GSA Digital Dividend Update June 2010

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Digital Dividend refers to the UHF spectrum that becomes freed up as a result of the switchover from analog to digital terrestrial TV …

Digital Dividend refers to the UHF spectrum that becomes freed up as a result of the switchover from analog to digital terrestrial TV

Digital Dividend offers an unprecedented amount of spectrum which can be utilized for extending mobile broadband services to all, including to the most rural areas, and to speed up rollout. By applying the Digital Dividend for mobile broadband services, enormous benefits will ensue around the world in terms of social impact and increased productivity

This report provides an update of the present situation around the world regarding the Digital Dividend opportunity.

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  • 1. www.gsacom.com/rss/gsanews.php4 Digital Dividend Update June 2010 Global mobile Suppliers Association (GSA) www.gsacom.com GSA LinkedIN Group www.linkedin.com/groups?gid=2313721 Global mobile Suppliers Association (GSA) www.twitter.com/gsacom www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 1/25
  • 2. Digital Dividend - defined Digital Dividend refers to the spectrum that becomes freed up as a result of the switchover from analog to digital terrestrial TV Digital Dividend spectrum is in the UHF range (200 MHz and 1 GHz) and excellent for extending mobile broadband to rural and semi-urban areas. This spectrum band offers an excellent balance between transmission capacity and distance coverage. It has very good propagation characteristics i.e. improved in-building performance in built-up areas Digital Dividend offers an unprecedented amount of spectrum which can be utilized for extending mobile broadband services to all, including to the most rural areas, and to speed up rollout. By applying the Digital Dividend for mobile broadband services, enormous benefits will ensue around the world in terms of social impact and increased productivity www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 2/25
  • 3. Opportunities enabled by the mobile industry  New mobile services, with high quality video and interactive media for handheld devices  Wireless broadband services, with high-speed data and voice services  Wider coverage for advanced services in remote and rural areas  Lower infrastructure cost, leveraging better propagation characteristics of UHF band  Advanced business and broadcasting services, such as those used to support major sporting events www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 3/25
  • 4. Mobile broadband drives need for more spectrum  Industry forecasts massive mobile broadband growth  Mobile broadband growth outpaces every other platform**  Pew estimates that by 2020, mobile devices will be the primary Internet devices for most people in the world***  The average smartphone user generates 10 times the amount of traffic generated by the average non- smartphone user* ** Source: CTIA, Written Ex Parte to FCC, Sept. 29, 2009 *** Source: Pew Internet & American Life Project, Dec. 2008 *Source: Cisco, VNI Mobile, 2010 More info on Mobile Broadband can be found at: www.gsacom.com www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 4/25
  • 5. Mass market Mobile Broadband  Enabled by HSPA www.gsacom.com/news/gsa_299.php4 388 HSPA Operator Commitments in 151 countries/territories 341 commercial operators launched in 143 countries including 52 commercial HSPA+ networks > 98% of commercial WCDMA operators have launched HSPA The majority (54.5%) of commercial HSPA networks support a peak downlink data speed of 7.2 Mbps or higher 100 HSPA networks (almost 30% of commercial HSPA networks) have launched HSUPA in 53 countries, including 36 networks supporting up to 5.8 Mbps using 2 ms TTI Source: HSPA Operator Commitments survey: www.gsacom.com www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 5/25
  • 6. Digital Dividend  Digital switchover (DSO) dates Already switched off 2010-2011 2012-2013 2014 onwards Industry sources www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 6/25
  • 7. Digital Dividend  Frequency bands New UHF Digital Dividend spectrum is becoming available in all regions • Region 1 (Europe, Middle East and Africa) identified 790-862 MHz for mobile services • Region 2 (Americas) identified 698-806 MHz • Region 3 (Asia) some countries (China, India, Japan) identified 698-862 MHz; others identified 790-862 MHz www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 7/25
  • 8. ITU frequency regions Region 1 Region 2 Region 3 www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 8/25
  • 9. Digital Dividend  Frequency bands  WCDMA-HSPA is the leading mobile broadband system worldwide. Commercial systems are deployed in 850, 900, 1700, 1800, 1900, 2100 MHz bands  WCDMA-HSPA enjoys the largest economies of scale in mobile broadband  LTE is the next evolution, standardized by 3GPP, for which significant amounts of new spectrum will be needed to fully benefit its potential for the next step in user experience  HSPA (including HSPA+) and LTE can be deployed in digital dividend spectrum LTE is being deployed in 700 MHz Digital Dividend spectrum in USA, and 800 MHz band in Europe (initially in Germany)  Digital Dividend (700, 800 MHz) spectrum is highly valued for mobile broadband services 2.50 – 2.69 GHz band is best suited for capacity, and a perfect complement to DD spectrum www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 9/25
  • 10. Digital Dividend  700 MHz band is key for LTE deployments  US 700 MHz LTE deployments include by Verizon Wireless, AT&T Mobility and some regional players  Verizon Wireless has set up trial networks in Boston and Seattle and will launch commercial service in 25 - 30 markets by end 2010, with nationwide service by end 2013  700 MHz spectrum availability is likely to extend throughout Americas  This could be earliest in Chile where LTE trials are planned or underway by Entel PCS, Claro and Movistar. Chilean regulator (Subtel) may launch a spectrum auction shortly (2.6 GHz, 700 MHz)  The Mexican regulator (Cofetel) is studying this year the feasibility of auctioning 700 MHz  Policy makers in Brazil are discussing the potential of 700 MHz for extending broadband  Industry Canada announced in its newly-released Annual Report plans to launch a consultation for spectrum auctions in the 700 MHz and 2500 MHz bands, stating “Auctioning of these bands will help support new mobile technologies and services”. The transition from analog to digital TV is scheduled for completion August 31, 2011 More at http://www.tbs-sct.gc.ca/rpp/2010-2011/inst/dus/dus02-eng.asp#sec2.1.2  The Indian government formed a task group to develop a national band at 700 MHz  Consultations on the future use of 700 MHz have commenced in Australia and New Zealand (see page 12) www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 10/25
  • 11. Digital Dividend  DSO dates in Europe Already switched over 2010 2011 - 2012 2013 - 2015 The European Commission places broadband connectivity for all Europeans as a key policy objective, with wireless broadband a key enabler “Every corner of Europe could reap this digital dividend“ (Viviane Reding, Member of the European Commission responsible for Information Society and Media) On May 6th 2010 the European Commission adopted a Decision establishing harmonized technical rules for Member States on the allocation of radio frequencies in the 800 MHz band that contribute to the deployment of high-speed wireless internet services by avoiding harmful interference. The Commission will outline proposals on the next steps for the digital dividend as part of the forthcoming Radio Spectrum Policy Programme 2011-2015 to be published at the end of June. This may include a proposed target date by which all Member States must make 800 MHz spectrum available for mobile broadband services Note: Some regions of Austria and France already switched over to digital television. In Belgium, the Flanders region has switched over to digital. Similarly, some regions of the UK have already switched over to digital www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 11/25
  • 12. 790-862 MHz is the DD band in Europe  Key developments (1)  Austria, Denmark, Finland, France, Germany, Norway, Sweden and Switzerland have all confirmed they will allocate 790-862 MHz for mobile broadband services.  The German government became the first in Europe to auction DD spectrum (see following pages).  Romanian regulator ANCOM hosted an Eastern and South-Eastern European Telecommunications Regional Think Tank entitled “Digital Dividend – Challenges and Opportunities in the Region” on 30th March in Bucharest which included senior representatives of the ITU and regulatory authorities in Bulgaria, Croatia, Greece, Hungary, Slovenia, Former Yugoslav Republic of Macedonia, Moldova, Serbia, Slovenia and Hungary, together with leading industry players  On 17th May NITA, the Danish regulator, published a consultation on future use of the so-called MUX7, the 790-862MHz band. Response to the consultation must be made by 24th June.  In Switzerland the Federal Communications Commission (ComCom) has instructed the Federal Office of Communications to prepare the allocation of mobile radio frequencies including digital dividend spectrum. The allocation of frequencies will take place by auction in 2010. www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 12/25
  • 13. Germany completes Europe’s first DD spectrum auction Commencing on April 12, 2010, Germany's auction of radio spectrum ended on May 20 with the total reaching EUR4.38 billion. According to the final tally from the Bundesnetzagentur, T-Mobile, Vodafone and Telefonica O2 each secured two 10 MHz blocks in the highly coveted 800 MHz bands, which are expected to be used for LTE deployments. The winning 800 MHz/DD bids were:  Telefonica O2 (EUR1.212 billion)  Vodafone (EUR1.210 billion)  Deutsche Telekom (EUR 1.153 billion) The Ministry of Economics of the German state Hessen has unveiled results of a survey among the participants of the mobile internet via a digital dividend pilot. It found more than 90% of the participants are satisfied with their internet connection (only 32% before the pilot started). The pilot is a joint effort of Vodafone Germany, the Ministry of Economics of Hessen, the State Media Office of Hessen and the Municipality of Hofbieber, and started in October 2009 with 32 households and 15 businesses in Hofbieber as participants. The pilot offered them mobile internet at HSPA speeds (up to 7.2 Mbps) using digital dividend (800 MHz) spectrum. www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 13/25
  • 14. Germany Digital Dividend auction result  German auction covered 360 MHz across four bands: 800 MHz (DD), 1800 MHz, 2100 MHz and 2600 MHz  Bidders were Deutsche Telecom, KPN/E-Plus, Telefonica O2 and Vodafone. Auction commenced April 12, 2010  800 MHz (DD) allocations were the most expensive; 6 x 5 MHz paired blocks (791-821 MHz and 832-862 MHz)  Coverage obligations and restrictions including spectrum caps apply After 224 Rounds the auction closed on May 20, 2010 and generated € 4.384 billion www2.bundesnetzagentur.de/frequenzversteigerung2010 The 800 MHz spectrum raised (€ 3.576 bn) i.e. over 81.5% of the auction‟s value www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 14/12
  • 15. 790-862 MHz is the DD band in Europe  Key developments (2) In Germany, operators have been trialling HSPA and LTE using Digital Dividend frequencies to provide broadband services to communities without existing broadband possibilities. Auctions for mobile spectrum have now ended (more details can be found in earlier pages)  In Austria on December 29, 2009, the Regulatory Authority for Broadcasting and Telecommunications (RTR) commissioned a study to evaluate potential uses of the "digital dividend“ from an economic perspective and to develop recommended actions. The study was due for completion by end March 2010. The Austrian government has decided to allocate the 790-862MHz band to mobile broadband. In a joint announcement in late April, the Minister for Infrastructure, Doris Bures, and the Secretary of State for Media, Dr Josef Ostermayer, stated that the digital dividend frequencies would be auctioned at the end of 2011 or start of 2012  Czech Republic regulator CTU has undertaken a 2nd round of consultation on the 470-862 MHz band.  Slovenia is progressing with digital switchover and expects to be complete this by the end of 2010 The UK regulator Ofcom is preparing for a large auction of spectrum that will include channels freed up as part of the digital dividend. The auction is expected to cover spectrum in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2600 MHz bands, and may be held in 1H 2011, possibly earlier. www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 15/25
  • 16. 790-862 MHz is the DD band in Europe  Key developments (3) In Slovakia the Ministry of Transport, Posts and Telecommunications closed its public consultation on future use of 790-862 MHz spectrum on 7th May 2010  In Spain, analog switch off was completed on April 3, 2010. Four days earlier, a Royal Decree committing Spain to using 790-862MHz for mobile broadband was approved by the Executive, as part of a process licensing three national private broadcasters to use DTT in lower frequencies. The broadcasters have until 2015 to clear the band.  In Portugal, public consultations on the Digital Dividend closed on May 13, 2009. In a statement on its website on August 5, 2009 the regulator ANACOM confirmed that 17 submissions had been received and approved the report of the public consultation. More information at www.anacom.pt/render.jsp?contentId=968548  Serbia has completed a consultation on the Digital Dividend  In Italy, Communications Undersecretary, Paolo Romani, announced that frequencies vacated during the analog switch off will be auctioned  Analog switch off in Croatia began for national broadcasters in January 2010 and will be completed nationwide on October 5, 2010 www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 16/25
  • 17. 790-862 MHz is the DD band in Europe  Key developments (4)  Belgium is undertaking a consultation on the Digital Dividend, so too is Poland  In Latvia, analog television was switched over fully to digital transmissions on Tuesday June 1, 2010.  In Russia, the Russian Ministry has stated that the price they have placed on moving ARNS services out of the 790-862 MHz sub-band is € 2bn. Politically, the decision to award the band to mobile has been made. At the ComNews LTE Russia and CIS conference (May 25-26) in Moscow, Yuri Zhuravel, Head of the State Commission for Radio Frequencies, made new statements, explaining how a firm plan to clear the 790- 862MHz band was being put in place and would be released by the end of this year. He also re-confirmed the Ministry of Communications‟ estimate of the cost for clearing the band at €2bn, and stated that clearing the band may be within 3 years.  In Ireland, ComReg has completed a consultation into how digital dividend spectrum will be allocated. Digital switchover is scheduled by end 2012. ComReg has published its response to the consultation on Ireland‟s Digital Dividend policy and expressed its support for freeing 800 MHz frequencies from exclusive use by the broadcasting industry, which will pave the way for using digital dividend spectrum for mobile broadband networks in Ireland. ComReg is committed to encouraging innovation through its Test & Trial Ireland project, which will involve mobile communications devices using the digital dividend spectrum www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 17/25
  • 18. 790-862 MHz is the DD band in Europe  Key developments (5) Telefonica-owned O2 UK has obtained a trial license from Ofcom to test LTE in the 800 MHz frequency band. O2 will begin the trial in Q3 2010 in Carlisle so becoming the first mobile operator in the UK to test LTE in the digital dividend spectrum. One of the stated goals of the trial will be to monitor for possible interference – if any - between mobile LTE services and broadcasters' services. Deutsche Telekom plans to begin a “friendly user trial” of LTE in newly acquired 800MHz spectrum in underserved areas in Germany by the end of this year www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 18/25
  • 19. Digital Dividend  More actions globally (1) The US is leading the way in freeing up and allocating digital dividend spectrum. The FCC completed the auction of 700 MHz spectrum in March 2008 and distributed the spectrum to a variety of providers mainly via a technology-neutral approach. The final switchover to digital TV occurred on 12 June 2009. Meanwhile, the winning operators including Verizon Wirless are trialling services on the released spectrum now and are expected to launch commercial services in 2010. www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 19/25
  • 20. Digital Dividend  More actions globally (2) Caribbean regulators, policy specialists and professionals in the Broadcasting, Telecommunications and wider ICT community will meet in Kingston from June 7 – 8 2010 to discuss the future of broadcasting in the Caribbean. One issue is the digital switchover, which the chairman stated would provide an excellent opportunity to utilise the country's bandwidth for social and economic development. The switchover from analog to digital is likely to free up quite a bit of spectrum space. It will be how the digital dividend is managed, and the extra space and opportunities [mobile, broadband and third generation services] that are generated by virtue of switching to digital. According to telecoms regulator Subtel's head, Jorge Atton, Chile is expected to hold an auction for LTE licenses in March 2011. It is anticipated that the 700MHz band will be released for the auction as part of the "digital dividend" as analog television is migrated to digital services. www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 20/25
  • 21. Digital Dividend  More actions globally (3) The Indonesian Ministry is looking into allocating the 700MHz band (694-806MHz) for mobile broadband The Malaysian Communications and Multimedia Commission (MCMC) has launched its „my Spectrum Plan 2010‟ consultation. This is a broad perspective consultation which includes regulatory and policy framework topics as well as plans for future use of the UHF band. The deadline for submissions is 6th July. In Colombia, the Minister of Information and Communications Technologies, Daniel Medina, stated in May 2010 that the 700 MHz band will be cleared in Q2 2010 and spectrum will be made available for auction to incumbents and potential new market entrants. The process will follow the proposed 2.5 GHz auction. www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 21/25
  • 22. Digital Dividend  More actions globally (4) On January 5, 2010 the Communications Minister published the “Digital Dividend” green paper in Australia. Analog TV transmissions will be switched off by end 2013. The paper establishes a government target of 126 MHz of contiguous UHF spectrum. Achieving this will involve moving some digital television services to new channels. Responses to the consultation were required by February 26, 2010 and more than 100 submissions were received. The mobile network operators in Australia have called for certainty about the auction timetable. Another portion of spectrum - in the 2.5 GHz band - may also be auctioned In New Zealand, The Economic Development Ministry has announced plans to make 112 MHz of UHF spectrum in the range 694-806 MHz available for mobile telecommunications and has stated that it will decide on allocations of its digital dividend spectrum by the end of this year. Analog broadcasts will be switched off once three-quarters of the population have adopted digital television, or by 2015 at the latest. Ghana is to switch of analog broadcasting services before the ITU international deadline of June 17, 2015* helping to free spectrum which could be developed into a digital dividend to be allocated to other services and for the use to connect the unconnected in remote areas *ITU deadline for ending analog broadcasting in areas where cross-border interference is a problem www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 22/25
  • 23. Digital Dividend  More actions globally (5) Africa – Digital Dividend discussions took place at the South African Development Community (SADC) meeting in Swaziland in February. It was agreed that 790-862 MHz can definitely be allocated to mobile broadband by 2014. An ad hoc working group will be created to recommend following the CEPT plan for 790-862 MHz. Other plans will also be considered and SADC may support a wider band. The wider plan was due to be signed by SADC Ministers at their meeting on 10th May 2010 (SADC Member States: Angola, Botswana, the Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe) In India, The Telecom Regulatory Authority of India (TRAI) issued a pre-consultation on “IMT-Advanced (4G) Mobile wireless broadband services” which mentioned digital dividend spectrum amongst other aspects – the date for comments was extended to April 15, 2010 In Bangladesh the regulator, BTRC has held a consultation on its proposed National Frequency Allocation Plan (NFAP). The NFAP proposes allocation of 698-806 MHz band for mobile services and appears to support a band plan similar to that supported by local operators in India. Discussions are also taking place on the possible allocation of spectrum in the 700 MHz band for mobile services www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 23/25
  • 24. Digital Dividend  More actions globally (6) Bahrain: The Telecommunications Regulatory Authority published a consultation document in December 2009 on telecommunications spectrum, which included the UHF band and identified 790- 862 MHz as a candidate band for LTE in the proposed re-working of Bahrain‟s national table of frequency allocations. Comments were due February 14, 2010 Mexico’s telecoms regulator COFETEL has announced that during 2010 it will carry out an assessment of the possibility of licensing the 700 MHz band for 4G services. The initiative follows a 700 MHz spectrum tender proposal from the Mexican Ministry of Communications and Transport (SCT). Cofetel has also announced auction rules for bidding for an additional 120MHz of spectrum in the 1.7 and 1.9 GHz bands. At the Asia-Pacific Telecommunity (APT) meeting in Tokyo on spectrum issues at the beginning of April it was agreed that an Asia-specific spectrum plan would be developed for the region to help promote the deployment of UHF digital dividend spectrum. A pragmatic approach was decided upon to develop a 2 x 45 MHz FDD paired spectrum band plan www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 24/25
  • 25. Digital Dividend Digital Dividend news and updates are appreciated please, to the GSA Secretariat: info@gsacom.com GSA LinkedIN Group www.linkedin.com/groups?gid=2313721 Global mobile Suppliers Association (GSA) www.gsacom.com/rss/gsanews.php4 www.twitter.com/gsacom www.gsacom.com Global mobile Suppliers Association © 2010 GSA Digital Dividend Update - June, 2010 Slide no. 25/25