Spectrum trading? Perhaps after 2005 in the UK

date: July 30, 2002

If new government proposals are adopted, the UK's 3G license holders will not be allowed to participate in spectrum trading until after the end of 2005. The proposals, released on July 15th, as part of a consultation document titled Implementing Spectrum Trading, favour a progressive roll out of spectrum trading approvals.

Among the earliest to benefit could be technologies like broadband fixed wireless, GSM networks, private business systems and terrestrial fixed links which will be allowed trading under the "first wave" probably starting in 2004. 3G spectrum holders, though, might have to wait another two years for any such favour.

One of the reasons for that, according to the document, was that some 3G license holders had lobbied against spectrum trading being introduced while network rollout was taking place. "The government is currently minded not to introduce trading earlier than three years after the first licensee's substantial launch of service within the UK, subject to further development in the rollout and market for 3G services," the document states.

The five 3G license holders in the country have now been invited for a consultation process, based on the document, expected to last until October 7th. Industry sources indicate that the five license holders have not as yet reached a consensus over the trading issue. But if the license holders do express their displeasure over the proposals, chances are they might be changed.

The UK parliament is currently debating the Communications Bill which, when passed, will make spectrum trading legal. According to the document, spectrum trading will increase the efficiency of spectrum management, increase competition, boost innovation in the use of the spectrum and create a faster and more flexible system for access to the spectrum.

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