The transfer of the radiofrequency spectrum will now be approved by the Communications Authority (CA) as the State enhances the safety of communication channels and weed out cartels that have created a speculative black market for the assets.
Draft regulations published by the CA said any entity seeking to transfer a frequency permit would be required to make a formal application to the regulator on the condition that they have held the spectrum for a minimum period of two years.
“In the currently prevailing circumstances, frequency spectrum licenses are transferred from one entity to another in an unstructured manner. This is mainly experienced in frequency bands with high demand and low supply such as FM broadcasting bands and in spectrum bands required for use in deploying new technologies,” said the regulator.
“On many occasions, the authority is notified after the acquisition or transfer/lease has taken place. Here the acquiring entity may not be aware of their licence obligations or rights, thus the authority finds it challenging to enforce the frequency licence provisions on the new entity.”
Demand for FM radio frequencies has increased sharply as community groups and small commercial stations seek to serve the needs of consumers locked out by the national outlets.
The regulator said government ministries, departments, and agencies would not be eligible to transfer the spectrum since they have public obligations.
The CA said it would maintain a public register on its website of all frequency transfer deals including the identity of the transactors to enhance transparency.
Last year, the CA published guidelines that introduced a “use or lose it” policy on the use of frequency spectrum. This will see the regulator repossess unused spectrum which has been exploited by cartels to profiteer through deals cut in the black market to the detriment of prospective operators.
Audit firm Deloitte in 2012 urged the regulator to repossess idle spectrum within the custody of some broadcasters.
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