Spectrum policy recommendations to support digital growth
1. Spectrum Policy: Some recommendations
to support Digital Growth
Mohammad Tamjeed Siraj
Sept. 2018
2. Spectrum Basic
A wave is a traveling disturbance that transfers
energy. An electromagnetic wave consists of vibrating
electric and magnetic fields that move through space at
the speed of light.
3. Wave Terminology
• Wavelength - distance between two like points on the wave
• Amplitude - the height of the wave compared to undisturbed state
• Period - the amount of time required for one wavelength to pass
• Frequency - the number of waves passing in a given amount of time
4. Spectrum Bands for Tele-Communication
VLF = Very Low Frequency UHF = Ultra High Frequency
LF = Low Frequency SHF = Super High Frequency
MF = Medium Frequency EHF = Extra High Frequency
HF = High Frequency UV = Ultraviolet Light
VHF = Very High Frequency
1 Mm
300 Hz
10 km
30 kHz
100 m
3 MHz
1 m
300 MHz
10 mm
30 GHz
100 m
3 THz
1 m
300 THz
visible
light
VLF LF M
F
HF VHF UHF SHF EHF infrared UV
optical transmission
coax cabletwisted
pair
Mobile Operable Frequency
450 MHz- 3600 MHz
5. Frequency Spectrum for Mobile Communication
Long Wavelength
Low Frequency
Low Energy
Short Wavelength
High Frequency
High Energy
(NMT450) ICE
Future band
(now TV)
Fixed WiMAX3G (UMTS2100)
GSM 1800
GSM 900
Mobile broadband
extension band
2500 MHz500 MHz
2000 MHz 3500 MHz
1000 MHz 1500 MHz 3000 MHz
6. Utilization of Spectrum in Mobile Network
• A simplified network
Base station
(OperatorA)
Base station
(Operator B)
Aggregation Point
Aggregation Point
Domestic mobile
voice call
Microwave
Fibre
CORE
NETWORK
Switching and
routing services
INTERNET
7. Growth of Mobile Network and the Role of Spectrum
• Mobile network, specially the Mobile Broadband is growing Exponentially
• Spectrum is the vital element of the mobile industry
• With the Exponential growth of Data demand, requirement of spectrum of Mobile Operators
are also increasing
• To support the Growth of Mobile broadband, which has huge impact on Economic growth, A
good Spectrum policy is extremely important
Worldwide, mobile data traffic is expected to increase sevenfold between 2016 and 2020
The growing adoption of data services has become the major source of traffic since2010.
Source: Cisco VNI Mobile 2016
7
11
17
24
35
0
10
20
30
40
201
6
201
7
201
8
201
9
202
0
202
1
Global Mobile Data Traffic: Exabytes per Month
60
50
49
47% CAGR 2016-2021
8. • Spectrum is the lifeblood of the mobile industry
• Governments play a vital role in ensuring spectrum resources available for
the Mobile Industry
• A Spectrum policy should consider the five principles:
Reduction of
spectrum
scarcity
Promotion of
effective and
sustainable
competition
Reduction of
investment risk
Market based
allocation
method and
level playing
field principles
Realistic
revenue and
price
expectations
Spectrum Policy: Some Recommendations
9. • All relevant IMT bands should be made available to the wireless sector
(includes 700, 850, 900, 1800, 2100, 2300 and 2600 MHz).
• Frequency bands should be available on a technology-neutral basis.
Reduction of
spectrum
scarcity
Promotion of
effective and
sustainable
competition
• Spectrum must be distributed such there exist viable spectrum packages to support
effective operation of existing Mobile Operators.
• Excessive use of spectrum caps can lead to inefficient use of frequencies
• Spectrum caps should be no stricter than necessary to protect a sustainable market
structure.
Spectrum Policy: Some Recommendations
10. Spectrum Policy: Some Recommendations
Reduction of
investment
risk
Market based
allocation
method and
level playing
field principles
• lower investment risk and improve the investment climate through:
– Long license duration with predictable renewal procedures, or perpetual spectrum
usage rights
– Strong legal protection of spectrum rights, incl. publicly accessible registers over
the most important spectrum licenses
– Spectrum trading, subject only to competition constraints
– Commitment to the use of auctions
– Public spectrum release plans and transparency regarding current frequency use
• Auctions should be used as it correctly designed will ensure:
– Spectrum is efficiently assigned and used
– Government is able to collect revenues to the direct benefit of society
– An objective and fair allocation that protects the government against allegation of
squander, corruption, or unfair play
• Auctions can become too complex which undermines transparency and the obvious
objectivity offered by simpler auction formats that generate roughly equal prices for
equal licenses.
11. • The benefits from spectrum accrue to citizens in a number of ways, auction revenue,
wireless services, employment in the wireless sector and profit taxes. Overemphasis
on direct auction revenue will reduce the benefits from the latter sources.
• Revenue from spectrum should be maximised subject to only two constraints:
• All spectrum should be sold, and
• Equal spectrum rights sold in the same auction should normally have equal
prices.
Realistic
revenue and
price
expectations
Sustainable
Spectrum
pricing
• Set modest reserve prices and annual fees, and rely on the market to set prices
• Avoid measures which increase risks for operators
• Publish long- term spectrum award plans that prioritize welfare benefits over state
revenues
• Avoid measures which increase risks for operators
• License spectrum as soon as it is needed, and avoid artificial spectrum scarcity
Spectrum Policy: Some Recommendations
12. LICENCE TERMS & CONDITIONS CAN SUPPORT NETWORK EVOLUTION & INVESTMENT
Establish a license-renewal
process inc consultation 3-4 years
in advance
Renewal should be predictable
and avoid introducing new terms
which jeopardise RoI
A presumption of renewal(unless
terms breached) supportsservice
continuity and investment
RENEWAL PROCESS SHOULD AVOID RISKING INVESTMENT & SERVICE CONTINUITY
Use coverage
obligations with
caution and target
them
Remove service
and technology
restrictions
License duration
of 15 to 20 years
Use annual fees
to recoup costs–
not maximise
revenues
Avoid restrictive
and onerous
conditions
Spectrum Policy: Some Recommendations
