Purpose of the Tune-up

Currently two bodies of work

• Reallocation process – commenced on 10 February 2015 with the release of the

discussion paper

• Interim access – discussion paper released 19 February 2015

Purpose of this Tune-up

• To allow stakeholders another opportunity to raise issues or ask questions about

current regional 1800 MHz band issues.

Current licensing arrangements and use

Band (MHz) Metro Regional Remote

1710–1725/1805–1820 MHz (2 x 15 MHz) Spectrum Spectrum Apparatus

1725–1785/1820–1880 MHz (2 x 60 MHz) Spectrum Apparatus Apparatus

1800 MHz band overview

Emerging demand - LTE

• 1800 MHz band is used for LTE deployments globally

• availability of LTE equipment

• growth of machine-to-machine technology

• economies of scale

Services suited to the 1800 MHz band

• mobile phone and broadband services

• smart networks/energy grids

• automated systems such as transport

Spectrum licensing

Spectrum licensing features:

• Technology flexible

• Fully tradeable

• Can be amalgamated, divided or reassigned, in part or in whole,

to third parties

• Align the expiry dates with reissued licences - 17 June 2028

• Potential for early access to spectrum won at auction

Reallocation process

Reallocation timeline

Consultation on draft recommendation

Comments sought on:

Draft

recommendation

Licence type Spectrum licences

Parts of the

spectrum

1725–1785 MHz and 1820–1880 MHz (a

total of 2 x 60 MHz) in regional Australia

Reallocation period Two years in all parts of the spectrum

Reallocation

deadline

12 months before the end of the reallocation

period

Other matters

Allocation

methodology SMR

Lot configuration 2 x 5 MHz segments in 12 geographic areas

Allocation of

residual lots

Three small parts of the spectrum in the

wider 1800 MHz band

Licence type

Comments sought on:

Draft

recommendation

Licence type Spectrum licences

Parts of the

spectrum

1725–1785 MHz and 1820–1880 MHz (a

total of 2 x 60 MHz) in regional Australia

Reallocation period Two years in all parts of the spectrum

Reallocation

deadline

12 months before the end of the reallocation

period

Other matters

Allocation

methodology SMR

Lot configuration 2 x 5 MHz segments in 12 geographic areas

Allocation of

residual lots

Three small parts of the spectrum in the

wider 1800 MHz band

Licence type

Spectrum licensing features:

• Technology flexible

• Fully tradeable

• Can be amalgamated, divided or reassigned, in part or in whole, to third parties

• Align the expiry dates with reissued licences - 17 June 2028

• Potential for early access to spectrum won at auction

‘Early access’ apparatus licensing

Parts of the spectrum

Comments sought on:

Draft

recommendation

Licence type Spectrum licences

Parts of the

spectrum

1725–1785 MHz and 1820–1880 MHz (a

total of 2 x 60 MHz) in regional Australia

Reallocation period Two years in all parts of the spectrum

Reallocation

deadline

12 months before the end of the reallocation

period

Other matters

Allocation

methodology SMR

Lot configuration 2 x 5 MHz segments in 12 geographic areas

Allocation of

residual lots

Three small parts of the spectrum in the

wider 1800 MHz band

Two options:

• Reallocate the entire 2 x 60 MHz

• Reallocate a lesser amount - 2 x 55 MHz or 2 x 45 MHz

Benefits of 2 x 60 MHz:

• the most transparent method of identifying the highest value use of the entire

band.

Parts of the spectrum

Reallocation period and deadline

Comments sought on:

Draft

recommendation

Licence type Spectrum licences

Parts of the

spectrum

1725–1785 MHz and 1820–1880 MHz (a

total of 2 x 60 MHz) in regional Australia

Reallocation period Two years in all parts of the spectrum

Reallocation

deadline

12 months before the end of the reallocation

period

Other matters

Allocation

methodology SMR

Lot configuration 2 x 5 MHz segments in 12 geographic areas

Allocation of

residual lots

Three small parts of the spectrum in the

wider 1800 MHz band

Reallocation period and deadline

Other matters

Comments sought on:

Draft

recommendation

Licence type Spectrum licences

Parts of the

spectrum

1725–1785 MHz and 1820–1880 MHz (a

total of 2 x 60 MHz) in regional Australia

Reallocation period Two years in all parts of the spectrum

Reallocation

deadline

12 months before the end of the reallocation

period

Other matters

Allocation

methodology SMR

Lot configuration 2 x 5 MHz segments in 12 geographic areas

Allocation of

residual lots

Three small parts of the spectrum in the

wider 1800 MHz band

Allocation methodology

Comments sought on:

Draft

recommendation

Licence type Spectrum licences

Parts of the

spectrum

1725–1785 MHz and 1820–1880 MHz (a

total of 2 x 60 MHz) in regional Australia

Reallocation period Two years in all parts of the spectrum

Reallocation

deadline

12 months before the end of the reallocation

period

Other matters

Allocation

methodology SMR

Lot configuration 2 x 5 MHz segments in 12 geographic areas

Allocation of

residual lots

three small parts of the spectrum in the

wider 1800 MHz band

Allocation methodology

Open outcry SMR CCA

Most common Simple/flexible. Has been

used by the ACMA and

predecessors in the past

Complex. Was used by the

ACMA in the 700 MHz and

2.5 GHz auction

Suitable when there are

a limited number of lots

available and when lots

are not interdependent

or substitutable

Suitable when lots are

interdependent or

substitutable

Suitable where the value of

an individual lot depends

significantly on what other

lots that bidder can acquire

Lots are auctioned

sequentially

Multiple items are

auctioned simultaneously

Bidders determine which

packages they would like to

bid on.

Bidding occurs on one

lot at a time

Bidding occurs in a

sequence of rounds

Bidding occurs on packages

of lots (one or more)

Lot configuration

Comments sought on:

Draft

recommendation

Licence type Spectrum licences

Parts of the

spectrum

1725–1785 MHz and 1820–1880 MHz (a

total of 2 x 60 MHz) in regional Australia

Reallocation period Two years in all parts of the spectrum

Reallocation

deadline

12 months before the end of the reallocation

period

Other matters

Allocation

methodology SMR

Lot configuration 2 x 5 MHz segments in 12 geographic areas

Allocation of

residual lots

Three small parts of the spectrum in the

wider 1800 MHz band

Geographic area: proposed lots boundaries (option 2)

Geographic lot configuration

Defined areas

1 Darwin

2 North Queensland (Cairns/Townsville)

3 Central Queensland (Mackay)

4 South Queensland (Maryborough)

5 Northern New South Wales (Grafton)

6 Western New South Wales (Dubbo)

7 Canberra (including south coast of NSW)

8 Southern New South Wales/Riverina (Albury)

9 Regional Victoria

10 Tasmania

11 Regional South Australia

12 Regional Western Australia

Allocation of residual lots

Comments sought on:

Draft

recommendation

Licence type Spectrum licences

Parts of the

spectrum

1725–1785 MHz and 1820–1880 MHz (a

total of 2 x 60 MHz) in regional Australia

Reallocation period Two years in all parts of the spectrum

Reallocation

deadline

12 months before the end of the reallocation

period

Other matters

Allocation

methodology SMR

Lot configuration 2 x 5 MHz segments in 12 geographic areas

Allocation of

residual lots

Three small parts of the spectrum in the

wider 1800 MHz band

Allocation of residual lots

Residual lots

Unallocated spectrum from the recent ESL process for the 1800 MHz band

Next steps

1. Draft s.153F recommendation

2. Final recommendation

3. s.153B Ministerial declaration

4. Draft allocation instruments

5. Final allocation instruments

6. Auction

Interim access - overview

Overview

• Consideration of current uses versus likely future use

• Reallocation process/long term licensing arrangements

• Reallocation process concludes mid 2017 (after licence issue)

• Parts of the band remain unallocated but are available

• Consideration of early access/interim access

Overview

Interim access arrangements

Why?

There is a significant commercial interest to deploy mobile

services using LTE technology.

The ACMA considers it better to have spectrum utilised than not.

Where? Potentially vacant parts of the regional 1800 MHz band.

Establishing interim access model

Key considerations

• Legal issues (legislation)

• Spectrum availability

• Management of interference and coordination

• Uncertainty of auction outcome

• Potential limitations for ‘early access’ after auction

Criteria for interim access

Criteria for an interim licensing policy:

• Transparent

• Equitable

• Efficient

• Practical and workable

• Timely

Features of interim access

Comments sought on:

Features of interim access

Embargo exemption (Embargo 62)

Licence type – PTS apparatus

Tax arrangements

Coordination arrangements (RALI MS34)

Tenure of interim access

Option 1 - Operation until the auction

Option 2 - Operation until the end of the

reallocation period (UIOLI)

Modified priority

assignment model

Three stage process to assign interim

apparatus licences

Features of interim access

Comments sought on:

Features of interim access

Embargo exemption (Embargo 62)

Licence type – PTS apparatus

Tax arrangements

Coordination arrangements (RALI MS34)

Tenure of interim access

Option 1 - Operation until the auction

Option 2 - Operation until the end of the

reallocation period (UIOLI)

Modified priority

assignment model

Three stage process to assign interim

apparatus licences

Features of interim access

Interim access arrangements

What?Authorise access to the regional 1800 MHz band before a

market-based allocation of spectrum licences.

When? As soon as possible

How?Embargo exemptions for PMTS Class B apparatus

licence

How much?Calculated using PMTS Class B licence tax arrangements

current at the time of application.

Tenure of interim access

Comments sought on:

Features of interim access

Embargo exemption (Embargo 62)

Licence type – PTS apparatus

Tax arrangements

Coordination arrangements (RALI MS34)

Tenure of interim access

Option 1 - Operation until the auction

Option 2 - Operation until the end of the

reallocation period (UIOLI)

Modified priority

assignment model

Three stage process to assign interim

apparatus licences

Two options:

1. Interim access licensing until auction winners are known

2. Interim access licensing would be in effect until end of reallocation period, at

which time spectrum licences would take effect

Tenure of interim access

Modified priority assignment model

Comments sought on:

Features of interim access

Embargo exemption (Embargo 62)

Licence type – PTS apparatus

Tax arrangements

Coordination arrangements (RALI MS34)

Tenure of interim access

Option 1 - Operation until the auction

Option 2 - Operation until the end of the

reallocation period (UIOLI)

Modified priority

assignment model

Three stage process to assign interim

apparatus licences

Getting an interim licence

How does it work?

• Streamlined embargo exemption process

• 3 stage process – to reduce potential for conflicting assignments

• Only issue licences in those areas where sufficient spectrum is

available for four parties.

• Amount of spectrum available determined on a site-by-site basis

• Spectrum assigned according to assignment priority – lowest

frequency up: Telstra VHA Optus Other

• Applications for licences in the ‘Other’ spectrum assessed on first-

in-time basis, using the same procedure defined for the 2.1 GHz

and 3.6 GHz band releases

Embargo Exemption

> Streamlined process

> Licensees/APs can assume an exemption is granted if:

> Applications adhere to RALI MS34

> Applications are submitted during the application window

> Proposed sites are located within regional Australia

> Spectrum availability requirements for each stage are met

(i.e. 60 MHz, ≥40 MHz or ≥20 MHz)

> Individual spectrum acquisition limits for each stage are met

(i.e. 2x15 MHz, 2x10 MHz or 2x5 MHz)

Next steps - Interim access process

Stage Key steps Indicative timings

Current Finalise interim access policy None available

Stage 1

Initial notification period and application window one

• where 2 x 60 MHz of spectrum available

• Maximum of 2 x 15 MHz per licensee

Notification period (NP): 2 weeks

Application window (AW) 1:2 weeks from the end of the initial notification period

Commence assoon as possible

Stage 2

Notification period and application window two

• where at least 2 x 40 MHz of spectrum is available

• maximum of 2 x 10 MHz per licensee

NP: 2 weeks

AW 2: 2 weeks

Cannot commence until all stage 1 licences are issued

Stage 3

Notification period and application window three

• where at least 2 x 20 MHz of spectrum is available

• maximum of 2 x 5 MHz per licensee

NP: 2 week

AW 3: 2 week

Cannot commence until all stage 2 licences are issued

Completion of all three stages: 3 months (approx.)

Determining the amount of spectrum available

> Assess availability of every channel at proposed site

> Use parameters of proposed system (i.e. antenna gain, tilt, tx

power etc)

> Frequency assignment conducted as per RALI MS34

> Co-existance with fixed links

> Amount of spectrum available is the number of 5 MHz paired

channels that can be successfully assigned

Assignments

> Spectrum assigned according to assignment priority – lowest

frequency up: Telstra VHA Optus Other

> Applications for licences in the ‘Other’ spectrum assessed on first-in-time

basis, using the same procedure defined for the 2.1 GHz and 3.6 GHz

band releases

> There is a risk of conflicting assignments during the assignment of 10

MHz and 5 MHz channels.

> Prospective licensees should be aware:

> licensees will not be afforded protection from interference that

occurs from other interim access PTS licences issued in the

same stage

Wrap up

The ACMA is managing two processes concurrently:

1. long term reallocation process

• Consultation ends 11 March 2015.

2. interim access process

• Consultation ends 20 March 2015

Questions

Supplementary Slides

Modified priority assignment model

Frequency Channel 2x5 MHz Regional

1710/1805 MHz

1785/1880 MHz

1 Currently spectrum licensed2

3

4 Telstra (2 x 15 MHz)5

6

7 VHA (2 x 15 MHz)8

9

10 Optus (2 x 15 MHz)11

12

13 Other* (2 x 15 MHz)14

15

* Licensees would be issued within this segment on a ‘first-in-time’ basis

Assigning 10 MHz Channels – 1

Channel 2x5 MHz Availability Regional

1 Not assessed Currently spectrum licensed2 Not assessed

3 Not assessed

4 Available Telstra (2 x 10 MHz)5 Available

6 Available VHA (2x 5 MHz)

7 Not Available Not assigned

8 Available VHA (2x 5 MHz)

9 Available Optus (2 x 10 MHz)10 Available

11 Available Other* (2 x 10 MHz)12 Available

13 Not Available Not assigned14 Available

15 Not Available* Licensees would be issued within this segment on a ‘first-in-time’ basis

Assigning 10 MHz Channels – 2

Channel 2x5 MHz Availability Regional

1 Not assessed Currently spectrum licensed2 Not assessed

3 Not assessed

4 Available Telstra (2 x 10 MHz)5 Available

6 Available Not assigned7 Not Available

8 Available VHA (2 x 10 MHz)9 Available

10 Available Optus (2 x 10 MHz)11 Available

12 Available Other (2 x 10 MHz)13 Available

14 Available Not assigned15 Not Available

* Licensees would be issued within this segment on a ‘first-in-time’ basis

1800 MHz First-in-time application process

> During application window applicants submit a completed RO57

form and nominate an Accredited Person (AP)

> The order applications are received is recorded by the ACMA

> Based on this order of received applications, the ACMA will notify

the APs to conduct frequency assignment work

> Once all licences have been issued for a particular application,

the ACMA will notify the AP for the next application on the list.

> APs must coordinate with any services licensed first-in-time

> Refer to the process described for the 3.6 GHz band:

http://www.acma.gov.au/theACMA/release-of-the-36-ghz-band-in-

regional-and-remote-areas