplifies Spectrum Trading

Ofcom today has published a statement on simplifying spectrum trading which includes sub-leasing and other enhancements.

Currently Ofcom tend to be heavily involved in the process of trading, now a licensee does not need the consent of Ofcom to trade their spectrum, though some bands such as 2G and 3G bands are still covered by existing requirements.

Ofcom is also allowing leasing and sub-leasing if spectrum so if a licensee has excess capacity they may lease part of their spectrum to a 3rd party, now that 3rd party may also sub-lease part of their spectrum (though the originating licensee must keep accurate records of all sub-leases.

This should allow new innovative services to be launched as there's a lot of spectrum that's been licensed and not being used efficiently.

Ofcom allows Spectrum Trading for 2G and 3G spectrum

Ofcom today published a statement that will mean from the 4th July 2011 2G and 3G licensees will be able to fully or part trade spectrum in the 900MHz, 1800MHz (2G) and 2.1GHz/2100MHz (3G) bands.

This may allay some issues arising from the 800MHz / 2.6GHz forthcoming auctions.

Ofcom wants to allow mobile operators to trade spectrum

Ofcom is holding two related consultations, the first is to allow mobile operators to trade spectrum in the 900MHz, 1800MHz (1.8GHz) and 2100MHz (2.1GHz) bands, the second is to vary the Wireless Telegraphy Act so that the 3G licenses can be changed to support a new coverage obligation, a change to licence duration, a revocation notice period of 5 years (such revocation not to be capable of taking effect before the period for which the licences were auctioned expires), a provision for Ofcom to charge annual licence fees from the end of 2021 (when the period for which the licences were auctioned expires) and a provision relating to spectrum trading.

The are many reasons to allow spectrum trading which benefit the UK as a whole especially financially as spectrum licenses generate around £40bn per annum for the UK (and account for around 3% of the GDP). Spectrum trading has also been directed from Government.

This will also allow Everything Everywhere (the combined Orange and T-Mobile) to effective get rid of 2 x 15MHz pairs of spectrum from their 1800MHz allowance, which was agreed with the EU as part of the merger conditions. Everything Everywhere will be able to trade directly, as part of the digital divide spectrum (800MHz and 2.6GHz) or give it back to Ofcom who can re-award it.

This is likely to have a major impact when the 800MHz and 2.6GHz licenses are awarded as some entities may have a large chunk of additional spectrum (though companies such a 3 are hoping that there will be sub 1GHz spectrum caps) and can therefore free-up existing mobile spectrum.

The spectrum trading consultation may be responded to here and the WTA variance consultation here.