Peter Clemons is currently head, TETRA Business, Americas for Hytera Mobilfunk GmbH, a full solutions provider in the professional communications space. He is a former director and board member at TETRA + Critical Communications Association and former director of communications at Spanish TETRA manufacturer Teltronic S.A.U. Peter set up a brand new UK-based company, Quixoticity Ltd, in March 2012 to focus on developing new solutions to the challenges facing the global critical communications industry and remains as its managing director. Peter is well known for his forward-looking ideas regarding the critical communications industry. He is working together with Hytera to provide customers with the very best critical communications solutions for today and tomorrow. Peter Clemons, Managing Director, Quixoticity / Head

1. The True Value of
Critical Communications
in the Information Age
Peter Clemons
Managing Director, Quixoticity Ltd
Australia Technology Park, Sydney
June 19, 2014
07/16/14 1

2. 2
• Clemons Consulting dedicated to
critical communications since 1998
• Quixoticity established in March 2012
• 20+ years of experience of economic analysis & project
management & 18 years in mobile communications
• Ex-director & board member of global TCCA
• A fresh, flexible, adaptable, more robust approach to
forecasting
• Using experience, knowledge & new techniques
to open a window on the future
• Working closely together with industry to explore
new possibilities – seeing the world differently
• Championing innovation & visionary thinking
Quixoticity?

3. Value(s)

4. Agenda for
critical communications
• Political economy in the 21st
century
• The value of communications
• Next-gen critical comms around the world
• WRC-15
• A new value model for critical comms
– The critical communications “singularity”

5. Political economy
in the 21st
century

6. Emergence of modern states
• Common ancestry, place & language
• Periods of stability
• Conflict & revolution
• Economic base – agriculture, cattle, technology
• Infrastructure
• Rule of law – social contract
• Protection of citizens - Public safety & security
• Increasing complexity, variety of goods & services
• Trade & commerce
• Bread and circuses

7. Human needs
• Survival
• Safety & security
• Relationships
• Position
• Aspirations
• Public v private
• Monetary v non-monetary
• Constantly changing according to circumstances & historical
moment

8. Booms & Busts
• Economic factors
• Production, circulation & distribution
• Expectations – Rational & Irrational
• Business cycles
• Changes in energy & information regimes
• Technological change
• Linear v circular economy
• Political economy
• 21st
century trends

9. Investment decisions
• Hard choices
• Risk and return
• Today v/+ tomorrow
• Public v/+ private
• Use v/+ exchange
• Basic v/+ higher needs
• Stability v/+ growth
• Not either-or

10. Information Age Economy
• Rapid technological change
• Digital revolution - reproduction
• Knowledge-based society – new hierarchies
• High-tech economy – new currencies
• Hyperconnectivity/Global village – new spaces – work/play
• Miniaturization, Virtualization, Automation
• Artificial/embedded intelligence – rise of algorithms
• Smart Cities, mCommerce, mHealth, mCrime…..

11. The value of
communications

12. A Tool for Everyone
• The human need to communicate
• Everyone has a personal device
• No longer just a mobile phone
• Multi-technology, multi-device environment
• Different needs for different situations
– Coverage
– Functionality
– Security
– Privacy

13. False Dichotomies (1)
• Profit motive • Security motive

14. False Dichotomies (2)
• Commercial users • Professional users

15. Value of Global Standards
• Historically, fragmented communications markets
• The ETSI success story
– GSM, TETRA
• 3GPP
– Economies of scale
– Demand-driven
– Releases
– LTE – rich ecosystem
• 5G? Rise of the machines
• “Pre-standards”
• Network convergence/security
• A never-ending story

16. A Ruthless World
• Public sector funding
• Need for transparency
• Risk & uncertainty
• Hyper-competition
– for attention
– for legislation
– for resources
• Short termism
• Playing catch-up
• Focus, focus, focus
– Clear, unified message
– Hearts & minds
• Critical comms community needs to shout message from roof-tops

17. Next-gen critical comms
around the world

18. A Global Challenge
• Smaller global critical comms ecosystem
• More recent switch to digital
• Higher levels of security, resilience required
• Hard to justify investment in new standard
• Public safety LTE
– 3GPP Releases 11, 12, 13
• Increasing global coordination
• Still many challenges ahead
– Spectrum
– Applications
– Funding
• CAPEX
• OPEX
• Opportunity Costs

19. FirstNet
• 9-11 - Call for nationwide PSS network in USA
• Early allocation of spectrum in 700 MHz (Band 14)
• LTE chosen by NPSTC for BB in 2009
• 2x10 MHz + $7bn awarded by Govt. Act in 2012
• First Responder Network Authority (FirstNet) set up in 2012
• Painful progress in first 2 years
• Many original B-TOP pilot networks cancelled
• Frontier counties: Harris County, Adams County, LA-RICS
• Danger of State Opt-Outs, lack of stakeholder buy-in, carrier capture
• Lack of business plan, delayed engagement with states + suppliers
• Bureaucracy, complexity & politics threatening the entire process
• Mid-term elections in USA at end-2014

20. ESMCP (UK)
• Emergency Services Mobile Communications Programme
• Early deployment of nationwide public safety TETRA network,
operated by Airwave Solutions Ltd
• Emergency services contracts up for renewal 2016-2022
• UK Home Office has started tender process for a new ESN
(Emergency Services Network) including Broadband
– Commercial operators encouraged to participate
– No new spectrum guaranteed
– No long-term TETRA extension guaranteed
– “Cheaper, better, smarter.”
• Decision expected in 2015
• Roll-out to start late 2016/2017
– Extension for Airwave?
– Dependence on commercial operators?
– Public safety LTE standard ready in time?

21. Europe
• Largest TETRA network - German BD-BOS network - still being built
• Desire for interoperability
• Belgium, Netherlands, Finland et al. to refresh TETRA for another
10 years
• Only Norway has chosen TEDS
• Belgium, UK & Netherlands - MVNO models for (non-critical) data
• France & Spain have trialled LTE at 400 MHz
• Quest for spectrum – WRC-15, 700 MHz
• Minimum requirement: 2x10 MHz
• LEWP-RCEG, CEPT FM49
• Mission-critical voice – not until 2020

22. What the rest are doing
• Canada
– Following US Band 14/FirstNet, prefer PPP model
• Middle East (Qatar)
– Qatar MoI private LTE already deployed
• Australia
– Spectrum assigned for PSS BB in 800 MHz in 2011
Could still consider 700 MHz APT Band 28 solution
• China
– Spectrum assigned for MCBB in 1.4 GHz
Huawei heavily promoting eLTE solution for SmartCities
• Asia-Pacific/Latin America
– Regions 2/3 - Harmonised spectrum in 700 MHz (Band 28) Brazil &
others looking at 450 MHz for rural coverage

23. WRC-15

24. International Telecommunication Union
• Founded in Paris back in 1865
• UN agency since 1947 based in Geneva
• Over 700 members from 193 countries
• ITU-R – Radiocommunication Sector – manages
radio-spectrum & satellite orbit resources
• ITU-R responsible for World
Radiocommunication Conferences (WRC)
• ITU responsible for Radio Regulations (RR)
updated at each WRC
• No global alignment of spectrum allocation
• World divided into 3 regions: roughly: EMEA,
Americas, Asia-Pacific
• World Radiocommunications Committee
(WRC) every 3-4 years: next one in November
2015

25. WRC-15
• WRC held every 4 years to update Radio Regulation (RR)
• Next WRC to be held in Geneva on November 2-27, 2015
• Common positions need to be reached by each regional
administration:
– African Telecommunications Union
– Asia-Pacific Telecommunity
– Arab Spectrum Management Group
– European Conference of Post & Telecommunications (CEPT)
– Inter-American Telecommunication Commission (CITEL)
– Regional Commonwealth in field of communications(Russia/CIS)
• 3 Agenda Items for WRC-15 are relevant for critical communications:
– AI 1.1: Additional mobile/IMT spectrum (globally)
– AI 1.2: Studies & rules for 700 MHz mobile use in Region 1 after
2015
– AI 1.3: Broadband PPDR addition to Res 646
• Key decisions will also be made at WRC-15 regarding items for
inclusion in WRC-18/19

26. Spectrum
• All communications services depend on available, sufficient & appropriate allocation
of spectrum
• Existing global critical comms - VHF/UHF/700/800/900 MHz
• Commercial services - 800/900/1800/1900/2100/2600 MHz
• Dedicated v harmonised spectrum
• Sharing arrangements – co-primary, secondary etc.
• Region 1 studying 700 MHz band (694-790 MHz) – compatibility with APT Band 28
(Asia-Pacific/Latin America)
• Future allocations considered at WRC-15:
– Support for 1.4 GHz, 3.4-3.6/3.6-3.8 GHz
– Shared at 470-694 MHz; 1350-1400/1492-1518 MHz; 5725-5850/5925-6425 MHz
• Support for PPDR/PSS/PMR
• Other services
• Interference
• Technical considerations
• Spectrum auctions

27. A Common Solution?
• Interests of multiple sectors
– Mobile broadband (commercial + PPDR)
– Maritime - Aeronautical
– Satellite - Scientific use
• Regional interests
• National interests
– i.e. 48 countries in CEPT
• Private interests
– Very large private multinationals with aggressive R&D, legal teams etc.
• Need for critical comms industry to work closely together
– Identify common bands
– Avoid fragmentation
– Cost-benefit analysis of spectrum usage
– Fair access & pricing of spectrum (i.e. not via auction)
– Actively participate in Conference Preparatory Groups

28. Opportunities & Threats
• OPPORTUNITIES:
• PPDR spectrum guaranteed for future requirements
• Critical users - integral part of future comms landscape
• Economies of scale; lower costs
• Innovative new services become available
• All future comms incorporate critical functionality
• THREATS:
• Little interest from community in WRC-15
• Governments raise money from spectrum auctions
• Slow progress in negotiations – run out of time for agreements
• Different national positions prevent harmonisation
• Lack of devices for specific critical comms spectrum
• Lack of investment in NB; lack of definition of BB

29. A new value model
for critical comms

30. Energy - Information
• The fundamental relationship for any economic entity
– Rifkin: Entropy bill of modern economies stuck in 2nd
Industrial
Revolution (too much energy to generate too little information!!)
• Sustainable development
– Physical - the limit of the Virtual
– Resource management - natural/human/digital
• Paradigm shifts in (critical) communications:
– Cleaner, more efficient use of energy
– Cloud computing to cope with big data
– New modulation techniques for better bits/Hz
– Inessential hardware replaced by software (SDN/NFV)
– New forms of value/incentives (“currencies”?)
– The fifth generation communications (5G) requirement

31. Data Overload
• Switch to digital
• Voice becomes another form of data
• Data use growing faster than available
bandwidth
– Text, images, video, location, sensors (big data)
– Rich multimedia is becoming “mission-critical” (not just
voice + text)
– Smartphones drive Mobile Internet (Convergence)
• More spectrum must be freed up to cope with
demand
– Lifestyle changes - Social media
– Smart Cities, Smart Grid, SmartGov, Smart business
– Data management in the digital age
– The Cloud – Internet of Everything – Digital identities
– New business models – Mcommerce - Digital currencies

32. Complexity
• Modern economies are never in equilibrium
– New structures, services, applications emerging
– Growth/decline is non-linear, unpredictable with
unforeseen consequences for total economy
• Complexity theory actually turns out to be more
robust to change than traditional economic theory
– A “break with the past” must be modelled in a
computational & sequential manner
• Expect the unexpected – uncertainty and worst
case scenarios need to be built into models
• Big data is not enough to cope with complexity
• Industry sectors “evolve together”: co-evolution
– Critical comms co-evolves with commercial comms
• New players (Huawei!) join the critical comms
industry – structural transformations
• “Pre-standards” fight to become new standards

33. Sustainability
• Diverse, productive, safe systems based
on trust
• Human activity combined with the right
technology
• System must put back more than it takes
away
• Intelligent energy/ information regimes
• Growth without waste: Circular
economy
• Critical communications as the base of a
sustainable society
– Value based on what isn’t used, not just what
is
– Value based on prevention rather than
reaction to events

34. Economy & Meaning
• A need to return to basic human needs/rights
• All action should have a purpose
• Synergies of working together
– Cooperation – social networks
– Transformation of economies
– New forms of enterprise
– New currencies
– New forms of value – shared value
– New measures of economic activity
• Individual and collective responsibility
• Equal opportunities
• The value of difference & diversity
• A common purpose, common goals

35. The “iPhone moment”
• Critical communications is ripe for change
• A major paradigm shift is under way
• Can critical comms jump from 2G to 5G?
– 3G/4G as trial networks for the “Great Leap Forward”
• Convergence & consolidation – new entrants
• Major breakthrough in devices & apps
– Change in industry structure
– Change in institutions
– New business models
– New products & services
– Rich apps environment for critical comms
• Need for critical comms entrepreneurs/champions
• Leading up to the “critical comms singularity”

36. • Human v/+ artificial intelligence
– An interface/gateway between the two?
• Application of Moore’s Law
– Sustained, exponential growth in computing
power
• Sudden, unexpected breakthrough in
secure communications technology
• Total break from the past?
• 2020? 2030? 2040?...
• 1984 v/+ Brave New World?
• Global consciousness?
• The end of time?
• The beginning of a new time?
Critical comms singularity?

37. Quixoticity - Next steps
• Old habits die hard – urgent need to challenge the status quo
• Economy is not set of equations/numbers; determined by human agency
• Analysts are not passive observers of reality
• Traditional ways of interpreting the world have reached their limits
• New models of reality for a sustainable world
• Can we prevent (or accelerate) the singularity?
• Therefore, Quixoticity is:
– Deep knowledge of the essence of critical communications
– A fresh new service for the global critical comms industry
– Generational change
– Identification of new possibilities
– Innovative business models
– Finding an industry path from A to B

38. 07/16/14 38
For more in-depth analysis &
commentary on the critical
communications landscape,
please contact:
Peter Clemons
Managing Director, Quixoticity Ltd.
9 Pine Grove, Penenden Heath
Maidstone, Kent. ME14 2AJ. UK
+44-7951-289934
peter@quixoticity.com
Skype: peterclemons
LinkedIn: Peter Clemons