Spectrum. Mention the word and most peoples eyes (and sometimes mine) glaze over. However, when you tell them just how much the ‘thin air’ around us is worth, they tend to open again. In 2003, the Government sold the spectrum used to operate Mobile 3G networks to operators for £22bn. Never mind that the mobile industry was almost bankrupted in the process, and that no-one is likely to pay anywhere near that much again. This is big money. The Treasury, through Ofcom, has taken notice ever since.
In today’s world of yawning budget deficits and scrambling efforts to bridge the divide, spectrum is seen as prime candidate for raising revenue. The Ministry of Defence, whose budget is of course particularly tight at the moment, jumped on the bandwagon earlier than most. Since the end of 2008, they have been busily setting out their wares. And what wares they are. MoD currently ‘owns’ 35% of all spectrum below 15 GHz, a lot which is usable for commercial operations. Commercial users haven’t previously had access to it or been able to pay for rights to use it. Since the 2005 Cave Review, plans have been in the works for it to lease large parts of its current holdings to commercial users and keep all the proceeds. Except when it actually needs to use it in times of national crisis. Then, all bets are off.
All of this has taken up much time at Intellect recently. Renting spectrum is much like renting land in many ways. The landlord needs to be good at sharing information with current and prospective tenants and be able act as a conduit for it. They need to have the ability to actively manage the land they own so that the tenant can use it effectively and, finally, they need to be able to put in place measures to stop trespassers from interfering with what the land is being used. Like land, a given piece of spectrum should ideally have one user. Its possible to share, but it gets a whole lot more complicated when you do. All of this requires resources. If Intellect members are going to rent spectrum from the MoD, they need to have the confidence that MoD can effectively manage and place a value on the spectrum that it owns. In much the same way that Ofcom currently does.
Intellect takes its role as the spectrum ‘tenants’ guardian seriously. A number of members have substantial interests in how it is allocated and used. After all, most of them manufacture devices that need access to spectrum to operate. There is a role for industry in educating the MoD on how to value its spectrum, and how to lease it in a way that actually maximises the potential uses that commercial users can make of it, thereby determining how much they will be willing to pay. Our position paper, MoD Spectrum Divestment: The Intellect Perspective, lays out how we believe MoD can optimise its release process to ensure that the UK gains maximum economic and societal benefit from what is an unprecedent release of spectrum on to the market, and how will we continue to work with them to enable maximum benefits for UK plc to be realised. Our continuing engagement with MoD on these issues is being handled by the Intellect Wireless Council. If you are an Intellect member with interests in spectrum issues, you should be involved.