Our inquiry
10. On 10 May 2011, we decided to launch an inquiry
that looked at the way in which commercial spectrum holdings were
allocated and regulated. Our decision was prompted by the imminence
of the next spectrum auction in 2012; Ofcom's consultation on
the rules of the auction, published in March 2011;[3]
and a Westminster Hall debate on rural broadband on 23 March 2011.[4]
We were also aware that there were conflicting opinions among
UK spectrum users, notably the four main mobile network operators
(MNOs), about how the next spectrum auction should be conducted.
11. We agreed terms of reference and invited
evidence on the following issues:
- Whether the proposed method
of spectrum allocation promotes, or hinders, competition in the
provision of mobile broadband services;
- whether the forthcoming auction can provide value
for money for tax payers and how that should be balanced with
benefits for consumers;
- what is the potential for next generation mobile
internet services offered by the forthcoming availability of spectrum;
- whether the forthcoming auction can deliver improved
mobile broadband coverage in rural areas, as well as cities;
- whether licence fees for mobile operators have
previously been set at appropriate levels, and how this should
be assessed;
- how the position of the UK compares with other
countries, with regards to the allocation and utilisation of mobile
broadband spectrum;
- what is the possible impact of the auction on
alternative uses for spectrum.
12. We received 22 written submissions and held
three oral evidence sessions during which we heard from Three,
Everything Everywhere, Telefonica O2, Vodafone, Arqiva, Inmarsat,
Intellect UK, Ofcom and DCMS. In June 2011 we were given a technical
briefing on spectrum by Ofcom. We would like to thank Greg Bensberg,
Director of Spectrum Policy and Matthew Conway, Director, Regulatory
Development and Nations at Ofcom, for their technical advice,
given informally throughout the course of the inquiry.
3 Ofcom, Consultation on assessment of future mobile
competition and proposals for the award of 800Mhz and 2.6GHz spectrum
and related issues, March 2011 Back
4
HC Deb 23 March 2011 c315WH Back
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