UK regulator Ofcom has confirmed plans to allow mobile operators to flexibly trade the radio spectrum in the 900, 1800 and 2100 MHz bands in an effort to modernise spectrum management. The move will help UK operators to optimise their spectrum assets and respond more quickly to growing demand for mobile data services. Ofcom will be responsible for the administration of spectrum trade and issuing revised licences. A consultation on the proposal is open until 17 March.

New plans to help increase mobile network capacity and deliver faster and more reliable mobile services for consumers, were unveiled today by Ofcom.
The proposals will allow mobile phone operators for the first time to trade the radio spectrum that mobiles use to communicate with mobile masts.

Spectrum is of particular importance to the mobile phone and mobile broadband industry, which relies on it to carry information between customers’ handsets and mobile masts. There are 80 million mobiles in the UK and more than £12.8 million of these are smart phones, used by people to access the internet. This is placing big demands on mobile spectrum.

Under the proposals, which cover spectrum at 900 MHz, 1800 MHz and 2100 MHz, operators with a greater need for spectrum will be able to make offers for spectrum from those who need it less. It is hoped that this added flexibility will help operators to respond more quickly to demand.

Ofcom Chief Executive, Ed Richards said: “This is an important milestone in the modernisation of spectrum management in the UK. It comes in response to the fast pace of change and innovation taking place in the mobile communications sector, which is placing increased demands on spectrum. One important way of meeting this demand is making the acquisition of spectrum as flexible as possible.”

Over the past two decades, mobile phone companies in the UK have acquired blocks of licensed spectrum. In general, the more spectrum an operator holds, the more telephone conversations and internet traffic it can carry over its network. Not all operators hold the same amount of spectrum, and the level of demand for mobile services also differs from area to area.

By allowing operators to trade their spectrum, Ofcom believes that there will be greater opportunity to use it more efficiently. Ultimately, it is believed that this will bring benefits to citizens and consumers in terms of improved mobile services.

As part of a wider initiative to promote improvements in mobile services, the Government directed Ofcom to make mobile spectrum licences tradable in December 2010. Today’s proposals outline how this will be achieved.

Ofcom will be responsible for the administration of spectrum trades – publishing the details of proposed trades online, confirming that they are acceptable, and then issuing revised licences to implement the trades.

To ensure healthy competition, a safeguard is proposed whereby Ofcom assesses if competition is likely to be distorted before deciding whether or not to consent to a trade of mobile spectrum.
The consultation closes on 17 March 2011 and is available here.