©Ofcom The Spectrum Framework Review A consultation on how radio spectrum should be managed 23 November 2004

©Ofcom

The Spectrum Framework Review

A consultation on how radio spectrum should be managed

23 November 2004

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Contents

• The Scope of the Review

• The Radio Spectrum & its Current Allocation

• Ofcom’s Spectrum Management Agenda

• The Key Strategic Issues

• Our Vision for Spectrum Management

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The aims of the Review

• To enable current and future users of the radio spectrum to have enough information and certainty to make major investment decisions

• To provide a framework which Ofcom can apply to specific spectrum issues

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How the Review relates to other activities

The Spectrum Framework Review:Setting out our overall strategy for

managing radio spectrumNovember 2004

Spectrum Trading and LiberalisationA sequence of documents setting out how we will implement

trading of licensesNovember 2003 – December 2004 Detailed policy

statements2005 onwards

The SFR Implementation Plan:Detailed plans for realising the vision

of the SFRDecember 2004Time

Issues feeding through

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Contents






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Medium Wave Radio

The Radio Spectrum

ElectricWaves

RadioWaves Infra-red

VisibleLight

UltraViolet X-Rays

GammaRays

CosmicRays

30 3 30300

Long Wave Radio

FM Radio

GSM

3G

Microwave Radio LinksTV

VLF LF MF HF VHF UHF SHF EHF

Radio SpectrumRadio Spectrum

kHz MHz GHz330300 300

DECT WiFiBluetoothTETRA

LMDS

Decreasing RangeIncreasing Bandwidth

Increasing RangeDecreasing Bandwidth

3

“Sweetspot”

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Other7%

Defence30%

Emergency services

2%

Business radio5%

Cellular4%

Aeronautical and Maritime

14% Science1%

Broadcasting13%

Fixed / Satellite24%

Current Allocation of the Radio Spectrum

Note: Weighted by Frequency

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Contents






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Ofcom’s Spectrum Management Agenda

The Given:Fulfil our statutory duties

The Ambition:Make the UK the leading country for wireless investment & innovation

Ensure optimal use of the spectrum

Take account of the needs of all spectrum users

Maximise economic benefits of the spectrum

A better signposted approach to spectrum, giving more certainty in the market

A flexible approach to spectrum, providing opportunity for innovation

A competitive communications market, providing opportunity for returns on investment

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We operate in an international framework

• ITU Radio Regulations harmonise allocations at a broad level - eg fixed, mobile, broadcasting.

• The NATO treaty commits us to allowing exclusive use for some military bands

• UK has signed up to numerous (non-binding) CEPT frequency harmonisation measures

• There are binding EU Directives/ Decisions covering cellular and paging services

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Contents






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There are three possible ways to manage spectrum

Command & Control Zone

Ofcom manages it

Market Forces ZoneCompanies manage it

Licence-exempt Zone Nobody manages it

Approach that is currently adopted for about 94% of

the spectrum

Approach advocated by Cave and implemented

by trading and liberalisation

Approach currently adopted for 6% of

spectrum, some argue for radical increase

• We need to decide the right balance between the Zones

• Zones are currently demarcated by frequency. However, there are also dimensions of power and time

C&C MF L-E

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The Command and Control Zone

• Still needed in some areas– Spectrum controlled internationally, eg HF, satellite– Spectrum where international roaming is essential, eg maritime, aeronautical– Uses we wish to preserve, eg radio astronomy

• The status quo

– The regulator decides on how much spectrum is needed for each application and who gets it.

– No variations are allowed– The approach followed for the last 100

years

• But no longer the preferred option

– The regulator cannot know as much as the market and so cannot make decisions as well as the market

– The Cave Report strongly recommended moving away from this model

C&C MF L-E

Today 94% 21% 2010

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The Market Forces Zone

Allocation(what the best use is

for the spectrum)

Assignment(who the best user is

of the spectrum)

Existing spectrum:Trading between

users

“New” spectrum:Auctions

Liberalisation Phase 1:Users ask Ofcom if they can

change the use

Liberalisation Phase 2:Technology-neutral spectrum usage rights to allow users to

make the change without consulting Ofcom

C&C MF L-E

Today 0% 72% 2010

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The Licence-exempt Zone

Increasing licence-exempt allocation to 7% of total spectrum allows enough for everyone to install equipment capable of delivering 100Mbits/s data services

in homes or offices

C&C MF L-E

Key area for innovation but we do not need much more

Focus on removing restrictions, eg higher power in rural areas

Today 6% 7% 2010

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Deregulation of existing licence classes

There are a number of areas where we cannot allow change of use but do not need to actively manage the band

Users in these bands may not need to be directly licensed by Ofcom

However, there are many complexities – eg call signs are often linked to licenses

We currently issue 209,000 licences, 75% in areas where we might be able

to reduce the needs for licensing

Aviation

Amateur

Maritime

CB

9,000

63,000

61,000

19,000Are

as u

nder

co

nsid

erat

ion

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Interference limit

Upper power limit

Pow

er

Frequency

UWB

Should we allow it?

The subject of a separate consultation to be issued shortly

C&C MF L-E

C&C Zone

MF Zone

L-E Zone

Upper power limit

Pow

er

C&C Zone

MF Zone

L-E Zone

Frequency

Exploiting the power dimension - UWB

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• Cognitive radios access the spectrum at full power during the time the licence holder is not using it

• We could allow this as an “easement” to property rights– However, licence holders could act

in a manner to make it worthless (eg by transmitting constantly)

– We are not sure it can be implemented technically in this fashion

• We would rather allow the licence holders to permit it in a direct transaction with the cognitive radio user

C&C MF L-E

Pow

er

C&C Zone

MF Zone

L-E Zone

Time

Pow

er

C&C Zone

MF Zone

L-E Zone

Time

Frequency

Frequency

Accessing the time dimension - Cognitive radio

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The Ofcom Spectrum Vision

• Spectrum should be free of technology, policy and usage constraints as far as possible

• It should be simple and transparent for licence holders to change the ownership and use of spectrum

• Rights of spectrum users should be clearly defined and users should feel comfortable that they will not be changed without good cause

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Next Steps

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The Implementation Plan

• The Spectrum Framework Review: Implementation Plan will be published before Christmas, covering:

– Ofcom views on a group of interrelated mobile spectrum policy issues relating to trading and liberalisation

– Ideas for awarding unused or under-used spectrum

• Our approach reflects the constraints on us from:

– The use of spectrum in the past to achieve policy goals– Industry structures created in the past by spectrum regulation– The need for an orderly transition to the new approach– European regulatory structures– Resources within Ofcom and in the market to award new spectrum

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Forthcoming proposals and statements

• Policy proposals in the Implementation Plan

– Applying Ofcom’s trading and liberalisation policies to spectrum used for mobile services

• Spectrum awards proposed in the Implementation Plan

– 15 bands which will be made available over the next few years

• Trading and liberalisation initiatives

– Trading Regulations will come into force mid-December– Liberalisation Statement will be published in the next two months

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Spectrum Framework Review

Q&A

Documents

©Ofcom The Spectrum Framework Review A consultation on how radio spectrum should be managed 23 November 2004