Minister Explains Frequency Spectrum Policy

The Minister of Education and Economic Development, Dr. Grant Gibbons today [Sept 21] released a Policy statement on the allocation, use and pricing of certain portions of Bermuda’s radio frequency spectrum.

The Policy sets out the manner in which the Regulatory Authority will allocate frequency bands to wireless telecommunications service providers, such as the cell phone companies.

A spokesperson said, “The purpose of the Policy is to ensure the most efficient use of the available spectrum and to ensure that incumbent service providers, as well as potential new entrants, have fair access to that spectrum.

“The Policy also promotes optimal use of the radio spectrum, as well as creating additional benefits for the consumer. These benefits include, encouraging greater competition amongst the service providers to further enhance the speed and reliability of their networks and ensure that as new and more sophisticated mobile devices are produced, they become readily available to the Bermuda market.

“The Policy includes a new range of frequencies that will be made available for mobile services. This range in the 700 MHz band has been previously used for broadcast TV services; but with the recent transition from analog TV to digital TV, this particular band is no longer required for TV broadcasting.

“This transition has been called the “digital dividend”, in that it has allowed Regulators to increase the amount of spectrum available to the ever expanding mobile telecommunications sector. The availability of this particular frequency range for mobile broadband services has an added public benefit.

“Since these frequencies are at the lower end of the spectrum, they can cover a wider geographic area and provide better signal strength inside buildings.

“The radio frequency spectrum is considered by most countries to be a natural resource, which the Policy Statement recognizes by proposing the introduction of an annual fee for the use of certain desirable, or “high demand,” frequencies.

“The Electronic Communications Act requires the Minister and the Regulatory Authority to manage Bermuda’s radio spectrum in an economically and technically efficient manner.

“The Policy therefore includes a structured pricing mechanism to incentivise the efficient use of that spectrum by the service providers. It is not anticipated that this new fee will be passed on to their customers for existing services.”

Minister Gibbons stated, “It is important for Bermuda to have clear policies for the management and allocation of spectrum and clear guidelines as to the procedure to be followed by the Regulatory Authority in assigning spectrum.

“Bermuda’s system of planning for, and managing, radio frequency spectrum must fully utilise the benefits of this natural resource.

“We must ensure that we provide an environment which fosters development of new spectrum based services and applications – and which promotes innovation and competition that leads to economic growth.

“I would like to thank the Regulatory Authority for their invaluable assistance and cooperation in developing this Policy Statement and for drafting the Consultation document that was used to solicit the views of the industry.

Minister Gibbons added, “I would also like to thank those service providers who participated in the consultation process and provided their technical and commercial input.”

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