1.1 The Radiocommunications Agency (the Agency) - an Executive Agency of the Department of Trade and Industry (the Department) - are responsible for most civil radio matters in the United Kingdom and in particular regulating the use of the civil radio spectrum.
1.2 Radio waves become useless if transmissions by one user cause an unacceptable degree of interference to use by another. This potential for interference, together with users’ need for a stable planning framework and the Government's desire to meet the increasing demands of those wanting to use the radio spectrum, which is a limited resource, gives rise to the need to manage and regulate spectrum use. Control allows this resource to be managed in ways that are intended to maximise economic benefit. The Agency therefore have the following regulatory and enforcement roles:
■ | They regulate use through issuing licences to approved users. |
■ | As part of their enforcement role the Agency monitor the use of the radio spectrum to confirm users are licensed and that licence conditions are complied with. |
■ | The Agency also investigate reports of interference to radio services. Priority is given to interference which might endanger public safety (such as interference to communication between the emergency services or aircraft landing systems). |
1.3 In this part of the report we examine the reasons for the Agency entering into a partnership with CMG (UK) Ltd (CMG) for the supply of the Agency's information technology (IT) services and to build on the Agency's international reputation by providing consultancy services and selling software and IT systems to overseas administrations.
1.4 At the time when the Agency conceived the project, most departments and agencies that sought private sector support for IT services did so through two general approaches. One was outsourcing, where responsibility for the provision of services was transferred to a private sector company, which included transferring staff to the supplier; the other was contracting in services from a chosen supplier. The Agency decided that neither approach satisfied their objectives of obtaining their IT services more economically and retaining some control over the delivery of the services. The Agency, considering that the attainment of both objectives required the retention of an in-house IT services capability, took the view that partnership with the private sector was the best solution. The innovative characteristic of the Agency's approach was to base the partnership on a joint venture company, Radio Spectrum International, jointly owned by the Secretary of State for Trade and Industry and CMG. Ownership of the company had to rest with the Secretary of State because the Agency do not have the legal right to own shares.