Spectum Pricing - an update on issues for the maritime sector

The BPA has been following the development of Ofcom’s proposals to introduce Administered Incentive Pricing (AIP) for maritime radio and radar spectrum to create, they claim, greater efficiency of use. Ofcom are developing their proposals through a series of consultations and along with the UKMPG we have now submitted a joint response to the latest consultation which is looking at the licensing of maritime VHF radio frequencies. Our argument has consistently been that AIP should not be applied where spectrum must be used for safety reasons and where international agreements exist with other governments on spectrum availability.

The consultation was extended to the end of January to allow comparison against the separate proposals for aviation and this is expected to add further delays to the implementation of Ofcom’s changes. While the rises do not appear to be as much as was first suggested, they are still likely to impose varying increases. In terms of timescale, Ofcom are proposing to introduce these changes to VHF licences in the first half of this year, although they are likely to phase in some of the changes over the next three years.

Draft proposals for radar licences are expected later this year and although the Ofcom consultation just closed was primarily focused on VHF, it did indicate that a future option would be allow the DfT and MCA take over the responsibility for radar licences under a different pricing regime. The cost implications of this would be nowhere near as severe as if Ofcom pursued AIP for radar licences. From the ports’ point of view Ofcom’s record on spectrum band management has been woeful and we would support the MCA taking over management responsibilities, so long as it is adequately resourced and skilled. We have also suggested therefore that it would make sense for VHF maritime licences to be also managed at the MCA. We have in recent weeks been in close contact with the DfT and MCA and they have indicated that they may be in favour of this the issue of resourcing under their current budgets remains a concern.