1 The Radiocommunications Agency (the Agency) are an Executive Agency of the Department of Trade and Industry (the Department). They regulate the use of the civil radio spectrum in the United Kingdom (Figure A overleaf). Their work includes licensing the use of the radio spectrum, assigning frequencies over which users can transmit signals, monitoring use of the spectrum to confirm that there is no unauthorised use and investigating interference detected by their monitoring activities or in response to complaints from users.
2 In June 1998 the Agency entered into a partnership with CMG (UK) Ltd, the UK subsidiary of CMG plc, a leading European information technology (IT) services group, referred to in this report as CMG. The two parties established a joint venture company, Radio Spectrum International, owned 30 per cent by the Secretary of State for Trade and Industry, on behalf of the Agency because the Agency do not have the legal right to own shares, and 70 per cent by CMG. Radio Spectrum International provide the Agency with IT services and exploit commercially the Agency's skills by selling consultancy services and IT systems to overseas administrations.