©Ofcom
The Spectrum Framework Review
A consultation on how radio spectrum should be managed
23 November 2004
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Contents
• The Scope of the Review
• The Radio Spectrum & its Current Allocation
• Ofcom’s Spectrum Management Agenda
• The Key Strategic Issues
• Our Vision for Spectrum Management
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The aims of the Review
• To enable current and future users of the radio spectrum to have enough information and certainty to make major investment decisions
• To provide a framework which Ofcom can apply to specific spectrum issues
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How the Review relates to other activities
The Spectrum Framework Review:Setting out our overall strategy for
managing radio spectrumNovember 2004
Spectrum Trading and LiberalisationA sequence of documents setting out how we will implement
trading of licensesNovember 2003 – December 2004 Detailed policy
statements2005 onwards
The SFR Implementation Plan:Detailed plans for realising the vision
of the SFRDecember 2004Time
Issues feeding through
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Contents
• The Scope of the Review
• The Radio Spectrum & its Current Allocation
• Ofcom’s Spectrum Management Agenda
• The Key Strategic Issues
• Our Vision for Spectrum Management
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Medium Wave Radio
The Radio Spectrum
ElectricWaves
RadioWaves Infra-red
VisibleLight
UltraViolet X-Rays
GammaRays
CosmicRays
30 3 30300
Long Wave Radio
FM Radio
GSM
3G
Microwave Radio LinksTV
VLF LF MF HF VHF UHF SHF EHF
Radio SpectrumRadio Spectrum
kHz MHz GHz330300 300
DECT WiFiBluetoothTETRA
LMDS
Decreasing RangeIncreasing Bandwidth
Increasing RangeDecreasing Bandwidth
3
“Sweetspot”
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Other7%
Defence30%
Emergency services
2%
Business radio5%
Cellular4%
Aeronautical and Maritime
14% Science1%
Broadcasting13%
Fixed / Satellite24%
Current Allocation of the Radio Spectrum
Note: Weighted by Frequency
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Contents
• The Scope of the Review
• The Radio Spectrum & its Current Allocation
• Ofcom’s Spectrum Management Agenda
• The Key Strategic Issues
• Our Vision for Spectrum Management
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Ofcom’s Spectrum Management Agenda
The Given:Fulfil our statutory duties
The Ambition:Make the UK the leading country for wireless investment & innovation
Ensure optimal use of the spectrum
Take account of the needs of all spectrum users
Maximise economic benefits of the spectrum
A better signposted approach to spectrum, giving more certainty in the market
A flexible approach to spectrum, providing opportunity for innovation
A competitive communications market, providing opportunity for returns on investment
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We operate in an international framework
• ITU Radio Regulations harmonise allocations at a broad level - eg fixed, mobile, broadcasting.
• The NATO treaty commits us to allowing exclusive use for some military bands
• UK has signed up to numerous (non-binding) CEPT frequency harmonisation measures
• There are binding EU Directives/ Decisions covering cellular and paging services
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Contents
• The Scope of the Review
• The Radio Spectrum & its Current Allocation
• Ofcom’s Spectrum Management Agenda
• The Key Strategic Issues
• Our Vision for Spectrum Management
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There are three possible ways to manage spectrum
Command & Control Zone
Ofcom manages it
Market Forces ZoneCompanies manage it
Licence-exempt Zone Nobody manages it
Approach that is currently adopted for about 94% of
the spectrum
Approach advocated by Cave and implemented
by trading and liberalisation
Approach currently adopted for 6% of
spectrum, some argue for radical increase
• We need to decide the right balance between the Zones
• Zones are currently demarcated by frequency. However, there are also dimensions of power and time
C&C MF L-E
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The Command and Control Zone
• Still needed in some areas– Spectrum controlled internationally, eg HF, satellite– Spectrum where international roaming is essential, eg maritime, aeronautical– Uses we wish to preserve, eg radio astronomy
• The status quo
– The regulator decides on how much spectrum is needed for each application and who gets it.
– No variations are allowed– The approach followed for the last 100
years
• But no longer the preferred option
– The regulator cannot know as much as the market and so cannot make decisions as well as the market
– The Cave Report strongly recommended moving away from this model
C&C MF L-E
Today 94% 21% 2010
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The Market Forces Zone
Allocation(what the best use is
for the spectrum)
Assignment(who the best user is
of the spectrum)
Existing spectrum:Trading between
users
“New” spectrum:Auctions
Liberalisation Phase 1:Users ask Ofcom if they can
change the use
Liberalisation Phase 2:Technology-neutral spectrum usage rights to allow users to
make the change without consulting Ofcom
C&C MF L-E
Today 0% 72% 2010
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The Licence-exempt Zone
Increasing licence-exempt allocation to 7% of total spectrum allows enough for everyone to install equipment capable of delivering 100Mbits/s data services
in homes or offices
C&C MF L-E
Key area for innovation but we do not need much more
Focus on removing restrictions, eg higher power in rural areas
Today 6% 7% 2010
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Deregulation of existing licence classes
There are a number of areas where we cannot allow change of use but do not need to actively manage the band
Users in these bands may not need to be directly licensed by Ofcom
However, there are many complexities – eg call signs are often linked to licenses
We currently issue 209,000 licences, 75% in areas where we might be able
to reduce the needs for licensing
Aviation
Amateur
Maritime
CB
9,000
63,000
61,000
19,000Are
as u
nder
co
nsid
erat
ion
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Interference limit
Upper power limit
Pow
er
Frequency
UWB
Should we allow it?
The subject of a separate consultation to be issued shortly
C&C MF L-E
C&C Zone
MF Zone
L-E Zone
Upper power limit
Pow
er
C&C Zone
MF Zone
L-E Zone
Frequency
Exploiting the power dimension - UWB
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• Cognitive radios access the spectrum at full power during the time the licence holder is not using it
• We could allow this as an “easement” to property rights– However, licence holders could act
in a manner to make it worthless (eg by transmitting constantly)
– We are not sure it can be implemented technically in this fashion
• We would rather allow the licence holders to permit it in a direct transaction with the cognitive radio user
C&C MF L-E
Pow
er
C&C Zone
MF Zone
L-E Zone
Time
Pow
er
C&C Zone
MF Zone
L-E Zone
Time
Frequency
Frequency
Accessing the time dimension - Cognitive radio
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Contents
• The Scope of the Review
• The Radio Spectrum & its Current Allocation
• Ofcom’s Spectrum Management Agenda
• The Key Strategic Issues
• Our Vision for Spectrum Management
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The Ofcom Spectrum Vision
• Spectrum should be free of technology, policy and usage constraints as far as possible
• It should be simple and transparent for licence holders to change the ownership and use of spectrum
• Rights of spectrum users should be clearly defined and users should feel comfortable that they will not be changed without good cause
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Next Steps
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The Implementation Plan
• The Spectrum Framework Review: Implementation Plan will be published before Christmas, covering:
– Ofcom views on a group of interrelated mobile spectrum policy issues relating to trading and liberalisation
– Ideas for awarding unused or under-used spectrum
• Our approach reflects the constraints on us from:
– The use of spectrum in the past to achieve policy goals– Industry structures created in the past by spectrum regulation– The need for an orderly transition to the new approach– European regulatory structures– Resources within Ofcom and in the market to award new spectrum
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Forthcoming proposals and statements
• Policy proposals in the Implementation Plan
– Applying Ofcom’s trading and liberalisation policies to spectrum used for mobile services
• Spectrum awards proposed in the Implementation Plan
– 15 bands which will be made available over the next few years
• Trading and liberalisation initiatives
– Trading Regulations will come into force mid-December– Liberalisation Statement will be published in the next two months
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Spectrum Framework Review
Q&A