Frequency Spectrum Regulation and Policy Reforms

1. Frequency Spectrum Regulation and Policy Reforms Abdelfattah ABUQAYYAS CoE/ARB Coordinator abuqayyas@itu.int ITU - BDT Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

2. Spectrum Management and ITU • Spectrum is a finite resource and regulators should maximize its use to protect the continued viability of current users and to provide opportunities for new services to be deployed. • Radio Regulations • The ITU’s Radio Regulations (RR) are the primary reference point for all regulators of spectrum management, and are derived from the recommendations of the World Radio Conference (WRC) and the Regional Radiocommunication Conferences (RRCs). • WRC divides the world into three regions Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

3. Functions and Considerations • The demands for spectrum greatly affect the major functions of spectrum management. These functions are: • Allocation • For general services, such as mobile and fixed terrestrial, mobile and fixed satellite, amateur radio, etc. • Development of service rules • Sets essential technical criteria • Minimal requirements permit operators to be flexible • Assignment • To individual users or licensees • Compliance and enforcement • To prevent harmful interference, unauthorized use Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

4. Other Considerations for Allocating Spectrum • Technology neutrality • Allocating spectrum for generic services rather than specific technologies provides flexibility for rapid changes in the development of new technologies • Flexible services rules • Making service rules as flexible as possible reduces regulatory burdens on service providers and enables them to meet their customers’ needs in the immediate and longer term (e.g., permits provision of fixed and mobile services by the same service provider) • Regional/global coordination • Maximizing regional and global allocation commonality assists in the development of larger economies of scale for equipment, and in the provision of “borderless” services Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

5. Regulatory Goals and Key Issues in Allocating and Assigning Spectrum • Goals • Maximizing spectrum efficiency • Ensuring equity for all citizens • Providing adequate spectrum for national defense and public safety • Coordinating international communications • key issues • Interference issues • Potential radiation hazards on health and safety issues • Efficiency issues Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

6. Techniques for Assigning Spectrum • First-come, First-served • Pros:speed, inexpensive • Cons: may not end up in hands of an entity that values it the most; value of license not taken into account; resellers instead of public may profit • Beauty Contest • Pros:awards license to contender who would best servepublic interest, allows for equity considerations, can require licensees to serve isolated areas • Cons: time consuming, expensive, no rules for a “tie”, less transparent than other techniques, allows government to determine what the market wants Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

7. Techniques for Assigning Spectrum • Auctions • Pros:speed, less expensive than beauty contest, entity who places highest value on license wins, spectrum is public resource so revenues benefit citizens, provide information about economic value of spectrum • Cons:could lead to increased concentration in industry, may ignore non-financial public interest objectives (equity), revenue potential may create incentive for government to restrict output and raise prices • Lotteries • Pros: quick process, provides rule for “tie” • Cons: unqualified party can win, resellers instead of public may profit Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

8. Interference and Efficiency • Two types of efficiency which regulators have to take into account when considering spectrum management. • Technical efficiency - the requirement that different users and different uses of radio frequencies should not interfere with each other. • economic efficiency - involves a judgement regarding the allocation of relatively scarce spectrum • There needs to be good coordination between the engineering and the policy wings of the regulator’s office; ‘public interest is a very important issue’. • The most important influence is the work of the International Telecommunications Union (ITU), World Radio Conference (WRC) • Member States will draw up their own national frequency tables which follow closely WRC’s tables, but they have flexibility to vary spectrum allocations according to local circumstances. • Other influential bodies include the World Trade Organization (WTO) Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

9. Management of the Spectrum • The uses of radio are typically divided into: • Radio services, • The spectrum used is divided into frequency bands • Administrations allocate frequency bands to different categories of services • Often with a licensing process for different types of transmission by service providers who use the frequencies assigned to them by the administration. Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

10. Frequency Bands Frequencyband Band number Symbol 3 – 30 kHz 4 VLF – Very Low Frequency 30 – 300 kHz 5 LF – Low Frequency 300 – 3000 kHz 6 MF – Medium Frequency 3 – 30 MHz 7 HF – High Frequency 30 – 300 MHz 8 VHF – Very High Frequency 300 – 3000 MHz 9 UHF – Ultra High Frequency 3 – 30 GHz 10 SHF – Super High Frequency 30 – 300 GHz 11 EHF – Extremely High Frequency Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

11. Services Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

12. Licensing of Spectrum Use • In addition to the three key issues (interference, radiation and efficiency), the regulator must study the following: • WRC recommendations and other spectrum allocation issues • Other international agreements, such as come under the WTO, including the Basic Agreement on Telecommunications (BAT) Reference Paper on transparent regulatory procedures, the International Technology Agreement (ITA), commitment to remove tariffs on equipment imports, type approval procedures, and so on. • Recent developments in technologies • Market developments • Developments in regulatory practices world wide • And finally the regulator is guided by the policies of the government. Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

13. Licence Fees and Spectrum Pricing • The issue of efficiency involves both technical efficiency, to avoids mutual interference between users, and economic efficiency, in using spectrum as a scarce resource in a way that brings the greatest social gain. • Spectrum and licence fees are supposed to cover the administrative costs and the amount of frequency that is used. • In addition a variable factor is built-in to encourage the use of higher frequencies in order to reduce the crowding at lower frequencies. • The delivery of broadband services poses new challenges for regulators and spectrum management higher degree of attention must be placed upon customer access networks for the delivery of broadband services • Managing spectrum allocations and assignments for 3G and future generations of broadband mobile services will clearly be a major role for regulators in the coming years Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

14. Spectrum Policy Reform: Factors • Increasing demand for spectrum-based services and devices - Demand propelled by a host of factors: • Economy has moved toward communications-intensive sector • World Workforce is increasingly mobile • Consumers have been quick to embrace the convenience and efficiency of wireless devices • Advances in technologies have significantly increased diversity of service offerings and have qualitatively improved existing services and devices, particularly for Internet and wireless data, which can be delivered at faster rates. • Businesses and homes with multiple computers growing and users installing local area networks to share resources. Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

15. Spectrum Policy Reform: Factors • Technological advances are enabling changes in spectrum policy challenges. • Increased use of digital technologies • Increase potential throughput information • Digital signals and techniques are more robust and resistant to interference • Development of software –defined radios • Increased access can mitigate scarcity of spectrum resource • Most “prime spectrum” has already assigned • Improving access to the spectrum can be achieved through permitting licensees greater flexibility and other means Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

16. Spectrum Policy Reform: Task Force Findings • Technology advances create potential for radio systems to use spectrum more intensively and to be more tolerant of interference. • Implement new paradigm for interference protection • In many bands, spectrum access more significant problem than physical security, in large part due to legacy command and control; regulation • Many portions of spectrum are not in use for significant periods of time • Additional measurements ate needed to quantify and characterize spectrum usage and availability • Spectrum policy must evolve towards more flexibility and market oriented models to increase opportunities for efficient spectrum use • Eliminate regulatory barriers to increase spectrum access Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

17. Spectrum Policy Reform: Task Force Findings • Regulatory models must be based on clear definitions of rights and responsibilities of both licensed and unlicensed users, particularly with respect to interference protection • No single regulatory approach should be applied to all spectrum: • Pursue balanced spectrum policy that includes both the granting of exclusive spectrum usage rights and creating open access to spectrum “commons” in limited circumstances • Migrate from command and control model to more market-oriented exclusive rights model and unlicensed device/commons model • Implement policies in both newly allocated bands and in spectrum that is already occupied, but appropriate transitional mechanisms should be employed to avoid degradation of existing services and uses. Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

18. Conclusions • Radio spectrum is a limited resource that must be planned and managed very effectively, efficiently and wisely within the National, Regional and International Rules and Regulations for the Benefit of Humanity • ITU believes very strongly that telecommunications is the backbone of every nation. Availability and accessibility to it will have a dramatic impact on the welfare of each nation. • Accordingly, the spectrum must be considered as a national resource to be used wisely in enhancing economic, education, health, and welfare of the nation being served. Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005

19. Frequency Spectrum Regulation and Policy Reforms THANK YOU abuqayyas@itu.int Workshop on Frequency Spectrum Management Oran – Algeria, 7 – 9 March 2005