1800 MHz—a shared strategyConsultation paperOCTOBER 2012

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© Commonwealth of Australia 2012This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Editorial Services, Australian Communications and Media Authority, PO Box 13112 Law Courts, Melbourne Vic 8010.

Published by the Australian Communications and Media Authority

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1 Invitation to participate 11.1 Principles for spectrum management and decision framework 21.2 Scope of this strategy 31.3 Stages of this consultation process 4

2 The 1800 MHz band 7

3 Key discussions 83.1 Apparatus licensing arrangements 83.1.1 Review of pricing in 1800 MHz 83.1.2 Status of fixed links 83.1.3 Priority access arrangements 93.2 Spectrum sharing 93.2.1 National rail communications solution 93.2.2 Infrastructure park 93.3 Longer term spectrum licensing 10

4 Invitation to comment 114.1 Attending the workshop 114.2 Collaborating online 114.3 Making a submission 11

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1 Invitation to participateThe purpose of this paper is to outline the Australian Communication and Media Authority’s (ACMA) consultation process for developing technical and regulatory arrangements for the 1800 MHz band.

It provides background information to assist people in making comments to the ACMA on the issues addressed. Information in this paper should not be taken to indicate the ACMA's commitment to a particular policy or course of action.

The ACMA recognises that there is increasing demand for access to spectrum in the 1710–1785 MHz and 1805–1880 MHz frequency ranges (the 1800 MHz band) from various industry sectors. As a result, the ACMA is developing a spectrum management strategy for the band that is intended to address this demand and provide arrangements suitable for the short and longer term. Demand has been demonstrated from:> telecommunications operators—to deploy next generation communications

services> railway authorities—to build a national GSM-R network to support safety and

signalling systems> mining companies—to facilitate autonomous mining and transport systems> energy companies—to enable ‘smart infrastructure’.

Much of this demand is due to the availability of long term evolution (LTE) equipment for the band. There is also increasing demand for spectrum in regional areas (including spreading populations around metropolitan areas) and some specific remote areas.

The approaching expiry of existing spectrum licences in the band gives the ACMA an opportunity to consider the appropriate regulatory arrangements in the 1800 MHz band for the short and longer term. The ACMA is keen to engage with interested parties to develop and finalise a strategy for the longer term. The strategy must be consistent with the broader regulatory environment and the ACMA’s other spectrum management arrangements. Importantly, it must also meet the needs of current and prospective licensees in the band.

This paper provides information on how interested parties can actively participate in the consultation process to develop the strategy. It also provides an initial opportunity for current and prospective licensees to identify the key issues for the band. The ACMA intends to develop further issues papers that will actively engage stakeholders on particular 1800 MHz band issues.

The ACMA has identified three key issues that will be the subject of future consultation papers. They are:> A proposal to make spectrum in regional and remote areas available for use via

public telecommunications service (PTS) apparatus licences.> A proposal to develop arrangements to encourage greater spectrum sharing

between industries.> A proposal considering the possible future expansion of spectrum licensing

arrangements in regional and remote areas.

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Section 3 provides further explanation of each of these issues. The ACMA will also host a workshop where these key issues, along with other matters, will be discussed. The contribution of information and ideas from current and prospective licensees is vital to the ACMA developing the right mix of regulatory and licensing arrangements for the 1800 MHz band. Information on how to participate in the workshop is provided in section 4.

The availability of LTE equipment for the 1800 MHz band has led to significant interest from a number of sectors in deploying 4G communications networks and smart infrastructure systems in this band across Australia. At the same time as addressing the expiry of spectrum licences in major metropolitan areas, the ACMA will work with interested stakeholders to ensure that the arrangements for the whole band are cohesive and maximise the public benefit derived from use of this spectrum.

1.1 Principles for spectrum management and decision framework

The ACMA is guided in its spectrum management functions by the objects of the Radiocommunications Act 1992 and its Principles for spectrum management. The key theme of both objects and principles is to maximise the overall public benefit derived from use of the radiofrequency spectrum. The ACMA achieves this goal through a balanced application of market and regulatory mechanisms.

The principles for spectrum management are:> Principle 1—Allocate spectrum to the highest value use or uses> Principle 2—Enable and encourage spectrum to move to its highest value use or

uses> Principle 3—Use the least cost and least restrictive approach to achieving policy

objectives> Principle 4—To the extent possible, promote both certainty and flexibility> Principle 5—Balance the cost of interference and the benefits of greater spectrum

utilisation.

The strategy for the 1800 MHz band supports all of the principles with each of the key issues supporting particular principles based on the technical or policy objective to be achieved.

Table 1: Principles for spectrum management

Key issues Principle 1

Principle 2

Principle 3

Principle 4

Principle 5

Make spectrum in regional and remote areas available for use via PTS apparatus licences

Develop arrangements to encourage greater spectrum sharing between industries

The possible future expansion of spectrum licensing arrangements in regional and remote areas

In addition to the principles, the ACMA considers a range of factors as identified in its spectrum management decision framework when making decisions about the use of spectrum (see Figure 1).

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The ACMA’s view is that implementing the 1800 MHz strategy will:> ensure that the band is allocated to its highest value uses, as defined by reference

to the overall public benefit derived from the use of the spectrum> clarify arrangements for access to the band by prospective licensees and promote

efficient use of the spectrum> clearly articulate spectrum management arrangements for the band, with certainty

about those arrangements into the future> promote specific licensing solutions that support and encourage greater efficiency

in spectrum use.

The ACMA will actively discuss proposed arrangements with stakeholders to consider how best to promote certainty and flexibility in licensing arrangements. The ACMA will also seek advice from prospective licensees about how spectrum-sharing arrangements might balance the cost of possible interference with the benefits of greater spectrum utilisation and efficiency.

Figure 1: Spectrum management decision framework

1.2 Scope of this strategyThis interactive and discursive consultation process is intended to develop a strategy for the ACMA’s approach to spectrum management in the 1800 MHz band. By engaging with interested parties, the ACMA will design spectrum management and licensing arrangements that facilitate greater use of this spectrum and will maximise the public benefit derived from that use.

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The timing of this work coincides with the expiring spectrum licence processes for the band.1 Given the ongoing nature of these activities, discussions regarding those processes are outside the scope of this consultation. However, the outcomes of these activities may have an impact on the development of the long-term strategy for the 1800 MHz band. Therefore, the outcomes of the reissue consideration and aggregation processes may inform the implementation of future strategies.

The 1800 MHz strategy will be informed by the outcome of arrangements in the spectrum-licensed segment of the band, but will specifically consider only those portions of the band that are not currently spectrum licensed. It will focus on access arrangements for apparatus licences, strategies for enhancing the efficiency of spectrum use through greater spectrum sharing and consideration of whether spectrum licensing should be extended to cover more of the band.

Possible outcomes of this review include:> the lifting of Embargo 62 to release the band for access by prospective licensees> the publication or amendment of a Radiocommunications Assignment and

Licensing Instruction (RALI) to provide coordination and access arrangements for apparatus licences

> revised taxation for PTS apparatus licences in the band> new licence conditions for fixed services, clarifying their status in the band> the development of tailored licensing solutions for particular industries or

circumstances, including a possible infrastructure park or private park> a recommendation that the Minister for Broadband, Communications and the

Digital Economy extend spectrum licensing arrangements to cover more of the band.

Q1. The ACMA invites feedback on the scope of the consultation process. Does it cover all the matters of importance to spectrum management for the 1800 MHz band? If not, what other matters should be considered as a part of this process?

1.3 Stages of this consultation processA series of consultation elements will allow participants to help shape the discussion. Running from the release of this paper through to the first quarter of 2013, the ACMA will host a workshop and several online interactions, and release a series of formal issues papers. Participants are encouraged to engage in dialogue through any or all of these forums and to make more formal, written submissions as appropriate.

Comments and submissions made to the ACMA during the early stages of this process will be incorporated into the development of the strategy and reflected in the later issues papers. Therefore, participants may wish to raise matters of particular interest with the ACMA earlier, rather than reserving all comments until the end of the process.

1 Information about the expiring spectrum licence work program is available on the ACMA website at www.acma.gov.au.

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Consultation process stages

When What DescriptionOctober 2012

This consultation paper Invites consultation participants to consider what the regulatory arrangements of the 1800 MHz band should look like in the short and longer term. It also raises the key issues that the ACMA considers will require further discussion. This paper will be open for comment throughout the consultation process and underpins the discussions to take place during that period.

November 2012

Workshop To be held on 15 November at the ACMA Sydney office and online to discuss what current and prospective licensees see as the key issues for the band. The ACMA will present its initial positions on key issues. Participants may also wish to present an item for discussion and, if so, should contact the ACMA before 1 November to make arrangements.

November 2012

Issues paper 1—Release of band for PTS licences

Paper 1 will cover access arrangements for regional and remote spectrum and the status of fixed services in the band. It will also present a review of pricing for apparatus licences to be issued in the band.

February 2013

Issues paper 2— Possible expansion of spectrum licensing in regional/remote areas

Paper 2 will consider the relative merits of extending spectrum licensing in the band including how much of the band should be spectrum licensed, how the transition should be achieved (e.g., conversion or reallocation) and when any such transition should be made.

April 2013 Issues paper 3—Arrangements to encourage spectrum sharing

Paper 3 will discuss possible approaches to spectrum-sharing arrangements in the band, including possible licensing arrangements for specific infrastructure industries, including rail and mining.

To encourage dialogue on each of the issues papers, the ACMA will initiate online discussions following the release of each paper. The input generated in these forums will be captured, analysed and considered as part of the consultation discussion alongside any formal submissions that are received.

Throughout the consultation period, participants may contribute to the conversation via Twitter using the hashtag #1800MHzstrategy.

Figure 2 shows an anticipated timeline for the consultation process and its outcomes.

Q2. The ACMA invites feedback on its proposed approach to consultation.In particular, will a staged, discursive consultation facilitate more considered and timely input from our 1800 MHz stakeholders, or impose undue demands on stakeholders’ time and resources?

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Figure 2: Expected timeline for the 1800 MHz strategy

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Initial discussion

paper from

October 2012

WorkshopNovember

2012

Issue paper 1: Access

arrangementsNovember-December

2012

Amend Embargo 62

and introduce new access

arrangementsJanuary 2013

Issue paper 2:

Spectrum licensingFebruary-

March 2013

Issue paper 3:

Spectrum sharing

April-May 2013

Industry-specific

spectrum sharing

discussionsFrom early

2013

(possible) recommendation

to minister regarding

spectrum licence extensionJune 2013

2 The 1800 MHz bandIn Australia the 1800 MHz band is spectrum licensed in major metropolitan areas, but generally apparatus licensed in regional and remote areas. This is demonstrated in Figure 3 below.

Figure 3: Areas subject to spectrum and apparatus licences in the 1800 MHz band

Band (MHz) Metropolitan Regional Remote1710–1725 / 1805–1820 Spectrum Spectrum Apparatus1725–1785 / 1820–1880 Spectrum Apparatus Apparatus

Figure 3 shows that spectrum licences also cover regional Australia in the frequency ranges 1710–1725 MHz and 1805–1820 MHz. Spectrum licences in the 1800 MHz band will expire in two tranches—the first in June 2013 and the second in May 2015. The ACMA is currently considering whether these spectrum licences may be reissued to incumbent licensees or will be offered for reallocation by auction.

Embargo 62 currently restricts all apparatus licensing in the 1800 MHz band. Spectrum embargoes are administrative tools used to facilitate orderly spectrum planning. Embargoes give notice of the ACMA's intention to restrict the allocation of new licences in a band, pending its replanning. They also serve to alert industry to the start of a planning process. Embargo 62 was placed on the 1800 MHz band in January 2011 to preserve future planning options. There are a number of existing apparatus licences in the band, predominantly fixed point-to-point links held by Telstra.

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3 Key discussionsThis section provides a brief overview of the issues the ACMA considers to be significant in developing the appropriate regulatory and licensing arrangements for the 1800 MHz band. The ACMA will specifically seek input on these issues through the consultation process described in section 1.3. The ACMA is also interested to hear the views of stakeholders on other issues they consider to be important about this band.

3.1 Apparatus licensing arrangementsTo maximise spectrum utilisation in the band and allow industry, consumers and citizens to benefit from the deployment of emerging technologies, the ACMA proposes to amend Embargo 62 to release 1800 MHz spectrum in regional and remote areas. As the majority of demand for the band is from stakeholders interested in deploying GSM-R or LTE services, it is desirable to release the band for PTS. The ACMA supports facilitating access to the band in the short term to allow the band to be in use while the arrangements for a longer-term strategy are being developed. The access arrangements would be restrictive to minimise future issues that may arise when implementing the long term arrangements.

3.1.1 Review of pricing in 1800 MHzBefore releasing the band, the ACMA considers it timely to review and amend the annual tax that applies to PTS licences in the 1800 MHz band, which was set more than a decade ago. A reasonable approach would be to base the calculation of the tax on the price set in the minister’s spectrum access charge direction for spectrum licences in this band.2 The direction sets the minister’s value of the expiring spectrum licences in this band and, as such, provides a potential opportunity cost value for the band. An equivalent one-year apparatus licence tax requires that the net present value of apparatus licence fees equals the value included in the minister’s direction.

Q3. The ACMA invites feedback on the proposed method of calculation of price for apparatus licences in the 1800 MHz band. Q4. Would prospective licensees support a pricing methodology that incorporates the price outlined in the minister’s spectrum access charges direction?

3.1.2 Status of fixed linksAlthough arrangements can be made to facilitate coexistence between PTS and point-to-point links, from a technical point of view this is only efficient while use of the band by both services is not high. Given the expected high demand for use of the band for PTS, the consultation process will also need to consider the status of point-to-point links in the band to determine the future of those links in the band.

Q5. The ACMA invites feedback on the status of fixed links in the 1800 MHz band.Should PTS services have priority over fixed services?

3.1.3 Priority access arrangementsThe ACMA is working with spectrum licensees in the 1800 MHz band to aggregate their licences, so that each spectrum licensee holds a single contiguous block of

2 The minister’s direction to the ACMA under subsection 294(2) of the Radiocommunications Act 1992 is available at www.dbcde.gov.au.

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spectrum in the band. Since the major mobile carriers have expressed an interest in the deployment of nationwide networks in the 1800 MHz band, it would seem prudent to ensure that—to the extent practical—these frequency assignment outcomes are mirrored in any future regional and remote spectrum holdings. This may be achieved through different mechanisms, such as prioritisation and coordination criteria in a RALI. This could mean that the ACMA would issue licences for particular prospective licensees in specified frequencies to promote contiguous spectrum holdings.

Q6. The ACMA invites feedback on the assignment of apparatus licences in the 1800 MHz band.

Q7. Should the ACMA outline priority access arrangements to promote aggregation of spectrum holdings? If so, what should those access arrangements look like?

3.2 Spectrum sharingDemand for the 1800 MHz band is increasing, including in regional and remote Australia. As part of the 1800 MHz strategy, the ACMA will pursue efficiencies in spectrum assignment and use.

3.2.1 National rail communications solutionCommonwealth, state and territory governments are committed to supporting the development of a national, interoperable rail safety and signalling system, using spectrum in the 1800 MHz band. The ACMA is considering the most appropriate licensing approaches to support this goal. This requires balancing the need to safeguard sufficient spectrum to enable rail service providers to deploy a robust communications solution against the undesirability of reserving additional spectrum that may not be used. The ACMA will propose priority access arrangements for rail in 2 x 5 MHz of the 1800 MHz band. These arrangements will provide spectrum access along rail corridors in regional and remote Australia, without reserving spectrum throughout Australia for this single purpose.

Rail authorities in several states hold spectrum licences over major metropolitan areas that are intended to support rail communications. These expiring spectrum licences are being considered as part of the ACMA’s expiring spectrum licence activities.

3.2.2 Infrastructure parkThe ACMA has previously announced an intention to support industry-specific initiatives such as smart infrastructure networks. These types of initiatives could be implemented through developing an infrastructure park or private park type of arrangement. They can be described collectively as spectrum-sharing arrangements, in which a group of specified spectrum users share the use of designated spectrum space. However, the development of such an arrangement requires further investigation in consultation with stakeholders.

The goal of these initiatives would be to maximise—by ensuring the efficient use of the spectrum—the overall public benefit derived from these uses of the spectrum. Developing appropriate licensing arrangements in these cases will be a collaborative effort between the ACMA and interested industry sectors.

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Spectrum-sharing models vary greatly and any arrangements developed by the ACMA would likely be informed and dependent on the circumstances. The ACMA expects to collaborate with prospective licensees to develop the most appropriate spectrum-sharing model, including an appropriate licensing solution, in each particular case.

The ACMA has notionally identified 2 x 30 MHz of spectrum from 1755–1785 / 1850–1880 MHz in regional and remote areas to support this initiative.

Q8. The ACMA invites feedback on the spectrum-sharing arrangements.To what extent would prospective licensees support shared licensing arrangements such as private parks?

Q9. Where spectrum is scarce, would stakeholders support more collaborative coordination arrangements between licensees to promote efficient spectrum use?

3.3 Longer term spectrum licensingThe 1800 MHz band is an increasingly valuable band. It is highly sought after by government and commercial entities seeking to deploy emerging communications technologies to support significant national infrastructure projects or national telecommunications networks.

The types of services to be deployed in this band are conducive to operating under spectrum licensing arrangements where:> all likely deployments can be accommodated within a single technical framework> the individual users require large, contiguous blocks of spectrum> the individual users require large, geographic licence areas.

As part of this planning process, the ACMA will consider whether the current apparatus licensing arrangements in the band are ideal to maximise spectrum utilisation or to encourage the delivery of innovative services in the longer term. It will consider and develop allocation and licensing arrangements that flexibly meet the needs of spectrum users.

Q10. The ACMA invites feedback on spectrum licensing in the 1800 MHz band.Should more of the band be covered by spectrum licences? Which areas or frequencies might lend themselves better to spectrum rather than apparatus licensing?

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4 Invitation to commentThe ACMA invites participation from interested parties in developing the strategy for the 1800 MHz band and offers three opportunities:

4.1 Attending the workshopThe ACMA encourages current and prospective licensees and any other parties with an interest in future arrangements for the 1800 MHz band, to attend a workshop to be held at the ACMA Sydney office on 15 November 2012.

The workshop will be held from 10am to 3pm at:

Level 5 The Bay Centre,65 Pirrama Road,Pyrmont NSW

Find us in Google maps

Attendees are asked to register their interest by email by 7 November. As spaces are limited, please register early.

For those who cannot attend the workshop in person, join the conversation via Twitter using the hashtag #1800MHz.

4.2 Collaborating onlineThroughout this consultation process, the ACMA will make information available through our website, through online forums or in e-bulletins. Participants are encouraged to contribute their views as comments to posts on our website or to our acmadotgov social-media channels on Facebook and Twitter. Throughout the consultation period, participants may contribute to the conversation via Twitter using the hashtag #1800MHz.

The ACMA is interested to hear what you think about other stakeholders’ views and for our final approach to be shaped by a genuine, multilateral dialogue on matters of interest.

4.3 Making a submissionThe ACMA encourages participants to the consultation to make submissions on the issues raised. We welcome shorter, ad hoc submissions on particular issues, or a full, formal submission on all the matters covered by one of our issues papers. Submissions can be made at any time prior to the close of the final issues paper:

By email: spectrum.outlook@acma.gov.auBy facsimile: +61 2 6219 5353By mail: Manager

Spectrum Outlook and Review SectionAustralian Communications and Media AuthorityPO Box 78Belconnen ACT 2616

The closing date for submissions will be the closing date for the final issues paper, expected to end in second quarter 2013. However, earlier submissions will

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help the ACMA to develop the issues papers that will be released in November 2012, first quarter 2013 and second quarter 2013.

Electronic submissions in Microsoft Word or Rich Text Format are preferred.

Media enquiries should be directed to Emma Rossi on (02) 9334 7719 or by email to media@acma.gov.au.

Effective consultationStakeholder consultation processes are an important source of evidence for ACMA regulatory development activities. To assist stakeholders in formulating submissions to its formal, written consultation processes, the ACMA has developed Effective consultation: A guide to making a submission. This guide provides information about the ACMA’s formal, written, public consultation processes and practical guidance on how to make a submission. Publication of submissionsIn general, the ACMA publishes all submissions it receives. The ACMA prefers to receive submissions that are not claimed to be confidential. However, the ACMA accepts that a submitter may sometimes wish to provide information in confidence. In these circumstances, submitters are asked to identify the material over which confidentiality is claimed and provide a written explanation for the claim.

The ACMA will consider each confidentiality claim on a case-by-case basis. If the ACMA accepts a claim, it will not publish the confidential information unless authorised or required by law to do so.

Release of submissions where authorised or required by lawAny submissions provided to the ACMA may be released under the Freedom of Information Act 1982 (unless an exemption applies) or shared with other Commonwealth Government agencies or certain other entities under Part 7A of the Australian Communications and Media Authority Act 2005. The ACMA may also be required to release submissions for other reasons including for the purpose of parliamentary processes or where otherwise required by law (for example, under a court subpoena). While the ACMA seeks to consult submitters of confidential information before that information is provided to another party, the ACMA cannot guarantee that confidential information will not be released through these or other legal means.

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