Spectrum authorisation under new EU package

1
Spectrum authorisation under new EU package

• Roger Stewart
• Radiocommunications Agency Head of licensing
  policy unit

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Three new drivers will significantly change
spectrum management and licensing

• New European package of Electronic Communication
  Directives
• Professor Caves Independent Review
• Decision to create OFCOM as a single UK regulator

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Package Comprises

• Framework Directive
• Authorisation Directive
• Access and Interconnection Directive
• Users Rights and Universal Service Directive
• Decision on a Framework for Radio Spectrum Policy

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Timetable

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

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Spectrum Decision

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

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Framework Directive-1

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

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Framework Directive-2

• New mechanisms to demonstrate transparency
• Increased requirements for consultation,
  including Commission and other Member States
• New appeal provisions

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Framework Directive- 3(Art 9 Managing Radio
Frequencies)

• Member States required to provide effective
  management of frequencies for services
• Based on objective, transparent,
  non-discriminatory criteria
• Must promote harmonisation and use efficient and
  effective criteria in accordance with policies
  agreed under Spectrum Decision

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Framework Directive -4(art 9 Spectrum Transfers)

• Directive will permit transfer of rights to use
  radio frequencies between undertakings
• NRAs should set procedures and notify and publish
  transfers
• Transfers may not undermine harmonised decisions
• Cave Review strongly supports trading

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Framework Directive -5(standards)

• Commission encouraged to promote harmonised
  standards and Member States encouraged to promote
  inter-operability of services, taking account of
  European bodies
• Commission may mandate or dis-apply mandates for
  standards in EU Journal, but without prejudice to
  R TTE or World Trade agreements

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Authorisation Directive -1

• Directive aims to harmonise and simplify
  authorisation rules and conditions for networks
  and services
• It deregulates as far as possible

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Authorisation Directive- 2

• Main concept is to provide general
  authorisations to undertakings providing
  networks and services
• 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

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Authorisation Directive -3(general
authorisations)

• No prior authorisation necessary for undertakings
  to provide networks and services except for
  frequencies, numbers and rights of way
• NRAs may publish general rules and conditions,
  but only for measures published in Annex A of
  Directive, and require compliance
• NRAs may require undertakings to register

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Authorisation Directive-4(Art 5 general
authorisation for radio frequencies)

• Wherever possible, general authorisations should
  apply to radio frequency use. A license exemption
  regulation achieves this objective

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Authorisation Directive- 5(Art 5 and 6 rights
of use)

• 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.
• Objective fair and transparent criteria must
  apply to making awards
• only spectrum related conditions may be applied

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Authorisation Directive-6(Art 7 limited rights
of use)

• When Member States consider limiting rights of
  use (including first- come, first-served) they
  must
• Give due weight to maximising benefits to users
  and to competition
• Give opportunity to potential users to express
  views (will do at class level)

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Authorisation Directive- 7(Article 7 limited
rights of use)

• Member States should review limited rights
  regularly (e.g.through our spectrum strategy)
• All opportunities for application to be published
  in a frequency authorisation plan

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Authorisation Directive- 8(Article 10
compliance with conditions )

• New procedures for NRAs finding breaches of
  conditions- but similar to enforcement concordat
• Does not affect powers to deal with
  non-authorised use or immediate action for
  serious threats to public safety or security etc.
• Note package strengthens rights of appeal against
  actions

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Authorisation Directive-9(Arts 12 and 13
Charging fees)

• 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
• Spectrum pricing may be used. Cave recommends
  further use of incentive pricing and auctions.

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Summing up

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