Select Committee on European Scrutiny Thirty-Second Report


26 Radio spectrum policy

(25855)

11674/04

COM(04) 507

+ ADD 1

Commission Communication: First annual report on radio spectrum policy in the European Union; State of implementation and outlook

Commission Staff Working Document annexed to Report

Legal base
Document originated20 July 2004
Deposited in Parliament26 July 2004
DepartmentTrade and Industry
Basis of considerationEM of 1 September 2004
Previous Committee ReportNone
To be discussed in CouncilNo date fixed
Committee's assessmentPolitically important
Committee's decisionCleared, but relevant to the debate on the future of eEurope[50]

Background

26.1 The context of this document is set out succinctly in the Commission Communication:

"All radio-based devices use the radio spectrum to transmit or receive information. The use and therefore the value of the radio spectrum has dramatically increased in recent years, as wireless applications have been very successful in addressing many of society's changing needs, such as for mobility and for data transmission. But spectrum availability is also critical for many other applications, e.g. for accurate weather forecasting, radio astronomy, air and maritime safety, broadcasting and for devices simplifying everyday life such as remote controls and hearing aids.

"Because of possible interference between different radio services operating in the same or adjacent frequencies, access to the radio spectrum has historically been closely regulated. Spectrum management has long been seen as a 'technical' domain dealing with the avoidance of harmful interference and the technical optimisation of spectrum use. More recently, it has been identified as a means of generating public revenues in proportion to a perceived 'spectrum scarcity' value. However, a long-term, policy-based approach to the management of this resource aiming at fostering innovation and the introduction of increasingly added-value applications could capture much greater overall benefits for society".

The Commission Communication

26.2 The Communication is the first Annual Report on the activities undertaken in response to the Community's Radio Spectrum Decision (RSD),[51] which established a policy and legal framework in the Community through which harmonisation of the use of the radio spectrum could be achieved in areas relevant to Community policy objectives. It covers the period since the RSD was adopted on 7 March 2002. Its main features are helpfully summarised by the then Minister for Energy, e-Commerce and Postal Services at the Department of Trade and Industry (Stephen Timms) in his Explanatory Memorandum of 1 September:

"Article 9 of the Decision requires the Commission to report annually to the European Parliament and the Council on the activities and measures adopted under the Decision and planned future actions. The report covers the period 24 April 2002 to 15 June 2004 and outlines past and future actions, and challenges related to the implementation of a successful Community policy in this area.

"The report notes the dramatic increase in the value of the radio spectrum in recent years, the success of wireless applications in addressing society's changing needs e.g. for increased mobility and data transmission, and the critical need to make spectrum available for a wide range of applications. It endorses the need for a flexible and responsive long-term policy-based approach to managing this resource with the aim of fostering innovation and providing societal benefits through the introduction of added-value applications. It notes that availability and affordability of radio-based services within the Community may be assisted by harmonisation of conditions of use for such services, including frequencies, and by providing legal certainty to such harmonisation.

"The aim of the Decision was to establish a policy and legal framework in the Community in order to ensure the coordination of policy approaches and, where appropriate, harmonised conditions with regard to the availability and efficient use of the radio spectrum. Two new platforms were established, the Radio Spectrum Committee (RSC) and the Radio Spectrum Policy Group (RSPG). The RSC assists the Commission in implementing specific provisions of the Decision, is chaired by the Commission and composed of Member States. The RSPG is a broader policy advisory body comprised of the Commission and high-level representatives from Member States, which also provides its chairman. The report highlights four main elements:

Technical implementing measures

"The Commission may exercise delegated powers on the basis of Decision 1 999/468/EC (the Comitology Decision) and under Article 4.3 of the Radio Spectrum Decision, the Commission may adopt legally-binding decisions via technical implementing measures, in order to ensure harmonised conditions for the availability and efficient use of radio spectrum. The measures normally take the form of a mandate to the CEPT[52] and on the basis of the work completed by CEPT, the Commission may make the results mandatory for Member States through the regulatory procedure set out in the Comitology Decision. During the period of the report mandates have been issued to CEPT on the following issues:

  • Harmonised usage for additional spectrum for third generation mobile communications (IMT 2000).
  • Review of possible new harmonised uses for the spectrum around 169 MHz (currently allocated to the unsuccessful European radio messaging service [ERMES]).
  • Harmonisation of spectrum for next-generation Radio Local Area Networks.
  • Harmonisation of spectrum for Automotive Short-Range Radars with temporary use of the 24 GHz band and long-term operation at 79GHz.
  • Harmonised regulation of Ultrawideband technology.
  • Generic approach to prioritise and harmonise different frequency bands for short-range devices.
  • More efficient use of the bands previously designated for Terrestrial Flight Telephone System.

Policy Development

"The RSPG is required to co-ordinate broader spectrum policy issues and is currently developing specific views ("Opinions") on:

  • Secondary trading of rights to use radio spectrum.
  • Spectrum implications of broadcasting digital switch-over.
  • Preparations for the ITU World Radio Conference in 2007.
  • Wireless Access Platforms.

Availability of Information

"Article 5 of the Decision provides for action to be taken in order to ensure the co-ordinated and timely provision of information concerning the allocation, availability and use of radio spectrum within the Community. The Commission has launched a study to review the information already available and whether this is sufficient, particularly in light of spectrum trading.

International activities

"Article 6 of the Decision covers relations with third countries and international organisations. The Commission has monitored relevant international developments and held discussions with EC's main trading partners. Common policy objectives defined for the 2003 World Radio Conference (EU satellite radio-navigation system GALILEO, IMT-2000 and other broadband wireless access platforms) were met (this is the subject of a separate EM dated 17 December 2003 (ref 15187-03)).

"The report notes the successful implementation of the Decision and highlights the need for continued active co-operation by CEPT, flexible and responsive mechanisms for adoption of Commission decisions, sufficiently strong political will to improve coordination of spectrum policies between Member States, and proper synergy and timing coordination between the RSPG, the RSC and other Community activities.

"Highlighted future actions for the next reporting period are:

Technical implementing measures

"The first implementing decisions are likely to include harmonised spectrum for Automotive Short-Range Radars, Radio Local Area Networks and third-generation mobile communications, and the Commission will request the withdrawal of the ERMES Directive (Council Directive 90/544/EEC) so that new harmonised uses can be provided via a technical implementing measure.

Spectrum Policy

"The Commission will assess the need for Community action on trading of spectrum rights and will consider the implications of digital broadcasting switch-over, coordinating EU positions in international negotiations. A new request for Opinion will be issued to the RSPG on wireless platforms to provide a strategic vision for the spectrum needs of new technologies such as 3G. The Commission will additionally consider different spectrum management models.

Strengthening coherence of spectrum policy in the EC

"The newly formed Spectrum Interservice Group will help to ensure that spectrum policy is considered in the wider EC policy context. There will be a need to develop common understandings in order to ensure consistency with other legislation e.g. a common definition of "harmful interference" under the electronic communications regulatory framework and a common understanding of competition issues where regulatory decisions affect specific markets. The need for technological neutrality and consideration of more flexible regulation on experimental rights to encourage innovation will also continue to be pursued."

The Government's view

26.3 The Minister says that:

"The Government welcomes this first report and the work that has been carried out by Member States and the Commission. The Government supports the Commission's emphasis on the need for flexible and responsive spectrum management policies and recognises the role that harmonisation can play in promoting innovation and benefiting society through affordable added-value applications. The need for harmonisation should however always be considered on a case-by-case basis to ensure that harmonisation is justified and adds value.

"The Government supports the proposed future actions but notes the importance of ensuring that Community action provides benefit and does not stifle national innovation. This will be particularly important for trading of spectrum rights, where the UK is likely to be one of the first Member States to introduce a trading regime. The Government would welcome a mechanism for sharing of information and a coordinated approach to the implementation of trading, but would not want to be held back in its own implementation."

26.4 The Minister also helpfully explains how the interests of the wide range of governmental and other stakeholders comes together in shaping policy:

"Ofcom is the regulator for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services. The Communications Act 2003 imposes a duty on Ofcom to secure the optimal use of the radio spectrum and to provide representation on behalf of Government at international meetings about communications, in accordance with such general or specific directions as may be given to them by the Secretary of State for Trade and Industry. A specific direction was made in December 2003 requiring Ofcom to represent the United Kingdom in, inter alia, the spectrum committees of the Community. Ofcom therefore represents the UK in the Radio Spectrum Committee and the Radio Spectrum Policy Group (and will be taking on the chairmanship of the latter from November 2004). The Secretaries of State for Culture, Media and Sport, Defence, the Home Office, Transport, and Environment, Food and Rural Affairs, and other departments and agencies, also have an interest in the management of the radio spectrum. Their views are coordinated formally through the Official Cabinet Office UK Spectrum Strategy Committee, which Ofcom attends.

"Ofcom liaises closely with industry and consumer representatives through a number of consultative and advisory committees. In addition, the Ofcom Spectrum Advisory Board has been established to provide independent advice to Ofcom on strategic spectrum management issues. Regular reports on the work of the RSC are circulated to industry representatives."

Conclusion

26.5 Even to the non-technically minded, the importance of this matter is obvious. The Communication indicates that the Community's response so far has been both inclusive and measured. We hope that this will remain so, and therefore endorse the approach taken by the Minister. The words "flexible and responsive" are crucial, as is the need for harmonisation always to be considered case-by-case, to ensure that it is justified and adds value. So too is the importance of ensuring that Community action provides benefit and does not stifle national innovation.

26.6 In clearing the Communication, we draw it to the attention of the House. We consider it relevant to the debate we have already recommended on the future of eEurope.


50   (25683) 9675/04; see HC 42-xxv (2003-04), para 1 (30 June 2004). Back

51   Decision 676/2002/EC of the European Parliament and of the Council of 7 March 2002 on a regulatory framework for radio spectrum policy in the European Community, OJ L. 108, 24.4.02, p. 1. Back

52   The European Conference of Postal and Telecommunications Administrations (CEPT), an intergovernmental organisation drawing together 46 European countries, upon whose technical expertise the Commission draws.  Back


 
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