1.18 The Agency did not have the resources available to meet the demands for assistance from other countries. They considered that the capacity to respond to such enquiries could not only generate income but also deliver wider benefits by enabling the Agency to further their objective of enhancing their reputation internationally. It could also potentially open up wider markets for United Kingdom goods and services.
1.19 In 1994 the Agency commissioned Quotient Communications Ltd, a consultancy firm operating in the mobile, cellular and fixed communications markets, to carry out a feasibility study of the possibility of the Agency offering their specialised skills and services on a fee-paying basis. Quotient identified three categories of potential candidates:
■ administrations of the newly emerging Eastern and Central European countries;
■ administrations in developing nations; and
■ United Kingdom dependent territories.
1.20 Quotient concluded, on the basis of a series of interviews and enquiries, that there were substantial demands for a service but that the administrations in need of assistance would often need external sources of funding. They concluded, however, that there was an opportunity for the Agency to provide services on a repayment basis from which the Agency might make a relatively small profit. Quotient recommended that the Agency first define their aims, balancing the prospects of achieving them against the business risks involved in such a venture.
1.21 Quotient had very limited terms of reference for their market survey, which did not extend, for example, to ways in which the Agency might market their skills. The Agency did not commission further research but as the project developed concluded from their contacts with other countries that the demand for global and local mobile telephone networks had increased. As a result they determined that there was a need for successful management of the radio spectrum and that countries could afford to meet the cost. More importantly the Agency perceived that spectrum managers could charge significant fees for some licences and could pay for consultancy work, and that this has become more pronounced since the auction of radio spectrum for use by mobile phone companies.