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Accelerating a broadband future:
Designing spectrum awards to meet mobile broadband requirements
Peter Dunn – Cullen International
© Cullen International SA 2012
© Cullen International SA 2012
shape marketvia:
- award- licence
One-off opportunity to shape market
demand
Clarify policy priorities:• coverage, universality• quality of service• competition
© Cullen International SA 2012
•what the market can take
•how mobile BB is used
market understanding
•spectrum goes to existing operators
•market consolidation
no new entry
•innovative conditions applied
•rural first
coverage
•12x more for 800 MHz
•scarcity, band properties
low frequencies high value
Trends
© Cullen International SA 2012
•in award or including existing holdings
•different by spectrum band and assignment
•different if existing or new operator
spectrum caps
•ensure all operators are sustainable
•assumes very good market knowledge
•moving towards market design?
minimum packages
•less regulatory involvement in market design
•risk of strengthening dominance
•risk of non-sustainable operators
let market decide
Competition
© Cullen International SA 2012
Coverage
obligations:• population• targeted• rural first• data rate
spectrum
network sharing
costs
• awards• refarming
Coverage obligations in Germany
© Cullen International SA 2012
GSM UMTS
Coverage obligations in Germany
© Cullen International SA 2012
GSM UMTS LTE
Awards of 800 MHz and 2.6 GHz
Date 800 MHz 2.6 GHz paired
2.6 GHzunpaired
Coverage obligations
Germany 5/2010 €3,576m €252m €85m 800 MHz only
Sweden 3/2011 €195m €216m €18m 800 MHz only
Spain 7/2011 €1,305m €173m €16m 800 MHz only
Italy 9/2011 €2,962m €432m €74m both bands
Portugal 11/2011 €270m €36m €3m 800 MHz only
France 12/2011 €2,639m €936m - both bands
Switzerland 2/2012 €810m in total for all bands 800 MHz only
The only new market entry has been for unpaired 2.6 GHz and for regional
2.6 GHz licences in Spain
Innovative coverage obligations have focused on 800 MHz band and provision of broadband to rural areas
© Cullen International SA 2012
800 MHz 12x higher value than 2.6 GHz
Germany Sweden Spain Italy Portugal France0
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Cost (€) per capita per MHz
800 MHz 2.6 GHz (paired)
SE awarded2.6 GHz in May 2008
Average differential between800 MHz
and 2.6 GHzis 12x
(€0.67 to €0.05)
© Cullen International SA 2012
