UK tunes into radio spectrum trading

Ofcom and the Radiocommunications Agency (RA) have begun a joint consultation which could pave the way to allow the trading of rights to use radio spectrum.

At present, spectrum licences cannot be traded or sold, but Ofcom and the RA are now proposing to introduce mechanisms to allow trading.

Such a move would mark a radical departure from the existing system, where the large majority of providers of wireless communications services such as mobile telephony, pagers, radio and television broadcasts are each assigned different frequencies within the electromagnetic spectrum by the RA.

From 29 December, the RA's responsibilities for management of most of the non-military spectrum in the UK will pass to the new communications regulator, Ofcom.

The Communications Act 2003 requires Ofcom to ensure the optimal use of the electromagnetic spectrum, and spectrum trading will, according to Ofcom, play a "significant role" in achieving this.

Ofcom said an open market in spectrum, governed by effective competition rules, will make it easier for new wireless communications services to become established.

The watchdog also argued that trading will ensure the most efficient use of the radio spectrum and bring a greater choice of services.

Stephen Carter, Ofcom chief executive, said: "Spectrum trading will allow innovation and choice to shape the future allocation of spectrum, in place of the centrally planned, top-down approach of the past."

Ofcom and the RA said they are now seeking views on this potentially far-reaching change in spectrum management.

E-commerce minister Stephen Timms said in a statement: "It is important that we make the best possible use of this finite resource.

"This is key to the provision of new wireless services that underpin modern communications for business, entertainment and leisure, as well as for essential public services."