Buying assets in rain, snow and sunshine

The air traffic control revolution will be televised.

Remember Enron? Back in the late 1990s, a few short years before it filed what was then the largest bankruptcy case in US history, the energy behemoth began trading in weather derivatives. In the same way that it made millions manipulating the electricity market in California, Enron wanted to develop complex financial instruments to hedge against adverse or unexpected weather conditions.

The fact that the underlying asset (rain, snow, temperature) had no obvious value that could be used to price the derivative was problematic, but by the time Enron imploded in a wave of accounting scandals, its Enron Weather subsidiary was turning a profit. The message was clear: big business was no longer trading in tangible commodities such as natural gas alone; in the future, everything, the abstract, the ethereal – even the elements themselves – could potentially be bought and sold.

Fast forward a decade and the UK’s communications regulator Ofcom has just produced £2.34bn out of thin air, so to speak, by auctioning off the new 4G mobile spectrum. From 2014, smartphone and tablet computer users can look forward to download speeds up to 100Mbps, five to ten times quicker than current 3G networks.

But while politicians continue to lock horns over a reported Treasury shortfall of £1bn from the auction and tech-heads debate the potential merits and pitfalls of broadband’s brave new world, a critical upgrade project undertaken by NATS, the UK’s leading supplier of air traffic control (ATC) services, has quietly slipped under the radar.

The organisation has become the first operator to future-proof its ATC systems against potential interference from 4G telecommunications masts.

“The impact of the 4G network on safety is fundamental in that we wouldn’t necessarily be able to detect all aircraft in our airspace,” says Graeme Henderson, NATS’ general manager for engineering policy and design.

NATS has solved the problem by upgrading its existing radars with filters that suppress the electrical waves generated by the 4G frequencies, and is offering support and engineering expertise to other ATC operators.

With aviation passenger numbers in Europe forecast to almost quadruple by 2030, competition between commercial and government-sponsored entities for the UK’s already overcrowded airwaves is set to become even more intense, as are calls to overhaul the nation’s aging radar system, which is struggling to deal with interference from 21st-century phenomena such as onshore wind turbines.

One radical solution is multi-static primary surveillance radar, which works by using existing TV aerials around the UK. Each transmitter will receive the identical TV signal but at a slightly different time due to interactions with nearby air traffic. The received signals are then compared to the original broadcast, and the difference is used to pinpoint the position of the aircraft.

The EU is already looking to release more spectrum for next-generation 5G mobile services by 2020; multi-static primary surveillance technology would free up that space, meaning the UK Government could sell off bandwidth currently used by airports.

Radar systems, like everything else in the commercial aviation industry, rarely remain static for long.

Read the full feature here:  http://www.airport-technology.com/features/featuremobile-spectrum-nats-radar-uk-air-traffic-control/

Photograph: Getty Images

Julian Turner works for NRIdigital, part of Progressive Media.

Dan Kitwood/Getty
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How can London’s mothers escape the poverty trap?

Despite its booming jobs market, London’s poverty rate is high. What can be done about it?

Why are mothers in London less likely to work than their counterparts across the country, and how can we ensure that having more parents in jobs brings the capital’s high child poverty rates down?

The answers to these two questions, examined in a new CPAG report on parental employment in the capital, may become increasingly nationally significant as policymakers look to ensure jobs growth doesn’t stall and that a job becomes a more much reliable route out of poverty than it is currently – 64 per cent of poor children live in working families.

The choice any parent makes when balancing work and family life is deeply personal.  It’s a choice driven by a wide range of factors but principally by what parents, with their unique viewpoint, regard as best for their families. The man in Whitehall doesn’t know best.

But the personal is also political. Every one of these personal choices is shaped, limited or encouraged by an external context.   Are there suitable jobs out there? Is there childcare available that is affordable and will work for their child(ren)? And what will be the financial gains from working?

In London, 40 per cent of mothers in couples are not working. In the rest of the country, the figure is much lower – 27 per cent. While employment rates amongst lone parents in London have significantly increased in recent years, the proportion of mothers in couples out of work remains stuck at about 12 percentage points higher than the rest of the UK.

The benefits system has played a part in increasing London’s lone parent employment rate. More and more lone parents are expected to seek work. In 2008, there was no obligation on single parents to start looking for work until their youngest child turned 16. Now they need to start looking when their youngest is five (the Welfare Reform and Work Bill would reduce this down to three). But the more stringent “conditionality” regime, while significant, doesn’t wholly explain the higher employment rate. For example, we know more lone parents with much younger children have also moved into jobs.  It also raises the question of what sacrifices families have had to make to meet the new conditionality.  

Mothers in couples in London, who are not mandated to work, have not entered work to the same level as lone parents. So, what is it about the context in London that makes it less likely for mothers in couples to work? Here are four reasons highlighted in our report for policymakers to consider:

1. The higher cost of working in London is likely to play a significant role in this. London parents are much less likely to be able to call on informal (cheaper or free) childcare from family and friends than other parts in the country: only one in nine children in London receives informal childcare compared to an average of one in three for England. And London childcare costs for under 5s dwarf those in the rest of the country, so for many parents support available through tax credits is inadequate.

2. Add to this high housing and transport costs, and parents are left facing a toxic combination of high costs that can mean they see less financial rewards from their work than parents in other parts of the country.

3. Effective employment support can enable parents to enter work, particularly those who might have taken a break from employment while raising children. But whilst workless lone parents and workless couples are be able to access statutory employment support, if you have a working partner, but don’t work yourself, or if you are working on a low wage and want to progress, there is no statutory support available.

4. The nature of the jobs market in London may also be locking mums out. The number of part time jobs in the capital is increasing, but these jobs don’t attract the same London premium as full time work.  That may be partly why London mums who work are more likely to work full time than working mums in other parts of the country. But this leaves London families facing even higher childcare costs.

Parental employment is a thorny issue. Parenting is a 24-hour job in itself which must be balanced with any additional employment and parents’ individual choices should be at the forefront of this debate. Policy must focus on creating the context that enables parents to make positive choices about employment. That means being able to access the right support to help with looking for work, creating a jobs market that works for families, and childcare options that support child development and enable parents to see financial gains from working.

When it comes to helping parents move into jobs they can raise a family on, getting it right for London, may also go a long way to getting it right for the rest of the country.