FINAL REPORT - Stakeholders - Ofcom

esource consumed but is a flat fee per licence. This is justified on the grounds that unlike
mobile or broadcasting spectrum, the spectrum under investigation has not historically
been considered to be a scarce resource and is used for safety of life applications.
However, growing demand for spectrum and a desire to operate a consistent
administrative pricing policy has already led some countries to consider the adoption of
spectrum charges based on administrative pricing techniques (see Section 7.2.10.2) to
encourage more efficient and effective use of the spectrum.
Table 7-7 indicates which countries are using, or planning to use administrative pricing,
and the main parameters used in determining spectrum fees / charges for aeronautical and
maritime services. Currently it is believed only Australia is applying administrative pricing
for aeronautical and maritime services. The overall cost of an individual licence reflects the
value and the amount of the spectrum being used (or denied to other users) by the
licensee. This is calculated according to a formula that takes account of four parameters:
• spectrum location;
• geographic location;
• bandwidth and
• power.
The formula means spectrum pricing is efficient, equitable and transparent, as fees reflect
the amount of spectrum used, and are higher for spectrum in greater demand. For
assigned licences, that is, where an individual frequency or frequencies are assigned, the
tax is calculated individually for each licence. For non assigned licences, where each
licence of the same licensing option has access to the same spectrum, the tax is the same
for each licence.
Table 7-8 shows the number of aeronautical and maritime licences issued in a number of
countries which completed the questionnaire or provided the information by another
means. Where available, the approximate revenue generated in administrative fees and
spectrum fees / charges is also recorded.
Table 7-9, Table 7-10, Table 7-11 and Table 7-12 below provide information on the
detailed questions raised in the questionnaire concerning one-off and recurring
administrative fees and spectrum charges. Most of the information has been obtained from
the web pages of the administrations concerned.
Administrative Pricing deployed Y N N N N
Administrative Pricing planned N N N
Frequency Band
Amount of Spectrum (Bandwidth) Y
Technology
Spectrum Efficiency
Geographic Location
Transmitter Power
Station Power EIRP
Antenna Type
Market Value of Spectrum
Operator Financial Performance
Frequency Co-ordination Y
Licensing / authorisation costs Y Y
A
U
N
Z
T
R
H
K
U
K
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