Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee and the Committee of the Regions - A market-based approach to spectrum management in the European Union
Date: 2005-09-14
Institutions: European Commission
Subjects: EU market, competition law, drafting of EU law, information society, information technology, market access, services contract, telecommunications, transmission network, waveband

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.9.2005 
COM(2005) 400 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT AND THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

A market-based approach to spectrum management in the European Union. 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT AND THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

A market-based approach to spectrum management in the European Union. 

(Text with EEA relevance) 

TABLE OF CONTENTS 

1. 

2. 

3. 

4. 

5. 

5.1. 

5.2. 

5.3. 

5.4. 

5.5. 

5.6. 

6. 

7. 

Summary ...................................................................................................................... 3 

Efficient use of spectrum – the need for change .......................................................... 4 

How will spectrum markets improve efficiency? ........................................................ 5 

The EU dimension of spectrum markets...................................................................... 6 

Key issues to consider for the introduction of European spectrum markets................ 7 

Agreement on objectives.............................................................................................. 7 

Spectrum bands ............................................................................................................ 7 

Transition issues........................................................................................................... 8 

Definition of spectrum rights ....................................................................................... 9 

Coordination of information ........................................................................................ 9 

Service and technology neutrality................................................................................ 9 

Next steps for establishing spectrum markets............................................................ 10 

Conclusions ................................................................................................................ 11 

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1. 

SUMMARY 

Modern society’s dependence on advanced electronic communications contributes to an ever-
increasing demand for radio frequencies. From mobile telephony to wireless internet access to 
TV broadcasting, spectrum is an essential part of our daily lives. The traditional approach to 
solving competing demands for frequencies is based on planning who has the right to use the 
spectrum and how, trying to facilitate a broad range of policy objectives.  

Today,  the  rapid  development  of  technology  and  the  convergence  of  telecommunications, 
media content and electronic devices are creating a dynamic environment where spectrum is 
becoming  an  ever  more  important  resource.  Spectrum  management  has  not  kept  pace  with 
these  developments,  giving  rise  to  an  increasing  risk  that,  without  change,  the  traditional 
approach  will  prevent  society  from  reaping  the  benefits  of  this  new  dynamic  environment. 
From having led the world in the development of mobile communications, Europe is now at 
risk  of  turning  into  a  user  of  technology  developed  elsewhere,  rather  than  being  an 
innovator. For this reason, Member States are reviewing their spectrum policy. One response 
is  to  use  a  market-based  model  allowing  more  freedom  to  market  players  to  decide  how 
spectrum should be used, and lowering the barriers for access to spectrum rights by making 
possible the trading of the rights.  

There is also a risk that the mismatch between regulation and market dynamism in converged 
wireless communication services will prevent efficient use of spectrum and thereby hinder the 
achievement  of  EU  policy  objectives  such  as  the  development  of  the  internal  market, 
competition,  innovation  and  growth.  A  fragmented  approach  to  spectrum  reform  will 
make it more difficult to reach these objectives. It is against this background, and following 
a  wide  public  debate  and  consultation,  that  the  Commission  proposes  the  coordinated 
introduction of spectrum markets across the EU.  

This proposal is an enabler for growth and jobs and a concrete application of the aims of the 
revised Lisbon agenda. It is also part of a strategy for an efficient spectrum management as 
envisaged  in  the  i2010  initiative,  anchored  in  a  vision  of  a  common  and  coordinated 
removal of restrictions on spectrum use in all Member States in order to promote an open 
and  competitive  digital  economy.  Europe’s  citizens  should  directly  benefit  through  faster 
access to new technology and lower prices for communications. 

Substantial  amounts  of  spectrum,  including  for  instance  roughly  one  third  of  the 
spectrum below 3 GHz (the spectrum best suited for terrestrial communications), could 
possibly be made subject to tradability and flexible use by 2010. This Communication sets 
a framework for a dynamic and responsive use of spectrum. 

Next to the market-based approach to spectrum, the traditional model will continue to have a 
role  to  play  where  important  public  interests  are  at  stake  (e.  g  defence  and  aviation,  or 
research services such as radio astronomy and earth observation satellites). Another approach 
is  the  unlicensed  model,  which  provides  additional  flexibility  by  allowing  for  free  access 
under  some  technical  limitations.  Each  management  model  is  a  useful  tool,  and  developing 
the right mix between them will be important for achieving EU policy objectives1.  

1 

The  Communication  COM(2005)  411:  “A  forward-looking  Radio  Spectrum  Policy  for  the  European 
Union: 2nd annual report” presents the Commissions overall approach to this subject. 

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To start this process in a coordinated manner in the EU, the Commission proposes to establish 
spectrum markets and seeks agreement at political level for the following objectives: 

In the period up to 2010, to put into practice at EU level: 

•  The right to trade individual rights to use frequencies in a selection of spectrum bands for 

terrestrial electronic communications services 

•  The right to use these frequencies in a flexible manner. 

The Commission intends to propose the regulatory measures necessary to realise this target in 
the  course  of  the  review  of  the  regulatory  framework  for  the  electronic  communication 
services, which will start in mid 2006. In parallel, in order to facilitate the early development 
of spectrum markets, the Commission will initiate a coordination process with the objective 
of avoiding delays and costly fragmentation to the detriment of the single market in the time 
leading up to an EU-wide solution.  

2. 

EFFICIENT USE OF SPECTRUM – THE NEED FOR CHANGE 

All  radio-based  devices  use  the  radio  spectrum to  transmit  or  receive  information,  and  with 
the growth of applications that use the spectrum this has led to an increasing demand that is 
difficult to serve within the current inflexible management regulations. Spectrum is perceived 
as  a  scarce  resource.  Spectrum  availability  is  critical,  not  only  for  mobile  telephony,  media 
distribution  and  wireless  internet  access,  but  for  many  other  applications,  e.g.  weather 
forecasting, astronomy, and air and maritime safety. It is also essential for services of critical 
public interest such as security and defence, as well as for everyday devices such as remote 
controls and hearing aids. The demand for radio spectrum has increased dramatically. 

The  traditional  model  of  spectrum  distribution  has  been  carried  out  on  the  basis  of 
assignment  of  individual  spectrum  rights  and  allocation  of  the  various  bands  to  defined 
service categories with avoidance of interference being the primary objective. The size of the 
spectrum slots and the usage conditions often limit users to specific technologies, for example 
GSM  for  some  of  the  “mobile”  bands  or  television  for  part  of  “broadcasting”  bands. 
Therefore,  individual  rights  implicitly  or  explicitly  prohibit  use  of  other  technologies  or 
provision of other services.  

This approach no longer seems appropriate for electronic communication services in a world 
of  accelerating  technical  development,  where  compartmentalisation  of  services  becomes 
increasingly difficult in the light of their convergence. Digitisation means that a technology 
can deliver a combination of communication services, such as TV, telephony and broadband 
access.  Furthermore,  technical  development  is  making  it  less  costly  to  enable  devices  to 
operate  at  various  frequencies.  The  traditional  model  is  not  agile  or  responsive  enough  to 
enable society to reap the benefits of these developments. This leads to missed opportunities 
in  terms  of  competitiveness,  industrial  development  and  jobs,  innovation  and  choice  of 
services for citizens. 

Today,  many  parts  of  the  spectrum  are  poorly  utilised.  The  low  frequency  parts  of  the 
spectrum continue to be occupied by older, less efficient technologies while new technologies 
can  only  get  access  to  higher  frequencies  with  limited  propagation  and  higher  roll-out 
costs. 

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Policy context 

In  the  European  Commission’s  view  the  efficiency  of  spectrum  management  can  be 
significantly improved. The Commission has highlighted reform of spectrum management as 
one of the strategic issues in the i2010 initiative launched in June 2005. It has also responded 
to this issue with a number of other initiatives, including a major study on spectrum trading2, 
public consultations, workshops and the facilitation of discussions at a high political level.  

In  November  2004,  and  following  a  request  by  the  Commission  for  advice,  the  Radio 
Spectrum  Policy  Group  (RSPG)3  in  its  Opinion  on  Radio  Spectrum  Trading  concluded  that 
“spectrum trading could be beneficial in certain parts of the spectrum, provided that sufficient 
safeguards are implemented” and “that there is a need for some commonality of approach to 
trading  among  Member  States.”  The  RSPG  also  noted  that  “it  could  be  beneficial  to  define 
these  (licensing)  conditions  of  use  as  broadly  as  possible,  with  a  view  to  ensuring 
technological neutrality and flexibility in future use of the spectrum”. 

A consultancy report4 submitted in September 2004 by the Dutch Presidency to the Council 
proposed ”to move to a new and flexible model of spectrum allocation: the EU urgently needs 
to  make  its  rigid  spectrum  allocation  model  flexible”.  The  Council  concluded  in  December 
2004 that one should “continue assessing different spectrum management models with a view 
to  a  more  flexible  and  efficient  use  of  spectrum  at  European  and  global  level,  taking  into 
account  the  development  of  new  and  innovative  technologies  as  well  as  the  methodologies 
which make use of market mechanisms.” 5  

3. 

HOW WILL SPECTRUM MARKETS IMPROVE EFFICIENCY? 

Allowing  markets  to  decide  the  utilisation  and  distribution  of  spectrum  for  converged 
communication  services  can  be  expected  to  substantially  improve  the  efficient  use  of 
spectrum  —  a  key  policy  objective 
the  regulatory  framework  for  electronic 
communications.  Efficient  use  is  also  central  to  other  EU  policy  objectives,  especially 
innovation and growth, and has an indirect impact on the functioning of the single market.  

in 

Gains 

Research  indicates  that  using  a  market-based  approach  would  have  significant  economic 
benefits  and  would  greatly  improve  citizens’  choice  and  access  to  new  technologies  and 
services at low prices. 

The study carried out for the Commission on spectrum trading estimated that for the EU and 
the EEA Member States the net gain resulting from the introduction of spectrum trading 
combined  with  flexible  usage  rights  would  amount  to  €8-9  billion  per  year.  Increased 
innovation  was  identified  as  the  strongest  factor  yielding  benefits,  followed  by  increased 
competition.  The  benefit  of  a  combination  of  tradability  and  flexibility  of  usage  was 

2 

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4 
5 

Study  “Conditions  and  options  in  introducing  secondary  trading  of  radio  spectrum  in  the  European 
Community”, 
http://europa.eu.int/information_society/policy/radio_spectrum/ref_info/studies/index_en.htm 
http://rspg.groups.eu.int 
“Rethinking the European ICT agenda: Ten ICT breakthroughs for reaching Lisbon goals” 
Council Resolution of 10.12.2004, see 15472/04 (presse 345) 

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estimated to be 10 times higher than if trading of spectrum without flexibility was adopted. 
Another  study6  claims  that  spectrum  reforms  in  the  US  would  give  consumers  an  annual 
welfare gain of as much as $77 billion as a result of lower prices for mobile voice services. 
Although these quantitative results should be viewed as indications of the order of magnitude 
only, they clearly point to the need for action at European level. 

A balanced approach 

Experience  from  the  implementation  of  the  various  approaches  to  managing  spectrum  will 
reveal the strengths and weaknesses of each of the alternative models and will help identify 
where  and  in  which  bands  each  one  is  best  applied.  There  is  now  a  need  to  assist  the 
development  of  spectrum  markets  in  the  EU  to  avoid  fragmentation  of  the  conditions 
governing these markets as they develop.  

4. 

THE EU DIMENSION OF SPECTRUM MARKETS 

The  radio  spectrum  is  managed  mainly  by  Member  States  at  the  national  level  and  in 
international coordination. Due to a growing awareness of the impact that individual decisions 
may have on Community policies, some regulatory measures for coordination and improved 
efficiency  have  already  been  put  into  place  at  EU  level7.  The  regulatory  framework8 
recognises market-based spectrum management as an option and allows for spectrum trading 
to be introduced by Member States subject to certain conditions9. 

Increasing  the  efficient  use  of  spectrum  has  also  been  the  primary  reason  why  a  number  of 
countries inside and outside the EU have either implemented market-based reforms or are in 
the early phase of the transition to such reforms10. 

A common way forward 

Harmonisation  of  spectrum  usage  at  EU  level  has  been  successfully  implemented  in  some 
spectrum  bands  to  ensure  the  rapid  implementation  of  new  technologies  and  to  reap  the 
benefits  of  economies  of  scale.  However,  most  frequencies  are  not  coordinated  at  EU  level 
and diverging Member State policies continue to limit the development of the internal market.  

Introducing spectrum markets in a coordinated fashion in the EU can reduce such problems 
and also enable de facto harmonisation of usage in a more efficient manner. The study for the 
Commission analysed the spill-over effect of divergent policies on the introduction of trading 
and  flexibility.  It  found  that  if  one  country  decided  not  to  reform  its  spectrum 
management  policy  by  adopting  such  measures,  this  would  create  costs  for  others,  but 
when  one  country  decided  to  join  the  reform  project,  this  would  yield  an  additional 
benefit to the others. 60-70% of the benefits would be attributable to national reforms, while 
30-40%  would  accrue  as  a  result  of  making  the  transition  in  all  the  EU  countries.  The 

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costs 

economic 

spectrum  misallocation”, 
of 
“The 
http://cadep.ufm.edu.gt/telecom/ingles/interior.asp?menu=lecturas 
Radio Spectrum Decision 676/2002/EC 
Framework Directive 2002/21/EC, Authorisation Directive 2002/20/EC 
Regulation  of  radio  spectrum  is  also  an  important  means  contributing  to  the  internal  market  in 
equipment in conjunction with the RTTE Directive, 1999/5/EC 
Within the EU, these are DK, IT, NL, HU, AT, PT, SK, SI, SE and UK. 

Ellig,  May 

2005, 

Jerry 

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qualitative reasoning underlying these calculation models assumes the same type of spill-over 
effect that the EU has experienced with the internal market.  

Introducing  spectrum  tradability  at  EU  level  would  bring  about  the  conditions  for  seamless 
cross-border services on the basis of rules applied throughout the Community and create one 
of the world’s largest markets  in  spectrum-supported services. It  would rapidly improve the 
competitive position of the EU and deliver a strong impetus to innovation.  

5. 

KEY  ISSUES  TO  CONSIDER  FOR  THE  INTRODUCTION  OF  EUROPEAN  SPECTRUM 
MARKETS 

There  are  certain  challenges  that  need  to  be  addressed  when  introducing  spectrum  markets 
and these can only be tackled on the basis of an EU-wide agreement on the policy objectives 
and by focusing on some key implementation aspects.  

5.1. 

Agreement on objectives 

Political agreement should target the establishment of functioning spectrum markets by 
2010,  with  substantial  parts  of  the  spectrum  tradable  and  subject  to  flexible  use.  This 
would allow all players concerned to prepare for the new spectrum management environment 
and ensure a smooth transition for markets for services relying on spectrum usage. 

5.2. 

Spectrum bands  

In  order  to  achieve  the  objective  referred  to  above,  tradability  would  have  to  cover  a 
substantial  part  of  the  spectrum.  A  step-by-step  approach  focusing  on  a  few  “test-bands” 
cannot provide increased competition and innovation. Offering only limited tradable spectrum 
would  entail  the  risk  of  anti-competitive  hoarding  behaviour  and  would  limit  the  ability  to 
learn from experience.  

Spectrum  used  for  public  interest  purposes,  such  as  defence  and  scientific  services,  or 
managed at the global level, such as aviation and satellites, is not part of this proposal.  

It  is  generally  accepted,  and  supported  by  studies  and  public  consultations,  that  spectrum 
bands  used  for  terrestrial  electronic  communications  services  are  best  placed  to  deliver  the 
benefits that would be made possible by markets. These bands also largely correspond to the 
initial  bands  selected  by  some  of  the  Member  States  in  their  national  approach  to  spectrum 
markets11, and are the focus of RSPG work on a strategic approach to convergence.  

The  Commission  proposes  the  introduction  of  markets  for  frequencies  currently  used  for 
the  purposes  listed  below,  in  order  to  ensure  efficient  coordination  leading  up  to  tangible 
results at Community level, for example:  

•  terrestrial mobile communication services, including e.g. frequencies for public 
mobile  services,  such  as  GSM  and  3G,  and  frequencies  used  for  closed  user 
groups such as PMR and PAMR;  

11 

The Commission is aware that some Member States also plan to make other bands subject to a market 
based approach. 

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•  terrestrial fixed wireless communication services, including e.g. frequencies for 

Wireless Local Loop, Broadband Wireless Access and microwave links;  

•  terrestrial  TV  and  radio  broadcast  services,  including  e.g.  frequencies  for 

local, regional and national broadcasting. 

The  choice  of  the  actual  bands  will  have  to  be  validated  in  the  coordination  process  and 
specific legislative proposals would need to be based on impact assessments. In this context, 
the costs for small economic operators should be taken thoroughly into account. 

Bands as listed can be expected to function on a market basis within a short time. They are 
often  already  assigned  as  individual  rights  to  use  specified  “frequency  blocks”  in  specified 
geographic areas and right-holders are also often responsible for their own network planning 
and  have  experience  with  technology  upgrades  and  interaction  with  markets.  The 
reassignment of the spectrum released through the digital dividend will give a further boost to 
the efficient use of these bands (although it may be decided to manage part of the dividend 
through other models)12.  

While the special nature of public service broadcasting has to be taken into account, it should 
be recognised that the possibility for spectrum users to trade and use the frequencies in a more 
flexible  way  are  options  and  not  obligations.  It  may  also  be  necessary  to  reassess  the 
assumption that broadcasting  as  a  public  interest  automatically requires  terrestrial spectrum, 
since  coverage  obligations  increasingly  can  be  fulfilled  by  means  other  than  terrestrial 
wireless transmission, given the growing reality of convergence and multiple platforms. This 
does not contradict the objective to safeguard the delivery of public service broadcasting, nor 
the continuing validity of other public policy objectives. 

The envisaged scope of tradable bands would minimize the risk of hoarding of spectrum, as 
operators would not have the resources or the incentive to establish a dominant position. To 
the  extent  that  competition  problems  would  arise,  competition  law  provides  in  principle 
adequate  and  sufficient  remedies.  In  case  the  barriers  to  entry  to  a  market  are  the  result  of 
unnecessary  restrictions  and  limitations  attached  to  rights  of  spectrum  use,  the  appropriate 
remedy is to lift the restrictions concerned. 

5.3. 

Transition issues 

The  introduction  of  spectrum  markets  is  expected  to  impact  the  value  of  existing  licenses, 
whether  tradable  or  not,  as  well  as  on  related  investments.  Such  an  impact  might  affect 
different right-holders in different ways. In any case, that impact will reflect the existing and 
future licensing conditions as well as the level of competition across the Community.  

When  handling  the  transition  to  a  market-based  approach,  Member  States  should  take  the 
legitimate interests of right-holders  into  account,  while  at  the  same  time  ensuring  the 
compatibility  with  competition  law  requirements  and  general  Community  law  principles.  In 
order  to  avoid  penalising  existing  right-holders,  it  may  be  necessary,  for  example,  to  give 
them increased freedom in exercising their rights and to remove unjustified restrictions to the 
usage of those rights. This should be done in a gradual and non-discriminatory manner, while 
the market value for spectrum rights develops. 

12 

See Communication on Accelerating the Transition from Analogue to Digital Terrestrial Broadcasting, 
COM(2005) 204 and related staff working paper SEC(2005) 661, p.10 

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5.4. 

Definition of spectrum rights 

Certain aspects of tradable rights would need to be approximated, such as the common format 
(the document or “title”), and eventually the material rules that define the freedom of users to 
utilise  and  trade  their  rights.  This  would  reduce  transaction  costs,  enhance  market 
transparency and increase legal certainty throughout the EU. It would also simplify change of 
ownership  and  encourage  efficient  usage,  thereby  facilitating  large-scale  innovation  and 
economies of scale.  

5.5. 

Coordination of information 

It  is  essential  for  the  functioning  of  spectrum  markets  that  reliable  information  is  easily 
available.  Today,  such  information  is  held  in  national  databases  using  different  formats.  It 
should in future be presented in a coordinated way to facilitate comparison of spectrum rights 
and  enable  buyers  to  find  potential  sellers  throughout  the  EU.  It  is  therefore  necessary  to 
develop  an  EU-wide  one-stop  portal  with  access  to  information  on  allocation,  on  assigned 
spectrum  rights  (national  registries),  on  availability  of  tradable  spectrum  that  remains 
unassigned  or  will  become  tradable  at  a  foreseeable  point  in  time,  as  well  as  on  relevant 
national  regulation  and  legislation.  This  can  be  facilitated  by  building  on  or  expanding 
existing  structures,  such  as  the  EFIS  database  within  the  European  Radiocommunications 
Office. 

5.6. 

Service and technology neutrality 

Since technology and service restrictions are increasingly incompatible with convergence, it is 
important to address how tradable rights can be combined with flexibility, i.e. the right of a 
spectrum holder to use it for any service as long as the technical requirements are fulfilled. 

Technology  neutrality  is  a  principle  anchored  in  the  present  regulatory  framework  at  EU 
level and should be defined when applied to spectrum so as to minimise the constraints, while 
ensuring  that  interference  is  appropriately  dealt  with.  However,  it  must  be  realised  that  in 
certain cases the necessary interference management imposes constraints that in practice are 
more beneficial for one technology than for another. Service neutrality means that the choice 
of  service  offered  via  spectrum  usage  rights  is  made  by  the  rights  holder.  Constraining  the 
services for which the spectrum can be used is generally not justifiable from the standpoint of 
technical spectrum management. There are nevertheless broad categories defined at ITU level 
through the Radio Regulations, where rules on the avoidance of cross-border interference are 
imposed.  In  the  field  of  terrestrial  electronic  communications,  these  categorisations  are 
rapidly becoming obsolete.  

There may be cases where the benefits of limiting services can be demonstrated and justified 
(e.g. achieving interoperability of services), and there are examples where such an approach 
has been very successful in developing service markets and satisfying consumer demands. It 
is  therefore  necessary  to  specify  the  criteria  for  establishing  exceptions  where  service 
constraints  can  be  justified  when  assigning  spectrum  usage  rights  and  to  adopt  service 
neutrality as the rule otherwise.  

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6. 

NEXT STEPS FOR ESTABLISHING SPECTRUM MARKETS 

The primary aim of this Communication is to seek political agreement at EU level on the 
broad objective of establishing spectrum markets by 2010.  

To  achieve  this,  the  Commission  intends  to  develop  the  following  key  features  in  an  EU 
approach to spectrum trading: 

Tradability 

•  the right to trade individual rights to use frequencies in a defined set of spectrum 

bands for electronic communication services 

•  the definition of a process for including bands in tradability 

•  the development of an initial selection of bands 

Technology neutrality 

•  defining  technology  neutrality,  establishing  the  least  restrictive  limitations 

possible  

Service neutrality 

•  definition  of  the  specific  conditions  of  service  provision  that  may  in  future  be 

associated with the usage of bands  

Spectrum rights 

•  approximation of spectrum rights; a common format to be followed by common 
definitions  of  various  material  aspects  of  the  rights  that  define  the  freedom  of 
users to utilise and trade their rights  

Transparency 

•  access  to  information  necessary  for  spectrum  markets,  including  information  on 
allocation  and  assigned  spectrum  rights  (national  registries),  provided  in  a 
harmonised manner via an EU-wide one-stop portal 

In  particular,  measures  related  to  tradability,  technological  neutrality  and  service  neutrality 
will be included in the review of the regulatory framework starting mid-2006. The legislative 
process has to be accompanied by impact assessments and an  active dialogue with Member 
States,  as  well  as  a  coordination  process  that  can  also  cover  the  issues  not  included  in  the 
framework review. This would allow the practical implementation of trading to be developed 
while  avoiding  costly  delays  and  fragmentation  in  the  short  term.  Where  necessary,  the 
Commission may also issue recommendations. Coordination groups should be established as 
soon  as  possible  to  work  on  the  key  aspects  identified.  The  coordination  and  legislative 
processes should inform and reinforce each other. 

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The process outlined above would be systematically accompanied by public consultations on 
specific proposals. The Commission intends to report on the progress achieved in its annual 
spectrum policy report. 

7. 

CONCLUSIONS 

Reforming  spectrum  management  in  the  EU  to  introduce  a  market-based  approach  to 
spectrum  distribution  constitutes  a  major  challenge.  But  it  is  worth  accepting  since  an 
effective introduction of spectrum markets would be: 

•  beneficial  in  terms  of  the  gains  to  Europe  in  competitiveness,  in  innovation 
potential  and  in  strengthening  the  internal  market  as  well  as  in  increasing  the 
variety of services offered to the consumer, along with the positive effects on the 
creation of jobs and external trade; 

•  timely  and  necessary  because  spectrum  management  as  practiced  so  far  has 
reached  its  limits  due  to  technological  progress,  increasing  demand  on  spectrum 
resources and the speed of changing business cases and markets; 

•  feasible in the proposed time frame.  

The Commission invites the European Parliament and the Council of Ministers to endorse the 
approach outlined in this Communication. 

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