License and Regulatory Update on UMTS - ITU · WCDMA New Spectrum CDMA2000 1XEV. Thomas Sidenbladh...

License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002Thomas Sidenbladh Slide # 1

U M T SF o r u m

License and Regulatory Updateon UMTS

Thomas SidenbladhThomas SidenbladhVice Chairman, UMTS ForumVice Chairman, UMTS Forum

President Ericsson European Affairs OfficePresident Ericsson European Affairs Office


U M T SF o r u m

Main evolution into 3G networksMain evolution into 3G networks

cdmaOne

GSM

TDMA/CDPD

CDMA2000 1X

2G First Step into 3G 3G phase 1

GSM/GPRS

64 - 144 Kb/s

Evolved 3G

384 Kb/s - 2 Mb/s 384 Kb/s - 10Mb/s+ ≤≤≤≤ 28.8 kb/s

GSM/GPRS/EDGE

Existing Spectrum

WCDMA

New Spectrum

CDMA2000 1XEV


U M T SF o r u m

Spectrum planningSpectrum planning

2000 2100 220017001000800 900 2500 2600 2700

IMT-2000GSM 1800

DE

CT

IMT-2000PHS MSSIMT-2000

IMT-2000

MSSIMT-2000IMT-2000

IMT-2000

MSSIMT-2000

MSS

MSS

ITUIdentif.

Europe

Russia

US/Canada

IMT-2000IMT-2000 IMT-2000

GSM

Cellular

PDC

MSS

GSM-900

PCS-1900

Japan

MSS

MSS

MSS

MSS

19001800

IMT-2000GSM 1800

DE

CT

IMT-2000PHS MSSIMT-2000

-

MSSIMT-2000IMT-2000

IMT-2000

MSSIMT-2000

MSS

MSS

ITU-IMT-2000 IMT-2000

GSM

Cellular

PDC

MSS

GSM-900

PCS-1900

MSS

MSS

MSS

IMT 2000IMT 2000 MSS

-IMT

2000

IMT

2000


U M T SF o r u m

3G Licences:3G Licences: Where and when?Where and when?(3G implementation in 3G spectrum not covered)(3G implementation in 3G spectrum not covered)

1999 2000 2001 2002

HONG KONG

FRANCE

BELGIUM

PORTUGAL

SINGAPORE

GREECE

SWEDEN

SPAIN IRELAND

GERMANY

NETHERLANDS

UK

JAPAN

ITALY

DENMARK

FINLAND

NEW ZEALAND

AUSTRALIA

TAIWAN

THAILAND

CZECH REP

S. KOREA

AUSTRIA

POLANDSWITZER-

LANDNORWAY

ÅLAND

ISLE OFMAN

LIECHTENSTEIN

SLOVENIA

LUXEMBOURG

ISRAEL

SOUTH AFRICA

CHINA

INDIA

?

RUSSIA


U M T SF o r u m

Announced & ExpectedAnnounced & ExpectedWCDMA Launch DatesWCDMA Launch Dates

SK

Tele2

Europolitan

Eircell

Omnitel

Vodafone

J-Phone

Proximus

Libertel

SFR

Vodafone

Vodafone

Vodafone

KPN

Hutch 3G UK

H3G

HI3G

ONE

H 3G Austria

Hutchison Telecom

E-Plus

ManxGroup 3G

Orange

Telfort

mmO2

Viag

T-Mobil

IPSE

Mobilcom

KT

M1

CSL

2001 2002 2003 2004

NTT DoCoMo

Sonera

Mobitel

OniWay

mmO2

KPN

Telefonica


U M T SF o r u m

The basis for regulationThe basis for regulation

The UMTS Forum recommends that the generalcompetition law framework should be used forUMTS in conjunction with the existing Europeanand national telecommunications legislation. It isunnecessary to overlay the ordinary criteria ofcompetition law with any additional rules whensufficient competition has been established inthe telecom field.

Source: UMTS Forum Report #4


U M T SF o r u m

Important licensing conditionsImportant licensing conditions

•• Spectrum price and auctionsSpectrum price and auctions

•• Coverage and roll-out obligationsCoverage and roll-out obligations

•• Rules for sharing of facilities andRules for sharing of facilities andinfrastructureinfrastructure

•• Rules for national roamingRules for national roaming

•• GIobaIGIobaI circulation of terminals circulation of terminals


U M T SF o r u m

Spectrum priceSpectrum price

•• Spectrum must be available at the rightSpectrum must be available at the rightprice. Large initial down-payments forprice. Large initial down-payments forspectrum will adversely affect the growthspectrum will adversely affect the growthof 3 G servicesof 3 G services

•• Yearly fees give better stimulus to efficientYearly fees give better stimulus to efficientuse than initial down-paymentsuse than initial down-payments

•• Intensive use of the spectrum gives betterIntensive use of the spectrum gives bettertotal value for society than high licensetotal value for society than high licensefeesfees Source: UMTS Forum Report #3


U M T SF o r u m

LicenceLicence prices and country size prices and country size

Population in millionsPopulation in millions

Euro

sE

uro

s /p

op

/po

p

00

1010

2020

3030

4040

5050

00 2020 4040 6060 8080 100100

UKUK

DD

FF

IIEE

NLNL

NNHKHK

NZNZCHCH PolPolAUSAUS

6060

DKDKKorKor


U M T SF o r u m

Categories of Licence holdersCategories of Licence holders

Local playersLocal players

Regional playersRegional players

Global playersGlobal players

0%0%

10%10%

20%20%

30%30%

40%40%

50%50%

60%60%

70%70%

80%80%

90%90%

100%100%

BigBigSmall countrySmall countryBigBigSmall countrySmall country

AuctionBeautycontest


U M T SF o r u m

Some economicSome economicbackground databackground dataTotal European spectrumTotal European spectrum licence licence fees fees 133 billion 133 billion €€

5 year investments in 3G infrastructure5 year investments in 3G infrastructure 150-200 billion 150-200 billion €€

Total yearly European purchaseTotal yearly European purchase

of telecom of telecom equipmequipm.. 70-80 billion 70-80 billion €€

Total yearly European industrialTotal yearly European industrial

debt marketdebt market 450 billion 450 billion €€

Total marketTotal market capitalisation capitalisation of big of big

European operators end 2001European operators end 2001 700 billion 700 billion €€

Total marketTotal market capitalisation capitalisation of big of big

European operators end 2000European operators end 2000 1300 billion 1300 billion €€


U M T SF o r u m

Coverage and Roll-outCoverage and Roll-out

•• Roll out of the 3 G networks should beRoll out of the 3 G networks should bedone according to market demanddone according to market demand

•• Coverage obligations must be linked toCoverage obligations must be linked tolevel of network service capabilitylevel of network service capability

•• Ubiquitous coverage have to be achievedUbiquitous coverage have to be achievedby satellite systemsby satellite systems



U M T SF o r u m

Sharing of facilities andSharing of facilities andinfrastructureinfrastructure

•• Sharing of facilities can give a rapidSharing of facilities can give a rapiddeployment of networks and introductiondeployment of networks and introductionof servicesof services

•• Sharing of network infrastructure maySharing of network infrastructure mayconflict with the goal of infrastructureconflict with the goal of infrastructurecompetitioncompetition

•• Sharing should be commercial; mandatorySharing should be commercial; mandatorysharing is normally not acceptablesharing is normally not acceptable



U M T SF o r u m

National roamingNational roaming

•• National roaming may be a way to achieveNational roaming may be a way to achieveterrestrial coverage of unprofitable regionsterrestrial coverage of unprofitable regions

•• Licence conditions should allow Licence conditions should allow commercommer--ciallycially negotiated roaming agreements, if negotiated roaming agreements, ifinfrastructure competition is maintainedinfrastructure competition is maintained

•• National roaming should only as anNational roaming should only as anexception be mandatory. It can during aexception be mandatory. It can during atransitionally period help new operators totransitionally period help new operators toestablish a marketestablish a market Source: UMTS Forum Report #4


U M T SF o r u m

How did it turn out ?How did it turn out ?

•• Most countries require the same speedMost countries require the same speedfor roll-out, 50% in 4 - 5 years. A fewfor roll-out, 50% in 4 - 5 years. A fewrequire significantly more.require significantly more.

•• Site acquisition an increasing problem.Site acquisition an increasing problem.

•• Unclear how far co-operation may go,Unclear how far co-operation may go,either via sharing or national roaming.either via sharing or national roaming.Rules not easy to change in auctionRules not easy to change in auctioncountries.countries.


U M T SF o r u m

Why is co-operation wanted?Why is co-operation wanted?

•• Operators in general have a high debtOperators in general have a high debtburden, negative cash-flow andburden, negative cash-flow anddecreasing marketdecreasing market capitalisation capitalisation..

•• Environmental concerns make siteEnvironmental concerns make siteacquistionacquistion more complicated. more complicated.

•• Co-operation between operators mayCo-operation between operators may–– facilitate deployment of network, facilitate deployment of network,

–– decrease investment, and decrease investment, and

–– increase coverage and market size. increase coverage and market size.


U M T SF o r u m

ProfitableProfitableareas forareas forfourfouroperatorsoperatorswithwithcooperationcooperation

Separate infrastructure

Cooperation allowed

(This is an example to(This is an example toshow a principle and isshow a principle and isnot based on detailednot based on detailedcalculations)calculations)


U M T SF o r u m

Global circulation of terminalsGlobal circulation of terminals

•• The right to carry and use personalThe right to carry and use personalterminals, “global circulation”, is veryterminals, “global circulation”, is veryimportant for many users.important for many users.

•• There are very few, if any, technicalThere are very few, if any, technicalproblems with the circulation of GSMproblems with the circulation of GSMterminals.terminals.

•• The ITU has decided on a regulatoryThe ITU has decided on a regulatoryframevorkframevork for global circulation. This for global circulation. Thisshould be the basis for national rules.should be the basis for national rules.


U M T SF o r u m

What can be done byWhat can be done bygovernments?governments?

•• Do not use the industry as a cash cow;Do not use the industry as a cash cow;•• Use the spectrum bands according toUse the spectrum bands according to

IMT-2000;IMT-2000;•• Set realistic roll-out and coverageSet realistic roll-out and coverage

obligations;obligations;•• Allow co-operation between betweenAllow co-operation between between

operators in suburban and rural areasoperators in suburban and rural areas(network sharing, national roaming);(network sharing, national roaming);


U M T SF o r u m

What can be done byWhat can be done bygovernments? governments? ((contcont.).)

•• Simplify the process of site acquisition andSimplify the process of site acquisition andagree onagree on harmonised harmonised environmental environmentalconditions;conditions;

•• Support the creation of new advancedSupport the creation of new advancedmobile services ( e.g. e-government, e-mobile services ( e.g. e-government, e-commerce);commerce);

•• Support global circulation of terminals.Support global circulation of terminals.


U M T SF o r u m

Yes, the telecom business climate isYes, the telecom business climate isdepressed for the moment, but remember:depressed for the moment, but remember:

The stock market crash in the 1840s, whenThe stock market crash in the 1840s, whenthe railways were starting to be built, wasthe railways were starting to be built, wasdisastrous to many companies.disastrous to many companies.

But the railways were still key to theBut the railways were still key to theindustrial revolution over the next 100 years.industrial revolution over the next 100 years.


U M T SF o r u m

Visit the UMTS Forum website

www.umts-forum.orgVisit the UMTS Forum websiteVisit the UMTS Forum website

www.www.umtsumts-forum.org-forum.org

Thank you for your attention !Thank you for your attention !

License and Regulatory Update on UMTS - ITU · WCDMA New Spectrum CDMA2000 1XEV. Thomas Sidenbladh...

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