Yesterday Ofcom published its statement on spectrum liberalisation. Here is what you need to know:

* First, what is liberalisation? Many of our friends might be confused by this term at first glance. ‘Liberalisation’ historically meant (in the EC context) the introduction of competition into a monopolistic sector, but the term is being used in a different manner by Ofcom in this case. Basically, it means permitting existing licensees of radio spectrum to use their assigned spectrum in a more flexible manner. I would imagine the more common types of flexible uses would be to change transmission protocols, increase transmitting power, etc. Very technical changes. This is not a terribly new concept. The FCC has permitted licensee-flexibility in most of its commercial frequency (non-broadcast) bands for at least ten years now.

* Who benefits from the statement? Just a few classes of licensees benefit from Ofcom�s initial statement: Business Radio (BR), Fixed Wireless Access (FWA) and Fixed Links (FL) classes of licensees. And the benefits aren�t really that radical. Starting now, license-holders in these classes will be permitted to apply for individual modifications to their licenses. One would have thought that would have always been the case. Anyway, details are of this �variance� process are here.

* What comes next? Ofcom say that they intend to introduce more sweeping liberalisation (on a group rather than individual basis) later this year when they have finished producing a technical planning programme called MASTS (�mobile assignments technical system�) which will supposedly permit the regulator to undertake better technical reviews on spectrum-related matters.

* Interested in new spectrum and what�s going on with 2G / 3G mobile services? Try clicking here. Ofcom�s related Spectrum Framework Review: Implementation Plan covers more of what�s happening with these highly-valuable radio spectrum bands.

* What�s the bigger picture? Ofcom is moving in the right direction. The regulator is taking steps to shed the regulator�s traditional �command and control� regulation of a licensee�s use of its radio spectrum assignment. My take on the situation is that Ofcom want this liberalisation process to move more slowly (in a managed fashion) and also want to make sure the right structures and procedures are in place before trying this out on frequency bands that more directly affect the general public (mobile telephony).

* What�s the even-bigger picture? Think of UK spectrum regulation as having three components: (i) liberalisation; (ii) trading; and (iii) pricing. Pages 4-6 of Ofcom�s statement (particularly the chart on page 6) really provide the key details of how these components relate, and what Ofcom have done and intend to do in the future.

Stay tuned, folks�