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Report: Charge on telecommunications activities utilising radio spectrum


Monday 13 May 2013
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The Board of the Commerce and Employment Department is seeking feedback on its proposal to introduce legislation to set a new charge on telecommunications activities which are made possible through the use of the Island's radio spectrum.

Consultation

Deputy Kevin Stewart, Minister, said:

"The States of Guernsey do not currently charge mobile network operators for the use of the Island's radio spectrum. The Board believes that radio spectrum is a limited resource belonging to all Islanders, and that, in recognition of this fact, it would be appropriate for the mobile network operators to make a financial contribution to the Island in this way."

Information received from the consultation process will assist the Board in making its final decision on this matter.

The closing date for responses is Monday 3 June, 17:00.

It is the intention of the Commerce and Employment Department Board that its policy on this matter will have been finalised and confirmed to all interested parties by the time the Channel Islands Competition and Regulatory Authorities (CICRA) resume the 4G consultation process.

The consultation paper can be found from the link below.

Report

Following careful analysis of the feedback received to the consultation, the Commerce and Employment Department Board has reached a decision on its policy for setting a charge on certain telecommunications activities utilising radio spectrum.

The Board has made the decision to introduce the charge, although at a lower rate than suggested in the consultation document. The charge will be calculated on the basis of an annual rate of 2% of mobile network operators' spectrum-related revenue, rather than 5% as initially suggested.

The activities subject to this charge are those provided by virtue of a Licence issued by the Guernsey Competition and Regulatory Authority (GCRA) for the provision of Licensed Mobile Telecommunications Services, as defined in the said Licence.

The Department's response to the consultation feedback contains further details on the scope of the charge - it can be downloaded using the link below.

The Department is now preparing a report to the States seeking approval for the necessary legislation in early 2014. Given the likely timeframe required to implement the legislation, the charge will only apply to Licensees' relevant revenue arising from (but not before) 1st January 2015, subject to the implementation of the necessary legislation.

The Department will confirm the charging arrangements with licensed operators in 2014, subject to States approval.

Contact Details:

Principal Assistant, Commerce & Employment Department, Tel. 01481 234 567






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