1. Spectrum authorisation under new EU package Roger Stewart Radiocommunications Agency Head of licensing policy unit

2. Three new drivers will significantly change spectrum management and licensing n New European package of Electronic Communication Directives n Professor Cave’s Independent Review n Decision to create OFCOM as a single UK regulator

3. Package Comprises: n Framework Directive n Authorisation Directive n Access and Interconnection Directive n Users Rights and Universal Service Directive n Decision on a Framework for Radio Spectrum Policy

4. Timetable n Negotiations completed December 2001 n Adoption in EU Journal 24 April 2002 n Directives come into force 15 months later via UK Regs or Bill (25 July 2003) n Establishment of Communications Committee and Radio Spectrum Committee, working in parallel with current groups from Autumn

5. Spectrum Decision n Aimed to co-ordinate policy and -where appropriate- promote harmonisation n Establishes Radio Spectrum Committee of Member States (RSC) n Commission to propose technical implementing measures to RSC n Article 5 requires publication of spectrum access information

6. Framework Directive-1 n Harmonised Framework for Networks and Services n Powers and tasks exercised through notified NRAs (OFCOM will be an NRA) n Objectives and principles based on fairness, impartiality and transparency in how NRAs regulate “undertakings providing electronic networks and services”(includes most RA customers)

7. Framework Directive-2 n New mechanisms to demonstrate transparency n Increased requirements for consultation, including Commission and other Member States n New appeal provisions

8. Framework Directive- 3 (Art 9: Managing Radio Frequencies) n Member States required to provide effective management of frequencies for services n Based on objective, transparent, non- discriminatory criteria n Must promote harmonisation and use efficient and effective criteria in accordance with policies agreed under Spectrum Decision

9. Framework Directive -4 (art 9: Spectrum Transfers) n Directive will permit transfer of rights to use radio frequencies between undertakings n NRAs should set procedures and notify and publish transfers n Transfers may not undermine harmonised decisions n Cave Review strongly supports trading

10. Framework Directive -5 (standards) n Commission encouraged to promote harmonised standards and Member States encouraged to promote inter- operability of services, taking account of European bodies n Commission may mandate or dis-apply mandates for standards in EU Journal, but without prejudice to R& TTE or World Trade agreements

11. Authorisation Directive -1 n Directive aims to harmonise and simplify authorisation rules and conditions for networks and services n It deregulates as far as possible

12. Authorisation Directive- 2 n Main concept is to provide “general authorisations” to undertakings providing networks and services n Member States/NRAs may not prevent an undertaking providing networks and services unless it is necessary to protect public security, safety or health and specific conditions may apply for scarce resources of frequencies, numbers or rights of way

13. Authorisation Directive -3 (general authorisations) n No prior authorisation necessary for undertakings to provide networks and services except for frequencies, numbers and rights of way n NRAs may publish general rules and conditions, but only for measures published in Annex A of Directive, and require compliance n NRAs may require undertakings to register

14. Authorisation Directive-4 (Art 5: general authorisation for radio frequencies) n Wherever possible, general authorisations should apply to radio frequency use. A license exemption regulation achieves this objective

15. Authorisation Directive- 5 (Art 5 and 6: rights of use) n Where necessary to grant individual rights of use (a license), they shall be granted to any undertaking, upon request. WT licenses will continue to meet this need. n Objective fair and transparent criteria must apply to making awards n only spectrum related conditions may be applied

16. Authorisation Directive-6 (Art 7: limited rights of use) n When Member States consider limiting rights of use (including first- come, first-served) they must: l Give due weight to maximising benefits to users and to competition l Give opportunity to potential users to express views (will do at class level)

17. Authorisation Directive- 7 (Article 7: limited rights of use) n Member States should review limited rights regularly (e.g.through our spectrum strategy) n All opportunities for application to be published in a frequency authorisation plan

18. Authorisation Directive- 8 (Article 10: compliance with conditions ) n New procedures for NRAs finding breaches of conditions- but similar to enforcement concordat n Does not affect powers to deal with non- authorised use or immediate action for serious threats to public safety or security etc. n Note package strengthens rights of appeal against actions

19. Authorisation Directive-9 (Arts 12 and 13: Charging fees) n Fees for general authorisations may be levied to registered undertakings but only to cover cost of regulation. NRAs must then publish and justify costing mechanisms n Spectrum pricing may be used. Cave recommends further use of incentive pricing and auctions.

20. Summing up n Continue licensing but burden on proof on justifying licensing n Need to demonstrate being objective, fair and transparent n likely to see a shift to more exempt use or more generic licenses