Spectrum Sharing and Trading

Africa Asia Regulatory Conference 2012

Helasiri RanatungaTelecommunications Regulatory Commission of Sri Lanka

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Table of contents

Introduction

Spectrum Sharing

Spectrum Trading

Trends in Reform

Leading Practices

Country Examples

Conclusions2

IntroductionIntroductionThe demand for radio spectrum is growing very rapidly.Traditionally, use of radio spectrum has been highly regulated.Delayed the introduction and growth of a variety of beneficial technologies and services.Cost of the spectrum has increased due to an artificial scarcity.Gradual changes in practice of spectrum management and regulation.Light-handed regulation.

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Spectrum SharingSpectrum Sharing

Leasing of a given quantum of airwaves within a licensed service area for a mutually agreed period.

Not a universal trend for all Regulators.Approaches are not similar.Increase efficiency in spectrum utilization and

temporarily fulfilling the demand for spectrum.Spectrum sharing is generally treated as part

of active infrastructure sharing. 4

Spectrum Sharing

Spectrum sharing involves several techniques. Administrative Technical Market-based

Interference cannot be eliminated in any of these methods and remain as an ongoing challenge for spectrum engineers

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Spectrum Sharing

Administrative SharingInvolves the Regulator’s actions to establish where sharing should take place and what rules should apply.Consultations with stakeholders to obtain necessary information to support decisions on sharing and technical standards. Encourage solutions based on negotiations between affected parties.Should adopt efficient and transparent processes for awarding licences.

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Spectrum Sharing

Technically enabled SharingTechnical efficiency can be measured as occupancy and data rate.Spectrum sharing technologies include Spread spectrum, Dynamic access and Ultra-wideband (UWB).Spread spectrum

Underlay techniqueSignals with a very low spectral power densityTechnique of spreading a signal over a very wide bandwidth

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Spectrum Sharing

Technically enabled SharingUltra-wideband

Underlay techniqueShort-range and indoor applicationsEasier to engineer extremely high data rates due to short duration of the UWB pulses

Dynamic Spectrum AccessOverlay techniqueAssociated with, technologies and concepts such as Software Defined Radio (SDR) and Cognitive Radio.Detect unused frequenciesChanging frequency bands and adjusting power as needed 8

Spectrum Trading

More economically efficient use of frequencies.Trade will only take place if the spectrum is worth more to the new user than to the old user.Spectrum is initially assigned through the auction.Allows parties to transfer their spectrum rights and obligations for certain value.Possible for companies to expand more quickly. Easier for prospective new market entrants to acquire spectrum.

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Spectrum Trading

Should be few bureaucratic obstacles to the transfer of spectrum. Trust in unrestricted market forces.

Should construct trading rules for the release of spectrum in ways that promote competition.

Initial assignment mechanism chosen by the regulatory authority shapes the market structure by

Dividing up the spectrum Limiting the maximum amount of spectrum any one user may acquire.

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Spectrum Trading

Availability of clear information,which frequencies are available,what they can be used for, who is currently using them,what needs to be done in order to obtain a right of use.

After the primary assignment of spectrum, the regulator would only have to intervene if

users wished to return spectrum, orright of use were withdrawn due to a breach of the conditions of use.

Risk of a structure emerging which contains a monopoly or a dominant firm or firms.

Acquisition of “excessive” spectrum, should be prevented by the regulatory authority

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Spectrum Trading

Establish rules that specify how spectrum trading should take place

Prior approval of trades or transfers of spectrum. Set spectrum caps.

Regulator should have the power to scrutinize and if appropriate, prohibit certain spectrum trades.

Alternatively, Regulator decides the extension of spectrum usage right.

Make sense to give the regulatory authority the option of withdrawing spectrum usage rights due to imperfections in the market.

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Trends in Reform

Policy and regulation have evolved considerably.Shift from traditional model, in countries where

demand for radio spectrum use is rising fast.Some of the concepts supporting reforms

include:Liberalization and flexibility; Technology and service neutrality; and Licensing reform including spectrum transfers.

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Trends in Reform

Regulatory Structure Combination of telecommunications, broadcasting and spectrum regulators can facilitate spectrum sharing.

Examples; Australia, UK, Canada and Germany

Debatable whether an independent spectrum Regulator should be combined with those of regulating competition and protecting consumers in downstream service markets.

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Leading Practices

In most countries, radio spectrum is, very closely managed and supervised as per ITU guidelines.

Minimize harmful interference and referred to as the “command and control” model.

Shift from traditional model, countries where demand for radio spectrum use is rising fast.

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Leading Practices

Spectrum User RightsRights should be established to avoid conflictsPermit parties to re-negotiate rights when

circumstances change.

Licence DatabaseThe ability of potential sellers and buyers to keep

track of current licences is important.Enable regulators to track and assess the usage of

spectrum.

Dispute ResolutionEssential to have effective means of resolving issues

between parties.16

Country Examples

New Zealand – Spectrum Trading

Pioneered the application of competitive assignments based on auctions for radio spectrum .

India – 3G and Broadband Wireless AccessDepartment of Telecommunications (DOT) auctioned 3G spectrum in 22 service areas throughout the country in 2010, followed by auctioning of 2.3GHz band for BWA.

Brazil – Broadband Wireless Access– ANATEL in Brazil issued 4 licences per licensed area for 3G

wireless deployment in the whole country.– Operators are allowed to share spectrum in order to

provide services in municipalities with less than 30,000 inhabitants.

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Country Examples

United Kingdom – Flexible User Rights and Spectrum Trading

OFCOM is shifting spectrum policy towards a flexible system through the liberalization of spectrum usage rights and spectrum trading.Service and technological neutrality.

United States – Flexible Spectrum Use and Broadband Wireless Access.

Moved progressively in the direction of flexible use of spectrum.Spectrum trading, including the ability to lease spectrum.

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Conclusion

Should match with the Government overall policy.Proper regulatory framework should be in place.Rules, Regulations and Guidelines should be clearly specified.Determine practical methods for compliance monitoring.Effective mechanism should be available for dispute resolution.Shift away from exclusive use require both time and negotiation with stakeholders. Countries need to identify the challenges involved.

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Thank You.