1 BFWA CONSULTATION GROUP 4 March GHz UPDATE Joe Sonke Head of Broadband Fixed Wireless Access Section Radiocommunications Agency

2 Objectives in licensing BFWA spectrum To secure the timely and economically advantageous development and sustained provision of BFWA services throughout the UK, for the long term benefit of UK consumers and the national economy. Subject to this overriding aim the Government’s objectives are to: · utilise the available BFWA spectrum efficiently; · promote early and effective competition for the provision of broadband access services; and · subject to the above objectives, design a licensing award procedure which is best judged to realise the full economic value to consumers, UK industry and the taxpayer of the spectrum.

3 28 GHz licensing package Number of licences 3 licences in each licence area equal packages of 2*112 MHz Regional licence areas 14 regions commercial viability efficient spectrum usage

4 Licences regions

5 Co-existence of regional licence holders Operators are encouraged to co-operate to resolve problems Agency will arbitrate if necessary Co-ordination requirements set out in Agency information sheet RA 390

6 Licensing basics Open to any corporate body Only one licence per region for any bidder (or current licence holder) No limit on the number of regions ‘Use it or lose it’ licence condition Licences to be used for access delivery

7 Outcome of auction November licences sold Bids close to reserve prices 55+% of UK covered by licences 26 licences remain available for award

8 Outcome of auction November 2000 Reserve PriceLicence 1 Licence 2Licence 3 AGt London4,000,0004,540,000 - Energis 4,620,000 - Broadnet4,540,000 - Faultbasic BGt Manchester 3,000,0003,000,000 - Your 3,000,000 - Energis3,000,000 - Faultbasic CWest Midlands3,000,0003,000,000 - Energis 3,000,000 - Your Comms3,000,000 - Faultbasic DS/central England2,000,000 EEssex/Herts/Bucks2,000,000 FE Anglia/Northants2,000,000 GEast Midlands2,000,000 HS/central England2,000,000 IYorks & N Lincs2,000,0002,000,000 - Energis 2,000,000 - Your Communications JN England1,000,000 1,000,000 - Your Communications KSW England1,000,000 LScotland1,000,000 1,000,000 - Energis MWales1,000,000 NNorthern Ireland 100, ,000 - Energis 150,000 - Chorus [150,000 - Eircom - subsequently surrendered]

9 Award process Offered all remaining licences - 12 month window Awards on a region-by-region basis Invite bids at reserve prices Publicise applications & invite further bids Award licences if no competing bids in a region Auction in a region if competing bids for any licence

10 Regions with licences remaining L N J K M D H E F G I B C A 3 licences availableWalesM 2 licences availableScotlandL 1 licence availableNorthern IrelandN 3 licences availableSouth WestK 2 licences availableNorthern EnglandJ 1 licence availableYorkshireI 3 licences availableHome counties- SouthH 3 licences availableEast MidlandsG 3 licences availableEast AngliaF 3 licences availableHome counties- NorthE 3 licences availableHome counties-westD All licences soldWest MidlandsC All licences soldManchester & MerseysideB All licences soldLondonA StatusRegionRef

11 Consultation October 2002 Remove purpose of use clause? Remove “use it or lose it” clause? Apply minimum path length policy? Make other changes to the licences?

12 Government response January 2003 Allow deployment of any fixed service Remove “use it or lose it” clause Do not apply minimum path length policy Consider offering licences for areas within current regions