Joint Committee on Statutory Instruments Twenty-Sixth Report



APPENDIX II

Memorandum by the Department of Trade and Industry

WIRELESS TELEGRAPHY (LICENCE CHARGES) REGULATIONS (S.I. 1999/1774)

  1. The Committee has requested a memorandum on the following point:

      Indicate, as required by paragraph 2.77 of the Statutory Instrument Practice, the extent of the increases in fees provided for by this instrument, where those fees replace fees payable under the instruments now revoked. If it is impracticable to give details for each existing fee, indicate the average percentage increase and specify any significant variances.

  2. The Department of Trade and Industry amplifies the information it earlier provided in paragraph 3 of the Explanatory Memorandum relating to the above Regulations by giving the additional details below and in the appended tables.

  3. The Department wishes to re-emphasise that the Regulations are the second stage of a process of moving from charges based on cost recovery to charges being set to assist spectrum management objectives under the Wireless Telegraphy Act 1998.

Public Mobile Telecommunications

  4. For certain Public Mobile Telecommunications Sector licence classes ( the Common Base Station class and the Public Mobile Operator class), the increases are applied directly on existing fee structures to reflect a further step in recognising the scarce value of the radio spectrum occupied, but some new steps have also been added to allow for new technologies and for congestion factors. Details for these two classes are set out in Table A.

Private Business Radio

  5. In the Private Business Radio Sector, the On -Site Private Business Radio class is the only existing class where charges have been increased and details are set out in Table B. However, it is proposed that most existing licensees previously holding Private Mobile Radio (Standard) class licences will be asked to transfer to the appropriate new classes listed in the Regulations (the National and Regional Private Business Radio class and the Wide Area Private Business Radio class) and be issued new licences in the new classes. The Private Mobile Radio (Standard) class has been retained in the Regulations for certain types of users who do not have fixed areas within which they operate, and those users will have the same charges as at present.

  6. In the new National and Regional Private Business Radio class, the regional concept is new, but provisions for national exclusive channels are transferred from the Standard class. The details are also set out in Table B for comparison. With the exception of these national channels, full details of other charges for the Private Mobile Radio (Standard) class licences remain as previously charged, as set out in the Regulations.

  7. The differences for licensees moving to the new Wide Area Private Mobile Radio class may be seen by comparing the fees for the new class in the Regulations with those for the Private Mobile Radio (Standard) class under which they will have previously been licensed. In summary, the changes will mean that for the majority (over 60%) of licensees affected, this transfer will result in a decrease in fees (most simple cases reducing from £140 to £75). Licences in the new congested areas will, on average, have similar charging levels as at present. Charges for licences in the new heavily congested areas in London will increase (an average 35%), and charges for licensees currently holding licences for multiple channels and locations could also increase. In both cases the amounts payable could vary considerably according to all the factors applying in relation to each licence. In extreme examples the difference could be 200%. But it should also be noted that most licensees faced with increases will want to review the licences they hold and they now have more alternative choices, ranging from choosing public services to using less popular spectrum at lower fees.

Fixed Links

  8. In relation to the Point to Point Fixed Links licence class, the charges structure has been entirely changed, with a range of new factors to be taken into account, including congestion and the minimum data bit rates for congested areas and bands. The ranges of charges are set out in Table C. In summary, charges for links in uncongested areas will, on average, decrease but links in congested areas will increase (for most users between 20% and 40%), but if spectrum efficient links (defined by minimum data rates) are used, this will offset the increases. Please note that in table C congestion is only a factor in two of the frequency ranges shown.

9 July 1999.

Table A      Licences Classes Where Fees Have Increased

ClassDescriptionProposed new chargePrevious charge
Common Base Station Operatorfor each 2 x 12.5 kHz channel designated within a defined coverage area (see Schedule 6)
channel in heavily congested area



£900


 channel in a congested area£675£675
 channel in a non-congested area £407 
Public Mobile Operator
105 - 170 MHz

for each national 1 x 25 kHz channel

£6,500

£5,400
450 - 470 MHz
(for public wide area paging)
for each regional 1 x 25 kHz channel£1,980£3,600
105 - 165 MHzfor each national 2 x 12.5 kHz channel  
174 - 208 MHzfor each national 2 x 12.5 kHz channel£3,600£1,800
420 - 470 MHz
(for public mobile data, non-voice only operation)
for each national 2 x 12.5 kHz channel  
174 - 208 MHz
(for public access mobile radio)
for each national 2 x 12.5 kHz channel

for each regional channel subject to a maximum of £2,000 where the same channel is licensed to the same licensee in more than one location
£2,000

£900
£1,800

£790 (to a max. of £1,800 where re-used)

Public Telecommunication Network Sector

Class Description Proposed new charge Previous charge
410 - 430 MHz

(for digital TETRA public access mobile radio)

for each national 2 x 25 kHz channel, on issue

thereafter:

£1,000  
 on the first anniversary of the issue of the licence £4,950
 on the second anniversary of the issue of the licence £7,425 This is a new technology addition to the class
 on the third anniversary of the issue of the licence £9,900  
 on the fourth anniversary of the issue of the licence £14,850  
 on the fifth and each subsequent anniversary of the issue of the licence £19,800  
872.0 - 880.0 MHz

890.0 - 905.0 MHz

905.0 - 915.0 MHz


for each 2 x 25 kHz (analogue) channel

£5,500

£3,960
917.0 - 933.0 MHz

935.0 - 950.0 MHz

950.0 - 960.0 MHz


for each 2 x 200 kHz (digital) channel

£44,000

£31,680
1710.0 - 1721.7 MHz

1805.0 - 1816.7 MHz

(for cellular radiotelephones)


for each 2 x 200 kHz (digital) channel

£41,250

£31,680
1721.7 - 1785.0 MHz

1816.7 - 1880.0 MHz

(for digital cellular PCN radiotelephones)

for each 2 x 200 kHz (digital) channel

until the sixth anniversary of the issue of the licence

£33,688 £27,720
 on the seventh and each subsequent anniversary of the issue of the licence £38,500 £31,680

Table B  Licences Classes Where Fees Have Increased

Class Description Proposed new charge Previous charge

On-Site Private Business Radio
heavily congested channel

congested channel

non-congested channel

£200

£100

£75


£100 per site
Use Of National and Regional Channels
New National and Regional Private Business Radio

Note: The new class also includes new additional features not previously offered in the Private Mobile Radio (Standard) class.

National channel use in congested bands

national channel use in non-congested bands

£9,900

£8,250

£6,600 (in Private Mobile Radio (Standard) class)

Private Business Radio Sector

Table C  Licences Classes Where Fees Have Increased

Fixed Links Sector
Class Description Proposed new charge Previous charge
Point to Point Fixed Links


Charges will depend on a range of factors . The list below indicates the ranges previously used, as a means of comparing how the charges will differ for broad ranges Fees ranges reflect factors of bandwidth congestion and minimum data bit rate




1350 - 1690 MHz Bandwidths not more than 25 kHz

more than 25 kHz but not more than 75 kHz

£260-£500 (non-congested) £255

£380

1.7 - 1.9 GHz more than 50 kHz £380 (non-congested) no change £380
3.6 - 4.2 GHz more than 14MHz but not more than 56 MHz £715 - £925 (congested, spectrum efficient technology)

£1,430 - £2,775 (congested, mature technology)

£715 - £2,775 (non-congested)


£925
7.425 - 7.9 GHz not more than 7 MHz

more than 7 MHz but not more than 14 MHz

more than 14 MHz but not more than 28 MHz

£345 - £1,850 (congested)

£345 - £1,390 (non-congested)

£465

£720

£925

Table C continued  Licences Where fees Have Increased

Class Description Proposed new charge Previous charge
12.75 - 13.25 GHz

14.25 - 14.5 GHz

not more than 7 MHz

more than 7 MHz but not more than 14 MHz

more than 14 MHz but not more than 28 MHz

not more than 7 MHz

more than 7 MHz but not more than 14 MHz

more than 14 MHz but not more than 28 MHz




£345 - £1,390 (non-congested)
£465

£720

£925

£465

£720

£925

17.30 - 17.70 GHz not more than 14 MHz

more than 14 MHz but not more than 100 MHz

more than 100 MHz but not more than 200 MHZ

more than 200 MHz but not more than 300 MHZ

more than 300 MHz



£720 - £1,280 (non-congested)
£720

£925

£1,030

£1,155

£1,280

21.2 - 23.6 GHz

27.5 - 29.5 GHz

not more than 7 MHz

more than 7 MHz but not more than 14 MHz

more than 14 MHz but not more than 28 MHz

more than 7 MHz but not more than 14 MHz

more than 14 MHz but not more than 28 MHz



£330 - £1,330 (non-congested)
£465

£695

£885

£695

£885

31.00 - 31.80 GHz

not more than 56 MHz

more than 56 MHz but not more than 140 MHz

more than 140 MHz but not more than 250 MHz

more than 250 MHz but not more than 280 MHz



£720 - £1,155 (non-congested)
£720

£885

£1,030

£1,155

Table C Continued  Licences Classes Where Fees Have Increased

Class Description Proposed new charge Previous charge
37 - 39.5 GHz

not more than 7 MHz

more than 7 MHz but not more than 14 MHz

more than 14 MHz but not more than 28 MHz


£265 - £1,050 (non-congested)
£380

£465

£720

54.20 - 57.20 GHz

57.20 - 58.20 GHz

not more than 56 MHz £380 (non-congested) £380

£75 per link

£50 per link


 
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