FINAL REPORT - Stakeholders - Ofcom

7.4 Future Plans
From the countries that returned the questionnaire the United Kingdom indicated that it
was considering a change in the tariff structures for aeronautical and maritime licensing
dependent on the outcome of this study. From the Consultant’s investigation of
administrations’ web sites it was noted that the Australian Communications Authority (ACA)
is currently conducting a review of the model used for calculating apparatus licence tax.
The Australian Government has requested the ACA to investigate whether a more flexible
and transparent model could be introduced. In particular whether all elements required for
the calculation of fees could be provided to licensees.
7.5 Identified Pricing Trends
Unfortunately a limited number of detailed responses were received in the time available,
however this information was supplemented by publicly available material and updating
material collected some 2 years earlier as well as in-depth research and study of
information available on the Internet.
In general administrative pricing is not applied widely to aeronautical and maritime
services. The only country where Administrative pricing seems to have been widely
implemented is Australia. However even then Australia differentiates for aeronautical and
maritime applications between those licensees who require an assignment and those that
do not. Where an individual assignment is required the annual spectrum tax is calculated
taking account of inter alia the bandwidth of the system. Furthermore, in some cases the
amount of time taken to assign frequencies initially is calculated on an hourly rate. Where
an apparatus uses unassigned frequencies a nominal fee is charged, which comprises an
amount to cover costs and an element relating to the spectrum used.
In some countries e.g. the US and Canada where aircraft and small vessels do not
generally travel outside their national borders and are not subject to mandatory carriage
requirements they are exempted from licensing. In the case of Canada and the US there is
also a bilateral agreement with respect to the free movement of ‘small’ vessels and aircraft
between the two countries.
With respect to radiodetermination stations, mobile apparatus is often incorporated into the
aircraft or ships licence at no extra charge. In the case of land radiodetermination stations
the cost of licensing varies between zero as a result of minimal licensing requirements, for
example if the systems are operated by governmental organisations, and a relatively high
value such as found in Australia where the administrative pricing regime has introduced
bandwidth and operational frequency factors into the pricing equation.
In order to provide some overall comparisons between countries where prices have been
found, the annual renewal costs for several types of station are portrayed in Table 7-13
below.
Recommendation 7.1:
In view of the trend to deregulate licensing in some countries in the GA sector and
domestic maritime non-SOLAS sector, it is recommended that a study should be
conducted in the United Kingdom, possibly involving other British Isles administrations, of
whether such an approach would benefit the UK aviation and maritime industries. Such a
development might be restricted to the use of VHF aviation and maritime frequencies and
on-board navigation apparatus. The introduction of a class licence for such applications
could also be linked to AIP i.e. the use of spectrally efficient wireless telegraphy apparatus
would meet the terms of the class licence, whilst continued use of ‘old’ equipment would
continue to attract fees. However the need to record MMSI details would have to be
addressed. See also section 6.6.10. Although it is envisaged such a scheme could be
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