Licensing policies and criteria Supporting the Digital Dividend Wladimir Bocquet Senior Director Global Spectrum Policy GSM Association ITU Regional Initiative.

Licensing policies and criteriaSupporting the Digital Dividend

Wladimir BocquetSenior Director

Global Spectrum Policy GSM Association

ITU Regional Initiative for Europe on Digital BroadcastingITU Regional Initiative for Europe on Digital Broadcasting5-7 November 2012, Budapest, Hungary5-7 November 2012, Budapest, Hungary

About GSMA

Representing the interests of the worldwide mobile communications industry. Nearly 800 operator members covering over 200 countries.

More than 200 associate members from the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organization

www.gsma.com

Agenda

International regulatory framework of the Digital Dividend

Policy initiatives for the Analogue Switch-off and the Digital Dividend

Licensing framework for the Digital Dividend

Importance of the harmonisation

Summary

Agenda

International regulatory framework of the Digital Dividend

Policy initiatives for the Analogue Switch-off and the Digital Dividend

Licensing framework for the Digital Dividend

Importance of the harmonisation

Summary

Regulatory Framework - 790-862 MHz

Radio Regulation Region 1

790-862 MHzFIXEDBROADCASTINGMOBILE except aeronautical mobile 5.316B 5.317A

5.314 5.315 5.316 5.316A 5.319 5.312

The band 470-862 MHz is allocated to the broadcasting service on primary basisDigital Dividend

List of countries where the band 790 - 862 MHz is allocated to the mobile, except aeronautical mobile, service on a primary basis

List of countries where the band 645-862 MHz is also allocated to the aeronautical radionavigation service on a primary basis

Outcomes of WRC-12 - 790-862 MHzThe sharing issues in the 800 MHz band were successfully resolved

Compatibility between mobile and broadcasting servicesConsensus reached on the option associated to “no additional arrangements” (no change in the geographic area of the Geneva 2006 Agreement) to facilitate the deployment of Mobile Broadband

Compatibility between mobile and ARNS servicesWRC-12 agreed to keep the regulatory environment under 9.21 but reduce the distance of coordination, method based on signature of bilateral agreement to facilitate the introduction of Mobile service in the digital dividend when protecting ARNS in neighbouring country

Outcomes of the WRC-12 – 694-790 MHz Additional provision of Mobile Service after WRC-15

Footnote in the article 5 making a simple reference to a Resolution

No country footnote for an additional allocation, no change in the Table

decision in principle because the allocation is made but need to be enforced at the end of WRC-15

The lower frequency is to be refined and WRC-15 will have to confirm the decision

The technical and regulatory conditions for the allocation to be defined by WRC-15

WRC-12 decision on the Agenda dedicated to 694-790 MHz band

470-790 MHzBROADCASTING

5.149 5.291A 5.294 MOD 5.296 5.300 5.302 5.304 5.306 5.311A 5.312 ADD 5.3XX

Extension of Digital Dividend

Radio Regulation Region 1

The band 694-790 MHz is allocated to the mobile, except aeronautical mobile, service after WRC-15 subject to the provisions of Resolution COM5/10 (WRC-12). See also Resolution 224 (Rev.WRC-[12]).

Agenda

International regulatory framework of the Digital Dividend

Policy initiatives for the Analogue Switch-off and the Digital Dividend

Licensing framework for the Digital Dividend

Importance of the harmonisation

Summary

Policy initiatives for Analogue Switch-off and the Digital Dividend (1/4)

Global supportEnsure government-wide support for a digital economy led by TV and broadband by promoting benefits to

– Jobs– Education– Economic growth

Create Digital Task ForceCreate specialised cross-government structure to smooth path to Analogue Switch Off and the Digital Dividend, including industry where necessary

– Ministries: Communications, Finance, Environment and others– Regulators: Broadcast, Communications– Industry representation (broadcast and communications)– Specialised experts

Policy initiatives for Analogue Switch-off and the Digital Dividend (2/4)

Clearly Define Responsibility for Delivery of TargetsLay out clear guidelines for responsible bodies for each target and legislate the power to complete tasks where necessary

– Create robust structure for Digital Task Force– Ensure agencies have solid guidelines for delivery– Where multiple agencies exist, clearly define roles

Define Government’s Financial Stimulus Package and Role of IndustryConsult broadly in order to clearly define government and industry roles, considering

– Set top box subsidies– Network roll out costs– Universal service funding– Access to spectrum

Policy initiatives for Analogue Switch-off and the Digital Dividend (3/4)

Ensure Cohesion with International FrameworkClosely coordinate on a regional and global basis to ensure harmonisation is maximised

– Ensure ASO and Digital Dividend plans adhere to latest ITU agreements– Hold detailed coordination with neighbouring and regional countries– Move forward in coordination with ITU-R expertise

Carry out Detailed Planning for Analogue Switch OffSet realistic and strong target dates for 3 key phases and ensure coherent public communication strategy at each phase

– Introduction of DTTB– Simulcast period– ASO and Digital Dividend allocation

Policy initiatives for Analogue Switch-off and the Digital Dividend (4/4)

Invest in Comprehensive Communications Strategy to Maximise Public BenefitPublic awareness campaign to smooth transition should preferably

– Increase awareness of benefits of digitisation: more broadband, more TV channels– Encourage viewers to readily take up Digital TV– Carry out technical education campaign to ensure TV households stay switched on

Continue to use of Digital Task Force to maximise Broadband Roll-out and the Digital DividendEnsure long-term government commitment to digitisation and continuation of centralised infrastructure policies by ensuring Task Force works closely with

– Infrastructure ministry– Environmental agencies– Local government

Challenge and opportunity of the ASO

Legal and Political issuesLicensing, number and ownership of Multiplexes, Network Operators, Public TV services, commercial TVs, local TV Standards, Analogue Switch Off (ASO), etc.

Technical issuesStandards, compression system (MPEG2/MPEG4), Spectrum availability, network planning (MFN/SFN), coverage areas, end users equipment (Set-Top Box/D-TV), etc.

Economical related issuesIntroduction of new business model, transition costs, subsidizing vulnerable people, etc.

Allocation of Digital dividendDeployment of Mobile broadband Based on Regional and international harmonisation

Agenda

International regulatory framework of the Digital Dividend

Policy initiatives for the Analogue Switch-off and the Digital Dividend

Licensing framework for the Digital Dividend

Importance of the harmonisation

Summary

GSMA has recently published a report that takes an in-depth look at spectrum licensing best practices

http://www.gsma.com/spectrum/licensing-to-support-

the-mobile-broadband-revolution-report/

Licensing framework for the Digital DividendSupporting Mobile Broadband

Rapid growing take-up of mobile broadband applications

Data services has become the major source of traffic since 2010

Mobile data traffic expected to increase 18-fold between 2011 and 2016

Direct impact of the licensing framework on mobile broadband applications

Data Traffic Explosion Licensing for Mobile BB

Remove service and technology restrictions in existing mobile spectrum usage rights

– To enable operators to choose the mobile technology to be deployed – To issue new spectrum usage rights within the mobile bands should on a service and

technology neutral basis

subject to the use of technologies which can technically co-exist without intolerable interference

Be subject to the same terms and conditions when offering similar services

Ensure that current rights to use spectrum are clearly specified

Licensing framework for the Digital DividendMobile spectrum usage rights

Licensing framework for the Digital DividendRoadmap of the spectrum release

Announce in advance a long term plan for reform of the spectrum and operating licensing framework

– publishing a road map of the planned release of additional spectrum bands to maximise overall benefits from the use of spectrum including taking into account the benefits of international harmonisation

– Publicly setting out the criteria and process to be followed in licensing decisions and including public written consultation in advance of key decisions being made

Stability of the overall licensing framework facilitates investment

Agenda

International regulatory framework of the Digital Dividend

Policy initiatives for the Analogue Switch-off and the Digital Dividend

Licensing framework for the Digital Dividend

Importance of the harmonisation

Summary

Maximise the harmonisation in ITU-R Region 1Digital Dividend: 790 – 862 MHz

Harmonised technical conditions of use in the 790-862 MHz frequency band for mobile broadband

– ITU-R Recommendation M.1036

Maximise the harmonisation in ITU-R Region 1

791 832 862

FDD downlink FDD uplinkGuard

band

790

Duplex

gap

821

30 MHz (6 blocks of 5 MHz) 30 MHz (6 blocks of 5 MHz)

Importance of the harmonisation

Facilitate innovation and roaming Enable economy of scale Respond quickly to market needs

and bridge the Digital Divide Help managing cross-border

interference

Importance of aligning spectrum rights with the internationally harmonised mobile spectrum bands

Impact on handset

costs

800 million units

per year

80 million units

per year

8 million units per

year

Extra cost on a handset

15 cents(US)$1.5 dollars

(US)$15 dollars

(US)

Resulting in a $30 (US) handsetcosting

$30.15 (US) $31.5 (US) $45 (US)

The performance cost of adding a non-harmonised band to an existing multi band phone (or dongle) is at least 1 dB per band and that this performance loss increases as the number of bands increased and can easily be of the order of 2 to 3 dB. When applied in the context of a data dominant mobile broadband data network a loss of 3dB of link budget translates into a 30% decrease in coverage area or 40% increase in the number of base stations needed.

Source: GSMA White Paper, March 2012

Illustration

Agenda

International regulatory framework of the Digital Dividend

Policy initiatives for the Analogue Switch-off and the Digital Dividend

Licensing framework for the Digital Dividend

Importance of the harmonisation

Summary

SummaryLicensing framework of the digital dividend

Stability of the overall licensing framework facilitates investmentRemove service and technology restrictions in existing mobile spectrum usage rights Announce in advance a long term plan for reform of the spectrum and operating licensing framework

Importance of aligning spectrum rights with the internationally harmonised mobile spectrum bandsFacilitate innovation and roamingEnable economy of scaleHelp managing cross-border interference

SummaryAwarding the digital dividend band

Justification of band clearance to facilitate mobile broadband useEconomic justification for clearanceStructural challenges to clearance

Obstacles faced to clear historic users from the bandCompletion of the Analogue Switch OffClearing DTT from the bandClearing Programme-making and special events (PMSE) use from the bandClearing military users from the band

Ensuring mobile broadband in the digital dividend band does not negatively impact other spectrum usesDTT use beneath the 700MHz/800MHz bandCable TV use within the 700MHz/800MHz bandUses in neighbouring countries

THANK YOU