Article by James Walsh, Senior Associate, Telecoms Team and Charlotte Walker-Osborn Head of TMT Sector.

What? Ofcom has commenced a consultation on proposals to extend spectrum trading to maritime and satellite earth station spectrum licences.

So what? Spectrum transfers have been permitted for certain classes of spectrum licences since the Wireless Telegraphy (Spectrum Trading) Regulations 2004 were enacted.  Ofcom has permitted trading for a range of other spectrum licences since then, including for mobile spectrum licences (as we have previously reported).

Ofcom has now proposed to permit spectrum transfers for maritime and satellite earth station licences.  Satellite earth stations are typically used for certain types of telephony, data backhaul, business/consumer broadband and corporate communications systems.  Maritime licences are for ship stations to communicate with each other and with shore stations for matters such as safety and the protection of vessels.

The proposals are to allow outright and concurrent spectrum transfers for maritime and satellite earth station licences, and to allow partial transfers in some cases.  Importantly, spectrum leasing, which Ofcom will introduce for the first time later in December 2011 for certain spectrum licences, is not under consultation for the maritime and satellite earth station licences.  If Ofcom proceeds with the proposals to allow for spectrum transfers for maritime and satellite earth station licences, a simplified process for the transfers should be implemented in accordance with Ofcom's previous proposals.

Responses to the consultation are due on 10 February 2012.

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