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Part 2Networks, services and the radio spectrum

Chapter 2Spectrum use

Award and transfer of licences

167Bidding for wireless telegraphy licences

(1)Section 3 of the Wireless Telegraphy Act 1998 (c. 6) (bidding for wireless telegraphy licences) shall be amended as follows.

(2)The following shall cease to have effect—

(a)in subsection (1), the words “or determined by him under” and paragraph (a) (requirement to set out procedure for bidding in a notice issued under regulations); and

(b)subsection (2) (matters to be included in regulations).

(3)In subsection (3) (provision that may be contained in regulations)—

(a)for paragraph (a) there shall be substituted—

(a)require the applicant’s bid to specify the amount he is willing to pay;

(aa)require that amount to be expressed—

(i)as a cash sum;

(ii)as a sum determined by reference to a variable (such as income attributable wholly or in part to the holding of the licence);

(iii)as a combination of the two; or

(iv)(at the applicant’s choice) in any one of the ways falling within the preceding sub-paragraphs that is authorised by the regulations;

(ab)require that amount to be expressed in terms of—

(i)the making of a single payment;

(ii)the making of periodic payments;

(iii)a combination of the two; or

(iv)(at the applicant’s choice) in any one of the ways falling within the preceding sub-paragraphs that is authorised by the regulations;

(b)in paragraph (f), for “any licence” there shall be substituted “a licence to which the regulations apply”; and

(c)the word “and” shall be inserted at the end of paragraph (f) and paragraph (h) shall cease to have effect.

(4)For subsection (4) (notice not to create binding obligation to grant licence) there shall be substituted—

(4)Regulations under this section are not to be construed as binding OFCOM to grant a licence on the completion of the procedure provided for in the regulations except in such circumstances as may be provided for in the regulations.

(5)For subsection (5) (licence to specify the amount payable in accordance with the applicant’s bid) there shall be substituted—

(5)A wireless telegraphy licence granted in accordance with regulations under this section shall specify either—

(a)the sum or sums which in consequence of the bids made are, in accordance with the regulations, to be payable in respect of the licence; or

(b)the method for determining that sum or those sums;

and that sum or those sums shall be paid to OFCOM by the person to whom the licence is granted in accordance with the terms of the licence.

(6)For subsection (6) there shall be substituted—

(5A)In determining the sum or sums payable in respect of a wireless telegraphy licence, regard may be had to bids made for other wireless telegraphy licences and for grants of recognised spectrum access.

(5B)Regulations under this section may provide that where a person—

(a)makes an application for a licence in accordance with a procedure provided for by such regulations, but

(b)subsequently refuses the licence applied for,

that person shall make such payments to OFCOM as may be determined in accordance with the regulations by reference to bids made for the licence.

(6)Subsection (4) of section 1 is to apply in relation to sums that will or may become payable under regulations under this section subsequently to the grant of a wireless telegraphy licence as it applies to sums that will or may become payable under regulations under that section.

168Spectrum trading

(1)OFCOM may by regulations authorise the transfer to another person by—

(a)the holder of a wireless telegraphy licence, or

(b)the holder of a grant of recognised spectrum access,

of rights and obligations arising by virtue of such a licence or grant.

(2)The transfers that may be authorised by regulations under this section are—

(a)such transfers of all or any of the rights and obligations under a licence or grant as have the effect that the rights and obligations of the person making the transfer become rights and obligations of the transferee to the exclusion of the person making the transfer;

(b)such transfers of all or any those rights and obligations as have the effect that the transferred rights and obligations become rights and obligations of the transferee while continuing, concurrently, to be rights and obligations of the person making the transfer; and

(c)transfers falling within either of the preceding paragraphs under which the rights and obligations that are acquired by the transferee take effect—

(i)if they are rights and obligations under a wireless telegraphy licence, as rights and obligations under a grant of recognised spectrum access; and

(ii)if they are rights and obligations under such a grant, as rights and obligations under a wireless telegraphy licence.

(3)Regulations authorising the transfer of rights and obligations under a wireless telegraphy licence or grant of recognised spectrum access may—

(a)authorise a partial transfer to be made by reference to such factors and apportionments, and to have effect in relation to such matters and periods, as may be described in the regulations, or as may be determined in accordance with them;

(b)by reference to such factors (including the terms and conditions of the licence or grant in question) as may be specified in or determined in accordance with the regulations, restrict the circumstances in which, the extent to which and the manner in which a transfer may be made;

(c)require the approval or consent of OFCOM for the making of a transfer;

(d)provide for a transfer to be effected by the surrender of a licence or grant of recognised spectrum access and the grant or making of a new one in respect of the transfer;

(e)confer power on OFCOM to direct that a transfer must not be made, or is to be made only after compliance with such conditions as OFCOM may impose in accordance with the regulations;

(f)authorise OFCOM to require the payment to them of such sums as may be determined by or in accordance with the regulations in respect of determinations made by OFCOM for the purposes of the regulations or in respect of an approval or consent given for those purposes;

(g)make provision for the giving of security (whether by the giving of deposits or otherwise) in respect of sums payable in pursuance of any regulations under this section;

(h)make provision as to the circumstances in which security given under such regulations is to be returned or may be retained;

(i)impose requirements as to the procedure to be followed for the making of a transfer and, in particular, as to the notification about a transfer that must be given to OFCOM, or must be published, both in advance of its being made and afterwards;

(j)impose requirements as to the records to be kept in connection with any transfer, and as to the persons to whom such records are to be made available;

(k)set out the matters to be taken into account in the making of determinations under regulations under this section.

(4)The transfer of rights and obligations under a wireless telegraphy licence or grant of recognised spectrum access shall be void except to the extent that it is made—

(a)in accordance with regulations under this section; or

(b)in accordance with a provision specified in subsection (5).

(5)That provision is a provision which—

(a)is contained in a wireless telegraphy licence granted before the commencement of this section or in the first or any subsequent renewal after the commencement of this section of a licence so granted; and

(b)allows the holder of the licence to confer the benefit of the licence on another in respect of any station or apparatus to which the licence relates.

(6)A transfer shall also be void if it is made in contravention of a direction given by OFCOM in exercise of a power conferred by regulations under this section.

(7)Section 403 applies to the power of OFCOM to make regulations under this section.