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Economic and financial challenges of spectrum

Arseny Plossky,

Radio Research & Development Institute (NIIR)

(Russian Federation),

Rapporteur of ITU-D Question 4/1,

ITU/BDT Expert

ITU AMERICAS IPEC 2019

ITU Discussion workshop: 5G and new technologies // Taller de

discusión UIT: 5G y nuevas tecnologías

Santo Domingo, Dominican Republic 26-30 August 2019

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Main goal of spectrum management

To ensure that adequate spectrum is provided

over both the short and long term for public

service organizations to fulfil their missions for

public correspondence, for private sector

business communications, and for broadcasting

information to the public

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Main objective of spectrum management

Spectrum management system must provide an

orderly method for allocating frequency bands,

authorizing and recording frequency use,

establishing regulations and standards to govern

spectrum use, resolving spectrum conflicts, and

representing national interests in international

fora

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Spectrum utilization efficiency

𝑺𝑼𝑬 =𝑴

𝑼=

𝑴

𝑩 ∗ 𝑺 ∗ 𝑻where:

M – useful effect obtained with the aid of the communication system in

question;

U – spectrum utilization factor for that system;

B – actual measurement result on occupation bandwidth (or regional

statistics)

S – actual measurement result on coverage area (or regional statistics)

T – actual measurement result on operating time (or regional statistics).

Source: Recommendation ITU-R SM.1046-3 Definition of spectrum use and efficiency of a radio

system (2017)

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Main challenges for government

Effective provision of emerging

telecommunication/ICT services for consumers

(tariff regulation, competition regulation, digital

literacy, incentive methods)

Bridging the Digital Divide (provision of

services on equal rights for all of consumers)

Socio-economic efficiency of spectrum

management

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Main challenges for operators

Effective provision of emerging

telecommunication/ICT services for consumers

(marketing, tariff design, increasing the revenue)

Increasing the Digital Divide (provision of

services in economical attractive areas)

Economic efficiency of spectrum management

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Main challenges for customers

Consuming of emerging

telecommunication/ICT services (buying the

equipment, acquiring the skills)

Subject of the Digital Divide

Socio-economic efficiency of spectrum

management

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Regional Digital Divide

© Ericsson Mobility Report, June 2019

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Digital Economy

The same laws as for traditional one

ICTs become the core of many economy

sectors

Drastically increasing the use of information

and ICT

Bridging the Digital Divide – main objective to

implement Digital Economy internationally and

nationally

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Digital Economy (consequences)

Broadband telecommunication services

overpass traditional ones

Spectrum becomes more valuable than ever

Determination of economic/socio-economic

value of spectrum are necessary by all means

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Broadband telecommunication services overpass traditional ones

© Ericsson Mobility Report, June 2019

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Distribution of spectrum

Administrative decision (non-economical

method)

Beauty contest (semi-economical method)

Auction (economical method)

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Beauty contest

Spectrum fees

Operators not pay one-time big amount of

money for spectrum

Regulator provides the set of requirements

and demands

Socio-economic value of spectrum

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Auction

Auction price

Operators not face the big set of requirements

and demands for acquiring the spectrum

Economic value of spectrum

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Consequences of mass move to auctions

1. Operators spend massive amount of money

on one-time basis

2. Less money for constructing new networks

and developing of current ones

3. 2G/3G/4G/5G simultaneous maintenance

4. Increasing the Digital Divide by the increasing

speed gap

5. Fail to implement the Digital Economy

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2G/3G/4G/5G simultaneous maintenance

© Ericsson Mobility Report, June 2019

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IoT leaves the necessity of keeping 2G/3G

© Ericsson Mobility Report, June 2019

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5G Frequency Plans

Main

3,5 GHz: ~100 MHz/operator, global harmonization

26-28 GHz: ~ 800 MHz/operator, outdoor-only/hotspot

Additional

600/700 MHz: ~20 MHz/operator, most business cases

2600 MHz: ~40 MHz/operator

4,8; 37 GHz; 40 GHz; 50 GHz; 66 GHz : TBD

WRC-19 should provides some decisions on 5G spectrum

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5G Field Trial

10 Cells @ 3.5 GHz / 100 MHz bandwidth:

1 Gbps outdoor, 100 Mbps indoor

2 Cells @ 28 GHz / 800 MHz bandwidth:

20 Gbps within 100 m

~5 Gbps on 100-250 m

nearly the same speed as for 3.5 GHz on 250-400 m

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Regulatory approaches

Sharing the infrastructure and spectrum

Determination the method of spectrum

valuation

Lowering the burden on operators who

provides services on economical non-attractive

areas

“Freezing” the decisions on spectrum

utilization before adequate implementation of

current networks will be reached

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Thank you very much!!!

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