Extract from the H M Treasury Pre-Budget Report, November 2000:
Making the most of the radio spectrum
3.80 The radio spectrum is an essential raw material for many of the UK's
most promising industries of the future. But the amount of spectrum available
is finite and ensuring that it is used efficiently is essential if the growth of
these industries is not to be impeded.
3.81 The Government has taken steps in recent years to improve the UK's
spectrum management regime to provide that spectrum users face the right
incentives to use it efficiently. It has introduced administrative pricing and
auctions as spectrum management tools.
3.82 The auction of spectrum for third generation mobile services earlier this
year demonstrated the importance of spectrum to commercial operators. It
also demonstrated that auctions are a very effective way of ensuring that
spectrum is assigned to those who value it most.
3.83 The next decade will see significant growth and innovation in wireless
communications. The UK has been successful in making spectrum available
for new services but it is essential that the framework for spectrum
management keeps up with the pace of change if the UK is to remain at the
forefront of the information revolution. To help it move forward in this area, the
Government will commission an independent review of spectrum
management, to report to the Chancellor and to the Secretary of State for
Trade and Industry. The review will advise Government on the principles
which should govern spectrum management and what more needs to be done
to ensure that all users, including non-commercial users, are focused on using
their spectrum in the most efficient way possible. In doing so, it will consider
the use of spectrum management tools such as spectrum valuation, pricing
and trading.