UHF2 realignment study - Ofcom Licensing

We believe the user base will slowly diminish in UHF2 over the next 10 years as equipment
is replaced in wide area type services by as much as 50%, with these services being
replaced by different type operators which will make the market more competitive. Much of
this decline is predicated on the operators’ reduced airtime costs and the market’s
communications costs appraisal, leading to a change to operator provider services.
Therefore, if the spectrum yield from the reduction in the user base were aggregated then 2
x 0.1MHz (1% of the UHF2 Band) would be available for reassignment on a national basis.
The impact of this potential yield of spectrum is minimal, even though 50% of a market
sector (e.g. taxis) would no longer use this spectrum. Any further yield of spectrum, without
regulatory intervention will be wholly dependent on the intentions of the PSSPG, with
approximately 30% of the band available for re-assignment.
9.2.3 Is interference a key driver within the UHF2 band for spectrum re-configuration?
Interference is an issue for some people in particular and it is most troublesome when the
interference is not constant. However, interference can be mitigated and users accept that
radio use is sometimes unreliable. Therefore, to justify an interference solution through re-
configuration, a compelling business case would need to be shown. Our research shows
that even at a macro-economic level there is no economic benefit.
The only time that a business would possibly move out of a band is when the communication
system becomes so unreliable that the system needs to be changed and is costing the
company financial resources. The choices, which a business would then have, would be to
look at alternative means outside of the UHF2 band or possibly operator provided services.
Recently businesses have not relocated systems within or outside of the band because of
interference, mainly because very few cases have been reported and there is little use on
the continent to cause interference. However, if the situation were to change significantly
with the introduction of IMT2000 services in the UHF2 band on the continent, then it is
possible that systems would become un-useable on the South East Coast of the UK due to
interference.
The problem remains that in a market led approach with interference, where only a small
portion of the market is disadvantaged, in this case, the South East of the UK, some areas of
the UK will continue to be disadvantaged until the whole of the UK is aligned. This is due to
the ripple effect whereby if the South East is aligned then the Midlands receive interference
etc, so the interference just moves as systems are aligned. Therefore, the rest of the
country has no particular reason to align, as there would be little benefit, unless the ripple
effect is managed.
9.2.4 What is likely to happen within the UHF2 band if there is no direct regulatory
intervention?
We believe most stakeholders would be satisfied with no direct regulatory intervention.
Indeed a statement to this effect would provide security of tenure in the band rather than the
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