WIREDGOV

“Digital Britain is the Government’s vision for creating a world-class digital infrastructure boosting jobs, growth and competitiveness.

“To realise that vision it’s vital that we make the best use of the digital spectrum and ensure that sufficient bandwidth is available for sophisticated next generation services, and not just calls and texts.

“This package will free up the airwaves for the expansion of wireless and 3G services, increasing their reach to consumers and businesses across as much as 90 per cent of the country, including rural communities.

“I would also like to thank Kip Meek who has had to weigh up very complex issues in producing a report which marks a clear way forward.”

The Digital Britain report welcomed a number of recommendations made by Kip Meek in his report of May 2009. However, further work was carried out to resolve some technical issues. Kip Meek’s final proposals are published today alongside the consultation.

The Government now intends to implement these proposals through a Direction to Ofcom. Before doing so, it is obliged to consult on the Direction and has published its consultation today. Stakeholders are invited to put forward their views ahead of the deadline of 8 January 2010.

Notes to Editors

1. Proposals in detail:

Making the 3G licence term indefinite to encourage greater investment in 3G services. This will increase 3G coverage to 90% of the UK population. An annual fee (Administered Incentive Pricing) will be applied, reflecting full market value, from 2021Government will work with Ofcom to free-up the 800MHz spectrum, that will be released through Digital Switchover, as soon as possibleCo-ordinating an auction of 2.6Ghz and 800Mhz spectrum to take place as soon as possible, to enable operators to build the spectrum portfolios needed to provide Next Generation servicesIntroducing short-term spectrum caps at auction to allow all operators to bid for different bands of spectrum and encourage a better competitive environment. They will ensure no operator can monopolise spectrum holdings in a particular band and avoids an imbalance in lower or higher frequenciesApplying coverage conditions to operators that acquire 800MHz or hold re-awarded 900MHz spectrum to deliver mobile broadband to rural areas and hard-to-reach areasAllowing a separate auction of a portion of the 2.6GHz spectrum in early 2010 should the combined auction be delayed by Ofcom to allow the use of TDD (Time Division Duplex) for WiMax technologiesLiberalising existing 2G (900MHz and 1800MHz) spectrum held by current mobile operators, making licences indefinite and tradable. This will allow operators to reallocate their use of these frequencies for 3G technologies. AIP will be revised to reflect the market value of that spectrum.

2. The caps for the Combined Auction are as follows:

· a temporary cap on overall mobile suitable spectrum holding per operator at 2 x 65MHz

· a second temporary cap on the current holders of sub 1GHz spectrum of 2 x 17.5 MHz. Any bid by them for additional sub-1GHz spectrum at 800MHz that is successful will require the holder to relinquish an amount of 900MHz spectrum equivalent to the amount of spectrum that is acquired

· a third temporary cap on overall 2G spectrum, so that an entity who has more than 2 x 25MHz and who acquires additional spectrum in the combined auction, will be required to relinquish 2 x 5MHz of spectrum into the auction.

3. The full Government consultation document and recommendations made by the Independent Spectrum Broker, Kip Meek, can be found at:

http://www.berr.gov.uk/files/file53061.pdf

4. The report was produced following recommendations made in the Digital Britain Report, published in June 2009: http://www.bis.gov.uk/building-britains-digital-future

5. Digital Britain is the Government’s vision of an economy and society where core working activities are based around knowledge, skills and information. It represents an ambitious and strategic plan to accelerate growth in the digital industries and cement the UK’s position as a world leader for innovation, investment and quality.

Department for Business, Innovation & Skills

The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS - Investing in our future.

Contacts:

BIS Press Office
NDS.BIS@coi.gsi.gov.uk

Joanna Robotham
Phone: 020 7215 5950
Joanna.Robotham@bis.gsi.gov.uk