The Impact of a Technology Neutral Spectrum Regime

Examining Approaches to Technology Neutral Spectrum

Jakarta Indonesia May 8, 2012

Adrian Foster CMC

Outline

Technology Neutrality: Introduction

Technology Neutrality: Concepts and Practice

Country Review: US, UK, Canada

Related Topics: Spectrum Sharing, Refarming

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Introduction
Why Technology Neutral is important Definition for Technology Neutral Spectrum Concepts and Practice
Interference Management Licensing/Authorizing Spectrum Use

Country/Region Review US, UK, EU, Canada Refarming 900 MHz

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Opening Remarks
Spectrum is a non-depleting resource access which, in the first instance (via primary issue), has been and continues to be, even in countries with spectrum markets, controlled by the government. Spectrum management has traditionally been undertaken through a two-stage process of allocation: assignment to particular users for specified purposes, usually for a definite period subject to periodic renewals and, on cancellation of the licences, return to the regulator. This is to be contrasted with a fully flexible secondary market for spectrum in which, during the period of a licence, any frequency can be traded and used to provide any service using any technologies (i.e., what is known as full service and technology neutrality).
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Opening Remarks
Operationally, the transition from the traditional administrative approach to spectrum management toward market flexibility may be thought of as being implemented in three related, but logicallydistinct, directions:
Service neutrality: right to change use of spectrum (e.g., move from broadcasting to mobile services); Technology neutrality: right to choose technology that accesses spectrum (e.g., CDMA or GSM); Ownership transferability: right to transfer spectrum to another licensee who assumes rights to access, obligations, and protection associated with the licence. (In the first instance of assignment, the preferred market-based approach is to make the assignment via auction).
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Why Is This Important?

Spectrum should be free of technology and usage constraints as far as possible. Policy constraints should only be used where they can be justified. Regulation dependent on technology neutrality:
Licence Exempt frequency use; Market-based spectrum assignments spectrum trading and flexible user rights; Spectrum sharing

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Technology Neutrality: Definition

Definition for Technology neutrality: the right to choose technology that accesses spectrum
Part of a broader trend towards more market-based methods for managing spectrum

Liberalization - spectrum usage rights increasingly managed through market-based mechanisms Flexibility - the relaxation of constraints on usage and technologies and possible expansion of licenceexempt frequencies (either as a commons or in the form of managed shared use

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Technology Neutrality: Concepts and Practice

Limits in Practice
Ofcom - The key challenge in defining technology-neutral rights is to allow maximum flexibility to change technology or usage while at the same time neither reducing the efficiency with which spectrum is used or the interference suffered by others

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Technology Neutrality: Concepts and Practice

Exclusive and Non-exclusive Use

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Country Review: USA

Policy Spectrum Policy Task Force 2002
In order to be responsive to these increased technological capabilities, the Commissions spectrum policies can and should remain technology agnostic, but they should not be technology antagonistic. As a result, the Commission should strive, wherever possible, to eliminate regulatory barriers to increased spectrum access. evolve its spectrum policy toward more flexible and market-oriented spectrum policies that will provide incentives for users to migrate to more technologically innovative and economically efficient uses of spectrum

maximum feasible flexibility for licensees, limited only by interference concerns

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Country Review: USA

Regulation:
Interference Temperature Television Whitespaces Ultra-Wide Band

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US Interference Temperature
In 2003, the FCC consulted with users on the concept of interference temperature as a way to quantify and manage interference levels shifting the focus away from Tx to Rx and the level of interference in the radio environment. Commenting parties generally argued that the interference temperature approach is not a workable concept and would result in increased interference in the frequency bands where it would be used. In 2007, the FCC dropped the proceeding. Since then, with the advent of Dynamic Spectrum Access models and Cognitive Radios, Interference Temperature is being resurrected.
Cognitive Radio Network: A network capable of establishing links between its Cognitive Radio Nodes to establish connectivity, and to adjust its connectivity to adapt to changes in environment topology, operating conditions, or user needs. (Source: IEEE 1900.1)
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US - Television Whitespace
FCC established rules for use of TV white spaces permitting the operation of unlicensed devices in the TV white spaces and included safeguards to protect incumbent services against harmful interference. The rules will allow for both fixed and personal/portable unlicensed devices.
Such devices must include a geo-location capability and provisions to access over the Internet a data base of the incumbent services, such as full power and low power TV stations and cable system head-ends, in addition to spectrum-sensing technology. The data base will tell the white space device what spectrum may be used at that location.

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US - Ultra-wide Band
Ultra-wideband spectrum is an active underlay technology which transmits information spread over a large bandwidth (>500 MHz) while sharing spectrum with other users. The FCC defines UWB in its Part 15 Rules see below. The ITU defines UWB in terms of a transmission from an antenna for which the emitted signal bandwidth exceeds the lesser of 500 MHz or 20% of the centre frequency

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Country Review: UK
Policy Spectrum Framework Review 2004.
Ofcom believes that the best mechanism for implementing change of use is through technology-neutral spectrum usage rights. These will allow users to understand their ability to change their technology or usage without needing prior approval from Ofcom or expensive interference studies.

Spectrum Management Principles 2005:

No.2 Spectrum should be free of technology and usage constraints as far as possibleconstraints imposed should be limited to those necessary to comply with international obligations or to meet wider public policy objectives that the market will not deliver by itself. Releasing spectrum on a service and technology neutral basis enables operators obtaining licences to use them to deliver broadband services by mobile, nomadic or fixed means. Flexibility in spectrum allocations to different applications is key to success. Exclusive harmonisationshould be avoided unless there are compelling reasons to justify an exception. Such cases are likely to be rare.
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Ofcom Digital Dividend Strategy 2007

Award of spectrum - service and technology neutral auctions or, where spectrum is already licensed, introducing AIP (Administrative Incentive Pricing) to ensure that licence fees provide incentives to use spectrum efficiently by reflecting its value. Spectrum Usage Rights - non-technical usage restrictions, only those necessary to protect against harmful interference, in line with a service and technology neutral approach. Interleaved Spectrum (whitespaces): For licences to be awarded for geographic interleaved spectrum, Ofcom proposed rules to include Technical Licence Conditions designed to protect the existing DTT multiplexes from harmful interference from new services after DSO.
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European Union Authorization Framework Directive 2002

Article 9 of the Directive applicable to all member states:
Member States shall ensure the effective management of radio frequencies for electronic communication services in their territory. They shall ensure that the allocation and assignment of such radio frequencies by national regulatory authorities are based on objective, transparent, non-discriminatory and proportionate criteria.

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European Union Spectrum Management Review 2007

EU Regulatory Framework: Flexibility in spectrum management and access to spectrum should be increased through technology and service-neutral authorisations to let spectrum users choose the best technologies and services to apply in a frequency band.
The administrative determination of technologies and services should become the exception and should be clearly justified and subject to regular periodic review.

Technical parameters - Boundaries set for point at which negotiations between neighbours in the geographic or frequency domain (for managing interference) are triggered. Method of changing interference parameters - Framework for negotiations between spectrum users, role of regulatory authorities as referee.
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European Union Spectrum Management Review 2007

Exception to Technology Neutrality - Exceptions to the principle of technology neutrality should be limited and justified by the need to avoid harmful interference:
example by imposing emission masks and power levels, or to ensure the protection of public health by limiting public exposure to electromagnetic fields; or to ensure proper sharing of spectrum, in particular where its use is only subject to general authorisations; or where strictly necessary to comply with an exception to the principle of service neutrality.

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European Union Spectrum Management Policy 2010

Spectrum Management Programme Decisions:
Article 2: Member States shall cooperate with each other and with the Commission in a transparent manner, in order to ensure the consistent application of the following general regulatory principles across the Union
Applying technology and service neutrality in the use of spectrum for electronic communications networks and services, in accordance with Article 9 of the Framework Directive 2002/21/EC,in such a way as to promote efficiency of spectrum use, in particular by fostering flexibility, and to promote innovation.

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Country Review: Canada

Spectrum Policy Framework Review 2007 Industry Canada Spectrum policy and management should support the efficient functioning of markets by:
permitting the flexible use of spectrum to the extent possible; harmonizing spectrum use with international allocations and standards, except where Canadian interests warrant a different determination; facilitating secondary markets for spectrum authorizations; clearly defining the obligations and privileges conveyed in spectrum authorizations.

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Canada Technology Neutrality and Broadband Wireless Access

Access to the spectrum is gained through one of the four forms of authorization: apparatus licences, spectrum licences, broadcasting certificates and radio operator certificates. There are two main types of licences: apparatus and spectrum licences. Spectrum licences represent the more market-oriented form of licensing in the mixed market/administrative system. They authorize the operation of (non-specified) devices within a defined geography. The geography is be defined by bandwidth, geographic area, and time. Licensees are free to use any type of equipment for any purpose, although they are subject to licence conditions and technical frameworks designed to minimize the risk of interference with other spectrum users. Spectrum licences are transferable and can be divided and aggregated. They are issued for periods of up to 10 years. They are generally renewable.
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European 900 MHz Re-farming Examples

Regulators in Europe have commenced re-farming of 900 MHz spectrum. Examples are highlighted below demonstrating a range of options including use of permanent and temporary spectrum caps along with direct interventions to attain proportionate assignments amongst existing operators. ComReg Ireland ComReg consulted on the re-award of liberalised licences in 800, 900 and 1800 MHz spectrum expiring in 2011 and 2013. Several options were considered : Auction the entire 900 MHz band at once using 2X5 MHz blocks and a 10 MHz spectrum cap; Or award spectrum as it comes available. ComRegs decision August 2011 a big bang approach all of the spectrum will be auctioned at once for a total of 28 blocks of 2X5 MHz spectrum with a spectrum cap of 50 MHz in total and a maximum of 20 MHz below 1000 MHz
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European 900 MHz Re-farming Examples

Ofcom published its plan in 2010 for 900 MHz spectrum and 2012 for 800 MHz spectrum to:
Liberalise 900 MHz licences allowing a change in use for those licences remaining in the hands of licensees; Auction digital dividend spectrum in the 800 and the 1800 MHz band (2X30 MHz in the 791-862 MHz band with 41 MHz spacing) with the intention of attracting new entrants. Existing licensees can participate in the 800 MHz auction but must agree to return an equivalent amount of 900 MHz spectrum

Use spectrum cap safeguards:

Overall spectrum cap of 105 MHz for 800, 900, 1800, 2600 MHz and 2.1 GHz; Below 1 GHz maximum spectrum cap of 27.5 MHz.

Spectrum caps intended to prevent spectrum holdings by certain operators.

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Conclusions
The current balance favours administrative approaches and it is the view of this author that a shift towards market-based methods should be acknowledged and encouraged by regulators. The practical steps involved in this shift in stance include:
Spectrum legislation and permitting flexibility in spectrum use through technology neutrality/flexibility and sharing, the regulator should apply these principles in developing spectrum strategy generally and where realigning bands through refarming is a necessary focus. Creating the necessary mechanisms, tools and processes to capture and include the needs and expertise of current and future spectrum users such as demand analysis and consultation.
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Adrian Foster Partner McLean Foster & Co. +1 613 256 6128 afoster@mcleanfoster.ca
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Copyright 2012 McLean Foster & Co. All rights reserved.

European 900 MHz Re-farming Examples Sweden - Post and Telecom PTS PTS has re-farmed spectrum amongst existing operators holding 900 MHz:
The existing 3 operators holding 900 and 2100 MHz spectrum agreed to provide another existing operator with 900 MHz to complement existing 2.1 GHz spectrum only spectrum; 4 operators now have 900 and 2100 MHz spectrum; however, the 900 MHz assignments will not be identical as some several operators will have 2X5 MHz and others 2X10 MHz.

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