National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The...

24
National Autonomy in the use of spectrum in the UK – Part 4 Risk analysis Final report to Ofcom March 2004 Contributors: Chris Davis John Berry Charles Chambers Nick Kirkman Quotient Associates Limited ATDI Limited PO Box 716 15 Kingsland Court Comberton Three Bridges Road, Crawley Cambridge, CB3 7UW West Sussex, RH10 1HL E-mail: [email protected] E-mail: [email protected] Web: www.QuotientAssociates.com Web: www.atdi.co.uk

Transcript of National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The...

Page 1: National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The recent EU Radio Spectrum Decision (676/2002/EC) established a policy and legal framework

National Autonomy in the use of spectrum in the UK – Part 4

Risk analysis

Final report to Ofcom

March 2004

Contributors: Chris Davis John Berry Charles Chambers Nick Kirkman

Quotient Associates Limited ATDI LimitedPO Box 716 15 Kingsland CourtComberton Three Bridges Road, CrawleyCambridge, CB3 7UW West Sussex, RH10 1HL

E-mail: [email protected] E-mail: [email protected]: www.QuotientAssociates.com Web: www.atdi.co.uk

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National Autonomy – Risk analysis Contents

CONTENTS Page

1. Introduction .........................................................................................................11.1 Methodology ...........................................................................................11.2 Identifying potential changes ..................................................................21.3 On-going changes in spectrum management .........................................3

2. Risk assessment.................................................................................................52.1 Classification of total risk ........................................................................52.2 Summary of assessed risks ....................................................................6

3. Results and conclusions .....................................................................................83.1 The level of risk.......................................................................................83.2 Sources of risk ........................................................................................93.3 Conclusion ............................................................................................10

4. Annex A ............................................................................................................12

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National Autonomy – Risk analysis Introduction

1. INTRODUCTION

The overall objective of the National Autonomy study is to develop an understanding of the extent to which it would be feasible for the UK to make use of spectrum autonomously whilst still behaving responsibly towards its neighbours and meeting itsinternational treaty obligations. Part 1 of the project analysed several potential examples of autonomous1 use covering a range of frequency bands, applications andregulatory regimes.

The objective of Part 4 of the project, reported here, is to assess the risk that futureautonomous use of spectrum in the UK could be compromised by changes in theregulatory environment. Such changes could result from actions at the international level (ITU-R), the European level (EU, CEPT) or at the national level by the UK’sneighbours. Of course there would be other risks to autonomous use of spectrum suchas the availability of suitable equipment, the lack of a market for the service provided orobsolescence due the development of a superior technology, or it may turn out to beimpossible to reach a suitable agreement with the neighbouring administration or spectrum user. However, these risks would either be solved in advance of anassignment for autonomous use, or would be risks that the spectrum user would be expected to understand and accept. Therefore they are not considered here.

It should be noted that the examples of autonomous use (the scenarios) referred toin this report have been developed solely for the purposes of this study. They in noway reflect the views, plans or expectations of Ofcom and no inferences can bedrawn from their inclusion here.

1.1 Methodology

In assessing the overall risk that there might be to autonomous use of a particular piece of spectrum it is necessary to take account of both the probability of a changeoccurring and the impact that the change would have on the spectrum user. Ourapproach in assessing the overall risk is to:

��Identify changes to the regulatory environment that could occur and the likelihoodof occurrence;

1The study considers varying degrees of autonomy. These range from the use of non-standardised

technologies to the operation of services outside the ITU-R Frequency Allocation Table on a nointerference, no protection basis although the focus is on the lesser degrees of autonomy. The results from Part 1 are given in the report, National Autonomy in the use of spectrum in the UK – Part 1: Technicaloptions.

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National Autonomy – Risk analysis Introduction

��Assess the impact that the change would have on the spectrum user;

��For each change to assess the overall risk by multiplying the likelihood of occurrence by the impact on the user;

��Sum the scores for each change to obtain an overall measure of risk for eachscenario.

This analysis is summarised in Chapter 2 and detailed in Annex A. The result is anoverall risk “score” for each of the 13 scenarios developed and analysed in Part 1 of the project. The set of overall risk scores is then used to:

��Identify any correlations between risk and other attributes of autonomous use. Inparticular we look for correlation between risk and the degree of autonomyinvolved, the application or service, and the frequency concerned. The purpose is to identify what types of autonomy would be relatively low risk, and what typeswould be relatively high risk;

��Assess the overall level of risk to a programme of autonomous spectrumassignments. This assessment will be based on assumptions as to future events and will therefore be approximate. Nevertheless, it is expected to provide a usefulindicator of the risks associated with autonomous spectrum use.

For the purpose of this exercise, potential changes will be considered over a timeperiod of 10 to 15 years, this being the time span over which a piece of spectrum mightbe selected and assigned for autonomous use and give time for the associatedbusiness to make a return on its investment.

1.2 Identifying potential changes

Spectrum management practices have evolved considerably over the past decade, andsignificant further changes are planned or under active consideration both in the UK and by neighbouring administrations. These plans and debates are clearly useful indicators of potential future changes, and were therefore reviewed at the start of thiswork. A brief summary is given in the following section. In addition, the Study teamexamined:

��The agendas for WRC-07 and WRC-10;

��The programmes of work of the EU Radio Spectrum Policy Group and the Radio Spectrum Committee;

��EU research programmes (under the Information Society Technologiesprogramme);

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National Autonomy – Risk analysis Introduction

��Ofcom’s programme responding to the Independent Review of Radio Spectrum Management.

Potential changes of relevance to future autonomous use of the spectrum were then identified through a two step process.

��A Study team brainstorm was used to generate a range of potential changes covering all scenarios analysed in Part 1 of the project;

��A Workshop was held with the Ofcom project Steering Group to review the ideas already generated, to identify additional potential changes, and to assess thelikelihood of each change taking place.

1.3 On-going changes in spectrum management

1.3.1 The introduction of market mechanisms

Market mechanisms have already been introduced into spectrum assignment andlicensing through spectrum auctions and administrative incentive pricing, in the UK andelsewhere in Europe. A further development of the market approach, transferablespectrum rights, is currently being discussed with a view to its possible introduction. This has the potential to give rise to changes that could compromise autonomousspectrum usage within the UK.

Spectrum trading within a neighbouring country would permit a spectrum owner to sellhis spectrum, in whole or in part, to a third party. Depending upon the rights associatedwith the spectrum concerned, the new owner might deploy new technology or, potentially, a new application. Such a change could take place at short notice and lead to a change to the cross border environment in which the UK spectrum user had been operating. For example, a UK spectrum user operating on a no interference, noprotection basis could find their operations disrupted by higher levels of interference from across the border. Furthermore, sales of subsets of an assignment could result inspectrum fragmentation and require a UK-based spectrum user to co-ordinate in adifferent way with each new spectrum user in a neighbouring country, depending upontheir application or technology.

1.3.2 The Commons approach

In this approach anyone is permitted to make use of a particular band or bands ofspectrum. As with some of the current licence exempt assignments, rules on thetechnology or protocols to be used may be imposed in order to ensure reasonablyequitable sharing of the spectrum between users.

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National Autonomy – Risk analysis Introduction

Should this approach gain enough support, it is possible that further tranches of spectrum could be assigned for licence exempt use on a European or an internationalbasis. This has the potential to change the cross border environment although,typically, radiated powers would be low and cross border issues would be expected tobe minor. More importantly, and if widely adopted, the result could be the uncontrolledimport and use of equipment in a band used for an autonomous (but licensed)application in the UK with the clear potential to cause disruptive interference.

1.3.3 The European Union

The recent EU Radio Spectrum Decision (676/2002/EC) established a policy and legalframework in the EU for the co-ordination of radio spectrum policy approaches. In linewith this the Commission has established both the Radio Spectrum Policy Group andthe Radio Spectrum Committee. The remit of the Radio Spectrum Policy Group is to provide policy and strategic advice radio spectrum policy issues, on co-ordination ofpolicy approaches and on harmonised conditions with regard to the availability andefficient use of radio spectrum. The role of the Radio Spectrum Committee is torecommend and adopt technical measures necessary for the implementation of EU policies. Where appropriate these measures are to be developed in cooperation withthe CEPT.

Thus, it is likely that the EU will continue and indeed expand its activities in the area of spectrum harmonisation. Clearly, the identification of additional spectrum for harmonised applications (depending on the precise legal process adopted in each case) and the reassignment of existing harmonised bands at the end of the effectivelife of their current application has the potential to constrain the UK’s freedom to assignspectrum for autonomous use.

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National Autonomy – Risk analysis Risk assessment

2. RISK ASSESSMENT

The analysis of the potential changes, their likelihood and possible impact on the autonomous spectrum user are detailed in Annex A.

Each potential change was classified into one of four classes of likelihood, Veryunlikely, Small, Medium or High, with a corresponding score of 0 to 3 respectively.Similarly, the possible impact on the spectrum user was classified into one of fourclasses: None, Small, Medium or Large again with a corresponding score of 0 to 3 respectively. Each change could therefore contribute a “risk score” of between 0 and 9, with a score of 9 corresponding to a high likelihood of a change occurring that wouldhave a major negative impact on the spectrum user. The total risk score for eachscenario was determined by summing the risk scores for all the applicable changes.

We note that spectrum which is little used or for which there is no obvious near term demand is a potential candidate for a change of use nationally, internationally or on aEuropean basis. There is, therefore, a higher risk of a change within such bands.Where appropriate this general risk of change has been included in the riskassessment for the corresponding scenario.

2.1 Classification of total risk

The total risk scores range from two to twenty four. For the purposes of analysis it is helpful to group the scenarios into a smaller set of risk classifications. These werederived as follows.

��First, we consider the situation in which a band of spectrum has been identified assuitable for some autonomous usage but for which there is a high probability of afuture change with a large, negative impact. In this case, a potential spectrum user would likely consider investment in a business that relied on access to the band to be high risk. If there were two such potential high risk changes, autonomous use ofthe band would most probably be considered untenable. The first case correspondsto a risk score of 9 and the second to a score of 18.

��Secondly, we consider the situation in which there are a small number of potential changes but each has a low probability of occurrence and each would have a small impact on the autonomous user. In this case, the potential spectrum user would likely consider the risk acceptable. This would correspond to a risk score of aroundfour.

Taken together this suggests that the total risk scores be classified as follows.

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National Autonomy – Risk analysis Risk assessment

Score Classification

In excess of 14 Very high risk

9 or higher High risk

5 or higher Medium risk

4 or less Low risk

Table 2.1: Classification of the total risk scorefor each scenario.

2.2 Summary of assessed risks

Based on the above classification, the risk assessments detailed in Annex A aresummarised in the table below.

No. Scenario Total risk score

Riskclassification

1 Community sound broadcasting on HF Public Correspondence channels

3 Low

2 Local VHF sound broadcasting in the 66 to 87.5 MHz mobile band

4 Low

3 Digital wide band PMR with digital TV in Band III (200 MHz)

11 High

4 Unrestricted wide band PMR in the 450 - 470 MHz band with narrow band in France

2 Low

5 UTRA TDD in spare DVB-T channels (500 MHz) 11 High

6 Fixed wireless access in 900 MHz TETRA band 12 High

7 Re-farming of GSM spectrum to UTRA (900 MHz & 1800 MHz)

7 Medium

8 Terrestrial DAB local radio at 1800 MHz 18 Very high

9 Part of 1800 MHz band reallocated to fixed links 24 Very high

10 Portable Wireless DSL in the 2010 - 2020 MHz IMT-2000 band

17 Very high

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National Autonomy – Risk analysis Risk assessment

No. Scenario Total risk score

Riskclassification

11 Use of 2.7 - 2.9 GHz Aeronautical band for fixed links

3 Low

12 FWA spectrum used for OB links (3.5 GHz) 13 High

13 Disregard technical standards and channelplans for terrestrial fixed services at 32 GHz

8 Medium

Table 2.2: The total risks assessed for each scenario.

Note that scenarios 1, 9 and 11 in the above list are considered unlikely to be practical in the light of potential cross border interference problems2. They are included in thetable for completeness but will not be considered further.

2 See the report, National Autonomy in the use of spectrum in the UK – Part 1: Technical options.

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National Autonomy – Risk analysis Results and conclusions

3. RESULTS AND CONCLUSIONS

3.1 The level of risk

The number of scenarios that fall into each of the four different risk classifications isshown in Figure 3.1. Although the classifications are of necessity approximate, theresults show that:

��A useful proportion of the scenarios (40%) would be subject to a relatively small risk of disruptive future changes;

��However, the practicality of 60% of the scenarios could be called into doubt by thelikelihood that future changes could seriously disrupt any assignment toautonomous use.

0

1

2

3

4

Low Medium High Very high

Figure 3.1: The number of scenarios assessed at each of the fourdifferent levels of risk.

Figure 3.2 demonstrates the correspondence between the level of risk assessed foreach scenario and the degree of autonomy involved. This suggests a degree ofcorrelation between the two with the greater risk being associated with larger degrees of autonomy. The number of samples, however, is small and given the variety ofchanges that can contribute to the risk (as identified in Table 4.1) any correlation would be expected to be weak.

The results were also examined for correlation between the level of risk and the applications involved, and between the level of risk and the severity of thecorresponding cross border restrictions. No useful correlations were identified.

Overall, we conclude that future regulatory changes could have a significant negative impact on autonomous use of spectrum by the UK. The level of risk can vary from lowto very high and will need to be evaluated on a case by case basis.

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National Autonomy – Risk analysis Results and conclusions

UTRA/DVB-T (5)

Change of

technology /

relaxed stds

Change within

Region 1 FAT

Change outside

Region 1 FAT

FWA/TETRA (6)

OB/FWA (12)

T-DAB/GSM (8)

PMR/TV (3)

PMR/PMR (4)

UTRA/GSM (7)

FS stds (13)

PWDSL/UTRA (10)

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High

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UTRA/DVB-T (5)UTRA/DVB-T (5)

Change of

technology /

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Change outside

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FWA/TETRA (6)

OB/FWA (12)

FWA/TETRA (6)

OB/FWA (12)

T-DAB/GSM (8) T-DAB/GSM (8)

PMR/TV (3)PMR/TV (3)

PMR/PMR (4)PMR/PMR (4)

UTRA/GSM (7)

FS stds (13)

UTRA/GSM (7)

FS stds (13)

PWDSL/UTRA (10)PWDSL/UTRA (10)

Radio/PMR (2)Radio/PMR (2)

Very high

High

Medium

Low

Figure 3.2: The level of assessed risk (vertical axis) is shown foreach scenario as a function of the degree of autonomy

3. Each

scenario is identified by the technologies involved and the scenario number (corresponding to that given in Table 2.2).

3.2 Sources of risk

The risks considered here arise from the potential for future changes in the regulatoryenvironment to compromise the utility of autonomous spectrum assignments. Suchchanges may come about as a result of decisions at the international level (ITU-R), atthe European level (EU, ECC/CEPT), or at the national level by the UK’s neighbours.Figure 3.3 shows how the changes, identified in the analysis in the previous chapter(see Table 2.2), breakdown into the three levels. Both the number of potential changesand the contribution to the total risk score are given.

The results show that the number of changes and the consequential risk are most likely to arise from actions at the European level or at the national level by our neighbours.To minimise such risks to any autonomous assignments by the UK, it would be prudent to consider:

3 In line with Part 1 of the study the scenarios have been grouped into three levels of autonomy. The first

covers a change of technology or a relaxed adherence to technical standards whilst maintainingconformance to harmonised applications. The second encompasses a change of application or service in conformance with the ITU-R Frequency Allocation Table for Region 1. The third covers changes outsidethe Frequency Allocation Table and operation under Article 4.4 of the Radio Regulations.

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National Autonomy – Risk analysis Results and conclusions

��Seeking agreement to the change within the appropriate European bodies or withneighbours as appropriate;

��Registration of station assignments made under a primary or secondary allocationwith the ITU Radiocommunications Bureau.

ITU-REurope

Neighbours

No of changes

Risk score0

10

20

30

40

50

Figure 3.3: The number of potential changes to the regulatoryenvironment, and their cumulative contribution to the total risk score, broken down according to the presumed source ofchange.

3.3 Conclusion

The results from this part of the National Autonomy study show that there are risks toautonomous use of the spectrum that will arise from changes to the regulatoryenvironment at international, European and national levels. The level of risk for anyindividual autonomous assignment can vary from minor to very high, and a separate assessment will be necessary in each case. It is likely that the level of risk will requireserious consideration (high or very high in the classification used here) by the potential spectrum users in around 60% of cases. In addition, it should be noted that:

��The likelihood of a high level of risk may be less for autonomous use whichinvolves a change of technology or the relaxation of adherence to technical standards but maintains conformance to harmonised applications. Even here,however, high levels of risk are expected to arise in some cases;

��Spectrum which is either little used or where there will be a major future change(such as a step change of technology or wide spread closure of networks) is more likely to be subject to a change in its regulatory status. Consequently, autonomoususe of such spectrum is more likely to be at risk from such future changes.

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National Autonomy – Risk analysis Results and conclusions

There are opportunities to reduce the level of risk and the following are recommendedfor consideration:

��Preference should be given to spectrum which is already widely used in Europe for applications that are expected to remain stable for some years;

��Agreement to the intended change by the UK should be sought within theappropriate European bodies or with the UK’s neighbours wherever practical;

��Consideration should be given to the registration with the ITURadiocommunications Bureau of stations within an autonomous assignment wherethe use falls under a primary or secondary allocation.

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National Autonomy – Risk analysis Annex A

4. ANNEX A

The following table lists all the potential changes identified for each scenario and thepotential impact on the autonomous spectrum user. The right hand columns give theassessed risk score for each change and the total risk score for each scenario.

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Page 17: National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The recent EU Radio Spectrum Decision (676/2002/EC) established a policy and legal framework

National A

uto

nom

y –

Ris

k a

naly

sis

Annex A

No

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cen

ari

oR

eg

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mo

del

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Page 18: National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The recent EU Radio Spectrum Decision (676/2002/EC) established a policy and legal framework

National A

uto

nom

y –

Ris

k a

naly

sis

Annex A

No

.S

cen

ari

oR

eg

ula

tory

mo

del

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ks

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Page 19: National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The recent EU Radio Spectrum Decision (676/2002/EC) established a policy and legal framework

National A

uto

nom

y –

Ris

k a

naly

sis

Annex A

No

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cen

ari

oR

eg

ula

tory

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Page 20: National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The recent EU Radio Spectrum Decision (676/2002/EC) established a policy and legal framework

National A

uto

nom

y –

Ris

k a

naly

sis

Annex A

No

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cen

ari

oR

eg

ula

tory

mo

del

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Asso

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Page 21: National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The recent EU Radio Spectrum Decision (676/2002/EC) established a policy and legal framework

National A

uto

nom

y –

Ris

k a

naly

sis

Annex A

No

.S

cen

ari

oR

eg

ula

tory

mo

del

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ks

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Page 22: National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The recent EU Radio Spectrum Decision (676/2002/EC) established a policy and legal framework

National A

uto

nom

y –

Ris

k a

naly

sis

Annex A

No

.S

cen

ari

oR

eg

ula

tory

mo

del

Ris

ks

Pro

bab

ilit

yIm

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cati

on

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outs

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ris

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Page 23: National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The recent EU Radio Spectrum Decision (676/2002/EC) established a policy and legal framework

National A

uto

nom

y –

Ris

k a

naly

sis

Annex A

No

.S

cen

ari

oR

eg

ula

tory

mo

del

Ris

ks

Pro

bab

ilit

yIm

pli

cati

on

s f

or

the U

K

sp

ectr

um

user

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act

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en

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re

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EU

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he

r d

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navig

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ew

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ep

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Page 24: National Autonomy in the use of spectrum in the UK – Part ... · 1.3.3 The European Union The recent EU Radio Spectrum Decision (676/2002/EC) established a policy and legal framework

National A

uto

nom

y –

Ris

k a

naly

sis

Annex A

No

.S

cen

ari

oR

eg

ula

tory

mo

del

Ris

ks

Pro

bab

ilit

yIm

pli

cati

on

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or

the U

K

sp

ectr

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act

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it

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Tab

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Assessm

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to

f p

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nti

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for

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ab

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ion

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for

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ble

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fo

r n

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Asso

cia

tes L

td.