700MHz Spectrum Report

© Analysys Mason Limited 2012

The 700MHz spectrum band: market drivers and harmonisation challenges worldwide

Research Report

The 700MHz spectrum band: market drivers and harmonisation challenges worldwideSeptember 2012

Morgan Mullooly



Contents

5. Executive summary

6. Executive summary

7. Recommendations

8. Recommendations

9. Introduction

10. Satisfying demand for spectrum is becoming increasingly difficult

11. A key challenge for policy makers is to determine the most socio-economically advantageous spectrum assignments

12. Sub-1GHz spectrum like the 700MHz and 800MHz bands is particularly suitable for mobile communications

13. Changes to international frequency allocations are made at the ITU’s World Radiocommunication Conferences

14. At WRC-07, it was decided to create co-primary allocations between mobile and broadcasting at the top of the UHF band

15. At WRC-12, it was agreed to allocate 700MHz spectrum for mobile use in Region 1, in order to align it with Regions 2 and 3

16. Drivers for and inhibitors to the release of the 700MHz band in ITU Region 1

17. Drivers for and inhibitors to the release of the 700MHz band in ITU Region 1 – The Middle East and Africa

18. Many factors drive the need for 700MHz spectrum to be made available for mobile use in MEA

19. Some countries in MEA already use some of the 800MHz band for cellular services

20. Mobile networks are important for the delivery of broadband services in Africa and the Middle East

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21. Use of terrestrial TV is limited in some parts of MEA

22. MEA is at an early stage of the DSO, so is in a good position to take advantage of advances in DTT technology

23. Drivers for and inhibitors to the release of the 700MHz band in ITU Region 1 – Europe

24. In Europe, more sub-1GHz mobile spectrum is needed, but releasing 700MHz is problematic

25. More spectrum is needed in Europe because of the increasing demand for mobile data

26. Some countries in Europe have yet to issue licences for the 800MHz band

27. European regulators recognise the international importance of the 700MHz band, but are wary of problems with its release

28. In Europe, it has been suggested that convergence may help broadcasters to vacate the 700MHz band

29. European broadcasting industry groups are opposed to the release of the 700MHz band

30. The challenge of harmonisation

31. The challenge of harmonisation – The importance of harmonisation

32. Adopting harmonised standards enables operators to reap the benefits of mobile technology effectively, and to offer better services to subscribers

33. Spectrum harmonisation is always a challenge

34. Harmonisation of the 700MHz band will be one of the most important agenda items under consideration at WRC-15 and is particularly fraught

35. Several organisations will liaise with NRAs and other spectrum bodies in an attempt to achieve regional, and worldwide, harmonisation

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Contents

36. The challenge of harmonisation – ITU Region 1

37. Views on the 700MHz band are starting to form in some countries of Western Europe

38. An allocation for aeronautical navigation services in the 700MHz and 800MHz bands poses problems in some countries in the east of Region 1

39. Europe will face many challenges if it aims to harmonise its 700MHz band plan with those of other regions

40. The UAE was the first country in Region 1 to publish its intended plan for the 700MHz band

41. Russia is the only Region 1 country to have already awarded spectrum in the 700MHz band, which could lead to incompatibilities with other plans

42. Africa is also discussing alternative plans for the 700MHz band

43. The challenge of harmonisation – ITU Region 2

44. The USA’s 700MHz band plan is unlikely to be adopted widely elsewhere

45. Only one of the USA’s closest neighbours has adopted its plan for the 700MHz band

46. In the Caribbean, the proposal to implement a non-standard 700MHz band plan has delayed the roll-out of LTE in some countries

47. It is not too late for ECTEL to discard its original 700MHz band plan

48. Elsewhere in ITU Region 2, digital migration has been slow and there is no clear indication which band plan will be adopted

49. The challenge of harmonisation: ITU Region 3

50. The APT’s paired 700MHz band plan has been accepted as standardised by the 3GPP

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51. South Korea has aligned 2×20MHz in the 700MHz band with the APT 700MHz band plan, and further harmonisation may follow

52. Japan’s 700MHz band plan is compatible with that of the APT

53. China is contemplating the use of the TDD band plan, while uncertainty surrounds Malaysia’s plans for the 700MHz band

54. Alternative uses for 700MHz spectrum

55. Several other wireless industry stakeholders may influence plans for future use of the 700MHz band

56. The PMSE industry strongly advocates that the 700MHz band should be retained for DTT use

57. An ITU mandate assigns more spectrum for PPDR

58. ‘White space’ refers to UHF spectrum not used for DTT at specific geographical locations

59. Japan has allocated 10MHz in the 700MHz band for ITS

60. L-DTPS: local digital TV programming service

61. Beyond the 700MHz band

62. Spectrum bands below 700MHz could be assigned for mobile use, but it is highly unlikely

63. Incentive auctions could release some spectrum for mobile in the 600MHz band in the USA, while the UK is reviewing policy

64. About the author and Analysys Mason

65. About the author

66. About Analysys Mason

67. Research from Analysys Mason

68. Consulting from Analysys Mason

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List of figures

Figure 1: Wireless data traffic, worldwide, 2011–2017

Figure 2: Propagation characteristics of various 3GPP bands

Figure 3: Notable assignments of spectrum by the ITU for mobile in Region 1

Figure 4: Drivers for release of 700MHz spectrum for mobile use in MEA

Figure 5: Digital dividends in Europe and MEA

Figure 6: Fixed broadband penetration as a percentage of households, Africa, 2011

Figure 7: Proportion of households that have a least one TV, Africa, July 2012

Figure 8: ITU’s recommended timetable for DSO in MEA

Figure 9: Drivers for release of 700MHz spectrum for mobile use in Europe

Figure 10: Wireless data traffic, Europe, 2011–2017

Figure 11: Status of analogue switch-off in European countries, September 2012

Figure 12: Status of the DTT platform in European countries, September 2012

Figure 13: BBC iPlayer requests by device type, UK, December 2010 and December 2011

Figure 14: Cost/benefit analysis of harmonisation of a digital dividend sub-band for mobile communication services in the EU

Figure 15: The challenges and benefits of harmonisation

Figure 16: Truncated list of bands harmonised by the 3GPP for LTE

Figure 17: World regions and associated spectrum management organisations

Figure 18: ITU RR No. 5.312 aeronautical navigation band for some countries in the east of ITU Region 1

Figure 19: Digital dividend band plans in Asia–Pacific, Europe, and Canada and the USA

Figure 20: Proposed 700MHz band plans, the UAE and the UK

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Figure 21: The APT 700MHz band plan and the position of licences awarded in Russia in the 700MHz band

Figure 22: Proposed 700MHz band plans for MEA and the APT 700MHz band plan

Figure 23: The USA’s 700MHz band plan

Figure 24: ECTEL’s 700MHz band plan and the US FCC 700MHz band plan

Figure 25: Analogue switch-off targets for selected countries in Latin America

Figure 26: The APT’s 700MHz band plans

Figure 27: The APT’s FDD 700MHz (3GPP Band 28) and South Korea’s 700MHz band plans

Figure 28: The APT’s FDD 700MHz (3GPP Band 28) and Japan’s 700MHz band plans

Figure 29: Summary of non-telecoms stakeholders in discussions about the 700MHz band

Figure 30: Potential applications of UHF white space

Figure 31: Japan’s 700MHz band plan

Figure 32: The correlation between device size and spectrum band


The 700MHz spectrum band: market drivers and harmonisation challenges worldwide 5

Executive summary

Recommendations

Introduction

Drivers for and inhibitors to the release of the 700MHz band in ITU Region 1

The challenge of harmonisation

Alternative uses for 700MHz spectrum

Beyond the 700MHz band

About the author and Analysys Mason



Executive summary

The 700MHz band refers to a range of frequencies between 700MHz and 800MHz. This spectrum was used worldwide for broadcasting TV, but has now been allocated to mobile services in ITU Region 2 (the Americas) and ITU Region 3 (Asia–Pacific). It is one of the most commercially interesting bands being made available to mobile network operators (MNOs). Already, in countries such as Japan and the USA, subscribers are enjoying the additional coverage and capacity made possible by this spectrum.

The impending reallocation of the 700MHz band to mobile services, on a co-primary basis with broadcasting, in ITU Region 1 creates an opportunity for multi-regional harmonisation of the use of the 700MHz band for LTE, for which there is a potentially large addressable market, with associated economies of scale.

The Asia–Pacific Telecommunity’s (APT’s) 700MHz band plan (or 3GPP Band 28) has been well received in ITU Region 3 and has been adopted, or is planned to be adopted, by several countries in Asia–Pacific. Countries in the Middle East and Africa (MEA) that have not aligned with the European 800MHz band plan (which overlaps with the APT 700MHz band plan), may align their 700MHz band plans with the 3GPP Band 28. Similarly, it is likely that countries in the Caribbean and Latin America (CALA) will align with the APT 700MHz plan.

In Europe, where the 700MHz band has not yet been allocated to mobile services, broadcasting industry groups are opposed to any reallocation of the band. However, it has been suggested that the process of removing broadcasters from the 700MHz band will become easier as consumers increasingly view video content on a wider range of devices using a greater variety of services, and the importance of traditional linear TV diminishes.

Several wireless industry stakeholders may influence plans for use of the 700MHz band. These include stakeholders for programme making and special events (PMSE), public protection and disaster relief (PPDR), machine-to-machine (M2M) services and other communications in white space, intelligent transport systems (ITS), and local-digital TV programming services (L-DTPS).

Spectrum bands below 700MHz could be assigned for mobile use, but this is unlikely. It becomes increasingly difficult to use frequencies below 700MHz for mobile services because of the need for larger antennas to account for greater levels of RF noise.

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Executive summary

Recommendations

Introduction








Recommendations

National regulatory authorities (NRAs) must embrace harmonisation. Good spectrum management involves releasing more spectrum, but of a kind that allows a country or region to benefit from economies of scale, interoperability, international roaming and interference reduction. Regulators will have to work together to ensure that their plans will not conflict with those of their neighbours.

Regulators should consult on their band plan intentions as soon as possible. This will allow the wireless and broadcast industries to plan their spectrum policies accordingly.

Regulators should engage with wireless industry stakeholders on the future of the 700MHz band. The group that is lobbying for the 700MHz band to be allocated to mobile is particularly strong, but other stakeholders have interests in the band. Regulators should engage with all stakeholders before making a decision on allocation of the band.

Digital terrestrial TV (DTT) broadcasters should begin feasibility studies on technology upgrades that allow new services to be accommodated in less spectrum. The broadcasting community must examine technological innovations, such as DVB-T2 and single-frequency networks (SFNs), and be prepared to implement them. Such techniques may increase spectrum efficiency and enable DTT platforms to provide more high-definition (HD) services, which would make DTT services more attractive to consumers.

DTT broadcasters, regulators and policy makers should critically assess the role of public service broadcasting and the terrestrial broadcasting platform. Terrestrial transmission continues to be the primary platform for TV distribution in many countries, but other options are available. Cable, satellite, IPTV and mobile TV platforms could all conceivably support HD digital TV.

Device vendors should consider the implications of adopting particular band plans. In the USA, two non-interoperable classes of device use the lower 700MHz band. This was an unanticipated development, and raises concerns about the development of a vibrant device ecosystem. Regulators, supported by MNOs, must be proactive in assessing this risk or they may create a situation in which it is difficult for operators to obtain mobile broadband devices.

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Executive summary

Recommendations

Introduction








Satisfying demand for spectrum is becoming increasingly difficult

Global demand for mobile data is growing rapidly. Analysys Mason forecasts that the volume of mobile data traffic carried over a cellular network will grow at a CAGR of 40.8% worldwide from 2011 to 2016 (excluding Wi-Fi offload traffic).1 Demand for more mobile data generates demand for more spectrum with which to deliver greater capacity and drive faster throughput. However, satisfying spectrum demand is becoming increasingly difficult.

In order for more spectrum to be made available for mobile broadband use:

licensees may be required to use spectrum more efficiently so that some can be released, which may present a problem, if it causes devices to need modification

spectrum may be re-allocated from one use to another, which may be time consuming and be resisted by the incumbent spectrum user.

The number of stakeholders seeking more radio spectrum makes it increasingly complex either to reassign spectrum (to allow a different communication application to be used in a band) or to refarm it (to allow the use of an alternative transmission or modulation standard in a band).

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Figure 1: Wireless data traffic, worldwide, 2011–2017 [Source: Analysys Mason, 2012]

1 See Analysys Mason’s Wireless network traffic worldwide: forecasts and analysis 2012–2017.

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A key challenge for policy makers is to determine the most socio-economically advantageous spectrum assignments Spectrum planners are faced with competing demands from users for a multitude of purposes, including:

mobile voice and broadband

public protection and disaster relief

broadcast TV

machine-to-machine (M2M)

programme making and special events

radio astronomy

military and defence

radar and aeronautical.

The role of the spectrum policy makers is to try to accommodate these conflicting demands. One key input in this process is to assess how socio-economically advantageous each of the competing uses is. This is no easy task. For example, assigning more spectrum to MNOs may have the greatest macro-economic impact, but this must be weighed against the more-intangible social value of allocating spectrum to the public sector or to public service broadcasting.

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Sub-1GHz spectrum like the 700MHz and 800MHz bands is particularly suitable for mobile communications

Sub-1GHz spectrum is particularly valuable because it propagates further and penetrates buildings better than higher frequencies. It is, therefore, ideal for deploying wide-area mobile coverage relatively quickly, including for in-building use.

Mobile operators also have access to bands above 1GHz, including 1800MHz, 2100MHz, 2300MHz and 2600MHz. These are suitable for delivering very high data speeds in areas where capacity is particularly constrained.

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Figure 2: Propagation characteristics of various 3GPP bands [Source: Analysys Mason, 2012]

800MHz

900MHz

1800MHz

2100MHz

2600MHz0.6km2

1km2

1.7km2

4.8km2

5.6km2



Changes to international frequency allocations are made at the ITU’s World Radiocommunication Conferences

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Figure 3: Notable assignments of spectrum by the ITU for mobile in Region 1 [Source: Analysys Mason, 2012]

The aim of the World Radiocommunication Conferences (WRC) is to make decisions regarding allocation of radio-frequency spectrum, which are documented in an international frequency allocation table and in associated WRC resolutions. The challenge is to identify how much spectrum is needed for various wireless services, to identify candidate bands and to examine if and how different services can share these.

At the end of each WRC, an agenda is set for the next conference, providing a roadmap for the development of wireless communications in the next four or five years.

Figure 3 shows some of the main decisions relevant to mobile frequency allocation in ITU Region 1 taken by past WRCs, beginning with the GSM allocation in 1979, which was arguably the catalyst for the global mobile revolution that began in the early 1990s.

WRC-07800MHz

IMT-2000IMT-Advanced

WARC-921

1800MHz2100MHz

IMT-2000

WARC-791

900MHz

GSM

WRC-002600MHz

IMT-2000

WRC-15700MHz

IMT-2000IMT-Advanced



At WRC-07, it was decided to create co-primary allocations between mobile and broadcasting at the top of the UHF band WRC-07 decided to allocate the 700MHz and 800MHz bands on a regional level to mobile communications, for use by IMT-2000

and IMT-Advanced systems, as follows:

790–862MHz (the 800MHz band) in ITU Region 1 (Africa, Europe and the Middle East)

698–806MHz (the 700MHz band) in ITU Regions 2 and 3.

The discrepancy in bandwidth allocation between the regions was the result of established uses of the UHF band.

The Geneva agreement of 2006 (GE06) for countries in ITU Region 1 planned the transition to digital TV broadcasting in VHF spectrum (174–230MHz) and UHF spectrum (originally 470–862MHz). By WRC-07, implementation of DTT was well underway in many European countries, which intended 790–862MHz to be their ‘digital dividend’.

In other regions, 2G cellular systems already used spectrum in a different part of the 800MHz band (for example, CDMA850) and so additional spectrum was identified in the 698–790MHz band for future use.

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At WRC-12, it was agreed to allocate 700MHz spectrum for mobile use in Region 1, in order to align it with Regions 2 and 3 WRC-12 agreed a provisional resolution to co-allocate spectrum between mobile and broadcasting in the 694–790MHz band (the

700MHz band) in ITU Region 1, to be ratified at WRC-15. This resolution was unusual because the allocation of this band was not on the agenda and came about as a result of lobbying by delegates from MEA, who stressed the importance of the 700MHz band for deployment of wireless broadband services in their regions; it is expected that this extra spectrum can help to bridge the gap between emerging and developed markets in terms of wireless broadband availability.

WRC-15 will specify the technical and regulatory conditions, channelling and other arrangements, including regional and global harmonisation, for the 700MHz band, as mandated by the following Agenda Items set at WRC-12.

Agenda Item 1.1: ‘To consider additional spectrum allocations to the mobile service on a primary basis and identification of additional frequency bands for International Mobile Telecommunications (IMT) and related regulatory provisions, to facilitate the development of terrestrial mobile broadband applications …’ This means that the ITU will consider reallocation of a number of bands to mobile at WRC-15.

Agenda Item 1.2: “To examine the results of ITU-R studies… on the use of the frequency band 694–790 MHz by the mobile, except aeronautical mobile, service in Region 1 and take the appropriate measures …”.

In preparation for WRC-15, studies began in July 2012 on the use by mobile of the spectrum in the 698–862MHz range (spanning established 700MHz and 800MHz bands) by the ITU-R in a Joint Task Group (JTG 4-5-6-7). The group’s remit is to draft ITU-R recommendations and reports about the technical viability of allocating the 700MHz band to mobile and broadcast on a co-primary basis.

Spectrum in the 700MHz band could be made available by regulators in the MEA before 2015, but it is not expected to be available in Europe until around 2022–2023 because of the complexity of moving DTT from this band.

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Executive summary

Recommendations

Introduction









The Middle East and Africa

Europe



Many factors drive the need for 700MHz spectrum to be made available for mobile use in MEA

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Figure 4: Drivers for release of 700MHz spectrum for mobile use in MEA [Source: Analysys Mason, 2012]

1. Insufficient sub-1GHz spectrum

Several countries in MEA use 850MHz for cellular services and so cannot make the 800MHz band available as it is configured in Europe.

1. Insufficient sub-1GHz spectrum

Several countries in MEA use 850MHz for cellular services and so cannot make the 800MHz band available as it is configured in Europe.

2. Development policy perspective

Mobile broadband is of great importance to developments in both regions.

2. Development policy perspective

Mobile broadband is of great importance to developments in both regions.

3. Limited use of terrestrial TV

Terrestrial broadcasting is of relatively little importance, compared with other TV platforms, in several countries in the region, while in others it is used, but provides only a few channels.

3. Limited use of terrestrial TV

Terrestrial broadcasting is of relatively little importance, compared with other TV platforms, in several countries in the region, while in others it is used, but provides only a few channels.

There is a recognisable need to release sub-1GHz spectrum

in MEA



Some countries in MEA already use some of the 800MHz band for cellular services

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Figure 5: Digital dividends in Europe and MEA [Source: Analysys Mason, 2012]

A chief reason for interest in 700MHz spectrum is that many countries in MEA are unable to make the 800MHz band available because they use the 850MHz band for CDMA/LTE850.

Many regulators in MEA have licensed spectrum above 806MHz and operators have deployed CDMA networks in the 806–890MHz band, which they are likely to refarm in order to use LTE.

Furthermore, in countries in the region that are using the 800MHz spectrum for broadcasting, the digital switchover (DSO) has not happened because of political and regulatory inertia, as well as the lack of a large terrestrial TV market to pay for the switchover.

790MHz 806MHz

790MHz 862MHz

800MHz band digital dividend

2×30MHz

Downlink 30MHz Uplink 30MHz

Digital dividend

16MHz

CDMA850TV broadcasting band

TV broadcasting band



Mobile networks are important for the delivery of broadband services in Africa and the Middle East

Mobile services are extremely important for the socio-economic development of Africa because the penetration of fixed broadband is very low.

Vast land masses, sparsely distributed populations, difficult terrain, low consumer purchasing power, political issues and various other factors have hindered the development of a fixed infrastructure in Africa.

In the Middle East, demand for mobile data services is growing and more spectrum is needed to accommodate this demand.

In other parts of the world, a wireless broadband ecosystem, comprising content, applications, service models and device categories, has begun to develop in the 700MHz band, and this could be exploited in MEA.

A vibrant wireless broadband industry can in itself be a huge driver for economic growth and job creation.

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Figure 6: Fixed broadband penetration as a percentage of households, Africa, 2011 [Source: Analysys Mason, 2012]

No data0–5% 5–10%10–15%15–50%



Use of terrestrial TV is limited in some parts of MEA

In Africa, terrestrial TV broadcasting does not have the same level of take-up, or number of channels, as it does in Europe.

In several countries in the Middle East, fibre networks are well established, providing digital TV, as well as broadband services.

A large proportion of countries in MEA have fewer than three free-to-air analogue terrestrial TV channels.

Countries in MEA started planning DSO much later than those in Europe and consequently are well positioned to use newer technologies, such as DVB-T2, which offer better spectral efficiency.

In Europe, in contrast, most countries planned DSO some years ago and hence use DVB-T with multi-frequency networks (MFNs). Substantial planning would be needed to migrate to the more-recent technology option of DVB-T2 with single-frequency networks (SFNs).

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Figure 7: Proportion of households that have a least one TV, Africa, July 2012 [Source: Analysys Mason, 2012]



MEA is at an early stage of the DSO, so is in a good position to take advantage of advances in DTT technology

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Figure 8: ITU’s recommended timetable for DSO in MEA [Source: Analysys Mason, 2012]

The African Telecommunications Union (ATU) has developed a roadmap for digital migration, covering frequency co-ordination, adoption of standards and transition timelines, which complies with the ITU’s 2015 deadline for analogue switch-off (ASO). Only nine of 54 countries have launched DTT (Algeria, Gabon, Kenya, Morocco, Nigeria, Rwanda, Tanzania, Tunisia and Uganda).

Many countries in MEA are only now starting to plan a DSO, and this late planning may be turned to their advantage. African countries are now well placed to take advantage of advances in the DTT standards by using DVB-T2, which achieves better capacity (and use of SFNs) than its predecessor, DVB-T, which is widely used in Europe. Alternatively, countries with poor terrestrial transmission infrastructure could consider adopting satellite as their free-to-air solution.

3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 3Q 2014 3Q 2015

Start of informal frequency co-ordination activities

Start of informal frequency co-ordination activities

Adoption of a common digital TV standard

Adoption of a common digital TV standard

Finalisation of national DSO and digital dividend allocation plans

Finalisation of national DSO and digital dividend allocation plans

Initial digital terrestrial transmission target for the region

Initial digital terrestrial transmission target for the region

Target start of the analogue switch-off in the region

Target start of the analogue switch-off in the region

Target completion of analogue switch-off in the region

Target completion of analogue switch-off in the region




The Middle East and Africa

Europe



In Europe, more sub-1GHz mobile spectrum is needed, but releasing 700MHz is problematic

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In Europe, the recognised need for more sub-1GHz spectrum is coupled with

the complexity of implementation

Figure 9: Drivers for release of 700MHz spectrum for mobile use in Europe [Source: Analysys Mason, 2012]



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More spectrum is needed in Europe because of the increasing demand for mobile data In Europe, MNOs have made strong calls for more spectrum

in response to the demand for mobile data.

Estimates suggest that wireless data traffic will continue to grow steadily in the region during the next five years, although usage is beginning to level off in some countries.1

Despite the increasing use by operators of Wi-Fi to offload traffic, more licensed spectrum is expected to be required.

The release of the 700MHz band for Europe is recognised in the objectives of the European Union’s (EU’s) Radio Spectrum Policy Programme (RSPP), which was adopted by the European Parliament in February 2012 and which draws very heavily on the EU’s Digital Agenda targets.

A target has been set to identify 1200MHz of spectrum that can be allocated for mobile communication. Around 800MHz is currently available, leaving around 400MHz of additional spectrum to be found; the release of over 60MHz in the 700MHz band would go some way to achieving this target.

Sub-1GHz spectrum is excellent in terms of mobile coverage, but European MNOs face capacity challenges and for them, use of supra-1GHz spectrum may be a more appropriate solution.

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Figure 10: Wireless data traffic, Europe, 2011–2017 [Source: Analysys Mason, 2012]

1 See Analysys Mason’s Wireless network traffic worldwide: forecasts and analysis 2012–2017.



Some countries in Europe have yet to issue licences for the 800MHz band

European regulators recognise the importance and potential of the 700MHz band, in terms of the global economies of scale that may be realised by its use, but are wary of the difficulties that will be encountered in freeing it up.

Furthermore, discussions about release of more sub-1GHz spectrum in the 700MHz band in Europe may seem premature, given the fact that some countries have yet to issue licences for use of the 800MHz band.

The ITU’s recommended deadline for ASO in the UHF band is 17 June 2015 for all ITU regions. In Europe, a target date of January 2013 has been set for ASO.

Implementation dates for ASO vary widely across Europe. In some countries, DTT has been in use for almost 15 years (the UK was the first country to launch DVB-T, in 1997).

However, some countries are in a period of simulcast of analogue and digital, which has been extended for much longer than was initially expected. As a result, the 800MHz band has not yet been vacated sufficiently to allow the spectrum to be awarded to mobile operators in some countries.

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Figure 11: Status of analogue switch-off in European countries, September 2012 [Source: Analysys Mason, 2012]

ASO achievedASO not yet achieved



European regulators recognise the international importance of the 700MHz band, but are wary of problems with its release

Countries using DVB-T and MFNs need to consider how networks might be migrated to DVB-T2 and SFNs, which offer significant spectrum efficiency benefits, as well as capacity for DTT platforms to deliver all-HD content. However, replanning the 700MHz band poses several challenges, including the following.

DTT is still used as public service broadcasting platform in many parts of Europe, even though cable, satellite and online and IP-based platforms also distribute commercial broadcasting content to many homes. In France, Greece, Italy, Portugal, Spain and the UK, where DTT is the primary TV distribution platform, freeing up more broadcasting spectrum poses particular challenges.

Long-term licences have been awarded to broadcasters operating in the 470–790MHz band and specific obligations are in place, such as those of household coverage for public service broadcasting (for example, coverage of more than 98.5% of the population in the UK).

Complex frequency co-ordination is needed in the planning of radio spectrum to avoid cross-border interference. Multi-country co-ordination arrangements are in place to avoid interference in border areas in Europe, where spectrum availability for DTT is particularly constrained. Any changes to band plans must be carefully co-ordinated with neighbouring countries.

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Figure 12: Status of the DTT platform in European countries, September 2012 [Source: Analysys Mason, 2012]

DTT is main distribution platformDTT is second distribution platformDTT is third or fourth distribution platform



In Europe, it has been suggested that convergence may help broadcasters to vacate the 700MHz band Policy makers must take a long-term view of the direction of

the broadcasting industry, and of how people will access TV content in the future. Some industry observers suggest that the 700MHz band may not be awarded in Europe until as late as 2023. Policy makers need to consider if broadcast will still be an important medium at that time.

Despite its importance in many countries in Europe, DTT already appears antiquated to some TV viewers – particularly younger ones. Consumers now use a variety of devices to consume TV content in a non-linear manner. For example, users in the UK are employing an increasingly wide variety of devices to access the BBC’s iPlayer TV catch-up service (see Figure 13).

The European Commission believes that convergence can play a role in re-distributing UHF spectrum in Europe, cognisant of increased use of smartphones and tablet PCs for video streaming. Alternative means of distribution of TV content include:

moving to better compression (DVB-T2/T3) satellite cable IPTV mobile TV.

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Figure 13: BBC iPlayer requests by device type, UK, December 2010 and December 2011 [Source: Analysys Mason, 2012]

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European broadcasting industry groups are opposed to the release of the 700MHz band All of the major European broadcasting industry groups are opposed to the release of the 700MHz band, which could make it

difficult to gain practical co-operation from broadcasters in reallocation of the band.

The European Broadcast Union has stated, “The frequency band 470–790MHz should be retained for the delivery of broadcasting services (both linear and non linear)… This would provide certainty to broadcasters and the industry alike, and encourage further standardisation work and investments”.1

The Digital Terrestrial Television Action Group (DigiTAG) has stated, “Any further reduction in spectrum availability must mean less programme services or reduced quality… It becomes even more necessary for terrestrial broadcasters to highlight the importance of the DTT platform as the mass-audience, frequency-efficient, distribution medium”.2

Broadcast Networks Europe has stated, “These [DTT] services, which consumers have come to depend on, are delivered using the UHF radio spectrum, including the 700MHz band. This band is crucial not only to the sustained delivery of audio-visual content to European consumers but also to any future platform developments e.g. 3D TV”.3

The Association of Commercial Television in Europe has stated, “With regards to the 700 MHz band, commercial broadcasters warn that it is far too early to consider further spectrum reallocation as several European Member States have yet to put in place the necessary measures for the 800MHz band and use the spectrum which is already available to its full capacity”. 4

29

1 EBU Technical Committee (Geneva, Switzerland, 2012), Spectrum Requirements for Broadcasting Services in preparation for WRC-15 . Available at http://tech.ebu.ch/docs/r/r136.pdf.2 DigiTAG (Geneva, Switzerland, 2012), WRC-12: allocating terrestrial frequencies to mobile services . Available at http://www.digitag.org/WebLetters/2012/External-Feb2012.html.3 Broadcast Networks Europe (Brussels, Belgium, 2012), Setting the record straight on the WRC-12 and Terrestrial Broadcasting in the context of the European Radio Spectrum Policy Program . Available at http://www.broadcast-networks.eu/wp-content/uploads/2012/06/2012-03-12-BNE-Policy-Paper-on-WRC12-and-the-RSPP-F.pdf.4 Association of Commercial Television in Europe (Brussels, Belgium, 2012), Digital & New Media. Available at http://www.acte.be/EPUB/easnet.dll/execreq/page?eas:dat_im=025B45&eas:template_im=025AE9.



Executive summary

Recommendations

Introduction









The importance of harmonisation

ITU Region 1

ITU Region 2

ITU Region 3



Adopting harmonised standards enables operators to reap the benefits of mobile technology effectively, and to offer better services to subscribers The success of mobile communications has relied to a large

extent on harmonisation of spectrum band plans – the arrangement of spectrum bands into harmonised paired or unpaired channels. Implementation of non-harmonised, or non-standard, band plans can create issues:

difficulties in regional roaming: non-harmonisation can negatively affect how attractive a country is to multi-national companies and tourists

border co-ordination issues: some spectrum may become unusable in border areas

lack of vendor support and interoperability: non-harmonisation can lead to increased costs of network equipment (including spare parts and maintenance expertise) and cause issues with the availability of compatible handsets.

Studies by Analysys Mason and others have shown the value of harmonisation (and the cost of fragmentation). For example, Figure 14 shows that the benefits of harmonising the 800MHz digital dividend band across the European Union far outweigh the costs that would be incurred for the necessary replanning of DTT frequencies. In total, we estimated that the endeavour was worth about EUR46 billion to the European economy.

32

Figure 14: Cost/benefit analysis of harmonisation of a digital dividend sub-band for mobile communication services in the EU [Source: Analysys Mason for the European Commission, 2012]

Wire

less

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Spectrum harmonisation is always a challenge

Ensuring spectrum harmonisation and co-ordination of frequency use between countries and regions is one of the key objectives of spectrum policy makers. Only the largest self-supporting economies, such as China, Japan and the USA, can act alone on spectrum policy. For most other countries, spectrum harmonisation, although difficult, is necessary.

It is not sufficient simply to release more spectrum, since it must be the right kind for a given service or technology, must allow a wide supply of network equipment and devices and must allow a country or region to maximise the socio-economic benefits of spectrum use, such as: economies of scale, interoperability, international roaming and interference reduction.

The biggest challenges of harmonisation are that it can be a slow process and that it is insensitive to the specific needs of different countries.

However, these challenges must be confronted, as the greatest negative consequences of non-harmonisation affect consumers that are most sensitive to price.

33

Figure 15: The challenges and benefits of harmonisation [Source: Analysys Mason, 2012]

Roaming

Interoperability

Economies of scale

Insensitive to planning

peculiarities of individual countries

Slow



Harmonisation of the 700MHz band will be one of the most important agenda items under consideration at WRC-15 and is particularly fraught There is an opportunity for multi-regional harmonisation of

use of the 700MHz band for LTE, for which potentially there is a large addressable market, with associated economies of scale. With current radio-frequency technology, the number of bands that any device can accommodate is limited and there are already more than 30 LTE bands designated by the 3GPP. This creates an environment in which research and development effort becomes focused on certain bands. Bands that are harmonised across many countries and regions will get strong vendor support and benefit the most from economies of scale.

The sub-regions of ITU Region 1 (that is, Europe, and the Middle East and Africa) could devise 700MHz band plans that are incompatible with those used elsewhere in the world, which would create a niche environment in which countries that employ it become isolated, lose vendor support and are cut off from mainstream investment. The following organisations will put forward proposals before WRC-15 for different band plans in Region 1: the ATU, the Arab Spectrum Management Group (ASMG) and the European Conference of Postal and Telecommunications Administrations (CEPT).

Alternative and incompatible band plans are already in place in ITU Region 2 (Canada and the USA) and ITU Region 3 (Asia–Pacific).

34

Band Uplink Downlink Duplex mode

1 1920–1980MHz 2110–2170MHz FDD

2 1850–1910MHz 1930–1990MHz FDD

3 1710–1785MHz 1805–1880MHz FDD

4 1710–1755MHz 2110–2155MHz FDD

5 824–849MHz 869–894MHz FDD

6 830–840MHz 875–885MHz FDD

7 2500–2570MHz 2620–2690MHz FDD

8 880–915MHz 925–960MHz FDD

9 1749.9–1784.9MHz 1844.9–1879.9MHz FDD

10 1710–1770MHz 2110–2170MHz FDD

11 1427.9–1452.9MHz 1475.9–1500.9Mhz FDD

13 777–787MHz 746–756MHz FDD

… … … …

43 3600–3800MHz 3600–3800MHz TDD

Figure 16: Truncated list of bands harmonised by the 3GPP for LTE [Source: Analysys Mason, 2012]



Several organisations will liaise with NRAs and other spectrum bodies in an attempt to achieve regional, and worldwide, harmonisation

35

Figure 17: World regions and associated spectrum management organisations [Source: Analysys Mason, 2012]

CITEL

CEPT

ATU

APT

ASMG

Key

ITU Region 1

ITU Region 2

ITU Region 3





ITU Region 1

ITU Region 2

ITU Region 3



Views on the 700MHz band are starting to form in some countries of Western Europe In 2011, Finland reached a much-sought-after agreement with the Russian authorities to use spectrum in the 800MHz band, a

band that had previously been used by Russian military aviation. The Finnish authorities strongly believe in the value of freeing up spectrum for mobile use. The country is keen to clear DTT from the 700MHz spectrum.

In France, the operator SFR has been one of the European operators active in the push for the reallocation of the 700MHz band. The Chief Frequency Officer of SFR has recently stated that he would like to see the whole DTT band cleared.

In the UK, the regulator, Ofcom, has issued a consultation on future use of the 700MHz band. The consultation proposes that the 700MHz band be released for mobile use in the UK from around 2018, subject to the necessary replanning of DTT services. It is also proposed that spectrum in the 600MHz range – originally part of the UK’s ‘digital dividend’ created from the switch-off of analogue TV services – might be made available for DTT use, rather than being auctioned. This would provide replacement spectrum for DTT, if the 700MHz band is used for mobile services. However, this would require significant replanning of DTT frequencies, not just in the UK, but across Europe.

37



UHF DTT band175MHz

ITU RR No. 5.312 aeronautical radio navigation band217MHz

An allocation for aeronautical navigation services in the 700MHz and 800MHz bands poses problems in some countries in the east of Region 1

38

Figure 18: ITU RR No. 5.312 aeronautical navigation band for some countries in the east of ITU Region 1 [Source: Analysys Mason, 2012]

ITU Radio Regulation No. 5.312 designates an additional allocation for aeronautical radio navigation service on a primary basis in 645–862MHz in the following countries: Armenia, Azerbaijan, Belarus, Bulgaria, the Czech Republic, Georgia, Hungary, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Poland, Romania, the Russian Federation, Slovakia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. However, this allocation is protected only until June 2015.

Furthermore, the European Common Frequency Allocation Table (ECA), contained in the ERC Report 25, allocates the frequency band 862–960MHz to primary mobile service with a secondary allocation to aeronautical radio navigation in the sub-band 890–942MHz (although this band has been used for GSM/UMTS in the majority of European countries for some time now).

The CEPT has urged CEPT Administrations to take all practical steps to clear the band 645–960MHz of assignments for aeronautical radio navigation services and this is beginning to happen. Russia has already awarded licences in the 800MHz band (July 2012), and the following countries have announced plans to auction 800MHz licences: Romania (the fourth quarter of 2012), Slovakia (2012), and Poland (2015).

UHF DTT band228MHz

700MHz band700MHz band92MHz92MHz

800MHz band72MHz

470MHz 698 790 862MHz

470MHz 645 862 MHz



Europe will face many challenges if it aims to harmonise its 700MHz band plan with those of other regions

39

Figure 19: Digital dividend band plans in Asia–Pacific, Europe, and Canada and the USA [Source: Analysys Mason, 2012]

698 716 746 758 776 788

700MHz band

800MHz band

698MHz 806MHz790MHz 862MHz

Downlink Uplink

Uplink Downlink

Europe (Region 1)

USA and Canada (Region 2)

791 821 832 862

703 748 758 803

Possible ‘lost spectrum’ caused by overlap

Asia–Pacific (Region 3)

Uplink Downlink Downlink Uplink



The UAE was the first country in Region 1 to publish its intended plan for the 700MHz band

40

Figure 20: Proposed 700MHz band plans, the UAE and the UK [Source: Analysys Mason, 2012]

Regulatory authorities in ITU Region 1 are beginning to consider how to resolve the issue of the overlap between the APT 700MHz band plan and the European 800MHz plan.

The regulator in the United Arab Emirates (UAE), the Telecommunications Regulatory Authority (TRA), is the first in Region 1 to put forward its intended 700MHz band plan. The TRA announced in a consultation document published in May 2012 that it intends to use both the 700MHz and 800MHz bands for mobile in the UAE. It intends to use the 2×30MHz frequency plan shown in Figure 20, which it developed unilaterally, and which is a modified version of the APT’s band plan.

The band plan’s close alignment with that of the APT is an important benefit for equipment manufacturers; in particular, the duplex gap, though slightly larger in the UAE’s plan, overlaps with that in the APT plan, and maintains the same 55MHz duplex spacing.

The TRA is working with broadcasters to clear the 700MHz band and make it available for mobile by WRC-15 or before.

LTE FDD uplink30MHz

Gap25MHz

694MHz 703 733 758 788 790MHz

LTE FDD downlink30MHz

LTE8002×30MHz

DTT



Russia is the only Region 1 country to have already awarded spectrum in the 700MHz band, which could lead to incompatibilities with other plans

41

Figure 21: The APT 700MHz band plan and the position of licences awarded in Russia in the 700MHz band [Source: Analysys Mason, 2012]

On 8 September 2011, Russia’s General Radio Frequency Centre (GRFC) published a consultation document that indicated which spectrum would be used for LTE services and the timeline for a spectrum auction. The auction conditions included provisions that the winners of licences in the790–862MHz (800MHz) band should also be awarded spectrum in the 2500–2690MHz band and the 720–750MHz or 761–791MHz (700MHz) band, in accordance with the relative size of the lots awarded to each operator in the 800MHz band.

The GRFC had earmarked this spectrum for wireless communication about six months before the band was suggested for mobile use in Region 1 at WRC-12. The significance of this is that the band is not harmonised with the ITU Region 3 700MHz band plan – the uplink allotments overlap and the duplex gap is 1MHz larger in the Russian scheme.

As a result, Russian operators may not be able to take immediate advantage of the economies of scale afforded by harmonisation of that particular band. Furthermore, CEPT may recommend a band plan for Europe that does not align with the spectrum lots allocated in Russia. The band plan in the Middle East and Africa will most likely align with the band plans pursued in Europe or Asia, so Russian operators will have difficulty sourcing devices for the band.

FDD uplink45MHz

FDD downlink45MHz

10MHz duplex

gap

FDD uplink30MHz

FDD downlink30MHz

698MHz 703 748 758 803 806

720MHz 750 761 791



Africa is also discussing alternative plans for the 700MHz band

42

Figure 22: Proposed 700MHz band plans for MEA and the APT 700MHz band plan [Source: Analysys Mason, 2012]

FDD uplink45MHz

LTE FDD uplink30MHz

Gap15MHz

PPDRuplink?10MHz

PPDRdownlink?

10MHz


LTE FDD uplink45MHz


Gap10MHz

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5MHz 5MHz LTE FDD downlink45MHz

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698MHz 703 748 758 803 806MHz

694MHz 703 733 758 788 790MHz

Pro

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ITU Region 1

ITU Region 2

ITU Region 3



The USA’s 700MHz band plan is unlikely to be adopted widely elsewhere

44

Figure 23: The USA’s 700MHz band plan [Source: Analysys Mason, 2012]

In the USA, terrestrial TV broadcasting had switched fully from analogue to digital transmission by February 2009, and licences in the 700MHz band were auctioned in January 2008.

The US 700MHz band is formed from two sub-bands: the upper and lower. Each sub-band has its own plan. Unfortunately, two non-interoperable classes of device have emerged that operate in the lower 700MHz band. This development was unexpected, and raises concerns about the generation of a vibrant device ecosystem. To date, this lack of interoperability has made it difficult for operators to obtain mobile broadband devices.

The US band plan follows a 6MHz channelisation scheme intended to ensure compatibility with the previous use of the band for broadcasting. However, LTE is based on a bandwidth of 5MHz, so channels of 6MHz present a challenge in terms of optimising spectrum efficiency.

698MHz Unpaired 806MHz

The lower 700MHz band

1MHz guard bands, auctioned for commercial use

A6MHzuplink

B6MHzuplink

C6MHzuplink

D6MHz

E6MHz

C11MHz

downlink

BB10 MHzdownlink

Public safety

NB6MHzuplink

Public safety

A6MHz

downlink

B6MHz

downlink

C6MHz

downlink

NB6MHzuplink

Public safety

C11MHz

downlink

BB10 MHzdownlink

Public safety

The upper 700MHz band



Only one of the USA’s closest neighbours has adopted its plan for the 700MHz band

In the past, because of its proximity to the US market, Canada has often adopted spectrum allocations and band plans harmonised with those of the USA.

Industry Canada proposed a number of band plan options, many of which were modified versions of the US band plan, but using 5MHz or 10MHz channels, rather than the US’s 6MHz channels. It has finally concluded that harmonisation with the US band plan should be broadly adopted, but chose to make slight adjustments in the upper 700MHz band.

45

Canada Mexico



In the Caribbean, the proposal to implement a non-standard 700MHz band plan has delayed the roll-out of LTE in some countries

46

Figure 24: ECTEL’s 700MHz band plan and the US FCC 700MHz band plan [Source: Analysys Mason, 2012]

In the Caribbean, the Eastern Caribbean Telecommunications Authority (ECTEL, the telecoms regulator for Dominica, Grenada, the Grenadines, St Kitts and Nevis, St Lucia and St Vincent), suggested a 700MHz band plan in 2009. This is similar to that of the USA, in that it has a 6MHz channel structure, but it does not adjust the channelisation to create distinct upper and lower 700MHz bands. ECTEL’s non-standard band plan is likely to be problematic in terms of device and equipment costs, roaming and interoperability.

Other countries in the Caribbean have adopted the US band plan, namely: Anguilla, Barbados, Cayman Islands, Puerto Rico, Trinidad and Tobago, and the US Virgin Islands. These countries have been quicker to deploy LTE than ECTEL countries. For example:

in Puerto Rico, AT&T launched LTE services in November 2011

in Trinidad and Tobago, the Telecommunications Services of Trinidad and Tobago (TSTT) expects to launch LTE in September 2012

in the US Virgin Islands, Sprint has been upgrading its sites since April 2012 and the launch of LTE may be imminent.

698MHz 806MHz

D6MHzuplink

A6MHzuplink

A`6MHzuplink

B6MHz

Reserved

B`6MHz

Reserved

E6MHz

Reserved

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D`6MHzuplink

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downlink

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downlink

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Harmonised channels



It is not too late for ECTEL to discard its original 700MHz band plan

Two countries in the Caribbean – the French West Indies (Guadeloupe, Martinique, St Bartholomew and St Martin), and the Former Netherlands Antilles and Aruba (Aruba, Bonaire, Curacao, Saba, St Eustatius and St Maarten) – have followed the example set by ITU Region 1, and have adopted the European 800MHz band plan. They now await the development of a European plan for the 700MHz band before implementing it alongside 800MHz.

Since first proposing its 700MHz band in 2009, ECTEL has extended the period of consultation twice, presumably because of the implications of choosing an inappropriate band plan. The final deadline for comments on the band plan was mid-August 2012.

It is not too late for ECTEL’s band plan to be discarded. The small number of countries in the region that would adopt the plan means that economies of scale could never fully develop and the cost of devices and equipment would be uneconomical. In response to a consultation from the Cayman Islands Information and Communications Technology Authority, Digicel responded that, “It is not apparent if there would be any equipment or handsets available if the spectrum were broken up in the manner that is possible if the ECTEL 2009 plan was used.”1 Only parts of the lower 700MHz band, which are harmonised with the US band plan, would be attractive to operators.

The US FCC’s band plan is much derided for its inelegance, but the device and equipment ecosystem for this configuration of the 700MHz band is nevertheless buoyed up by the vast US market. The economies of scale that could be achieved by harmonising with the USA’s implementation of this band are very significant and create a compelling case for adoption in the Caribbean.

ECTEL’s plan was first proposed in 1999, long before finalisation of the APT’s 700MHz band plan, around which a similarly large device ecosystem is expected to evolve quickly and imminently. Countries in the Caribbean could take advantage of either the US FCC’s or APT’s band plans, although the former is probably the most attractive, given the proximity of the region to the US market. To continue with a localised ECTEL band plan, in its current form at least, would seem unwise.

47

1 Digicel (Kingston, Jamaica, 2011), Digicel’s comments on the Public Consultation in respect of a Policy for the Assignment of 700 MHz Spectrum in the Cayman Islands . Available at: http://www.icta.ky/docs/700MHz_2/2011_08_02%20Digicel%20Response%20to%20Cayman%20700%20MHz%20Consultation.pdf.



Elsewhere in ITU Region 2, digital migration has been slow and there is no clear indication which band plan will be adopted ASO is a number of years away in most of Latin America. Most

countries in the region have allowed themselves ten years from starting digital services to ASO (see Figure 24).

This is delaying the release of the 700MHz band for mobile and there is as yet no clear indication of what 700MHz band plan will be adopted in the region, because of the long time frames involved.

A significant aspect that will add to the complexity of band planning in the region is that countries including Brazil, Chile and Colombia have already begun to focus on implementing LTE in the AWS band, which is used in the USA. It will be interesting to follow developments in the vendor community, in terms of its support for LTE in the APT700 and AWS bands.

However, Brazil may allocate 700MHz spectrum for mobile use before the band is fully vacated by broadcasters. The telecoms regulator, Agência Nacional de Telecomunicações (Anatel), has circulated a public consultation on the proposed reallocation of the 746–806MHz band from broadcast TV to mobile for LTE. The spectrum is scheduled to be fully vacated by June 2016, when analogue broadcasting will be transitioned to digital TV in all states. However, it has been proposed that the spectrum would be auctioned as early as December 2013.

48

Figure 25: Analogue switch-off targets for selected countries in Latin America [Source: Analysys Mason, 2012]

Country Target year

Argentina 2019

Brazil 2016

Chile 2017

Colombia 2017

Peru 2020

Venezuela 2020





ITU Region 1

ITU Region 2

ITU Region 3



The APT’s paired 700MHz band plan has been accepted as standardised by the 3GPP

50

Figure 26: The APT’s 700MHz band plans [Source: Analysys Mason, 2012]

LTE is planned to be deployed in the 700MHz band in Asia–Pacific. A paired band plan (suitable for FDD) gives 45MHz in each duplex direction, and an unpaired band plan (suitable for TDD) uses the entire band (100MHz). The paired band plan was accepted as standardised by 3GPP in June 2012 (3GPP Band 28). It is 2×45MHz from 703–748MHz and 758–803MHz.

Countries that have confirmed that they will implement the APT’s band plan include Australia, Papua New Guinea and Tonga, while India, Indonesia, New Zealand, Singapore, Thailand and Vietnam appear likely to adopt it.

At this stage, no country has announced that it will adopt the unpaired plan, although there is some momentum in China, which has often implemented unilateral telecoms policies.

Compared with the USA’s band plan, both of APT’s maximise the amount of usable spectrum for mobile communication. Under the right auction conditions, an operator would be able to acquire a licence for a contiguous 2 × 20MHz block of spectrum – the bandwidth that best accommodates the potential of LTE technology.

FDD uplink45MHz

FDD downlink45MHz

698MHz 703 748 758 803 806

10MHz duplex

gap

TDD uplink100MHz

698MHz 703 803 806



South Korea has aligned 2×20MHz in the 700MHz band with the APT 700MHz band plan, and further harmonisation may follow

51

Figure 27: The APT’s FDD 700MHz (3GPP Band 28) and South Korea’s 700MHz band plans [Source: Analysys Mason, 2012]

South Korea’s proposed band plan provides only 40MHz (2×20 MHz). The services that can be used in other parts of the band have not yet been determined by the Korean Communications Commission (KCC). It appears to favour falling in line with the APT’s 700MHz band plan, but has been persuaded by the Korean Broadcasters Association to delay making further allocations in the band until the best use of the band has been determined.

The country’s ASO is scheduled to be completed on 31 December 2012.

FDD uplink45MHz

FDD downlink45MHz

698MHz 703 748 758 803 806

10MHz duplex

gap

698MHz 728 748 758 783 803 806

Undecided25MHz

Undecided30MHz

FDD downlink20MHz

10MHz gap

FDD uplink20MHz



Japan’s 700MHz band plan is compatible with that of the APT

52

Figure 28: The APT’s FDD 700MHz (3GPP Band 28) and Japan’s 700MHz band plans [Source: Analysys Mason, 2012]

The 700MHz band in Japan, together with the other sub-1GHz bands, 800MHz and 900MHz, is known as the ‘platinum band’, meaning much-prized.

Japan’s band plan is compatible with that of the APT, having its uplink and downlink within those of the APT band plan, and also conforms by having a 55MHz duplex separation.

Japan’s Ministry of Internal Affairs and Communications (MIC) believes that 2×30MHz would be suitable because it allows a fair division of the spectrum into three 2×10MHz allocations.This suits the Japanese mobile market, which has four major operators. SoftBank has already been awarded spectrum in the ‘platinum band’ (900MHz) earlier in 2012 and the 700MHz spectrum could be divided between NTT DOCOMO, KDDI (au), and eAccess (EMOBILE). The licences will come into effect in January 2015.

FDD uplink45MHz

FDD downlink45MHz

698MHz 703 748 758 803 806

10MHz duplex

gap

FDD uplink30MHz

710MHz 714 718 748 755 765 773 803 806

FDD downlink30MHz

ITS10MHz

PMSE

Key: PMSE = programme making and special events; ITS = intelligent transportation systems.



China is contemplating the use of the TDD band plan, while uncertainty surrounds Malaysia’s plans for the 700MHz band

China has often acted unilaterally in adopting radio-frequency policy, and has thrown its weight behind TDD technology.

China Mobile has been operating a very large scale trial of TD-LTE in several cities since 2011, but it is uncertain when commercial LTE licences will be awarded. The Ministry of Industry and Information Technology indicated, in March 2012, that this would not be for two or three years, in order to allow TD-SCDMA to gain national coverage and the TD-LTE ecosystem to mature.

Interestingly, this would be in line with China’s ASO, which is tentatively scheduled for 2015. Of course, China could assign other spectrum for LTE use in the interim.

Because China shares borders with 14 countries, its implementation of the TDD-LTE 700 band plan would be likely to result in interference for neighbouring countries. If China can address these difficult interference issues, it is likely it will adopt the TDD 700MHz band plan.

The band plan adopted by China will have a great impact on the economies of scale of 700MHz equipment.

53

In Malaysia’s National Spectrum Plan, the 700MHz band is allocated for broadcasting services, rather than for mobile, and it is understood that it is seeking to retain the band for terrestrial TV services. One company, YTL Communications, is currently embroiled in controversy over what it alleges was unfair governmental approval to operate a DTT service in the 700MHz band. The Malaysian Communications and Multimedia Commission (MCMC) has denied that it had allocated any spectrum in the 700MHz band to YTL Communications, saying that it had merely asked YTL Communications to identify available 700MHz spectrum that it could use for DTT. The situation remains unclear.

If Malaysia retains the 700MHz band for terrestrial TV services, this will have a knock-on effect for the use of the band in neighbouring countries, particularly in Singapore, but also in Brunei, Indonesia and Thailand. Singapore’s Infocomm Development Authority (IDA) has stated that it would like to make the 700MHz band available for 4G services.

It should be noted that Indonesia uses the 2.5GHz band for pay TV, which could cause interference for its neighbours, should they decide to deploy LTE in that band. If Malaysia were to allocate the 700MHz band to DTT, then the 1800MHz band would be the only choice for LTE in this region.

China Malaysia



Executive summary

Recommendations

Introduction








Stakeholder sectors Likelihood of influencing 700MHz band plan

Comment

Programme making and special events (PMSE)

PMSE currently uses 700MHz spectrum in countries where this band is used for DTT, and is represented by powerful lobby groups. PMSE uses interleaved spectrum (white space) throughout the DTT range, so reducing availability of DTT spectrum would cut the amount of spectrum available for PMSE. The PMSE lobby is very vocal at spectrum management conferences and events and may argue for an exclusive allocation in a freed-up 700MHz band.

Public protection and disaster relief (PPDR)

There are strong calls for more spectrum to be allocated to PPDR to help to modernise public safety. WRC-15 is expected to discuss the suitability of 700MHz spectrum for PPDR.

Machine-to-machine (M2M) and other communications in white space

M2M applications are not new, but their use is growing. However, the industry does not yet have the necessary harmonised standards, or spectrum, for economies of scale to fully develop. One possible ‘home’ for M2M applications is within TV white spaces, as proposed by companies such as Neul in the UK.

Intelligent transport systems (ITS)

ITS is an innovative use of sub-1GHz spectrum, but is unlikely to gain momentum outside Japan, where ITS features in the 700MHz band plan. Japan is both one of the world’s largest manufacturers and exporters of vehicles, and one of the most technologically advanced nations.

Local-digital TV programming service (L-DTPS)

Reallocating broadcasting spectrum to mobile may mean that broadcasters have to scale back the number of channels they transmit, unless they move to use a more-efficient transmission technology and increased frequency reuse This may come at the expense of local television, which can often teeter on the brink of commercially unviability.

Several other wireless industry stakeholders may influence plans for future use of the 700MHz bandFigure 29: Summary of non-telecoms stakeholders in discussions about the 700MHz band [Source: Analysys Mason, 2012]

Key: = very unlikely; = unlikely; = likely; = very likely



The PMSE industry strongly advocates that the 700MHz band should be retained for DTT use PMSE is the term used to indicate radio equipment that is used to support the creation of TV, radio, and theatrical productions –

and principally refers to radio microphones. Professional wireless microphone systems (PWMSs) are a particular subset of PMSE that is affected by changes in DTT spectrum availability. PWMSs are distinct from other non-professional wireless microphones and are used in broadcasts, concerts, theatres and so on.

Reducing the amount of broadcasting spectrum available for DTT by reallocating the 700MHz band will be disruptive for the PMSE industry at a time when it is also concerned about the impact of allowing other white-space devices to use interleaved UHF spectrum. Furthermore, PMSE has already lost spectrum from the clearance of the 800MHz band for mobile as a result of ASO in Europe. Any further reduction in spectrum availability is likely to be resisted by the PMSE community. For example, in June 2012, the British Entertainment Industry Radio Group (BEIRG) responded to an Ofcom consultation on the future of the UHF band, noting that, “80% of recent professional equipment sales utilise the 700MHz band”.1

Presently, working groups in Europe, such as the C-PMSE project, are considering cognitive wireless PMSE in order better to cope with the reduced amount of spectrum available for PWMS. However, this is likely to be a longer-term development.

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1 BEIRG (London, UK, 2012), Response to consultation ‘Securing long term benefits from scarce spectrum resources - A strategy for UHF Bands IV and V’ . Available at http://stakeholders.ofcom.org.uk/binaries/consultations/uhf-strategy/responses/British_Entertainment.pdf.



An ITU mandate assigns more spectrum for PPDR

Agenda item AI1.3 of WRC-15, regarding the future allocation of radio-frequency spectrum for PPDR, is expected to consider the use of second digital dividend spectrum. This agenda item developed out of WRC Resolution 646, which emerged from WRC-03 and first acknowledged the enabling role of broadband for PPRD.

Public safety users generate strong demand for the use of mobile data and see the need to use more data applications. Many already use data for many purposes, including: location information, status updates, completion of forms and despatching (names and addresses).

At least two factors must be considered when allocating spectrum for PPDR:

coverage for public safety operations needs to be nearly nationwide

networks need to be able to provide resilience and guaranteed capacity.

Spectrum in the 700MHz band is very attractive, in terms of radio propagation – it travels long distances and penetrates through walls very well. Reasonable coverage could be established relatively easily for a PPDR network operating on the 700MHz band, but capacity could be a limiting factor, particularly when little spectrum might be assigned for this use (for example, 10MHz).

Regional harmonisation will be a catalyst for an affordable ecosystem of devices and infrastructure, and many proposed plans for the 700MHz band have suggested assigning some spectrum for PPDR.

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‘White space’ refers to UHF spectrum not used for DTT at specific geographical locations

‘White space’ refers to spectrum not used for DTT at specific geographical locations, which could be re-used for long- or short-range wireless connectivity.

Advances in white space technology, coupled with a perceived shortage of spectrum, has created an impetus to change UHF licencing rules to allow use of the technology in some countries.

The countries that are leading in terms of changing the regulatory environment to accommodate white space applications are the UK and the USA. Other countries that are testing and trialling the technology include Canada, Finland, Japan and Singapore. Europe has, so far, been very reluctant to pursue the development of white space technology because of the challenges associated with accommodating the technology in a multi-border environment.

Fewer channels will be available for white space applications in countries where spectrum in the 700MHz band may be awarded to mobile. This diminishes white space’s potential utility for high-bandwidth applications.

There are many possible uses of white space spectrum, but the most promising seem to be M2M, rural broadband and so-called ‘super Wi-Fi’.

Some countries have established applications of white space, such as PMSE and local TV.

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Figure 30: Potential applications of UHF white space [Source: Analysys Mason, 2012]

High mobilityLow mobility

In-car engine monitoring

Rural broadband

Mobile data access

(‘super-Wi-Fi’)

In-car media distribution

In-home media

distribution

Emergency services

mobile radio

Traffic light sensors

Smart metering

Lo

w d

ata

ra

teH

igh

da

ta r

ate



Japan has allocated 10MHz in the 700MHz band for ITS

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Figure 31: Japan’s 700MHz band plan [Source: Analysys Mason, 2012]

Japan is a world leader in automotive and vehicular technology. It is the home of Honda, Nissan, Toyota and the bullet train. Consequently, there was a strong desire to allocate spectrum in the 700MHz band to support world-leading transport communications infrastructure. 10MHz of unpaired spectrum has been designated for advanced transport communications, but at the cost of sacrificing 15MHz (7MHz + 8MHz) as guard bands to ensure that these systems can coexist near mobile communications.

The 700MHz band is earmarked for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) radio communications:

the vehicle information and communication system (VICS) is similar to GPS satellite navigation, but uses terrestrial base stations

electronic toll collection (ETC) speeds up the process of paying tolls, which helps to reduce traffic congestion

driving safety support systems (DSSS) technology communicates real-time information about traffic light signalling and other road users.

In Europe, only the 5875–5905MHz frequency band is harmonised for safety-related applications of ITS.

FDD uplink30MHz

710MHz 714 718 748 755 765 773 803 806

FDD downlink30MHz

ITS10MHz

PMSE

Key: PMSE = programme making and special events; ITS = intelligent transportation systems.



L-DTPS: local digital TV programming service

L-DTPS is a potential application in the UHF bands in markets where it is not already present (for example, Ireland has no terrestrially transmitted local TV). Ofcom in the UK had plans to auction one or two 8MHz blocks for L-DTPS in more than 25 locales. Initially, it was anticipated that spectrum would be set aside in the 600MHz band, which was cleared by ASO in the UK. However, Ofcom’s priorities appear to have changed, and the 600MHz band is now viewed as an asset that could facilitate the reshuffling of the national DTT network out of the 700MHz band.

In many cases, though, it is difficult to make a successful business case for local TV for the following reasons.

Many countries impose demanding quotas for localised programming content: 12 hours per week is generally imposed on local channels in France, 7–14 hours per week in Canada and 32 hours per week in Spain. However, Belgium and Germany impose very light obligations: 0 and 1.5 hours, respectively. Some local broadcasters cannot meet their local programming obligations and instead broadcast popular imported programmes during periods of strong audience potential (between 20:00 and 23:00). Consequently, the aim of creating local TV stations is not achieved because broadcasters find it difficult, or neglect, to source local content.

Low audience numbers can leave many local TV enterprises in precarious financial positions: In Spain, for example, there are approximately 715 local TV stations, but only a few have significant audiences. In countries where local TV does not exist in any substantial form, there are debates about the viability of local stations.

There may be significant social, political and cultural reasons to replan spectrum to accommodate more local terrestrial TV broadcasting, but economic viability is a significant risk factor in doing so.

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Executive summary

Recommendations

Introduction








Spectrum bands below 700MHz could be assigned for mobile use, but it is highly unlikely

The opportunity to extend mobile services into spectrum below 700MHz is limited because:

the UHF band spans a wide range of frequencies (470–862MHz in total) and different parts of the UHF band exhibit different propagation characteristics

in particular, body loss varies with frequency, as do levels of RF noise, which affects the ability to provide reliable indoor penetration because of the variation in the signal-to-noise ratio

it becomes increasingly difficult to use frequencies below 700MHz for mobile services because of the need for larger antennas to account for greater levels of RF noise.

Consequently, spectrum below 700MHz could be used for mobile services, but it is verging on impractical to do so. In some countries, such as Brazil, sub-700MHz spectrum (the 450MHz band) is used for fixed wireless, rather than mobile, applications.

From a commercial and regulatory point of view, the 700MHz band is perhaps the last sub-1GHz spectrum band that will be assigned for mobile use.

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Figure 32: The correlation between device size and spectrum band [Source: Analysys Mason, 2012]

Radio frequency spectrum

Lower frequencies

Higher frequencies



Incentive auctions could release some spectrum for mobile in the 600MHz band in the USA, while the UK is reviewing policy In the USA, DTT is not a prominent platform: more than 90% of households subscribe to cable and satellite TV services.

Incentive auctions have been proposed in the USA, in which broadcasters could offer their spectrum for auction to MNOs and receive a share in the proceeds.

DTT broadcasts would have to be reshuffled into a position further down the spectrum in order to allow mobile services to occupy a contiguous portion of the 600MHz band. It is unclear how disruptive this would be, and how much spectrum it might release. This uncertainty has delayed planning for the 600MHz band and discourages vendor investment until the band characteristics are determined.

In the UK, the regulator, Ofcom, is reviewing its policy on the auction of the 600MHz band, in view of the WRC-12’s preliminary decision on the 700MHz band. At present, Ofcom’s preference appears to be that the 600MHz band be retained for use for DTT, PMSE, and white space, in light of the loss of the 700MHz band. Ofcom is expected to issue a statement on its plans for the 600MHz band in the third quarter of 2012.

Other than in the USA and the UK, the 600MHz band is not being widely discussed as a candidate band for reallocation to mobile.

63



Executive summary

Recommendations

Introduction








About the author

Morgan Mullooly (Research Analyst) contributes research for the Spectrum and Wireless Networks research programmes. His primary areas of specialisation include spectrum valuation, LTE strategies and white space technologies. Morgan has a Master’s degree in Philosophy and Public Policy from the London School of Economics.

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700MHz Spectrum Report

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