1. Euro GPR Into to Ofcom Andy Gowans Head of Exempt Technology Team

2. Ofcom’s Duties Under the Communications Act 2003:
Art. 3(1) It shall be the principal duty of Ofcom, in carrying out their functions; (a) to further the interests of citizens in relation to communications matters; and (b) to further the interests of consumers in relevant markets, where appropriate by promoting competition
Six areas of specific duties - ensuring:
optimal use of the electro-magnetic spectrum
a wide range of electronic communications services - including high speed data services - throughout the UK
a wide range of TV and radio services of high quality and wide appeal
plurality in the provision of broadcasting
adequate protection for audiences against offensive or harmful material
adequate protection for audiences against unfairness or the infringement of privacy

3. Ofcom launched in 2003 & assumed the duties & activities of 5 previous regulators & took on 135 new statutory duties
Spectrum management
Broadcasting standards
Television regulation
Telecoms regulation
Radio regulation

4. Ofcom launched in 2003.. Responsibilities Duties Approach Governance
Assumed duties of 5 previous regulators and took on 135 other statutory duties
Telecoms regulation
TV & Radio Regulation
Spectrum Management
Broadcasting Standards
Competition Authority (concurrent competition powers with Office of Fair Trading)
Duties
‘Further interests of citizens’
‘Further consumer interests’
Approach
Bias against intervention
Evidence-based decision making, consultation
Governance
Statutory public corporation – independent of Govt.
Accountable to Parliament (not ministers)
Ofcom staff are public servants (not civil servants)
PLC Board Structure
Board subject to Code of Ethics & Standards
Duties to consult, publish annual plan and reports.
Funding
Funds raised by industry licence fees
Ofcom retains a % of revenue from spectrum licenses rest passed to Treasury
Staff
861 in Ofcom (July ’09) (from 1152 staff in legacy regulators);
Background: Public/private 60/40

5. Ofcom Board
Millie Banerjee (Non Exec)
Mike McTighe (Non Exec)
Tim Gardam (Non Exec)
Philip Graf Deputy Chair (Non Exec)
Colette Bowe Chairman (Non Exec)
Ed Richards CEO (Executive)
Peter Phillips (Executive)
Stuart McIntosh (Executive)
Background/ Experience
Telecoms (Private/Public)
Telecoms (Private)
Broadcasting (Private/Public)
Newspaper Ind (Private/Public)
Economist (Private/ Public)
Broadcasting (Private/Public)
Broadcasting (Private/Public)
Telecoms (Private/Public)
Non-executive members are appointed by a representative from BIS + DCMS + Ofcom Chairman + Independent assessor
(Ofcom chooses recruitment consultants and runs advertisement process
Chairman appointed by a representative from BIS + DCMS + Independent assessor
CEO appointed by Chairman
(Subject to approval by BIS+ DCMS)
Executive Members appointed by Chairman and Non Executives
Appointment Process
The Board’s policy & technical expertise across the sector and
independent appointment process

6. Ofcom – Organisational structure
Chairman
Chief Executive
Director of CEO’s Office
General Counsel, communications
International Nations & Regions Secretariat
Content and Standards
Strategy & Market Development
Competition Policy Group
Spectrum
Policy Group
Chief Operating Officer
Chief Technology Officer
Nations & Regions
International
Secretariat
Content Standards
Radio & Convergent Media
Media Literacy
Strategy
Research and Market Intelligence
Chief Economist
Consumer Policy
Competition Policy
Investigations
Competition Finance
Telecoms Technology
Competition Economics
Spectrum and International Policy
Spectrum Markets
Operations
Licensing Operations
Contact Centre HR
Field Operations
Technology

7. Ofcom’s current strategic framework (2005-2010)
Driving forward a market-based approach to spectrum
Delivering public interest objectives as platforms
and services converge
Empowering citizens and consumers and improving regulatory
compliance where necessary
Promoting competition and innovation in converging markets 9 9

8. Ofcom’s spectrum duties
Ofcom’s duty is to further the interests of citizens …
… and to further the interests of consumers, where appropriate by promoting competition
OFCOM are required to secure in the carrying out of their functions the optimal use for wireless telegraphy of the electro-magnetic spectrum
Communications Act 2003

9. Spectrum’s value to the UK economy
Spectrum is a finite and valuable natural resource. It is the essential input for all forms of wireless communication.
Business activity that is largely dependent on spectrum contributed £37bn or 3% to the UK GDP in 2005/6
+59% in real terms
SLIDE 4
A hundred years ago this resource had barely begun to be used.
Now changes in technology, and the way we live, mean that it is of enormous importance to the modern economy and modern society.
Analysis suggests that business activity that is dependent on spectrum usage accounts for around £37bn or over 3% of UK GDP – more than the electricity and water industries combined.
And the benefits from use of spectrum have increased by roughly 50% in the last 3-4 years.
So the way that spectrum is managed matters hugely, to businesses, policy-makers like us – and ultimately to the citizens and consumers whose interests we are here to serve.
*estimate of consumer + producer surplus
Source: Europe Economics, 2006

10. Why is spectrum regulated?
► To prevent harmful interference ◄
But…..
In practice, governments and regulators have also pursued many other objectives:
public policy – secure delivery of public services, often in lieu of funding
industrial policy – equipment standards
goals for industry structures & competition
Historically, the management of spectrum has been very interventionist:
regulatory control over who may use spectrum, for what, and how
present distribution of the spectrum is a product of regulation over many decades
severe scarcity in critical bands

11. There are three ways to manage spectrum
Command & control All decisions made by the regulator
Market mechanisms Decisions made in the market
Licence-exemption Regulator sets rules, but users not licensed
Approach that has historically been adopted for over 90% of the spectrum
Approach advocated by Cave Reviews in UK. Trading, liberalisation, technology & use neutrality
Approach currently adopted for 9% of spectrum. Some argue for radical increase

12. Ofcom’s spectrum vision
Spectrum should be free of technology, policy and usage constraints as far as possible
It should be simple and transparent for licence holders to change the ownership and use of spectrum
Rights of spectrum users should be clearly defined and users should feel comfortable that they will not be changed without good cause
Spectrum Framework Review, June 2005

13. Ofcom’s implementation plan
Spectrum Trading – Allow licensees to buy and sell (and lease and hire) some or all of their spectrum usage rights
Spectrum Liberalisation – the progressive removal of restrictions on technology and usage and replacement with minimum technical conditions needed to prevent harmful interference
Spectrum Awards – Make unused spectrum available to potential users as quickly as possible, compatible with an orderly process.

14. Regulatory harmonisation – with exclusive access
Regulatory harmonisation – without exclusive access
Market-led harmonisation
Standardisation
Interoperability
Technology and service neutrality available
Technology and service specific
Increasing opportunity for markets to determine spectrum use
Increasingly flexible types of harmonisation

15. Other spectrum activities – R &TTE directive
Under EU New Approach for supporting a single market
About placing products on the market
Aims to remove/prevent barriers to trade
Allows the creation of an internal EU market for all products
Based on the free circulation of goods, services and people
R & TTE Directive
BIS has the lead with Ofcom support
Currently being reviewed – still in early stages
allows different routes to placing products on the market based on declaration of conformity
Main Committees / Interfaces
TCAM & R&TTE review sub committees
ADCO and EMC working group
European Standards Organisations (CENELEC, ETSI)

16. Overview of spectrum developments in EU
Spectrum summit and the RSPP
Revised European Directives adopted December 2009
Member States have 18 months to implement
New Digital Agenda Commissioner, Neelie Kroes (NL)
Took office 10th Feb 2010
Spectrum Summit (22-23 March)
Hosted by European Commission and Parliament
Workshop(s) and plenary session
Output to feed into RSPP
Radio Spectrum Policy Programme (RSPP)
RSPG Opinion
Commission proposals (expected mid 2010?)
Subject to Council and Parliament co-Decision procedure 20

17. EU Activities - Radio Spectrum Policy Group (1)
Change to RSPG working arrangements in new institutional set up
RSPP and advice to European Parliament
Chairing arrangements
Multi-annual Radio Spectrum Policy Programme (RSPP)
Hungary leading
Input to both Spectrum Summit and RSPP
Digital Dividend
Ireland leading
2 reports (June and Nov)
Report structure agreed, will include chapters on spectrum efficiency, frequency planning and cognitive technologies.

18. EU Activities - Radio Spectrum Policy Group (2)
EU participation in international negotiations
France lead
Focus likely to be on preparations for WRC-12
Competition aspects in spectrum assignment and usage (joint with ERG)
Italy/UK lead
Likely to involve three pieces of work
Market definition and spectrum
Transitional issues arising from implementation of revised GSM Directive
Effects on competition of sharing (infrastructure or spectrum)
Continuation of work on cognitive technologies
Work on radio issues
Next meeting 9 June (or possibly in March)

19. EU Activities - Radio Spectrum Committee
800MHz Decision
2010 Work programme
Implementation of the GHz Decision
Vote on SRD amendments and next update cycle
Spectrum implications of Lisbon Treaty
Next meeting March 23