Radio Spectrum Policy Memorandum - Government.nl...2017/03/07 · Radio Spectrum Policy Memorandum 2016 8 R3456 S789102 P659 M8 603 42 For market regulation, the frameworks provided

2016

Radio Spectrum Policy Memorandum

Radio Spectrum PolicyMemorandum 2016

Policy aims

Developments

Increased societal dependence on

wireless communications

New technology creates opportunities

Meet social developments

IoT

A market that operates

e�ciently

Actions

Safeguardpublic interests

More and more spectrum users

Surveillance and mediation in case of

interference

Facilitate business-speci�c

applications

Stimulate shared use

of spectrum

Develop multi-annual strategies for

mobile and broadcast

Radio Spectrum Policy Memorandum 2016 3

4 Radio Spectrum Policy Memorandum 2016

Contents

1 Introduction 71.1 The process 81.2 The government’s role in the radio spectrum policy 91.3 Objectives of the new radio spectrum policy 101.4 Consultation 101.5 Reading guide 11

2 Context 132.1 Dialogue with stakeholders 132.2 Social developments 142.3 Developments in technology 142.4 International context 16

3 Objectives of the radio spectrum policy 19

4 Policy challenges 214.1 Allocating spectrum 214.2 Scarce licences and market regulation 224.3 Spectrum for performing public-interest tasks 264.4 Business-specific applications 274.5 Licence-exempt use of spectrum 294.6 Televulnerability 314.7 Implementation and surveillance 32

5 In conclusion 37

Appendix 1 Report on the dialogue with stakeholders 42

Appendix 2 Reaction to the consultation 44


1921

44

Objectives

Policy challenges

Appendix 2

Appendix 1

Chapters

4237

In conclusion

713

Introduction

Context

6

7

1Introduction

Wireless communication has become an indispensable commodity for Dutch society, resulting in increased societal dependence on wireless communications. It has become a precondition for economic growth in the Netherlands, with strong positive external effects on the economy. It enables the innovation of products and services. With good connectivity, that is a reliable wired and wireless telecommunications infrastructure and associated services, companies can strengthen their competitive position through costs savings, increased productivity, development of new applications and/or creating logistical advantages. In essence, it allows organisations to perform at a higher level, in terms of their competitive position in the Netherlands and in competition with other countries. Examples include international airports, municipalities aiming to make themselves more attractive to international companies thanks to outstanding facilities, and container terminals looking to preserve their attractiveness as Europe’s mainport. Consumers benefit from a diverse and affordable range of services. The government benefits from good connectivity and technological developments in performing its vital tasks.Like the House of Representatives1, the Cabinet recognises the importance of a strong digital infrastructure. The Netherlands has an outstanding starting position, in part thanks to the rapid roll-out of new wired and wireless telecommunications infrastructure and associated service provision. To maintain a strong position in this field in the future, and to ensure that the Netherlands remains an attractive location for IT organisations, the future demand for and the supply of digital connectivity in the Netherlands and how these correspond to one another will be explored, as was announced in the Digital Agenda2. As indicated, reliable and fast networks with sufficient availability are of ever increasing importance for economic growth in

1 Verhoeven motion, House of Representatives, session 2015-2016, 34300 XIII, No. 45.

2 House of Representatives, session 2015-2016, 29515, No. 390.

the Netherlands. It is clear that the need for such networks will continue to increase on account of developments such as cloud computing and the Internet of Things. The exploration will also indicate whether and which role the government foresees for strengthening of the wired and wireless digital infrastructure in the Netherlands.

A precondition for a strong digital infrastructure is the availability of spectrum. As a result of developments such as cloud computing and the Internet of Things, there is increasing demand for spectrum, and society in general is imposing ever greater requirements on the availability and reliability of (wireless) telecommunications infrastructure. These, together with other developments, including the introduction of new wireless applications and services and the demand for higher data speeds and increasing data volumes, necessitate more efficient and more effective use of the radio spectrum. As such, the radio spectrum policy plays a prominent role in facilitating the aforementioned developments. In specific terms, the radio spectrum policy must address issues such as the availability of broadband services in rural areas, provide options for innovative forms of service provision, and the use of new technologies to allow for more efficient (third-party) use of the radio spectrum.

In this respect, the radio spectrum policy not only has a traditional planning function, to help prevent interference, but also a market regulatory function to help ensure the proper functioning of the market for telecommunications services. This includes the allocation of spectrum for licence-exempt applications, whereby end users and a broad range of market parties have easier access to frequencies, but also the licensing of scarce, commercially attractive radio spectrum for mobile telecommunications and broadcasting.

Radio Spectrum Policy Memorandum 2016


For market regulation, the frameworks provided by the Telecommunications Act for market regulation based on significant market power are also relevant alongside specific radio spectrum policy relating to licensing and licence requirements. Market regulation based on significant market power is the responsibility of the Authority for Consumers and Markets (ACM) and does not form part of the radio spectrum policy. The ACM is involved in an advisory role in the award policy of scarce licences, after all the award policy is increasingly dependent upon the actual level of competition in the market.

In other words, the radio spectrum policy is part of a much broader telecommunications policy. Convergence of networks and services makes it necessary to provide new and stronger emphasis within the telecommunications policy, in particular on the expanding integration of wireless (mobile) and fixed networks. Society trusts that networks can continue to function, even in the event of defects, interference, overload and power failure for example, which means that safeguards need to be provided to ensure the continuity and reliability of telecommunications services. To this end, the Ministry of Economic Affairs is also pursuing policy to address the continuity of telecommunications by means of a duty of notification and duty of care imposed on telecoms operators. This also touches upon other policy areas, including consumer protection, privacy, cyber security, national security and innovation policy.Finally, radio spectrum policy also affects sustainability. Sustainability is of great importance to society, and will remain so in the years ahead. On the one hand, it is anticipated that the energy requirements of (wireless) telecommunication will rise over coming years, driven in part by increased use of (wireless) telecommunication. At the same time, it could be argued that (wireless) telecommunications services are in a position to help enhance the sustainability of society.

This memorandum sets the general objective and principles of the radio spectrum policy, i.e. for the allocation, assignment and use of radio frequencies for the forthcoming period. This memorandum replaces the radio spectrum policy memorandum from 2005 (hereinafter: NFB2005). In the last 10 years, the principles, choices and intentions included in that memorandum have defined the radio spectrum policy. In order to effectuate all principles and intentions, implementation of the NFB2005 involved a revision of the Telecommunications Act, which entered into effect on 15 March 2013. This included a pledge to evaluate the radio spectrum policy two years after its implementation. The evaluation was carried out in 2015 by

independent consultancy firm Kwink Groep,3 and served as the basis for a review of the radio spectrum policy to ensure its suitability for the forthcoming period. This review intended to reshape application of the current set of instruments to better suit different developments, and where necessary, to adjust the set of instruments itself.

The evaluation broadly concluded that the use of instruments as announced in the Radio Spectrum Policy Memorandum 2005 contributed towards achieving the objectives of the radio spectrum policy. Key principles in the radio spectrum policy appear to have been effective, including technology-neutral and service-neutral use of frequencies, licence-exempt use of spectrum where possible, not extending scarce licences and automatic extension of non-scarce licences. However, for a number of other instruments, effectiveness is not (yet) sufficient, including the needs justification plan for the use of spectrum for public-interest tasks, third-party use of licensed frequencies and the tradability of licences.

1.1 The process

Given the considerable social importance attached to the use of spectrum, a number of round-table sessions were held between October 2015 and April 2016 in order to gain input from stakeholders in the drawing up of a new radio spectrum policy memorandum. These discussions were held on four main topics:

Table 1: Scarce licencesTable 2: Spectrum for market and governmentTable 3: Licence-exempt use of spectrum and

televulnerabilityTable 4: Innovation in spectrum (management)

Invitations to participate in the round-table sessions were distributed widely, resulting in participation from a diverse group of stakeholders, including private and public users of spectrum, service providers, television and radio broadcasters, manufacturers and representatives from the fields of science and academia. Sessions were characterised by a high degree of interaction between participants. In short, the sessions concluded that the success of wireless communication has turned wireless or mobile connections from being ‘nice to have’ to ‘need to have’, which in the years ahead will lead to greater demand for more sector-specific and business-specific telecoms

3 House of Representatives, session 2015-2016, 24 095, No. 392.


applications. Increased use puts pressure on the frequency spectrum, necessitating more efficient use, which may be encouraged through sharing and third-party use.4

The outcome of this process has provided valuable input for use in drawing up the new Radio Spectrum Policy Memorandum 2016. Section 2 summarises the information gathered per sub-topic.

1.2 The government’s role in the radio spectrum policy

As far as radio spectrum policy is concerned, the government’s role has planning, allocative and supervisory aspects. The radio spectrum policy aims to support all forms of frequency use. The government’s duty is to allocate the radio spectrum in such a way that it is of overall benefit to the economic, social and cultural interests that are attached to frequency use. To prevent interference, it is important to manage spectrum use by limiting the number of applications per frequency band, by limiting the number of users per frequency band and by imposing further requirements on the use of frequencies. This is necessary because frequencies for specific applications are scarce and because the use of frequencies may result in interference affecting other users, both within and outside of the borders of this country, and because it is important to safeguard applications with public interest.

There are a number of reasons for managing radio spectrum. First and foremost, radio waves originating from different sources can interfere with each other (at the receiver). This is typically referred to as interference. This means that it is necessary to make arrangements regarding the use of frequencies for the purpose of protecting users against interference caused by others. As radio waves propagate across country borders, international agreements are, in most cases, essential. Secondly, spectrum is limited and relatively scarce.5 In many

4 Sharing means that the National Frequency Plan (NFP) allocates a frequency band to several users or applications. In this context, it may concern a frequency band that is used by several users offering the same application but also shared use of the band by various applications. Third-party use involves licensees admitting or having to admit other users to ‘their spectrum’.

5 The radio spectrum that is used for radio communication covers the range from 9 kHz to 1000 GHz. This may appear large, but not all frequencies are equally suited to a certain application. As frequency increases its range becomes smaller. However, higher frequencies offer more bandwidth.

cases, a certain frequency may only be used by a single user in a certain area. But even if certain frequencies can be used by more than one user, shared use is limited. This has the effect of creating a scarcity of frequencies. This scarcity is exacerbated by that fact that some frequency bands are better suited to a certain application than others. Finally, the increased demand for spectrum further increases the scarcity of frequencies in certain frequency bands.A third reason for spectrum management is harmonisation. For certain applications, such as radio communication for shipping and air traffic, satellite communication and radio navigation, international harmonisation is inevitable on account of the nature of the application. Harmonisation can also be of importance for other applications. Users, manufacturers and service providers can all benefit from harmonisation of services and their associated equipment. Harmonisation allows services to be supplied over a large geographical area, working on the same frequency and using the same equipment, such as digital (DAB) radios and mobile telephones.

The government plays an active role in the field of (national and international) allocation of the mostly scarce frequencies to a large number of applications. Naturally, this includes adequate surveillance by this same government over the effective use of the frequencies that have been assigned.

The radio spectrum policy serves to ensure that support is provided for the wide diversity of frequency use. This demands that the government carefully consider the best way to use the instruments that are available and where necessary, adjust them, as well as ensuring appropriate implementation and surveillance. As such, the government looks not only at whether or not the rules are being followed but also at ways of facilitating more efficient use of spectrum, including ways of supporting frequency sharing through the use of technology.6

One of the government’s tasks in its radio spectrum policy is to ensure that the radio spectrum policy pursues not only economic interests but also social and cultural interests. In this respect, it is essential to ensure access to spectrum for applications with a public character. This means that the government has a number of public-interest tasks. Public-interest tasks include tasks that have traditionally been undertaken by the government, such as the police force, public order, state

6 An example of this is automated licence granting via Licensed Shared Access, see Section 2 for further information.


security, emergency and rescue services and defence. Traffic services7, public broadcasting and scientific use, including radio astronomy, meteorological and climate research, are also considered to be public-interest tasks. As indicated, societal dependency on the use of spectrum is rising. The Minister for Economic Affairs holds the view that more has been invested in this memorandum in safeguarding this societal dependence and the public interest in the use of spectrum than before (see Section 3).

It is not only use of wireless equipment that is increasing, but also the use of electrical and electronic equipment in general. Such equipment includes audiovisual equipment, (LED) lighting, household appliances and electric vehicles. In principle, all electrical equipment can cause unintentional interference for other equipment, but also the reception of radio communication. The government shall ensure that interference from equipment is kept to a minimum. Equipment that satisfies the EMC Directive has been constructed in such a way that the risk of electromagnetic interference for other equipment is acceptably low. The construction also ensures that the likelihood of the equipment experiencing interference from other equipment is sufficiently low (see paragraph 2.4 and 4.7).

In recent years, the use of mobile communication has given rise to questions about possible adverse effects on health. Objections to transmitter masts in human living environments are common owing to doubts about the dependability of exposure limits and the safety of the equipment being used. Scientific research has not demonstrated any link between exposure to radio frequency fields and health complaints, provided that they remain within the norms. As part of the antenna policy, Radiocommunications Agency Netherlands is responsible for monitoring compliance with exposure limits and the Antennebureau provides information.

The use of frequencies also touches on other government roles, such as safeguarding of privacy, authentication, internet security and the prevention of misuse. In these areas, the government is already active and will continue to focus attention on the position of both business and the consumer in the years ahead.

7 Consider air traffic, shipping, rail transport and road transport.

1.3 Objectives of the new radio spectrum policy

Both the evaluation of the radio spectrum policy and the discussion with stakeholders indicated that the central objective of effective frequency use appears robust. Effective frequency use means that the frequencies are used efficiently and effectively. However, Kwink has indicated a number of challenges that the future radio spectrum policy may need to address, namely stimulating that (parts of ) acquired spectrum rights can be traded, increasing the predictability of policy relating to awards (auctioning or extending), building in stronger incentives for efficient use of frequencies for public-interest tasks and safeguarding public values such as availability and reliability.

The Minister for Economic Affairs shares Kwink’s view that the central objective appears robust, but that amendments are needed to better match the radio spectrum policy to (recent) social and technological developments.

The central objective of effective frequency use continues to be upheld in the radio spectrum policy, however a shift in focus is needed. Where the Radio Spectrum Policy Memorandum 2005 primarily focused on the economic interest, a shift in focus takes place that is aimed at the ever increasing societal dependence and public interest. In addition, increased spectrum sharing is needed between different users and applications in order to better accommodate the increased demands on wireless communication.

The key principle of the radio spectrum policy remains a market that operates efficiently, whilst safeguarding public-interest tasks. In the first instance, this is achieved by awarding (scarce) licences. Scarce licences continue to be awarded principally through auctions, with extensions granted where social reasons necessitate them. In this context, it is essential to shape the market in such a way that it is capable of responding to social developments to the fullest extent possible. Where necessary, additional rules are imposed in order to safeguard public interests. The objectives are developed further in Section 3.


1.4 Consultation

A consultation was held in the run-up to this memorandum. Twenty parties took the opportunity to submit a response. The consultation responses showed that there is broad support for the policy and endorsement for the developments and shift in focus of the central objective as specified in the memorandum. Responding parties highlighted the increased societal dependence on the use of wireless applications in particular. Parties suggested that this would likely lead to licence conditions in order to safeguard this public interest, such as a tightening of coverage obligations.Several responses related to specific topics connected to ongoing decisions or which are primarily of importance to the implementation of the policy formulated in this memorandum. In particular, these concerned the medium wave policy, focus on regions and the classification of the allotments for commercial digital radio licences, the protection of radio astronomy and the importance of different frequency bands for satellite communication. Where relevant, specific comments like these will be incorporated into the implementation of the memorandum for the files in question, such as the Strategic Memorandum on Broadcasting Distribution and the position adopted by the World Radio Conference 2019.

The consultation did not give cause for major amendments to the text, however some responses did give cause for sections of the text to be refined. See Annex 2 for an explanation of amendments made as a result of the consultation.

1.5 Reading guide

The memorandum is further structured as follows. Firstly, Section 2 describes a number of developments that serve as the basis for the shift in focus of the central objective and are of additional importance to the formation of the radio spectrum policy for the years ahead. Section 3 addresses the shift in focus of the central objective as required to fine tune the radio spectrum policy to these developments. Section 4 then looks at the consequences of this shift in focus for the instruments as applicable to the different parts of the radio spectrum policy. This section also points out the actions that will be taken by the Ministry of Economic Affairs to help to shape this shift in focus. An overview of these actions is provided in the final section.

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2Context

This section addresses developments that are determinant for further development of the radio spectrum policy for the years ahead. First and foremost, this section looks at the demands of the market itself using a brief summary of the dialogue held with stakeholders. This is followed by an examination of the relevant social and technological developments. The section concludes with an outline of the international framework within which the national radio spectrum policy is shaped.

2.1 Dialogue with stakeholders

Before drawing up the Radio Spectrum Policy Memorandum 2016, the Ministry of Economic Affairs gave stakeholders the opportunity to indicate the topics and issues that they wanted to see included in the memorandum. To this end, a number of round-table sessions were organised between October 2015 and April 2016. This paragraph outlines the key findings from the round-table sessions. Annex 1 contains a more detailed summary of the round-table sessions.

For scarce licences (for broadcasting and mobile communication), parties emphasised the importance of predictable policy in the form of timely and stable decision making by the government in policy preparation for awarding of licences. The broadcasting sector cited the unique nature of broadcasting and made a plea for the allocation of specific spectrum to accommodate this. Parties expressed their desire for a single policy framework to be established for licences for both broadcasting and mobile.

With respect to ‘spectrum for market and government’, the parties held the common view that a shift is underway in the direction of more business-critical and mission-critical wireless and mobile applications, in other words, a shift from nice-to-have to need-to-have. In addition to public order, security and disaster management, examples such as airports, seaports, the railways, hospitals and (large) cities were named. For these applications, approaches proposed

included harnessing the technology used in mobile networks, such as 4G and 5G and network virtualisation, to play a crucial role. However, in this context supply and demand appear too far apart. The Ministry of Economic Affairs could play a facilitating role here. To increase efficient spectrum use for public-interest tasks, three points were mentioned: (1) Cooperation between governments, (2) Consideration of whether or not the government can purchase the service on a commercial basis, and (3) More third-party use of spectrum (by other parties). As far as third-party use is concerned, the Ministry of Economic Affairs could play a facilitating role by bringing supply and demand closer together.

For ‘licence-exempt’ use of spectrum, attention was requested for the fair sharing of spectrum (‘fair use’). Further growth of licence-exempt use, such as for the Internet of Things, requires a focus on international harmonisation, the co-existence of equipment (with fair use) and sufficient spectrum. An appeal was made for enabling innovation in licence-exempt use by simplifying legislation.On televulnerability, it was stressed that organisations/companies have a private responsibility, but that sufficient attention is not always given to risks. The government can play a role in raising awareness of vulnerability.

When it comes to the role of technology in the radio spectrum policy, the round-table sessions discussed a pilot by Radiocommunications Agency Netherlands aimed at granting multiple users a certain level of Quality of Service (QoS) in the same part of the spectrum. This form of sharing can help to alleviate pressure on the spectrum. Technological developments relating to 5G were also discussed. 5G is seen as the realisation of a new generation of network architecture based on network virtualisation – a development that allows software to create different virtual networks on a physical foundation, and offering (new) providers the opportunity to supply specialised services, particularly for mission-critical and business-critical applications.



2.2 Social developments

The Netherlands needs good telecommunications facilities. In a certain sense, they are the basis for a (potentially) flourishing economy. Research shows that telecommunication plays an important role in economic growth.8 Within the array of telecommunications options, the tremendous increase in the use of wireless applications is striking. Telecommunication (including wireless communication) has become an important driving force for the economy.

The strong societal dependence on connectivity and the opportunities presented by modern technologies such as LTE will see sector-specific and business-specific demands on telecoms increase significantly in the years ahead.This development is in line with the social trend for being available anywhere and at any time, ‘the ubiquitous connectivity’, which is reinforced by the emergence of the Internet of Things. An important catalyst for the success of this trend is the availability of both licensed and licence-exempt spectrum for both networks managed by operators and networks managed by end users. Excellent coverage and availability of public mobile networks is becoming ever more important as more and more applications rely on this type of communication. In some areas, such as indoors, mobile network coverage, particularly in rural areas and at home, can pose an additional challenge. This problem is likely to worsen as the introduction of IoT applications accelerates.9 A specific example is that all new vehicle types will be equipped with an eCall-system from 31 March 2018.10

For Dutch society, excellent wireless telecommunications networks and the services provided through them have become a necessity. However, providers of these services also rely on the availability of frequencies for an adequate revenue model, such that it also stimulates (additional) investment. In this respect, social and business interests coincide. In defining the spectrum requirements for commercial use, the scale and existing investments in networks are important points for consideration. In previous years, established market parties have attempted to maintain their (market) positions in spectrum awards. The market in the Netherlands is by no means unique in this respect.

8 Research by Dialogic (2004) carried out on behalf of the Ministry of Economic Affairs shows that telecommunication accounts for 36% of the growth in GNP.

9 Stratix, Internet of Things in the Netherlands, summary p. 2.10 Regulation (EU)2015/758 dated 29 April 2015.

Recent auctions in a number of European countries have seen established market parties reacquire licences. In addition, a wave of (international) consolidations is apparent, stretching to the integration of and cooperation between market parties with fixed and mobile networks. This forms an additional point for consideration as far as the awarding of spectrum is concerned.

2.3 Developments in technology

The use of wireless communication has grown significantly in recent years. It is anticipated this growth will continue as consumers and companies use more wireless equipment, sectors embark on further digitisation and more and more equipment is connected to wireless networks as electronics and radio equipment becomes smaller.

The spectrum needs of these users differ greatly. Spectrum use differs in time, the extent to which the location is specific, reliability requirements and the amount of spectrum required. For example, the active reading of sensors may involve considerable regularity but likely requires minimal capacity and therefore frequencies, by contrast live reporting of events for television is unpredictable in terms of location, time-critical and requires a relatively high amount of spectrum for the bandwidth that it needs. Demand differs greatly. In developing 5G, the next standard for mobile network technology, this diversity has been taken into account by developing the technology to allow it to handle as many different users as possible. The development of network virtualisation plays a crucial role in providing a service that meets the specific requirements of certain users and user groups.

Technological development also contributes to the ability to fit more and more use within the confines of a finite amount of spectrum. As such, the trend towards digitisation of frequency use continues. This is a positive step, as digital technologies allow for more efficient use of a certain amount of spectrum than is possible with analogue technologies. The utilization of spectrum for a certain application – spectral efficiency – is generally on the increase for many forms of use as technologies continue to be developed. However, the increase in spectral efficiency also raises new questions. Modern mobile networks are sensitive to an elevated noise floor that is triggered by other applications and the increased number of (wireless) equipment devices within the vicinity of the consumer.In addition to increased spectral efficiency, the flexibility of frequency use is also improving. As such, technology is


increasingly capable of enabling a device to make use of different frequencies within a certain range. Amongst other things, this means that in the event of local pressure on the spectrum, alternative frequencies may be used for the same purpose. This also means that reallocation of frequencies, or loss of a licence for a certain frequency, will not automatically lead to a destruction of capital. Additionally, this creates more flexibility for the government in its designation policy.

The frequency range that can be beneficially used for different applications will continue to increase in the years ahead. New antenna technologies and the growth in computing power will continue to allow frequencies higher up the radio spectrum to be utilized. 5G developments focus on the use of frequencies above 24 GHz. The ability to make use of higher frequencies is a very positive development, owing to the wide availability of frequencies higher up in the spectrum and the larger bandwidths that are available in that range. This raises the question of how this spectrum can best be made available. High up in the spectrum, signals generally travel a reduced distance, allowing frequencies to be reused at relatively short distances. This may reduce the rationale for licensing, and in particular exclusive licensing on a national basis.

In recent years, the boundaries between different networks and network technologies have become increasingly blurred. As a result, services that could previously be provided by one specific technology now have a number of alternatives. Technology such as 4G, for example, allows for radio transmission, television transmission and live reporting on location.11 This means a technology such as LTE (4G) competes with more broadcast-specific networks such as DVB-T, FM, DAB+ and satellite networks. On the other hand, there is a rise in new technologies such as LoRaWAN and Sigfox, which in turn are competing with 4G to become the standard for the Internet of Things. Broadcast technology such as DAB+ can even be used for this purpose. The number of parties using technology like 4G is also on the increase, attracted by the economies of scale such a global technology offers, and by the provision of frequencies for which 4G has been standardised on a licence-exempt basis12 and on a first-come, first-served basis13. Mobile network providers can thus on the one hand

11 http://www.liveu.tv.12 A 2x5 MHz channel is reserved in the 1800 MHz band for licence-

exempt mobile communication.13 Spectrum is allocated in the 3.5 GHz band for local licensing for

business-specific applications, both under in-house management and on the basis of service provision to third parties.

tap into new markets, while on the other hand the number of competitors increases.

Therefore, wireless networks become increasingly neutral to the services that they are capable of supporting. The result is competition between technologies and networks, where previously such competition was absent. To support this, it is essential that the government remains technology-neutral in allocating, granting use of and supervising frequency use. Furthermore, it may also be worth looking at whether or not a more service-neutral approach to (re)allocation may be taken, and where possible, to make frequencies for which technology is standardised available to as many parties as possible.

Boundaries between fixed and mobile service provision blur as a consequence of the technological developments that make wireless networks more versatile. Consumers and commercial users demand connectivity wherever and whenever, irrespective of how this is achieved. Providers of these services can take advantage of this by attempting to provide both services in a single package, often combined with television services as well. For this to work, providers need to operate both a fixed and mobile network, or at least have access to them in one form or another. In order to safeguard an effective and efficient market, it may be necessary to ensure that multiple companies can provide their services via both fixed and mobile networks. The degree to which services are bundled should also be taken into account. How this is dealt with is an issue that must also be considered when revising the legislative framework for telecommunications.

Finally, cognitive (reconfigurable) radio is a relevant technological development. This type of technology enables equipment to search for available frequencies autonomously and coordinate use with other equipment nearby. Although considerable time has been invested in this form of radio technology, and it continues to undergo development, it is not yet in use for large-scale commercial applications. However, trials are taking place, including in the Netherlands, to enable more flexible shared use of spectrum. To this end, Radiocommunications Agency Netherlands has begun trails with Licensed Shared Access, whereby a band is shared dynamically by a number of users. Users receive automated access to frequencies for the duration of their use. New concepts like these enable more efficient use of spectrum, helping to reduce scarcity.

http://www.liveu.tv/


2.4 International context

To a great extent, it is international agreements and commitments that influence and provide the framework for national radio spectrum policy.

The allocation of frequencies for certain applications is largely determined at an international level. At its base are the global agreements made in the International Telecommunication Union (ITU). The ITU is a specialist organisation of the United Nations. Agreements made under the ITU relate to the classification of the frequency spectrum into frequency bands, the allocation given to frequency bands and the procedures that must be adhered to in order to coordinate use of frequencies with neighbouring countries. ITU agreements on allocation are determined in the Radio Regulations. These are modified to accommodate market and technological developments every 3 to 4 years during a World Radio Conference (WRC). ITU Radio Regulations are of a binding nature. Allocation deviations are permitted only if they do not cause interference to other countries.

Some of the outcomes and conclusions of a WRC are directly incorporated into the National Frequency Plan. This applies in particular to global services, such as satellite, aeronautical and maritime services. Other outcomes are first elaborated in a European context before concrete decisions are taken. This takes place in the CEPT14, a collaboration between 48 European countries, but increasingly in the European Union (EU) as well. CEPT decisions are not legally binding, EU decisions are legally binding.

EU decision making is generally based on the Radio Spectrum Decision concerning a legislative framework for the radio spectrum policy in the European Community15 and/or on the multi-annual Radio Spectrum Policy Programme.16 The Radio Spectrum Decision gives the European Commission (EC) the authority to achieve a coordinated approach to spectrum policy and, where appropriate, (technical) harmonisation of the conditions for availability and efficient use of the radio spectrum. This strengthens

14 CEPT: European Conference of Postal and Telecommunications Administrations (http://www.cept.org).

15 Decision No. 676/2002/EU of the European Parliament and of the Council dated 7 March 2002.

16 Decision No. 243/2012/EU of the European Parliament and of the Council dated 14 March 2012.

the internal market in certain areas of community policy, such as electronic communication, transport and research and development since (technical) harmonisation enables equipment development for the internal market (economies of scale). The EC is supported in this by the Radio Spectrum Committee, which comprises representatives of Member States and is chaired by the EC. Technical implementation measures drawn up by the Commission are based on studies in CEPT, which have been carried on the basis of mandates. The outcomes of these mandates may be used for decision making. The multi-annual Radio Spectrum Policy Programme incorporates the objectives for strategic planning and harmonisation of spectrum use.

In addition, the regulatory framework for electronic communication services contains provisions with respect to procedures for the provision of frequencies and associated conditions of use. The regulatory framework for electronic communication services contains provisions within which Member States must operate. The Framework Directive17 and the Authorisation Directive18 in particular contain regulations that are applicable to the national radio spectrum policy.

The European Commission recently published a proposal19 to revise the legislative framework. As far as spectrum is concerned, the proposal contains regulations for greater coordination of radio spectrum policy within the EU, aiming for greater consistency in decision making across Member States. Furthermore, the proposal intends to adapt the legislative framework for spectrum to the development of ubiquitous connectivity (available anywhere and at any time) and the introduction of 5G. The objective and principles defined in this memorandum are a starting point for discussions on this topic with the Commission and other Member States. National circumstances can vary widely, meaning that it should be possible to adapt the method of awarding spectrum to the national situation. As such, a degree of national freedom or flexibility is needed when it comes to realising collective political objectives. In addition, flexibility is required in the allocation of harmonised frequency bands for wireless and/or mobile broadband applications if the demand for that spectrum lags behind that of other Member States, so that this spectrum may be used for other purposes, such as private use or

17 Directive No. 2002/21/EC dated 7 March 2002, amended on 25 November 2009 in accordance with Directive No. 2009/140/EC.

18 Directive No. 2002/20/EC dated 7 March 2002 (also amended in 2009).

19 http://europa.eu/rapid/press-release_MEMO-16-3009_en.htm.


governmental use, whilst maintaining internationally harmonised technical conditions. This would help to prevent less efficient use or even vacant frequency bands.

The Radio Spectrum Policy Group is working on enhanced coordination of radio spectrum policy between Member States on the basis of best practice and friendly peer reviews of proposed award procedures.

Radio equipment, as well as other electrical equipment and installations, must be constructed in such a way that interference to other users is prevented and the equipment can be used safely. Equipment must therefore be constructed (in accordance with European legislation) in such a way that these objectives are demonstrably safeguarded. To be able to launch radio equipment products on the European market, specific product requirements must be met. These requirements are defined in the European Radio Equipment Directive.20 Requirements are formulated as objectives and are intended to safeguard public interests, which could otherwise be harmed through the use of radio equipment. These requirements are known as ‘essential requirements’ and relate to aspects including safety/health, electromagnetic compatibility and efficient and effective spectrum use. These essential requirements are incorporated into technical specifications by the European Telecommunications Standards Institute ETSI and contained in the harmonised standards. These standards may be used by manufacturers to demonstrate that the essential requirements of the RED have been satisfied. In the event that a manufacturer chooses not to use a harmonised standard, he must still demonstrate that the essential requirements from the Directive have been satisfied. In the majority of cases, the manufacturer must then bring in a ‘competent authority’. Electrical equipment other than radio equipment, such as televisions and household appliances, can, if poorly constructed, also cause radio interference. In addition, such poorly constructed equipment may also experience interference itself if strong electromagnetic fields are located nearby, for example as the result of broadcasts from broadcasting stations. The European EMC Directive limits these risks by imposing EMC (electromagnetic compatibility) product requirements on electrical equipment.

20 DIRECTIVE 2004/53/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL dated 16 April 2014 on the harmonisation of laws of the Member States relating to the making available on the market of radio equipment and repealing Directive 1999/5/EC. Frequently known simply as the Radio Equipment Directive (RED).

“Increasingly, Dutch healthcare facilities, including hospitals, depend on the extent to which they can realise and safeguard their communication requirements 24/7, with it often being said that life depends on it. Consequently, the availability of wireless communication is of considerable importance to society.”

Jan van Alphen, Strategic Advisor,ICT & Information Management at the University Medical Center Utrecht

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The Ministry of Economic Affairs is of the view that the radio spectrum policy requires a shift in focus in order to be able to support and continue to assist the social and technological developments referred to in Section 2. This shift in focus can take place within the frameworks of the central objective of effective frequency use. The central objective remains determinant for the radio spectrum policy, meaning that frequencies are allocated, assigned and used effectively. This involves both efficiency, i.e. not using more frequencies than is necessary for a specific application, and effectiveness, i.e. having sufficient spectrum to achieve the intended economic and social objectives. However, the central objective will see a shift in focus. Where the Radio Spectrum Policy Memorandum 2005 primarily focussed on the economic interest, a shift in focus takes place that is aimed at the growing societal dependence on wireless communication and safeguarding the public interest. This shift in focus of the central objective of effective frequency use is aimed at:

• A market that operates efficiently• Meeting social developments• Safeguarding public interests

Recent years have shown that a market that operates efficiently produces high-quality mobile networks and a wide selection of services. As such, the underlying principle of the radio spectrum policy remains a market that operates efficiently, whilst safeguarding public-interest tasks. In this context, it is essential to shape the market in such a way that social developments can be absorbed and safeguarded by the market itself to the fullest extent possible. Where necessary, additional regulations may be imposed to support these developments and safeguard public interests.Increasing use also adds to pressure on the frequency spectrum, necessitating an increase in efficient use of spectrum. To accomplish this, greater focus is being placed on sharing and third-party use of spectrum.

Creating a market that operates efficiently is primarily achieved through the awarding of (scarce) licences. A competitive market supplies high quality, affordable services and opportunities for operators (static efficiency) and incentives for innovation and technological progress (dynamic efficiency). The (scarce) licence should be granted to the party able to generate the most value with the licence, which means that, in the event of an auction, a realistic revenue is an important objective and that, in the event of an extension of a licence, a realistic price must be paid. In addition, a competitive market also requires licence-exempt access to the spectrum. This enables new innovative applications.

Social developments, such as changes to the demand for or adaptation to new technology, are served primarily by effective competition. The set of instruments is therefore primarily market-oriented, where auctioning remains the general rule for scarce licences and an extension is granted only if, in the opinion of the Minister, it is underpinned by sound social reasons. Given the increasing dependence on frequencies and with a view to continuity (of business case and service provision) and investment security, market parties have, now more than ever, a need for predictable policy and early clarity on the allocation of frequencies, availability and the means and time of award. As such, a predictable and transparent policy is a precondition for ensuring investment security. It may, however, be necessary to impose additional regulations to allow the market to operate efficiently. The availability of information (e.g. on speeds and coverage) also plays an important role here.

If necessary, mandatory regulations may be imposed in order to safeguard interests that cannot be realised by the market or that are considered politically desirable. In this context, such regulations might include requirements attached to the licence with respect to availability and coverage or stipulations on the (broadcast) programme being offered.

3Objectives of the radio spectrum policy


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4Policy challenges

Improving and adapting the current set of instruments is crucial to support the developments identified. For instance, society’s dependence on (mobile) telecommunication is increasing. In addition, society is imposing ever greater requirements on the availability and reliability of (mobile) telecommunications infrastructure. These, together with other developments, including the introduction of new wireless applications and services and the demand for higher data speeds and increasing data volumes, necessitate more efficient and more effective use of the spectrum.

In the Radio Spectrum Policy Memorandum 2005, different functions for spectrum use distinguished, with three ‘domains’ of frequency use identified – public-interest tasks, the licensed domain and the licence-exempt domain. The licensed domain is further divided into scarce and non-scarce licences. In principle, this memorandum distinguishes the same domains, however they are known by different names in order to better illustrate the shift in focus of the central objective. The old domain of ‘public-interest tasks’ can be found in the paragraph concerning spectrum for the government. The non-scarce licence domain primarily concerns the licensing of spectrum for (business-) specific applications, and can also be found in that paragraph. The other domains, scarce licences and licence-exempt use, remain the same.

The aforementioned domains form a coherent ensemble to arrive at a market that operates efficiently. A market that operates efficiently provides space not only for mobile providers on the basis of exclusive licences, but also for niche operators to provide (business-) specific applications on the basis of a non-scarce (local) licence, as well as licence-exempt use owing to the low entry barrier and the space that this offers for innovative developments.

This section identifies the significance of the shift in focus on the different domains. In addition, attention is also given to the increased televulnerability of the use of spectrum and how implementation and surveillance of the shift in focus may be adjusted.

4.1 Allocating spectrum

To a great extent, international agreements provide the framework for the Dutch radio spectrum policy. This is inherent to the subject matter itself: radio waves originating from different sources may interfere with one another’s reception and are not obstructed by national borders. This means that it is necessary to come to (international) agreements about the use of frequencies for the purpose of protecting users against harmful interference caused by others. In addition, international agreements are made about the harmonised use of frequencies. For users, as well as service providers and manufacturers, it may be of great benefit for services and their associated equipment and technology to be standardised. For certain applications, standardisation is even essential, such as for radio communication for traffic services.21

With regard to the divergent and disparate interests, it is the government’s responsibility to balance the interests within the context of the international allocation process. The government balances new frequency needs against the interests of current users and any other interested parties. It is the duty of the government to act in a transparent and independent manner in this process. Therefore the various users and user groups are involved in the international decision-making.

At this international allocation level, the first scarcity assessment is made, i.e. whether and to what extent frequencies are to be made available for specific applications, also having regard for other existing or new applications. International decisions on the allocation of frequency bands and the allocation to specified services provide the framework for the national radio spectrum policy and as such restrict the degree of freedom for

21 Consider air traffic, shipping, rail transport and road transport.



national frequency policies. National allocations may deviate, however, from international agreements as long as these do not cause interference to other countries. The Netherlands’ room for manoeuvre is limited because it is geographically a small country surrounded by several neighbouring countries. Nevertheless, the Ministry of Economic Affairs is of the opinion that the Netherlands should be able use its freedom to the greatest possible extent within these frameworks. In this context, the government is prepared to utilise opportunities to permit new use or third-party use even in areas that have not yet been harmonised internationally, on the condition that this does not jeopardise the existing primary use. In determining opportunities for sharing, it is important to take account of vulnerable radio applications with a sensitive receiver, such as earth observation, radio location and radio astronomy.

The government organises the spectrum by laying down the allocation decisions in the National Frequency Plan (NFP). A key principle in this context concerns effective frequency use. When allocating frequencies, inherently a choice must be made between different kinds of application. One of the factors affecting this choice is that some frequency bands are more suitable for a specific application than others, which may give rise to ‘allocation scarcity’. This allocation scarcity should be distinguished from scarcity that may subsequently arise at the level of the assignment to users, a concept known as assignment scarcity’. See paragraph 4.2 for the most recent form of scarcity.

Significance of the shift in focusAllocation scarcity occurs when allocating spectrum for specific applications. Such applications might include radio applications and mobile telecommunications applications, but also licence-exempt applications and spectrum for typical governmental tasks. This first scarcity consideration occurs when considering how spectrum is allocated in the NFP. The requirements for the application in question are then assessed taking into the account the objective of an efficient market and the safeguarding of public interests. Part of the consideration is also if and how the different application opportunities can be mutually valued (from a financial perspective). In addition, when allocating frequencies for the safeguarding of public interests, incentives that could promote efficiency will also be looked at. This is expressed first and foremost by also assessing whether or not frequency bands (and licences) lend themselves to sharing. Efficiency can be strongly encouraged if different applications can be used in the same spectrum by different users alongside one another (see paragraph 4.3).

There can be marked differences in terms of the degree to which the details of the allocation have been defined, for example with respect to the specific application and service. In order to give the market as much scope as possible to operate efficiently, the allocation in the NFP is as independent of technology and service as possible. To a great extent, allocations are determined internationally. The Ministry of Economic Affairs shall make the case internationally for the continuation of the movement that has already been set in motion, in order to arrive at allocations that are as broad as possible and independent of technology and services. However, it may be necessary to implement specific allocations in order to anticipate social and cultural interests. The Netherlands attaches great importance to ensuring adequate opportunities for scientific use of spectrum, including radio astronomy. A proper balance between scientific and commercial use of spectrum must be aimed for, including by implementing arrangements for shared use.

In order to be able to offer opportunities for new innovative applications, it has been and continues to be possible to deviate from the allocations in the NFP for the purpose of conducting experiments, on the basis of an experimental licence.

The evaluation revealed that stakeholders experience the procedure for amending and adopting the NFP as complicated and lacking in transparency. An assessment will be carried out into how the procedure for amending the NFP can be made more comprehensible and how greater transparency can be ensured.

ActionsActions that will be taken are:• Allocations that are as broad as possible, with space to

provide for (national) social and cultural interests, including through arrangements on shared allocation.

• The Ministry of Economic Affairs shall make the procedure for amending the NFP more comprehensible and shall facilitate greater transparency.

4.2 Scarce licences and market regulation

Assignment scarcity occurs in the concrete distribution of licences for the use of spectrum where, in all likelihood, demand for that spectrum exceeds supply. This may mean that there are more (market) parties with interest in the licences in question than there are available licenses (absolute scarcity), or it could mean that a limited (in some


cases very limited) number of (market) parties have mutually divergent interests in different ranges of frequencies or specific parts of the spectrum. This is referred to as ‘relative scarcity’. For scarce licences (absolute and relative), an auction remains the designated award instrument for each application. Nevertheless, this does not diminish the option for other scarcity instruments to be used for awarding in relevant cases, including a comparative review whether or not combined with a financial bid.An auction ensures that licences go to market parties who ultimately are able to realise the most value with the commercial use of spectrum. Consequently, an auction format promotes competition. An auction is not, however, the only market-oriented instrument with which efficient allocation can be achieved. Tradability of licences further increases the opportunities for efficiency. This option is encouraged by the government. Surveillance is exercised to ensure that licences are actually used. Investigations shall also be conducted to examine the possibility of forcing a licensee to sell or lease unused frequencies if the licensee fails to adhere to the requirements that are attached to the licence, such as a commissioning obligation or coverage requirement. Such a measure would promote efficient frequency use and may help prevent licences from being acquired for speculative purposes. In addition, it would also prevent the current set of instruments, such as the withdrawal of licences by the government, being deployed in haste.When awarding scarce licences, it is necessary that the parties, in an open and transparent process, have equal opportunities to gain access to the spectrum. Besides, the rights to the use of scarce licences should not be perpetual; from time to time, new parties should have the opportunity to gain access to the spectrum. After award, licences can also, in principle, be traded either in full or in part. If this is the case, the licences to be traded continue to be subject to the same rights and obligations as those attached to the original licence. In addition, tradability may also mean that the licensee has the opportunity to permit third-party use of spectrum. This relates in particular to third-party use at specific locations and at specific hours. In this case, the licensee remains responsible for the frequency use and adherence to the applicable conditions. When it comes to certain frequencies, mostly those that are of great commercial interest, it is clear beforehand that they are scarce, in either an absolute sense or a relative sense. Where other frequencies are concerned, it is not always obvious that they are actually scarce until a later stage is reached. In cases like these, it may be useful to test the market first to assess the level of scarcity based on concrete licence applications, in order to then transition to

awarding. If scarcity appears to be absent, licences can be awarded on a first-come first-served basis; where there is scarcity, an auction format may be used. The current set of instruments contains provision in this regard by way of the Award on Request (VOA, ‘Verdeling op Afroep’) system. See paragraph 4.4 for further information.

When awarding scarce licences, including for purely commercial use (in essence), the government must consider a number of objectives and their prioritisation. These must be transposed into the set of instruments. By way of example, specific provisions may be applied to auctions for newcomers and/or existing licensees. In addition, requirements may be attached to the licences themselves, such as coverage obligations.

“Predictable (spectrum) policy is crucial to T-Mobile, but also to other operators in the Netherlands. It plays a major role in investment readiness in the Netherlands’ mobile infrastructure and helps to ensure that our mobile networks are amongst the best in Europe.”

Miriam van Deursen, Regulatory & European Affairs Counsel at T-Mobile Nederland

Objectives and shifts in focusAs far as (commercial) scarce licences are concerned, the Radio Spectrum Policy Memorandum 2005 focused primarily on facilitating market function and flexibilisation. Together, these were to ensure that through commercial use of their licences, market parties could achieve not only a sound business case but could also supply high-quality and affordable services to society. Efficient allocation, i.e. the awarding of licences to market parties who themselves could derive the most benefit from them, would ensure that social interests are safeguarded.

The objective of efficient market function remains just as important. Efficient use of scarce spectrum and adequate control and surveillance serve both (short-term) static efficiency and (long-term) dynamic efficiency. It can, on the one hand, help to ensure the continuity of service


provision, while at the same time support innovation. End users can choose from varied and diverse services or programmes with adequate prices – ‘something for everyone’. In addition, a competitive environment of this nature provides incentive for market parties to embark on innovation. Over the last 10 years, since the Radio Spectrum Policy Memorandum 2005, the success of this approach has become apparent.

Where, back in 2005, the adage ‘nice to have’ was the foundation for the policy with respect to scarce licences, the successes have facilitated a greatly increased dependence on the availability of the services being offered. For society as a whole, this availability has changed to ‘need to have’, with solid characteristics of a public service. This shift in focus imposes new requirements on the radio spectrum policy, whereby efficient market function remains both the principle and the objective.

When it comes to scarce licences, use of a market-oriented instrument remains chiefly a necessity. These licences are auctioned, and extended only in exceptional cases, where doing so is in the public interest, for example if an extension is critical to supporting the transition from analogue to digital technology. These interests must be explicitly clear; a price must be determined for the licence extension that is market based, a price that accurately reflects the value of the market opportunities for other potential users of the licence in question.

Safeguarding the public interest of adequate telecom-munications and/or broadcast services requires a solid combination of early clarity and predictability of policy and an adequate licence period. This is necessary given the (in some cases) large investments and timely investment decisions that are sometimes associated with setting up and continuing to operate networks and service provision. When determining adequate licence periods, the timing of licence (re)awarding in different frequency bands is also important, owing to the increased opportunity for different frequencies to be used flexibly alongside (or even instead of ) one another.

A number of public interest areas are linked to scarce licences:• It is essential to prevent economic market positions

from being established that could put pressure on the affordability and availability of the services being provided.

• For the Netherlands, it is important to remain proactive in terms of the availability of up-to-date networks; incentives must be provided to stimulate innovation.

• Availability and coverage are increasingly public interests.

• Security and reliability must also have public safeguards.• The pluriformity of the supply of broadcast services is

also important.

These interests are safeguarded through an adequate mix of various instruments. The usual supervisory framework, both ex-ante and ex-post, aimed at maintaining efficient market function plays a role in this. In addition, and of a different nature, requirements and/or provisions may be put in place for licence extensions to ensure that this public interest is properly safeguarded, e.g. with regard to:• Coverage requirements and obligations regarding

availability;• For broadcast applications: pluriformity demands;• Rules to ensure the continuity of service provision,

for example when (re)awarding licences;• Service and/or technology requirements;• Reservations at auctions.

These requirements and provisions can only be deployed with great caution and well-argued, by way of a tailored approach. It must be made explicitly clear that without these provisions, public interests can no longer be safeguarded.

In this context, the government must seek the right balance between the different interests and objectives. In some cases, these may be contradictory. As such, the policy generally strives to create opportunities for access to the market for all parties, both existing parties and newcomers. This may also support innovation. At the same time, there may also be a social interest in the continuity of the existing service provision. This dilemma is particularly visible when considering whether or not existing licences due to expire should be auctioned or extended. The preferred choice remains to auction licences. An extension purely for the purpose of preserving the continuity of service provision is undesirable and is can be conducted solely in highly exceptional cases. An extension may be granted, also in exceptional cases, if the Minister for Economic Affairs considers it to be of particular social, economic or cultural interest.

Within the context of preparing an auction, the question of whether or not specific provisions need to be put in place to safeguard the objective of effective competition may also pose a dilemma. Is it possible to rely on a competitive market situation continuing as it is, or should frequencies be reserved for newcomers or restrictions be placed on existing licensees attempting to acquire additional spectrum? These questions are not to be answered a priori and require careful consideration of all interests – those of existing market parties and potential newcomers, as well as the (end) users of the spectrum.


The principle in this respect continues to be that a market characterised by effective competition will continue to yield positive results. In this context, a tailored approach will be used when setting up a concrete auction. When awarding (by auction) licences of commercial importance, the Authority for Consumers & Markets must be consulted on the extent of effective competition. When evaluating this, it may be necessary to consider the (potential) effects of increased convergence between fixed and wireless infrastructures. In addition, the positive effects of (increased) scale must also be examined and the resulting decisions on major investments by market parties must be taken into account when awarding scarce licences. When preparing an auction, experiences from previous auctions must also be considered.

In view of the differing types of use of (commercial) scare licences, it makes sense to continue to distinguish between mobile telecommunication on the one hand and (commercial) broadcasting on the other. It is anticipated that the convergence of networks and service provision in the digital domain will cause the differences to reduce, particularly following the final switch-off of analogue technologies such as AM and FM. Broadcasting parties are in a critical transition phase from old (analogue) technologies – from AM and FM to DAB+ on radio and from DVB-T to DVB-T2 on television. In addition, there is ever increasing pressure on broadcasting bands, particularly television broadcasting bands, alongside convergent platforms, while the current linear broadcasting distribution system (‘one to many’) loses more and more ground to on-demand services over the internet (‘one to one’). Finally, when it comes to broadcasting, public interest is partly safeguarded through public broadcasting.

The differences in nature between scarce licences for mobile communication and broadcasting therefore require a differentiated elaboration of the aforementioned framework. For both mobile communication and broadcasting distribution, the Ministry of Economic Affairs shall elaborate upon the objectives and framework specified here and develop them into a Strategic Memorandum for Mobile Communication and a Strategic Memorandum for Broadcasting Distribution.22 These memoranda shall contain the principles that underlie the

22 In the AO Telecom of 24 May 2016, the House of Representatives requested a vision for broadcasting distribution with a focus on (inter alia) the transition from analogue to digital, the identity of public broadcasters, the balance between public and commercial broadcasting, regionality and the role of Radiocommunications Agency Netherlands.

award of spectrum for mobile communication and (commercial) broadcasting respectively for the period ahead. The Strategic Memorandum for Broadcasting Distribution shall be compiled in liaison with the Ministry of Education, Culture and Science. This Strategic Memorandum shall also address the consequences of the continued convergence (of broadcasting/mobile technology), as this is increasingly determinant in the matter whether specific licences (and therefore exclusive spectrum) for broadcasting applications are required. It is anticipated that the convergence and digitisation of broadcasting networks in the future will lead to differences between these sectors disappearing and therefore a cessation of the need for separate strategic memoranda.

ActionsActions that will be taken are:• The Ministry of Economic Affairs shall clarify the

objectives of awards and concrete elaboration (in auction models) in a timely and predictable manner to allow the market to better prepare for investment decisions.• The Ministry of Economic Affairs shall compile the

Strategic Memorandum for Mobile Communication to set out the objectives for the award of licences for mobile communication, specify the dates at which licences will be awarded and justify and where possible, flesh out the need for requirements to be attached to the licences, including a need for coverage obligations.

• In addition, the Ministry of Economic Affairs shall compile a Strategic Memorandum for Broadcasting Distribution in liaison with the Ministry of Education, Culture and Science concerning the frameworks for the award of (commercial) broadcasting licences, with a focus on aspects including the transition from analogue to digital, the opportunities for cooperation and tradability.

• The Ministry of Economic Affairs shall formulate policy to address how third-party use and tradability can be promoted in conjunction with one another in the event that the licensee does not adhere to the licence conditions, including the possibility of forced sale or leasing.


4.3 Spectrum for performing public-interest tasks

Spectrum for performing public-interest tasks includes the use of spectrum to which a public interest is attached, and comes under the direct responsibility of a minister. Public-interest tasks include tasks that have traditionally been undertaken by the government, such as the police force, public order, state security, emergency and rescue services and defence. Traffic services7, public broadcasting and scientific use, including radio astronomy, meteoro-logical and climate research, are also considered to be public-interest tasks. A public-interest task does not necessarily have to be performed by the minister himself, but may also be carried out remotely, where responsibility for the required spectrum remains with the minister. These tasks are of such public interest to society that they must be allowed guaranteed and uninterrupted (i.e. without the occurrence of harmful interference) access to sufficient spectrum for them to be completed. The Telecommunications Act sets out that the National Frequency Plan (NFP) designates frequency bands in which public-interest tasks are performed.23 Exclusive use of spectrum for public-interest tasks is, however, detrimental to other options for using the spectrum, and renders remaining spectrum more scarce. The designation of frequencies in the NFP (as well as their subsequent assignment) is done on the basis of a needs justification plan (NJP), which has a legal basis.24 In the NJP, an appropriate minister sets out and substantiates how much spectrum is required for the public-interest task in question. International obligations and the importance of international harmonisation may form part of this motivation. Developments in network virtualisation and 5G25 play an important role in providing a communications service that meets the specific requirements of certain users or user groups, and if possible, also for (certain) public-interest tasks. This may reduce the need for exclusive allocation of spectrum for public-interest tasks. In this context, there is a link in terms of the functional requirements between applications for which spectrum is allocated using the NJP instrument (also known as mission-critical applications) and business-critical applications.26 Sharing spectrum between both categories can also help to further more efficient use of spectrum.

23 Bulletin of Acts and Decrees 2013, 48.24 Government Gazette 2013, No. 3366, 15 February 2013.25 See paragraph 2.3.26 See paragraph 4.4.

The introduction of the NJP is an important step towards more efficient use of spectrum by government parties. Where the first evaluation phase in 2013 of the needs justification plans submitted by governmental parties emphasised mapping governmental use of spectrum for public-interest tasks, further steps have now been taken to ensure that the NJP instrument is used to further (more) efficient frequency use.

Significance of the shift in focus for use of the NJPSafeguarding public interests is one the three areas of focus for the (new) radio spectrum policy. The benefits of and need for adequate availability of spectrum for public-interest tasks are not up for discussion. However, the use of spectrum is increasing, which in turn increases the need for more sharing and third-party use of spectrum.The needs justification plan (NJP) is the next step towards fully efficient use of spectrum. The criteria for assessing an NJP will be made more explicit for:• Potential collaboration with other government parties; • The possibility for the task in question to also be

performed on the basis of a commercial service;• Options for third-party use and sharing.Collaboration with other government parties promotes sharing spectrum and reduces the likelihood of conflicting claims for spectrum. Additionally, collaboration provides a more solid basis for considering whether or not the task in question can be performed on the basis of a commercial service. This consideration is the responsibility of the minister(s) whose public-interest task it concerns. Opportunities for third-party use and sharing will need to be assessed on a case-by-case basis. In this context, adequate surveillance and protection of the primary user are important preconditions. In some cases, and certainly in exceptional circumstances, exclusive use by the primary user must continue to be possible. An assessment of the opportunities for sharing and third-party use will be based on categories that are established and elaborated on in the next NJP phase in liaison with the departments concerned. This categorisation may range from bands with no or virtually no opportunities for third-party use to bands which feature (almost) continuous third-party use and are used for performing public-interest tasks only in exceptional circumstances. Where necessary, assessment of whether or not third-party use is possible will also use measurements of the actual use for specific public-interest tasks. The expectation is that opportunities for third-party use can be increased as the result of technological developments.


In principle, third-party use and sharing of spectrum are clarified in the NFP within the context of allocating spectrum for public-interest tasks. The allocation also sets out the practical rules of use.

Unlike direct allocation for public-interest tasks, public broadcasting continues to be subject to the current preferential licensing regime. The Minister for Economic Affairs shall liaise with the Minister for Education, Culture and Science in order to develop a vision for the long-term objectives of the (broad) broadcasting distribution policy and associated set of instruments (see paragraph 4.2).

ActionsActions that will be taken are:• The next NJP phase (2017-2020) will be designed

primarily to provide input to more efficient spectrum use. • The elaboration of opportunities for collaboration

between governmental services, opportunities for commercial service provision and opportunities for third-party use and sharing when assessing the NJP.

• In addition, the Ministry of Economic Affairs/Radiocommunications Agency Netherlands shall establish a process within the context of the NJP to facilitate and stimulate third-party use and sharing. Supply and demand shall be brought closer together.

• The outcomes of this NJP phase shall be evaluated in 2020-2021 (for their contribution to more efficient spectrum use).

“Where feasible, promote mutual third-party use of sparsely used frequencies.”

Alle de Jong,Radio Spectrum Manager, Ministry of Defence

4.4 Business-specific applications

Currently there is an increase in the number of business-specific applications and reliance on wireless communication continues to increase in businesses. In this context, we refer to what is known as ‘business-critical communication’. Without access to communication, business processes would grind to a halt, or be impaired at the very least – consider automated processes in healthcare for example, industry, seaports and airports, as well as municipal services. Increasing dependence gives rise to specific requirements being imposed on communications systems, such as a high degree of availability and reliability, speed and network prioritisation. In turn this increases the importance of such networks owing to the high degree of dependence on wireless communication. The increase in the number of business-specific applications also places greater pressure on the frequency spectrum. In view of this, more efficient use is of greater importance than ever.

Set of instrumentsIn principle, it is assumed that taking into account future technological developments, the demand for business-specific applications will be largely covered by mobile providers. Developments in network virtualisation and 5G can play a significant role in this. At present however, commercial operators do not offer adequate solutions for business-specific applications.27 It practice, it appears difficult to properly translate the demand that exists in different sectors (‘verticals’) into specific requirements that allow operators and other suppliers to make a commercial offer.

This requires both the sectors in which there is demand and the providers to play an active role. It is vital that the demand side makes clear which aspects are important and what requirements are imposed on communications systems. On the supply side, it is essential to provide clarification on what can and cannot be provided, taking into account the requirements being imposed. This approach will allow supply and demand to move closer together. In this context, it is assumed that services are purchased from operators and other suppliers.

27 From a technical perspective, providing business-specific services over 2G and 3G networks is an unsuitable solution.


Attention must be given to the interplay between supply and demand and the way in which this is achieved, as well as the extent to which the prerequisites for this are satisfactory. The government’s role in this is a facilitating role – it would serve no purpose for the government to step into the shoes of market parties and determine which requirements need to be imposed on communications systems and the requisite spectrum. This is the responsibility of the market itself. The government can, however, facilitate the market by bringing parties together, such as through platforms such as the Cognitive Radio Platform (CRPlatform.NL).28

To stimulate the interplay between supply and demand, it may be necessary to make spectrum available for business-specific applications if the government’s facilitating role does not yield an outcome. In this respect, the set of instruments is focused on sharing of the spectrum. Whenever possible, spectrum will be made available in a way that is consistent with existing ecosystems for mobile communication (e.g. LTE). European harmonisation of technical conditions also remains important; however, national space is required for assigning a specific form of service provision.

‘The quality of business-critical mobile data can only be guaranteed with access to spectrum – the same way we have done for decades with voice over PMR systems.’

Koen Mioulet,Interim Wireless Consultant at Schiphol Telematics

As far as the supply side is concerned, the interplay between supply and demand covers not only traditional telecoms operators, but also other parties operating on the supplier side, what are referred to as niche players. It is precisely these parties who may be able to offer specific solutions for business-specific applications, leading to a broadening of the market and increased competition. Making spectrum available for business-specific applications may also be beneficial in this regard. It gives niche players the opportunity to offer specific services,

28 The CRPlatform.NL is an independent platform that may be used by a wide range of stakeholders, including the government, to discuss the use of (new) radio technology for wireless communications solutions.

both using their own infrastructure and as service providers using the infrastructure of an infrastructure provider.

As pressure on the frequency spectrum grows, more efficient use of the spectrum becomes essential. Key ways of improving this include third-party use and sharing, as well as spectrum leasing. The latter in particular could help to facilitate business-specific applications and the corresponding spectrum requirements. The way in which this can be implemented needs further analysis.

Shift in focus: difference with 2005The principles as formulated in the Radio Spectrum Policy Memorandum 2005 with respect to non-scarce licences have been maintained. In principle, non-scarce licences are extended automatically and preferably for short periods. This aids flexibility. Non-scarce licences are awarded on a first come first served basis.29 Actual scarcity is not a factor and cannot therefore be included in any price. If scarcity does arise, it is desirable to adjust the policy; the licences will not be extended in that case. This may involve a transfer to the scarce licences domain or making additional spectrum available. In addition, more space may be created by forcing use of more efficient technology by, for example, reducing the available spectrum per licence.In the case of non-scarce licences, tradability is not a factor as a general rule. As long as they are not scarce, licences may simply be ‘collected’ from the licensing authority. This does not alter the fact that licensees are in a position to transfer the licence.As a general rule, non-scarce spectrum is virtually always shared. Non-scarce licences do not include the option of third-party use as they make use of frequencies that must be shared.

In principle, spectrum that is allocated to business-specific applications is assigned on a first come first served basis. In this context, a licence is required as business-specific applications frequently involve business-critical communication in which interference is undesirable and guarantees are needed for aspects including network reliability. This means that coordination (by the government) is required to prevent mutual interference. Scarcity can also occur for spectrum allocated to business-specific applications, and for this reason, it is important to ensure that the preconditions under which the spectrum is assigned are properly and clearly formulated.

29 Annual costs are charged for implementation and surveillance.


A particularly specific application is the use of spectrum for the provision of broadband services in rural and outlying areas. In a broader perspective, great value is attached to the availability of high-speed internet across the Netherlands. At the start of 2015, approximately 330,000 households and businesses were unable to access high-speed internet with a minimum speed of 30 Mbps.30 Areas without access to high-speed internet tend to be located in sparsely populated, usually rural areas. In these areas, mobile networks can offer an improved internet connection with limited speed, but do not at present offer a structural solution on account of restrictions on data use. In order to realise high-speed internet access in rural and outlying areas, the focus is primarily on the construction of fixed networks or ‘fixed wireless’ networks31, or a combination of the two.32 Spectrum is available for the provision of internet access via fixed wireless networks. The development of this type of use will be watched closely, as it is essential that adequate spectrum is available.

The Award on Request instrument is used if it cannot be determined in advance whether or not scarcity is to be anticipated in the assignment of certain frequencies. The most important characteristic of this method of assignment is that the market determines the point at which award occurs, rather than the government. This point is determined by the first applicant for the spectrum in question that is allocated in the frequency plan. This instrument aims to provide the flexibilisation announced in the Radio Spectrum Policy Memorandum 2005 and to provide maximum scope for innovative applications.

To date, Award on Request has not been used. Development and implementation of Award on Request has been a time-consuming task, while at the same time, the allocation of specific bands that are actually suitable for assignment via Award on Request appears difficult. Nevertheless, Award on Request remains the instrument that can be quickly put into practice whenever there is uncertainty as to whether or not spectrum is scarce, and that offers maximum flexibility for the assignment of spectrum. It is anticipated that increased pressure on the spectrum, in part due to a higher number of business-specific applications, will lead to Award on Request being used more frequently. This includes in particular higher frequency bands, which will be used more and more and

30 Stratix, investigation into LTE coverage in the Netherlands, February 2015.

31 These solutions are also known as Wireless Local Loop (WLL).32 In addition, satellite communication may offer a solution.

which may be of interest to the aforementioned niche players. For this reason, the way in which Award on Request can be used will be examined in more detail.

ActionsActions that will be taken are:• The Ministry of Economic Affairs shall facilitate the

growing need for wireless communications solutions for business-specific applications.• Where necessary, the Ministry of Economic Affairs

shall play a facilitating role in the interplay between supply and demand and the way in which this is achieved.

• If applicable, the Ministry of Economic Affairs shall offer spectrum for business-specific applications that is consistent with existing standards such as LTE. To obtain space for this at a national level in European harmonised frequency bands, amendments to the European telecoms framework are necessary. These shall be introduced in negotiations for revision of the legislative framework for electronic communication.

• With a view to efficient use of the spectrum, the Ministry of Economic Affairs shall place more emphasis on spectrum leasing, which shall involve assessing ways in which leasing can best be implemented. See the related action for scare licences and market regulation.

• The use of Award on Request requires further consideration by the Ministry of Economic Affairs, to include consideration of the anticipated increase in pressure on use of the spectrum.

4.5 Licence-exempt use of spectrum

The licence-exempt domain safeguards easier access to the spectrum. As such, licence-exempt frequency use is an important breeding ground for innovation and contributes towards dynamism in the market. Easier access to the spectrum provides opportunities both for news users and for new applications. All companies, consumers and organisations have the opportunity to create a wireless network or to use wireless equipment without having to apply for a licence or having to purchase paid-for services. This helps the market for innovative products and services to flourish, including ‘smart devices’ (devices connected to the internet) and telecoms services in buildings. By way of example, WiFi is a viable alternative to mobile networks for communication over short distances.The licence-exempt use of spectrum varies widely – from wireless broadband (e.g. WiFi) to wireless microphones, communication between vehicles, social alert systems, etc. Licence-exempt


use of spectrum has increased considerably in recent years, and that growth is expected to continue. For the government, ensuring that the licence-exempt domain can continue to function effectively in the face of growing use poses an interesting challenge. The Ministry of Economic Affairs intends to create the right preconditions for this, through adequate licence-exempt spectrum, clear (European) legislation and high-quality equipment standards, as well as proper surveillance.

Set of instruments The absence of individual requirements attached to the use of frequencies does not mean that the use of these frequencies is entirely free, as it is also subject to rules. These rules are related to the effective use of frequencies. Although frequency users do not need to apply for a licence, they must adhere to a set of general requirements that are linked to the use of frequencies. Their radio equipment must also satisfy technical requirements. In certain cases, such as maritime mobile communication and amateur radio equipment, users are required to register and must meet certain admission requirements, such as completing an examination.

The registration requirement was introduced in the Radio Spectrum Policy Memorandum 2005 to be able to monitor users in the event that no individual licence requirements are imposed, such as for marine radios, owing to water safety. As such, the marine radio and amateur radio licence categories could be converted to the (lighter) licence-exempt use. In this context, registration allows the possibility of transferring the use to the licensed spectrum domain where frequencies become scarce, where abuse has been proved or where there is a need to reallocate the relevant spectrum.

Shift in focusThe Ministry of Economic Affairs is working towards a licence-free environment, where possible. To facilitate as straightforward as possible access to the spectrum, and to stimulate sharing with a view to efficient use of the spectrum, licence-exempt use of spectrum remains a key principle. This was also the case in the previous Radio Spectrum Policy Memorandum from 2005. Adequate licence-exempt spectrum is and remains necessary, however in certain situations, the market can be better shaped through (continued) use of licences, such as when the provider of a commercial service needs a degree of certainty about the payback time of his investments in infrastructure or when a company needs certainty in relation to the quality and reliability of a connection. In that case, it is also important to seek the right balance

between the licence-exempt spectrum and the licensed spectrum.A licence is required if:• It is necessary for the safeguarding of effective frequency

use or other objectives of economic, social or cultural interest;

• Coordination (by the government) between users is required for the prevention of harmful interference or to guarantee the technical quality of electronic communications networks and services;

• Use is not possible throughout the Netherlands or only for a limited time.

Within the context of the allocation of frequency bands in the National Frequency Plan, the necessity of a licence or possibility of licence-exempt use will be assessed on the basis of these criteria. Consideration will also be given to whether or not licence-exempt use can be enabled with use of registration requirements. However, it is not always clear to frequency users how this approach differs in practice from licensing. For this reason, the way in which the registration requirement relates to licensing and in what cases the registration requirement can be applied, will be examined further.

The sharp increase in licence-exempt use creates pressure on the available spectrum. There appears to be adequate spectrum available for now, but it may become insufficient in the medium term due to developments such as the ‘Internet of Things’ (IoT). The policy is oriented towards this spectrum demand, and the Netherlands will promote this at the European level. International harmonisation of frequency bands is crucial to exploiting economic advantages of scale. Monitoring will focus more on trends in growth, including the emergence of IoT and on monitoring the actual use of common frequency bands in order to be able to identify bottlenecks in a timely manner.

Strict conditions of use and reliable equipment standards are essential to creating an environment in which the licence-exempt domain can be used effectively and efficiently. These are largely determined at a European level. However, over the course of time, legislation and standards have become more complex. The Ministry of Economic Affairs is therefore endeavouring to simplify and clarify technology-neutral and application-neutral European legislation and corresponding equipment standards. Simplification of legislation should lead to more opportunities for innovative use and sharing of licence-exempt spectrum. More and more companies and organisations depend on, for example, WiFi or private GSM networks (for coverage indoors). If that becomes critical to business, then licence-exempt users may experience vulnerabilities (risk


of interference and congestion) and seek alternatives. For business-critical applications that require more protection, accessible alternatives can be created. Options under consideration include a light licence regime for private networks, see paragraph 4.4, or a licence-exempt band dedicated to certain applications or use profiles. In addition, the government is also seeking to increase knowledge and awareness of vulnerabilities for licence-exempt use of spectrum (see paragraph 4.6).

Finally, proper surveillance is an important precondition. The growing amount of equipment poses a challenge. To avoid problems, illegal equipment (that does not satisfy the requirements) is identified and withdrawn from the market. Nevertheless, the risk of interference and congestion is rising, including from legal use. Radiocommunications Agency Netherlands is now offering some intervention, albeit limited, as licence-exempt users must accept a certain level of incidental interference. Greater and more diverse use of licence-exempt spectrum increases the chance of structural interference. Preventing and counteracting this requires more intensive surveillance and suitable authorities (see paragraph 4.7).

Actions Actions that will be taken are:• The Ministry of Economic Affairs shall work towards

adequate opportunities and towards lowering barriers for the use of licence-exempt frequencies.

• Efforts to simplify European legislation and standards. At EU level, the Ministry shall argue for a clarification and simplification of European legislation. Since these rules are implemented into technical standards, the Ministry of Economic Affairs shall, where necessary, make concrete proposals for the establishment of standards.

• Explore spectrum demands of the Internet of Things (IoT) within a European context.

• Monitor licence-exempt use and trends, such as IoT.• Investigate whether certain licence categories can be

made licence-exempt and the role of a registration requirement.

4.6 Televulnerability

Since the Radio Spectrum Policy Memorandum 2005, telecoms services have increased in importance across a range of social processes. Our use of the internet, mobile telephones and smart devices has increased. IT and communications networks are linked, increasing possibilities. Motorway traffic is monitored and controlled through telecommunication, through remote care, the elderly can retain their independence for longer, and companies can outsource their administration to data centres. Telecommunication has become an essential basic provision that is indispensable for Dutch society and the economy. Wireless communication also forms an important part of this basic provision. Society has become increasingly dependent on telecommunication, in many cases consciously but in some cases gradually, without necessarily noticing. And rightly so, requirements have been imposed on availability and reliability.

Although communication is generally reliable in the Netherlands, faults can occur. A major telecoms fault in Rotterdam in 2012 brought the metro system to a standstill, and customers as far away as Groningen and Maastricht encountered problems. Parties themselves are primarily responsible for preparing for faults like this. Telecoms parties are already taking the necessary precautions to safeguard the reliability of telecommunication and to prevent faults. These precautions are in the interest of telecom parties, as a telecommunications failure can lead to a loss of customers. In addition, the Ministry of Economic Affairs is pursuing policy to safeguard the continuity of telecommunication, partly through legislation that imposes a duty of care on operators. Telecom operators are also obliged to compensate users in the event of a lengthy outage. Telecommunications outages can, however, have a significant impact on society. The Ministry of Economic Affairs intends to examine how in addition, the self-reliance of society can be boosted by providing support to parties.

To achieve this, Radiocommunications Agency Netherlands commenced the Televulnerability programme at the end of 2015. This programme aims to raise awareness of the dependence on telecommunications use amongst parties, support parties in determining their greatest risks and potential management measures, and by sharing best practice, research results and a helping hand, help parties to reduce their televulnerability and in so doing, increase their resilience. The manner in which parties can be supported in setting up robust (wireless) business-critical systems will also be examined.


Monitoring of risks and the signal effect form an explicit part of the Televulnerability programme. Further attention will be given to specific sectors each year. For 2016, these sectors are transport and logistics, companies with a risk of severe accidents and public order and public administration.

ActionsActions that will be taken are:• Radiocommunications Agency Netherlands commenced

the Televulnerability Programme at the end of 2015. This programme aims to a) raise awareness of telecommunications use and dependence on telecommunication amongst parties and b) by sharing best practice, research results and a helping hand, help parties to reduce their televulnerability and in so doing, increase their resilience. The Ministry of Economic Affairs shall assess how this social interest task can be perpetuated following the end of the programme.

4.7 Implementation and surveillance

The increasing importance of wireless communication and pressure on spectrum necessitate changes and some expansion to the set of instruments for implementation and surveillance. Telecommunication is a basic need, and as such the role and position of implementation and surveillance is changing. Society needs a government agency that it can rely on, that can anticipate social developments, that is available to play a facilitating role in the event of bottlenecks and that can alert and implement adjustments when society needs them.

As pressure on the frequency spectrum increases, it is vital that opportunities are maximised and that a smart mix of instruments is used to give society, business and the government adequate spectrum combined with adequate surveillance to the fullest extent possible. This means that implementation must incorporate frequency sharing, stimulate efficient use of spectrum and provide for surveillance. Having and maintaining a frequency register that provides insight into opportunities for use of spectrum can also play an important role.

Radiocommunications Agency Netherlands is responsible for both implementation and surveillance of legislation and regulations relating to telecommunication, but also of the law on mandatory exchange of information concerning underground networks and aerospace legislation, for example. The Agency is an important link in the implementation and monitoring of the new radio

spectrum policy. To this end, the Agency undertakes tasks including licensing, maintaining registrations, awards including auctioning licences, and formulating preconditions for effective frequency use. In addition, the Agency also carries out surveillance of frequency use, EMC, the trade in equipment and continuity of the telecommunications infrastructure.

Developments in implementationThe increase in use of frequency is also visible in implementation. There is increased need for local and sometimes only temporary spectrum, for example during major events. ‘Hotspots’ are also appearing in urban, industrial areas that have a need for very different types of telecommunication at the same location. The emergence of new applications is also on the rise, including increasing automation and use of robots, drones, the Internet of Things and local broadband data communication for which additional spectrum is needed. All of this means that the existing set of instruments for assigning licences and licence-exempt use needs to be in a position to facilitate the dynamic, frequently complex and increasing demand. In view of this, more sharing of spectrum is needed between different applications so as to create adequate room for growth in the future.

The set of instruments referred to in the previous paragraphs remains suitable for Radiocommunications Agency Netherlands in pushing through the shifts in focus of the radio spectrum policy. However, more dynamic use of spectrum does need to be created, for example through digital service provision based on Licensed Shared Access. This requires suitable prerequisites for spectrum sharing. More spectrum sharing raises new questions about interference. Radiocommunications Agency Netherlands shall work to stimulate sharing, perform interference analyses and formulate requirements for use.

Radiocommunications Agency Netherlands shall play an important role in advising on the allocation of spectrum for public-interest tasks on the basis of needs justification plans. This might include facilitating spectrum sharing amongst governmental users, but also between the government and the market. In addition, as demand from governmental users grows, a critical assessment will be needed of technological developments, opportunities for more efficient use and alternatives such as making use of commercial telecommunications services. Radiocommunications Agency Netherlands shall investigate how these new components can be incorporated into the process for evaluating the needs justification plans.


The increased societal dependence on wireless communications facilities necessitates a shift in focus of the implementation. In addition, the increased complexity and dependence together mean that obtaining an insight into the use of telecommunication has become even more important. This requires society-oriented research to ensure that bottlenecks and obstacles are identified early on, such as the result of the risks of congestion and interference. In the event of risks which could jeopardise the safeguarding of social interests from the market, implementation could well offer an alerting and agenda system. An adequate combination of instruments is therefore required, according to the situation. Radiocommunications Agency Netherlands can help to bring about improvements through dialogue with sectors and stakeholders. It may also be necessary to set new preconditions to ensure that the system functions more effectively. In other cases, a programme of active education may be the most suitable method of raising awareness in society and in so doing, provide a framework for action, for example, when it comes to the dependencies and risks of telecommunication (in the event of outages), known as ‘televulnerability’. Radiocommunications Agency Netherlands has a new role in enhancing social resistance (see also paragraph 4.6 and the corresponding action).

It is anticipated that complex interference scenarios will occur more frequently as the result of increased use and sharing of spectrum. This concerns radio equipment and its effect on other radio equipment, but also the effects of and on electrical equipment and cable infrastructure. Radiocommunications Agency Netherlands shall conduct risk assessments and analyse interference scenarios and offer advice to the sector or for policy. In addition, Radiocommunications Agency Netherlands shall focus on actions that could reduce the risk of interference through, amongst other things, educating installers and manufacturers in preventing interference from their equipment. Furthermore, it is also important that frequency users are aware that the robustness of receivers is important in preventing intentional and unintentional interference. Where possible, work will be conducted in collaboration with industry associations so that education for individual companies can be passed on to the industry association (see also the Televulnerability Programme in paragraph 4.6).

Standardisation is a reliable basis for a harmonious spectrum use model in the licence-exempt bands. As the pressure on spectrum in the licence-exempt bands increases, increased use without interference can only be facilitated by making more efficient use of spectrum. Thus it is important to find solutions for better ‘sharing’

methods and technologies that help to prevent mutual interference with ‘smart’ conditions of use that are based on compatibility studies and that take into account the expected concentrations of users.

The aforementioned objectives of efficient and interference-free use can only be accomplished if the radio equipment being used meets ‘state of the art’ requirements. For receivers, these requirements include robustness (for unintentional signals) and sensitivity, and for transmitters, quality. For these requirements to be implemented correctly, they must be implemented using adequate requirements from the harmonised standards (within the context of the Radio Equipment Directive). These standards form the requirements for market access for radio equipment within the EU. Given the importance of standardisation, Radiocommunications Agency Netherlands shall play an active role in the creation of adequate frequency use and (European) equipment requirements in order to support the objectives of the radio spectrum policy.

Additionally, the Agency has an ever more important (surveillance and implementation) task with respect to monitoring the aforementioned spectrum use and equipment requirements within the spectrum legislation and equipment standards. The change in spectrum use (e.g. through increased use in the band or new use of adjacent frequency bands) also causes the ‘electromagnetic environment’ to change. Even an increase in the noise floor as the result of unintentional emissions from electrical equipment (EMC) causes an environmental change. If these changes are not (adequately) anticipated in the compatibility and society studies, it may be necessary to adjust the spectrum use and/or equipment requirements in order to prevent an unacceptable level of risk of interference and/or network degradation.

Radiocommunications Agency Netherlands shall measure the (increase in the) noise floor that is caused by increased use of radio equipment, but also the increased use of electrical equipment in general. This measurement will then be used to examine the extent to which the noise floor is actually increasing and whether or not the standards for equipment need to be updated as a result.

Developments in surveillanceCitizens, companies and administrative bodies must be able to rely on an independent supervisory body that has a clear overview of the playing field, can share the correct information about the playing field and can intervene where necessary. Enforcement of the regulations by


Radiocommunications Agency Netherlands that have been derived from national and international legislation is essential in safeguarding the public interest of the use of wireless telecommunication.

Surveillance also has an important role in tracking down and rectifying acute faults in frequency use. To this end, the regular work of surveillance focuses on investigating interference. Interference that hinders the security and continuity of public-interest tasks and important social processes receives additional attention. For public-interest tasks, 24-hour accessibility and availability is provided for by the supervisory body in order to safeguard continuity of these vital processes in the field of frequency use to the fullest extent possible.

Developments take place very quickly in the telecommunications field. Increased internationalisation, digitisation and flexibilisation give rise specifically to a reduction in the specific requirements within licences and provide more scope for users to shape the way in which the licence requirements are satisfied. This is not always consistent with previously granted frequency use rights. In addition, the use of licence-exempt bands is permanently increasing. Within the context of the surveillance of licence-exempt frequency use and cross-frequency band interference in particular, it is not always possible to rely upon the original preconditions. This leads to a broadening of the role of the supervisory body to that of arbiter and mediator in cases where regulations have not been contravened but where government guidance is nevertheless preferable. In those cases where the safeguarding of social interests demands this, and mediation does not facilitate an improvement, the supervisory body must have additional powers, for example the power to issue instructions. For this reason, an assessment will be made as to how the possibility of binding instructions may be implemented for interference if mediation does not lead to an improvement. A surveillance framework will also be developed for this.Surveillance develops into a proactive and reflective supervisory body, one that observes, analyses, alerts and regulates from a distance. Specifically, this means that information gathering and monitoring of the surveillance field is becoming ever more important. Having and being able to use suitable interventions is essential for a supervisory body that aims to be effective when it comes to surveillance and enforcement.

In addition to the surveillance of frequency use, the importance of surveillance on the trade in equipment is equally high. The risks of interference as the result of using equipment that deviates from the EMC and RED stipulations or use that otherwise contravenes the

applicable standards are rising, primarily in licence-exempt bands with intensive use.

Frequency use requirements and equipment requirements in legislation and standards are based on an expected risk of interference. If the risk of interference is no longer acceptable (e.g. due to changes in frequency use or an increase in the noise floor), this may necessitate an amendment to the requirements by feeding this back to the relevant committees for frequency use and standardisation.

With the increase in use of licence-exempt bands, adequate surveillance of the actual use taking place in these bands is crucial. Additionally, the development of surveillance may, in the future, require adjustment to the financing model for surveillance of licence-exempt applications owing to the anticipated growth in the amount of equipment and number of devices and applications and the increased societal dependence on use.

“Telecommunication has become a basic need and demands on frequency spectrum are increasing, both in terms of size and dynamics. Radiocommunications Agency Netherlands shall approach its role from the perspective of social objectives and risks. This memorandum gives us additional instruments such as being able to act as a mediator or arbiter in the event of interference.”

Peter Spijkerman,Director and Chief Inspector Radiocommunications Agency Netherlands

The role of monitoringMonitoring and analysis play an important role when it comes to information-led and risk-oriented surveillance and enforcement. In the future, monitoring and analysis will focus not only on frequency monitoring, but also on monitoring developments in electronic communication domains, such as monitoring social and technical developments, trends in (frequency) use and trade flows for equipment on the internet. In addition to supporting


compliance monitoring, the general provision of monitoring information for the purpose of facilitating shared frequency use is increasingly important. A third function is monitoring the effects of the radio spectrum policy. To this end, a set of indicators will be developed, with which developments can be monitored in the long term. Monitoring policy effects at objective level is dependent on many factors (including outside of the radio spectrum policy), where the effect at main objective level is difficult to determine. The policy effect indicators to be developed will therefore dovetail as closely as possible with the set of instruments that is used to accomplish the objectives. This will help to create effect indicators that match the effectiveness of the set of instruments.

ActionsActions that will be taken are:

Implementation:• In conjunction with sectors and stakeholders,

Radiocommunications Agency Netherlands shall examine how the method of implementation can be better tailored to developments and needs and how the mix of available instruments can be used effectively.• In the assignment of licences, Radiocommunications

Agency Netherlands shall aim for increased sharing and more dynamic use of spectrum. This shall include the use of the Licensed Shared Access (LSA) instrument.

• Within the context of assessing the needs justification plans (NJP), Radiocommunications Agency Netherlands shall make use of elaborated criteria and establish a process to facilitate third-party use.

• Based on the new social developments, Radiocommunications Agency Netherlands shall map the risks of interference.• Radiocommunications Agency Netherlands shall

conduct research into interference scenarios that occur through increased use and more sharing and third-party use of spectrum.

• Radiocommunications Agency Netherlands shall measure the (increase in the) noise floor that is caused by the increased use of (radio) equipment.

• Radiocommunications Agency Netherlands shall educate installers and manufacturers in preventing interference.

• Radiocommunications Agency Netherlands shall give further attention to the topics of standardisation, spectrum useage requirements for licence-exempt use and EMC and where appropriate, draw up proposals for amendments to equipment requirements and standards.

Surveillance:• Radiocommunications Agency Netherlands provides for

24-hour accessibility and availability for vital government tasks.

• A broadening of the role of supervisory body to that of mediator and arbiter.• Radiocommunications Agency Netherlands shall

mediate in cases where no regulations have been contravened but interference has nevertheless occurred.

• Research shall be conducted into how Radiocommunications Agency Netherlands can implement powers to issue binding instructions following unsuccessful mediation in situations where interference has occurred. This research shall form the basis for a surveillance framework.

• The Ministry of Economic Affairs shall undertake actions to reduce the risk of interference occurring as the result of increased pressure on spectrum and sharing.

• Radiocommunications Agency Netherlands shall intensify surveillance of licence-exempt applications and monitoring of the associated frequency bands. Research shall be conducted into a possible amendment of the related financing model.

Monitoring:• Radiocommunications Agency Netherlands shall

investigate how monitoring information can be made generally available.

• In collaboration with Radiocommunications Agency Netherlands, the Ministry of Economic Affairs shall develop policy indicators that provide insight into the effectiveness of the instruments of the radio spectrum policy.

36

37

The Netherlands needs good telecommunications facilities. In a certain sense, they are the basis for a (potentially) flourishing economy. Research shows that telecommunication plays an important role in economic growth.33 Within the array of telecommunications options, the tremendous increase in the use of wireless applications is striking. Telecommunication (including wireless communication) has become an important driving force for the economy.In recent years, frequency use (wireless communication) has developed from ‘nice to have’ into ‘need to have’. The strong societal dependence on connectivity and the opportunities presented by modern technologies such as LTE (and, in the near future, 5G) will see sector-specific and business-specific demands on telecommunication increase significantly in the years ahead.

The Ministry of Economic Affairs holds the view that, with respect to the Radio Spectrum Policy Memorandum 2005, a shift in focus is required in the new radio spectrum policy in order to support and provide further assistance to social and technological developments. This shift in focus can take place within the framework of the central objective of effective frequency use. This central objective remains determinant for the radio spectrum policy, in other words that frequencies are allocated, assigned and used effectively. This involves both efficiency, i.e. not using more spectrum than is necessary for a specific application, and effectiveness, i.e. having sufficient spectrum to achieve the intended economic and social objectives.

Where the Radio Spectrum Policy Memorandum 2005 gave the policy scope primarily for economic interest, a shift in focus takes place that is aimed at the growing societal dependence on wireless communication and safeguarding the public interest.

33 Research by Dialogic (2004) carried out on behalf of the Ministry of Economic Affairs shows that telecommunication accounts for 36% of the growth in GNP.

This shift in focus of the central objective of effective frequency use is aimed at:

• A market that operates efficiently• Meeting social developments• Safeguarding public interests

Recent years have shown that a market that operates efficiently produces high quality mobile networks and a wide selection of services. The key principle of the radio spectrum policy remains a market that operates efficiently, whilst safeguarding public-interest tasks. In the first instance, this is achieved by awarding (scarce) licences. These continue to be awarded principally through auctions, with extensions granted where social reasons necessitate them. In addition, a competitive market also requires licence-exempt access to spectrum. This offers scope for new innovative applications. It is essential to shape the market in such a way that social developments can be absorbed and safeguarded by the market itself to the fullest extent possible. Where necessary, additional regulations may be imposed to support these developments and safeguard public interests.In this context, increasing use adds to pressure on the frequency spectrum, necessitating more efficient use of spectrum. To accomplish this, more focus is being placed on sharing and third-party use of spectrum.

Specifically, the following actions are proposed.

Allocating spectrumIn order to allow the market to operate as efficient as possible, the allocation in the National Frequency Plan is as independent of technology and service as possible. However, it may be necessary to implement specific allocations in order to meet social and cultural interests.

5In conclusion



Actions that will be taken are:• Allocations that are as broad as possible, with enough

space to provide for (national) social and cultural interests, including through arrangements on shared allocation.

• The Ministry of Economic Affairs shall make the procedure for amending the NFP more comprehensible and shall facilitate greater transparency.

Scarce licences and market regulationWhen it comes to scarce licences, use of a market-oriented instrument remains a necessity. These licences are auctioned, and extended only in exceptional cases, where doing so is in the public interest, for example if an extension is critical to supporting the transition from analogue to digital technology. These interests must be explicitly clear; a price must be determined for the licence extension that is in line with the market price, a price that accurately reflects the value of the market opportunities for other potential users of the licence in question. Within the context of auctions, specific provisions may be applied and requirements imposed on the licence in order to safeguard the public interest.

Actions that will be taken are:• The Ministry of Economic Affairs shall clarify the

objectives of awards and concrete elaboration (in auction models) in a timely and predictable manner to allow the market to better prepare for investment decisions.• The Ministry of Economic Affairs shall compile the

Strategic Memorandum for Mobile Communication to set out the objectives for the awarding of licences for mobile communication, specify the dates at which licences will be awarded and justify and where possible, flesh out the need for requirements to be attached to the licences, including coverage obligations.

• In addition, the Ministry of Economic Affairs shall compile a Strategic Memorandum for Broadcasting Distribution in liaison with the Ministry of Education, Culture and Science concerning the frameworks for the awarding of (commercial) broadcasting licences, with a focus on aspects including the transition from analogue to digital and the opportunities for cooperation and tradability.

• The Ministry of Economic Affairs shall formulate policy to address how third-party use and tradability can be promoted in conjunction with one another, including through the possibility of forced sale or leasing.

Spectrum for performing public-interest tasksFor public-interest tasks, it remains necessary to have access to adequate spectrum. The instrument of needs justification will continue. Attention is desired in the needs justification for (the creation of ) opportunities for third-party use and the role of commercial service provision for the exercising of public-interest tasks.

Actions that will be taken are:• The next NJP phase (2017-2020) will be designed

primarily to provide input to more efficient spectrum use. • The elaboration of opportunities for collaboration

between governmental services, opportunities for commercial service provision and opportunities for third-party use and sharing when assessing the NJP.

• In addition, the Ministry of Economic Affairs/Radiocommunications Agency Netherlands shall establish a process within the context of the NJP to facilitate and stimulate third-party use and sharing. Supply and demand shall be brought closer together.

• The outcomes of this NJP phase shall be evaluated in 2020-2021 (for their contribution to more efficient spectrum use).

Business-specific applications The government as well as business has a growing need for wireless communications solutions for business-critical applications. However, the market currently meets this need to only a limited extent. Attention must be paid to the interplay between supply and demand and the way in which this is achieved. The government can play a facilitating role in this.A solution may be to reserve spectrum for these applications. In this respect, the set of instruments is focused on sharing of the spectrum. Third-party use of government spectrum and spectrum leasing also play a role here.

Actions that will be taken are:• The Ministry of Economic Affairs shall facilitate the

growing need for wireless communications solutions for business-specific applications.• Where necessary, the Ministry of Economic Affairs

shall play a facilitating role in the interplay between supply and demand and the way in which this is achieved.

• If applicable, the Ministry of Economic Affairs shall offer spectrum for business-specific applications that is consistent with existing standards such as LTE. To obtain space for this at a national level in European harmonised frequency bands, amendments to the European telecoms framework are necessary.


These shall be introduced in negotiations for revision of the legislative framework for electronic communication.

• With a view to efficient use of the spectrum, the Ministry of Economic Affairs shall place more emphasis on spectrum leasing, which shall involve assessing ways in which leasing can best be implemented. See the related action for scare licences and market regulation.

• The use of Award on Request requires further consideration by the Ministry of Economic Affairs, to include consideration of the anticipated increase in pressure on use of the spectrum.

Licence-exempt use of spectrumAn efficient market offers space not only for service provision on the basis of exclusive licences, but also adequate space for licence-exempt use on account of the low access threshold and the scope that this offers for innovative developments. In some respects, the legislation for licence-exempt spectrum is very specific and detailed. Consequently, efforts are being made to ensure simplification. As the playing field is of an international nature, efforts shall be made to simplify and clarify European legislation. Since these regulations are implemented by means of standards, attention to standardisation is also required here.

Actions that will be taken are:• The Ministry of Economic Affairs shall work towards

adequate opportunities and towards lowering barriers for the use of licence-exempt frequencies.• Efforts to simplify European legislation and standards.

At EU level, the Ministry shall argue for a clarification and simplification of European legislation. Since these rules are implemented into technical standards, the Ministry of Economic Affairs shall, where necessary, make concrete proposals for the establishment of standards

• Exploration of frequency demands for the Internet of Things (IoT) within a European context.

• Monitor licence-exempt use and trends, such as IoT.• Investigation of whether certain licence categories

can be made licence-exempt and the role of a registration requirement.

TelevulnerabilityThe economic and societal dependence on wireless networks is increasing, and in turn, so is (tele)vulnerability. The government needs to play an active role to raise awareness in the market of the issue of televulnerability, brought about by wireless communication.

Action that will be taken is:• Radiocommunications Agency Netherlands commenced

the Televulnerability Programme at the end of 2015. This programme aims to a) raise awareness of telecommunications use and dependence on telecommunication amongst parties and b) by sharing best practice, research results and a helping hand, help parties to reduce their televulnerability and in so doing, increase their resilience. The Ministry of Economic Affairs shall assess how this social interest task can be perpetuated following the end of the programme.

Implementation and surveillanceImplementation must be tailored more to stimulating and facilitating sharing and third-party use, including through dynamic sharing (such as LSA).

• In conjunction with sectors and stakeholders, Radiocommunications Agency Netherlands shall examine how the method of implementation can be better tailored to developments and needs and how the mix of available instruments can be used effectively.• In the assignment of licences, Radiocommunications

Agency Netherlands shall aim for more sharing and more dynamic use of spectrum. This shall include the use of the Licensed Shared Access (LSA) instrument.

• Within the context of assessing the needs justification plans (NJP), Radiocommunications Agency Netherlands shall make use of elaborated criteria and establish a process to facilitate third-party use.

• Based on the new social developments, Radiocommunications Agency Netherlands shall map the risks of interference. • Radiocommunications Agency Netherlands shall

conduct research into interference scenarios that occur through increased use and more sharing and third-party use of spectrum.

• Radiocommunications Agency Netherlands shall measure the (increase in the) noise floor that is caused by the increased use of (radio) equipment.

• Radiocommunications Agency Netherlands shall educate installers and manufacturers in preventing interference.

• Radiocommunications Agency Netherlands shall give further attention to the topics of standardisation, spectrum useage requirements for licence-exempt use and EMC and where appropriate, draw up proposals for amendments to equipment requirements and standards.

Increased frequency use and societal dependence on frequency use increase the importance of a modern and adequate surveillance approach in which the supervisory


body has appropriate powers to act in a mediating and guiding role (including when all users comply with the regulations). In this context, it is essential that surveillance for frequency use and equipment policy (EMC) are coherent.

• Radiocommunications Agency Netherlands provides for 24-hour accessibility and availability for vital government tasks.

• A broadening of the role of the supervisory body to that of mediator and arbiter. • Radiocommunications Agency Netherlands shall

mediate in cases where no regulations have been contravened but interference has nevertheless occurred.

• Research shall be conducted into how Radiocommunications Agency Netherlands can implement powers to issue binding instructions following unsuccessful mediation in situations where interference has occurred. This research shall form the basis for a surveillance framework.

• The Ministry of Economic Affairs shall undertake actions to reduce the risk of interference occurring as the result of increased pressure on spectrum and sharing.

• Radiocommunications Agency Netherlands shall intensify surveillance of licence-exempt applications and monitoring of the associated frequency bands. Research shall be conducted into a possible amendment of the related financing model.

This brings with it the need for the government to maintain a good overview of how the market operates. In this respect, monitoring of use is not only necessary for proper surveillance, but also for policy. It provides insight into actual use and the extent to which public interests are actually being realised. This information may be used to adjust policy as necessary.

• Radiocommunications Agency Netherlands shall investigate how monitoring information can be made generally available.

• In collaboration with Radiocommunications Agency Netherlands, the Ministry of Economic Affairs shall develop policy indicators that provide insight into the effectiveness of the instruments of the radio spectrum policy.


The Ministry of Economic Affairs gave a diverse group of stakeholders the opportunity to indicate the topics and issues that they wanted to see included in the memorandum. To this end, a number of round-table sessions were organised between October 2015 and April 2016.

The first topic, ‘scarce licences’, endorsed the principle that scarce licences are finite and that, at the end of the licence period, they are redistributed. However, participants requested that attention be paid to ensuring timely award or extension of licences and that the question of whether or not there is scarcity be adopted as a principle in the corresponding policy assessment. In addition, the importance of predictable policy was also emphasised. The government was requested to make timely and stable decisions and to provide clarity regarding the policy objectives it intends to achieve. The latter also relates to any auction model that may be selected.The broadcasting sector cited the unique nature of broadcasting and made a plea for the allocation of specific spectrum to accommodate this. Parties expressed their desire for a single policy framework to be established for licences for both broadcasting and mobile, and cited primarily the duration of licences as an issue. The tradability of licences was seen as a positive instrument for allowing the market to work efficiently, with the avoidance of speculation seen as the most important point for attention.

In the second topic, ‘spectrum for market and government’, the common view was that a shift is underway in the direction of more business-critical applications – in other words, a shift from nice-to-have to need-to-have. Examples included airports, seaports, the railways, hospitals and (large) cities. Two possible solutions were specified for this social trend: private frequencies for these companies and institutions, and the purchase of the service from mobile operators. Technology in mobile networks (4G/5G) increasingly makes it possible to differentiate supply and to provide various guarantees and Service Level Agreements with the aid of ‘network slicing’ (network virtualisation). This could offer an

opening for business-critical and mission-critical applications. The issue of doing it yourself (with own frequencies) or purchasing services is a very current one with governments that deal with mission-critical systems, especially given the increase in technological possibilities. However, the sessions concluded that, at present, supply and demand are too far apart and that the Ministry of Economic Affairs could play a facilitating role to help bring these two processes closer together.Given the increasing demand for spectrum, participants considered the exclusive use of spectrum as something that should only be done very occasionally and saw sharing, and third-party use, of spectrum as a standard to be aimed for. For broadband in rural and outlying areas, there appears to be a tendency towards fixed connections and in the transition period, spectrum is required for specific solutions. Furthermore, discussions at these round-table sessions also dealt with the question of whether or not the government might consider cooperation with other governments (sharing) with regard to spectrum requirements for public-interest tasks, and whether or not, and to what extent, a service may be purchased on a commercial basis. In relation to this topic, the sessions also dealt with increasing third-party use of spectrum, but that would require a case-by-case approach, classifications of third-party use, adequate surveillance and sound agreements for emergency situations. For government use of spectrum, participants considered the needs justification plan (NJP) the most adequate instrument for ensuring more efficient spectrum use. By giving more attention to the opportunities for sharing and third-party use in the assessment of an NJP, this instrument can be moved upwards to a higher level. In this context, the government could help to move demand for spectrum (e.g. from operators) and supply (by government users) closer together.

The third topic considered ‘licence-exempt use of spectrum and televulnerability’. It ought to be possible to use ‘licence-exempt where possible’ as a guiding principle. For licence-exempt use in particular, the principles concerning use are important, as such they must be

Appendix 1

Report on the dialogue with stakeholders



properly regulated, especially concerning fair sharing of spectrum use, i.e. ‘fair use’. Further growth of licence-exempt use, such as for the Internet of Things, requires a focus on international harmonisation, the co-existence of equipment (with fair use) and adequate spectrum. Calls were made for innovation in licence-exempt use by simplifying regulationapplying a small set of equipment criteria based on spectrum load and efficiency. On the issue of televulnerability, the responsibility on organisations/companies was the central theme of the discussion, but that sufficient attention is not always given to risks. Risks can be classified according to the type of application – is it a nice-to-have application, or one that is critical to business? Can the risks be accepted? And customers of telecommunications services should look at more than just price; additionally, providers should properly inform customers of the risks. The government could play a role in raising awareness of vulnerability.

The fourth topic, ‘innovation in spectrum (management)’, looked at two subjects: the defining role of technology and the specific requirements of business-critical and mission-critical applications. Developments relating to business-critical and mission-critical applications have already been described under the topic ‘spectrum for market and government’.A far as the defining role of technology is concerned, two areas were discussed in further detail.In the first area, a pilot conducted by Radiocommunications Agency Netherlands explored the future opportunities for Licensed Shared Access (LSA). LSA is an instrument for dynamic spectrum use, whereby multiple users receive a defined level of Quality of Service (QoS) in the same section of the spectrum. The pilot is currently focused on one user group in the 2.3 – 2.4 GHz frequency band. In the event that the pilot is a success, LSA can be used at operational level and be expanded to other user groups and possibly other frequency bands. Participants expressed great interest in the opportunities offered by LSA in the near future.The second area looked at technological developments relating to 5G, network virtualisation and software-defined networks. 5G is seen as the realisation of a new generation

of network architecture based on network virtualisation – a development that allows software to create different virtual networks on a physical foundation, and offering (new) providers the opportunity to supply specialised services, particularly for mission-critical and business-critical applications. The example was given of a virtual network operator that can focus on a certain sector such as healthcare, or even on service provision at European level. When it comes to the radio spectrum policy, attention must be given to considering whether or not a common physical foundation needs to be facilitated to which providers each contribute their own frequencies (a pool of frequencies) which multiple operators can then use.

Finally, the tables looked at the issue of network security and the importance of clean frequencies, free from interference such as that caused by electrical equipment.

Detailed reports from the round-table discussions can be found on the website of the Central Government.34

34 https://www.internetconsultatie.nl/nfb2016/document/2385.

Appendix 2

Reaction to the consultation

In the consultation, a number of parties referred to the importance of a coherent and efficient approach at European level as a key principle. Only in exceptional cases may deviations from this be possible. The desire for harmonisation is justified, as scaling and international standardisation of equipment do have a positive effect. However, certain possibilities for exceptions remain desirable, such as the allocation of harmonised frequency bands for wireless broadband communication if the demand for that spectrum lags behind that of other Member States. The text in paragraph 2.4 has been refined for this point.

In general, a longer licence period is advocated for licences for mobile communication. Respondents in the mobile sector endorse the use of auctions as means of awarding licences, but advocate maintaining the current option of extending licences in exceptional cases where this is generally required or in the public interest. In the broadcasting sector, various respondents cite the social interest and character of the business case to indicate that ‘extend unless’ should be the general rule when assigning frequencies for (commercial) radio broadcasting.The principle of awarding scarce licences and not extending them contributes to the government making a careful assessment of economic and social interests when deciding whether to auction or extend. The thinking behind this principle is that important objectives such as allocative efficiency and competition can best be safeguarded if the rights to use of scarce licences are not perpetual and if new parties regularly have the chance to gain access to the spectrum. This is and remains relevant both within the context of (scarce) frequencies for mobile communication and for the distribution of (commercial) analogue and digital radio broadcasting. This does not imply that extension is out of the question entirely, although this option is used only in exceptional cases where it clearly serves the public interest. The text in paragraph 4.2 has been clarified for this point.

Where there is generally support for the use of a market-compliant set of instruments, respondents remark that radio spectrum policy must not be confused with (general)

competition policy. Imposing requirements on the awarding of licences (e.g. stricter coverage requirements) is not a problem, but respondents do not wish to see (wholesale) access obligations imposed. This is addressed in the general regulatory framework of ACM. In the event of demonstrable considerable market power, access obligations can be imposed on the basis of this framework. Another element concerns the forced sale or leasing of licences. Respondents rightly report that decisions on sale and leasing generally rest with the market parties themselves. An active government role would only be appropriate if the licence requirements are not properly satisfied. The text for this point has been refined and clarified. Moreover, the set of instruments includes, alongside (forced) sale or leasing, the option of withdrawal of licences if the licence conditions are not satisfied.

Mobile licensees continue to endorse the developments in convergence towards fixed and mobile networks as described in the memorandum. In this context there is a difference of opinion amongst licensees as to the extent of the consequences that this could have for radio spectrum policy and, more specifically, awarding policy. This is an aspect that has primary importance when it comes to implementation of the policy in the award of licences for mobile communication, given that convergence could play a role in determining the extent of effective competition on the market. The text of the memorandum has been amended for this point.

Within the context of licence-exempt use of spectrum, it is noted that there needs to be a proper balance between the licensed spectrum and the licence-exempt spectrum, as licence-exempt spectrum cannot be used for all applications. In addition, it is also important to stress the importance of international harmonisation, both in the allocation of frequency bands for licence-exempt use and for the conditions under which the licence-exempt spectrum may be used. In view of the fact that this point is already largely represented in the text, this has led to only a minor amendment to the text.There was broad support for the continuation of the instrument of needs justification for spectrum for the



performance of public-interest tasks. A number of parties questioned the scope of the NJP and made a plea for more attention to be given to opportunities for third-party use and commercial service provision. The text for this point has been amended and refined.Furthermore, reference was also made to the growing relationship between mission-critical applications, for which spectrum is allocated using the NJP instrument, and business-critical applications. In this context, the sharing of relevant spectrum between public order and security on the one hand and business-critical use on the other was cited as one specific solution. The text has been clarified for this point.

Responses relating to business-specific applications are mixed. A number of parties expressed satisfaction with the attention given to business-specific applications in the Radio Spectrum Policy Memorandum 2016. By contrast, a number of parties disagree with the proposal for specific provision of spectrum for business-specific applications, or would prefer to see a degree of restraint. Doubt was expressed as to whether or not current operators are able to satisfy specific wishes with respect to service provision in certain sectors. In addition, a number of parties do not accept the option of incorporating a wholesale obligation into a licence, which would compel the licensee to offer access to his network to third parties. The various responses indicate that when it comes to making available specific spectrum for business-specific applications, there is a need to seek a proper balance, certainly when the supply of business-specific applications is inadequate. In principle, it may be assumed that, taking into account future technological developments, the demand for business-specific applications will be largely covered by mobile providers. Where this is not the case however, the Ministry of Economic Affairs would like to retain the option to make spectrum available. Imposing a wholesale obligation is not deemed appropriate, in view of the existing legislative framework. Therefore, reference to this has been removed from the text. In areas where parties consider that the government could play a role, interpretation of the rules on net neutrality is such that there is adequate certainty that business-critical

services may be legally offered with the necessary quality guarantees. The Ministry of Economic Affairs shall, with due consideration for innovation and future technological developments, carefully monitor the effects of the European Regulation35 and the corresponding guidelines of BEREC and, if necessary, urge the European Commission to perform a timely evaluation of the regulations relating to net neutrality and/or amend the guidelines.

When it comes to implementation and surveillance, there is broad support for the changing role and responsibilities of Radiocommunications Agency Netherlands. Many parties emphasise the importance of surveillance and the need for a widening of the surveillance function to that of mediator and arbiter. One party challenged the legal options for retrospective adjustments through the issuance of binding instructions. As such a binding instrument constitutes a far-reaching measure that should be implemented with restraint, the text for this point has been amended. It is now suggested that a binding instruction can only be possible if mediation fails to reach the desired result and that a supervisory framework must be developed for its use. Various parties refer to the increased risk of interference due to the growing (shared) use of spectrum. The importance of risk analyses and research into interference is therefore on the increase. The text and the actions to be taken by Radiocommunications Agency Netherlands have been amended for this point.

In the responses there is also broad support for the Televulnerability Programme and for increasing awareness and resilience amongst citizens and business through education. As this is already adequately covered in the text, the text for this point has not been amended.

35 Regulation (EU) 2015/2120 dated 25 November 2015.


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