regulations and local spectrum access models for 5g micro matinmikko-blue.pdfm. latva-aho. analysis...

© Centre for Wireless Communications (CWC), University of Oulu

Regulations and local spectrum access models for 5G micro operators

Dr.Sc. Ph.D. Marja Matinmikko-BlueSenior Research FellowCentre for Wireless Communications (CWC)

© Centre for Wireless Communications (CWC), University of Oulu2

‒ Small number of big mobile

network operators (MNOs)

dominate the mobile market

with equal service offerings

‒ Spectrum licenses are

auctioned for tens of years

with nation-wide coverage

obligations

‒ Market entry for new

players is high due to high

investment barrier

Today:

‒ Local service demand grows

in digitalization of different

verticals especially in

indoors

‒ There is growing need for

local indoor small cell

networks and spectrum

licenses

‒ Sharing economy allows

cost-efficient network scaling

according to demand

”Network as a Service”

Future:

Trends of change in mobile business ecosystem

‒ Existing regulation does

not support local operator

business

‒ Building of dense indoor

networks by all MNOs is

expensive => Who pays,

what are the incentives?

‒ There is a need for a new

mobile business ecosystem

with local players to speed

up digitalization

Challenges:


Regulations for 5G microoperators


12/19/20184

Trends in 5G

deployment

Location specific high-demand

services

5G technical features

Regulations to establish

micro operators

Local spectrum micro licensing

Access to infrastructure

Construction of indoor networks

From outdoor networks to indoor

deployments

Operations in higher carrier frequencies

Operator role with rights and

obligations

From owning infrastructure to

sharing

Neutral hosting for MNOs’ customers

Micro operator

customers

Hybrid of MNOs and micro

operator’s own customers

Dense indoor small cell networks

Multi-tenancy and network slicing

Serving own restricted customer

set

Micro operator concept

Micro operators to

accelerate 5G deployment

M. Matinmikko-Blue and M. Latva-aho. Micro operators accelerating 5G deployment. 12th IEEE International

Conference on Industrial and Information Systems (IEEE ICIIS 2017), Peradeniya, Sri Lanka, 15-16 December 2017


Operator role

• Traditional MNO role comes with rights and obligations

set by the regulator.

• The changing operator roles with 5G networks

complicate the defining of an operator as infrastructure

sharing and offering network as a service are expected

to become more common.

• Micro operators can have a different sets of rights and

obligations depending on whether they provide multi-

tenancy for MNOs or serve their own restricted sets of

customer.

5


Access to infrastructure

• Competition and market regulation aim to ensure proper functioning of the mobile market so that those holding a significant market position cannot limit or distort competition.

• A micro operator’s network coverage is typically restricted to a local area, which restricts its operations and requires interconnection to other networks.

• Micro operators could make commercial agreements with MNOs so that the micro operator customers could be served by MNO networks outside its own network coverage but MNOs may not be willing.

• Role of national roaming in the future?

6


Construction of indoor networks

• New buildings with strict energy efficiency requirements have resulted

in indoor connectivity problems, which can be solved with indoor

networks.

• The rights of MNOs to place base stations inside buildings vary

considerably depending on the national regulatory conditions. In

Finland, the building owner cannot monopolize the property but has to

let MNOs into their buildings. Thus, micro operator cannot have

monopoly inside a building.

• The new micro operator concept specifically addresses the indoor

connectivity problems by the opportunity to serve MNOs’ customers in

addition to its own customers.

7


Regulatory elements and their role in 5G

12/19/20188M. Matinmikko, M. Latva-aho, P. Ahokangas, V. Seppänen. On regulations for 5G: Micro licensing for locally operated networks.

Telecommunications Policy, Vol. 42, No. 8, Sept. 2018, pp. 622-635.


Spectrum considerations for 5G micro operators


Spectrum access rights for 5G networks

• Spectrum assignment decisions determine who are allowed to

use 5G bands and under which rules and conditions. These

decisions have long-term impact on the mobile market.

• Serving of vertical sectors’ tailored needs in specific high

demand areas will be based on local 5G small cell network

deployments in the higher frequency bands.

➢Who can deploy and operate future 5G radio access networks?

➢ This needs to be done in a fair and transparent way to promote

competition and innovation.

10


Traditional spectrum management approaches

12/19/201811

M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and M. Latva-aho. Analysis of Spectrum Valuation Approaches:

The Viewpoint of Local 5G Networks in Shared Spectrum Bands. IEEE International Symposium on Dynamic Spectrum Access Networks,

22-25 October 2018, Soul, South Korea.


Spectrum options for local 5G networks

12

Allows the

emergence of

independent

local 5G micro

operator

networks

M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and M. Latva-aho. Analysis of Spectrum Valuation Approaches:

The Viewpoint of Local 5G Networks in Shared Spectrum Bands. IEEE International Symposium on Dynamic Spectrum Access Networks,

22-25 October 2018, Soul, South Korea.


Spectrum valuation

12/19/201813

• Spectrum management decisions aim at maximizing the value of

spectrum, its efficient utilization and benefits to the society, which

calls for a thorough understanding of spectrum valuation

approaches.

• Prior research on spectrum value for mobile communications has

considered engineering value, economic value and strategic value

from the mobile network operator (MNO) viewpoint.

• There was no research on spectrum valuation to help regulators in

their 5G spectrum decisions with the emergence of local 5G

networks.


Defining spectrum value

‒ Engineering value considers the cost

savings in the infrastructure that an

operator can achieve by gaining access

to additional spectrum.

‒ Economic value has a wider perspective

and considers the value arising from the

services that are provided for use

through the availability of the spectrum,

in terms of the predicted future profits

that can be earned by the services

offered.

‒ Strategic value of spectrum arises from a

stakeholder’s control of the market

access through spectrum availability,

because the expected market position of

one stakeholder depends on spectrum

assignments of the others.

12/19/201814

Spectrum valuation methods

Economic value:Future profits from wireless services in the spectrum band

Engineering value:Cost savings obtained from using additional spectrum band

Strategic value:Market position resulting from the spectrum assignments

M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and

M. Latva-aho. Analysis of Spectrum Valuation Approaches: The Viewpoint of Local

5G Networks in Shared Spectrum Bands. IEEE International Symposium on

Dynamic Spectrum Access Networks, 22-25 October 2018, Soul, South Korea.


Proposed key elements of spectrum value

12/19/201815

Brings spectrum demand and

supply sides into spectrum

valuation including different views of

smaller and larger players.

Expected future revenues

and costs depend on the

services offered in the

band.

Spectrum rights awarding rules

and resulting conditions for the

use of the band define who can

deploy systems and how.

Bands differ by physical

propagation characteristics,

development of band’s

ecosystem, and restrictions

from incumbents.

Different areas have

different profitability

driven by both

revenues and costs. Elements of spectrum

value

Stakeholders

Offered services

Spectrum allocation and assignment

method

Location specific

characteristics

Band specific characteristics

M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and M. Latva-aho.

Analysis of Spectrum Valuation Approaches: The Viewpoint of Local 5G Networks in Shared

Spectrum Bands. IEEE International Symposium on Dynamic Spectrum Access Networks, 22-25

October 2018, Soul, South Korea.


Stakeholder’s views on spectrum value in 5G

12/19/201816

Elements of

spectrum value

Stakeholders

Regulator MNO Local 5G micro operator

Offered services Division based on services is getting

less relevant as a diverse set of services

can be delivered through 5G mobile

communication networks.

Mobile broadband and various

tailored services.

Diverse set of services to different

customer segments including

closed private networks or neutral

hosting for MNOs.

Spectrum allocation

and assignment

method

Need to find a balance between

different allocation methods that

promote innovation and competition

while ensure investments.

Spectrum property rights with

long license durations are

preferred.

Different methods that allow local

access to spectrum are feasible.

Location specific

characteristics

Population density traditionally used,

but new metrics are needed to

characterize the demand for spectrum.

Current wide area coverage is

expanded by local deployments

in high-demand areas.

Operations are fully confined to

local areas in various vertical use

cases.

Band specific

characteristics

Incumbent spectrum usage limits the

availability of bands. Very wide

bandwidths available in higher 5G

bands. Propagation characteristic limit

network coverage to local area.

MNOs have existing spectrum

licenses in other bands and can

aggregate new 5G bands, which

makes their dependency on the

specific new 5G band lower.

Local operations are highly

dependent on local spectrum

availability and band specific

characteristics and unlicensed

access is the only other option.


Analysis of Spectrum Valuation Approaches: The Viewpoint of Local 5G Networks in Shared

Spectrum Bands. IEEE International Symposium on Dynamic Spectrum Access Networks, 22-25

October 2018, Soul, South Korea.


Local spectrum micro licensing

• 5G bands will need new

spectrum authorization

models to allow locally

deployed networks by

different stakeholders.

• New micro licensing

model is proposed.

17M. Matinmikko, M. Latva-aho, P. Ahokangas, V. Seppänen. On regulations for 5G: Micro licensing for locally operated networks.

Telecommunications Policy, Vol. 42, No. 8, Sept. 2018, pp. 622-635

© Centre for Wireless Communications (CWC), University of Oulu12/19/201818

Micro licensing:Description: Local access rights are issued to a large number of stakeholders including new entrants which requires coordination with other licensees.

Benefits:=> Predefined level of interference protection leading to quality guarantees => Allows new entrants to market=> Efficient protection of incumbents which makes spectrum available

Traditional individual authorization (Exclusive licensing):Description: Limited number of licenses are issued (via auctions) with long-term availability, high price, and obligations.

Benefits:=> Protection from harmful interference resulting in quality guarantees.=> Static market with investment certainty.

General authorization (License-exempt):Description: Anyone can operate with standardized systems without paying license fees without protection from interference.

Benefits:=> Easy entry to market for a large number of users.=> Arena for experiment and innovation.

M. Matinmikko, M. Latva-aho, P. Ahokangas, V. Seppänen. On regulations for 5G: Micro licensing for locally operated networks.

Telecommunications Policy, Vol. 42, No. 8, Sept. 2018, pp. 622-635.

Benefits of micro licensing


Key elements of spectrum micro licensing

• Key elements describing a spectrum

assignment model have been identified

and existing models (exclusive

licensing, US three-tier, and unlicensed)

were reviewed accordingly. Specific

elements for micro licensing were

proposed.

19

K. B. Shashika Manosha, M. Matinmikko and M Latva-aho. Framework

for Spectrum Authorization Elements and its Application to 5G Micro-

Operators. Internet of Things Business Models, Users, and Networks

conference (CTTE), Copenhagen, Denmark, 2017.

© Centre for Wireless Communications (CWC), University of Oulu20M. Matinmikko, M. Latva-aho, P. Ahokangas, V. Seppänen. On regulations for 5G: Micro licensing for locally operated networks.

Telecommunications Policy, Vol. 42, No. 8, Sept. 2018, pp. 622-635

Key elements of spectrum micro licensing

© Centre for Wireless Communications (CWC), University of Oulu12/19/201821

Indoor

propagation

Outdoor

propagation

Indoor

propagation

Build

ing

entr

y loss

Build

ing

entr

y loss

Interference analysis for micro licensing

Interference

Minimum separation distance

Interference coordination

between local micro

licensees’ and incumbents’

deployments becomes

easier when going to

higher frequency bands.

M. Matinmikko, A. Roivainen, M. Latva-aho & K. Hiltunen. Interference study of micro

licensing for 5G micro operator small cell deployments. CrownCom 2017 conference.


• Measurement campaign at University of Oulu campus in 3.5

GHz band to study propagation losses for the scenario of

indoor to indoor propagation between two different buildings.

• Building material highly impacts the propagation losses.

• Separation distance is case specific.

22

Propagation loss measurement and modelling for micro operators

J. Lehtomäki, R. Vuohtoniemi, M. Matinmikko, and K. Hiltunen. Building-to-Building

Propagation Loss Measurements in the 3.5 GHz Band with Application to Micro Operators.

IEEE WCNC 2018 conference.


Analysis of 5G spectrum decisions

12/19/201823


Analysis of Spectrum Valuation Elements for Local 5G Networks: Case Study of 3.5 GHz Band.

Submitted to IEEE Transactions on Cognitive Communications and Networking.

• Case study of recent spectrum decisions on 3.5 GHz band in different

countries (Finland, Italy, Ireland, Japan, USA and Germany) revealed the

following:

• All traditional spectrum management approaches are still present (administrative

allocation, market-based mechanism, commons).

• Different levels of spectrum sharing from no sharing to sharing between three layers of

spectrum access rights and within each layer.

• Significant differences in license areas ranging from local areas and regional areas to

country-wide areas.

• Different approaches taken to deal with incumbents in the band ranging from clearing

the band from incumbents, making sure they can continue operations, to protecting their

operations.


Conclusions (1/2)

‒ 5G brings local networks to various vertical sectors if spectrum is made available at an affordable cost level to those who need it, when and where they need it.

‒ Traditional stakeholder roles will change in 5G as location specific indoor networks will complement MNO deployments.

‒ Regulators in different countries have recognized the need for opening the 5G market to new entry to promote innovation and competition, which calls for changes in existing regulations to allow local micro operators.

‒ Ensuring local spectrum availability should be a key priority for regulators in 5G decision making, and requires adjustments to existing spectrum valuation approaches that are used as basis for spectrum assignment decisions.

12/19/201824


Conclusions (2/2)

‒ We have analyzed regulations related to 5G micro operators and focused on spectrum access options.

‒ We have investigated spectrum valuation approaches and expanded them to consider local 5G networks.

‒ We have developed spectrum micro licensing approach.

‒ Future work is needed to revise the regulatory framework that allows wide-spread adoption of the micro operator concept.

‒ Future work is needed on band specific studies of the value of spectrum for 5G bands.

12/19/201825


Related scientific publications from uO5G project

‒ M. Matinmikko, M. Latva-aho, P. Ahokangas, S. Yrjölä, and T. Koivumäki. Micro

operators to boost local service delivery in 5G. Wireless Personal

Communications, vol. 95, no. 1, pp. 69–82, May 2017.

‒ K. B. Shashika Manosha, M. Matinmikko-Blue, and M. Latva-aho. Framework for

spectrum authorization elements and its application to 5G micro-operators. 2017

Internet of Things – Business Models, Users, and Networks. Copenhagen,

Denmark, 23-24 November 2017, pp. 1-8.

‒ M. Matinmikko, A. Roivainen, M. Latva-aho and K. Hiltunen. Interference study of

micro licensing for 5G micro operator small cell deployments. Conference on

Cognitive Radio Oriented Wireless Networks and Communications (CrownCom),

Lisboa, Portugal, 20-21 September 2017.

‒ M. Matinmikko-Blue and M. Latva-aho. Micro operators accelerating 5G

deployment. 12th IEEE International Conference on Industrial and Information

Systems (IEEE ICIIS 2017), Peradeniya, Sri Lanka, 15-16 December 2017, pp. 1-5.

26


‒ J. Lehtomäki, R. Vuohtoniemi, M. Matinmikko, and K. Hiltunen. Building-to-Building

Propagation Loss Measurements in the 3.5 GHz Band with Application to Micro

Operators. IEEE Wireless Communications and Networking Conference (IEEE

WCNC 2018) Barcelona, Spain, 15-18 April 2018.

‒ M. Matinmikko-Blue, S. Yrjölä, and M. Latva-aho. Micro operators for ultra-dense

network deployment with network slicing and local spectrum micro licensing. IEEE

87th Vehicular Technology Conference (IEEE VTC2018-Spring), Porto, Portugal, 3-6

June 2018, 6 p.

‒ M. Matinmikko, M. Latva-aho, P. Ahokangas, and V. Seppänen. On regulations for

5G: Micro licensing for locally operated networks. Telecommunications Policy,

Volume 42, Issue 8, September 2018, Pages 622-635.

‒ M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and M.

Latva-aho. Analysis of Spectrum Valuation Approaches: The Viewpoint of Local 5G

Networks in Shared Spectrum Bands. IEEE International Symposium on Dynamic

Spectrum Access Networks, 22-25 October 2018, Soul, South Korea.27

Related scientific publications from uO5G project

#cwcoulu #5GTN #6GFlagship

Contacts:

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