1. Implementing Spectrum Trading Key Issues Nimisha Tailor

2. Key Issues How should licences be defined? Is there sufficient public information to facilitate trading? How should anti-competitive behaviour be deterred? How should trading start and how should it continue?

3. Property Rights To prevent interference between radio users, need to define tradeable property rights Consultation document suggested: –Licences traded as currently configured –Geographical and technical boundaries could be fixed or negotiated between market participants –Spectrum could be packaged into units

4. Property Rights Issues to consider when defining licences: –Duration of licence –Frequency –Type of use –Geography –Reconfiguration –Lease (transfer) or buy/sell spectrum –Annual fees on traded licences

5. Trading Mechanism Public information should be made available to: –Identify potential buyers and sellers (not necessarily names) –Bring buyers and sellers together to trade –Provide regulatory certainty

6. Trading Mechanism What type of published information would facilitate trading? Government could provide ‘basic’ information ‘Additional’ information could be provided by the market e.g brokers, consultants

7. Trading Mechanism Trades could be executed by: Central Exchange Bilateral Trading Intermediaries e.g ‘spectrum brokers’

8. Competition Policy Trading could increase competition. However need to deter hoarding of spectrum for anti- competitive reasons Ex ante (before the event) vs ex post-(after the event) competition policy Ofcom will have concurrent powers with Office of Fair Trading

9. Introduction of Trading Proposals to start trading include: –Simple introduction –Comparative selection –Fee to participate in trading –Auctions Suitable for vacant spectrum Overlay auction for encumbered spectrum