Spectrum Fee pricing related issues

1. Spectrum Fee pricing related issues

2. National aspects Policy, Legislation & Regulation • Policy: • Setting priorities to determine who will be authorized access to a frequency band • Establishing licensing criteria • setting up appropriate procedures to ensure spectrum availability for public service providers such as public broadcasting, national defense, public safety business and industrial communications etc.…. • setting aside certain bands for future purposes/ as test beds for new technologies • Policy related issues emerged by development and deployment of advanced wireless technologies • Market based strategies for spectrum allocation • Auctions - The English auction, where the auctioneer increases the price until a single bidder is left - The first price sealed bid auction - The 2nd –price sealed bid auction, where the highest bidder wins but pays the 2nd highest amount bid - The Dutch auction, where the auctioneer announce a high price & reduce it until a bidder shouts mine - The simultaneous multiple round auction (FCC approach), this involves multiple round of bidding for a number of lots that are offered simultaneously

3. National aspects Policy Cont. • Policy related issues emerged by development and deployment of advanced wireless technologies (cont.) • Tradable Spectrum rights - Change of ownership - change of ownership & reconfiguration - change of ownership, reconfiguration & change of use - change of ownership & change of use • Implementing Spectrum Trading (shifting from traditional to trading approach) • Constraints to Spectrum trading (interference, international, cross-border • interference) • License exempt spectrum • Open access spectrum, (a) low power transmissions where the interference is limited by strict power limits & regulatory equipment approval which allow co-existence with high power user, (b) Spectrum use in license exempt bands (2.4 & 5 GHz) • Spectrum commons (the same as open access but access is limited for a group of users) • Administrative incentive pricing • Technology-focused strategies • Allowing of spectrum underlay. Provision of communication services at low power level (beneath the noise floor). Regulatory definition of noise floor is required. UWB usage tested in USA in 2002. Source: ITU-Handbook on SMS

4. National Radio-communication law • The nations Spectrum laws are as important as those that govern land and water use; • The Spectrum (Radio-communication) law should be clearly different from a law covering the area of general telecommunication, Administrations should distinguish between The Spectrum law and the one covering general telecommunication. • Should give recognition to the existence of the Radio Spectrum as a national resource • and the need to govern it for the interest of all citizens; • Should establish the right of national government to regulate radio communications use, authorization of use and enforcement of spectrum management rules; • Should cover the public access to the spectrum management decision making process & Government responsiveness to the public input. • The Radio-communication Laws should be a basic document establishing: • Concepts, • Authorities • Broad goals & objectives • Responsibilities • The right of citizens and the government to own and operate radio-communication equipment; ITU- Spectrum monitoring Handbook

5. National aspectsRegulations and Procedures • Should serve as basis for daily conduct of Radio communication use & enable the spectrum users to understand the manner in which their operations are governed; Published regulations and procedures are primary tools of spectrum management; • Lack of regulations & procedures discourage development of radio based communications services as well as increase investment risks • The regulations and procedures should cover: • Procedures for obtaining license and renewing a license; • Applicable standards; • Equipment authorization procedures; • Channeling plan in various parts of spectrum; • Operational requirements.

6. National aspectsNational Frequency Allocation Table • Provides a foundation for an effective spectrum management process; • Provides a general plan for spectrum use and the basic structure to ensure efficient and Interference free utilization of the Spectrum for provision of different types of Radio communication Services • Provides guidance to Manufacturers where to design & built the spectrum equipments • Key elements for development of National Frequency Allocation Table • International frequency allocation for three regions • frequency allocation in neighbor countries; • availability of equipment; • footnotes wherever is needed • Options: • restricting the band to one service; • restricting the band to compatible services; • subdividing the band for specific services

7. National Spectrum Management System • To maximize the benefits of spectrum resource to the society; • To ensure efficient & effective spectrum usage, frequency sharing short & long terms frequency demands; • To promote the Radio-based communication Services • To facilitate the radio users access to the spectrum, in particular: • To make available rapid, efficient, nationwide & worldwide communication services for personal and business use; • To foster innovation in the development of infrastructure & provision of services; • To serve the national security and defense; • To safeguard life & property; • To support crime prevention and law enforcement; • To support national & International transportation systems; • To foster conservation of natural resources; • To provide for dissemination of education, general & public interest information and entertainment; • To promote scientific research, development and exploration; and • To stimulate social and economic progress.

8. Legal and Regulatory aspects of DTTB • Policy: • Set up a firm policy to ensure the same coverage area as the analogue transmission for reception of free-to-air digital programmes by everyone; • Selection of DTT Standard • Number of multiplexes & allocation of capacities • Digital Receivers (iTV / STB) • Switchover/Simulcasting period • Law;A law must be enacted to support the successful implementation of Policy • Regulation • Review those regulation that prohibits the delivery of multimedia content over • any delivery Network; • Ensure the existence of a fair, transparent and non-discriminatory environment for all service providers; • Make sure of efficient usage of Spectrum & its availability for all competitors • on a non-discriminatory basis;

9. National aspectsFrequency Assignment and Licensing • Licensing-assignment unit applies national legislation, regulations, policies and procedures governing radio-communications; • controls over operation of stations and the use of frequencies by: • Examination of license applications and related documents; • Granting authorization to entities which may not require a license; • Assigning call signs to individual stations; • Issuing licenses and collecting fees, if appropriate; • Renewing and canceling licenses as appropriate; • Conducting examinations of operator competence and issuing operator certificates.

10. Spectrum Pricing Rule Kabul 22.Dec.02 to 02.Feb.03Afghanistan Mission

11. National aspects Policy, Legislation & Regulation • Policy: • Setting priorities to determine who will be authorized access to a frequency band • Establishing licensing criteria • setting up appropriate procedures to ensure spectrum availability for public service providers such as public broadcasting, national defense, public safety business and industrial communications etc.…. • setting aside certain bands for future purposes/ as test beds for new technologies • Policy related issues emerged by development and deployment of advanced wireless technologies • Market based strategies for spectrum allocation • Auctions - The English auction, where the auctioneer increases the price until a single bidder is left - The first price sealed bid auction - The 2nd –price sealed bid auction, where the highest bidder wins but pays the 2nd highest amount bid - The Dutch auction, where the auctioneer announce a high price & reduce it until a bidder shouts mine - The simultaneous multiple round auction (FCC approach), this involves multiple round of bidding for a number of lots that are offered simultaneously

12. Payments Irregular payments Regular payments for Spectrum Management Auction Beauty contest monthly charging Payments for Licensing Or seasonal charging Or annual charging Registration fee Cost formula: C = registration fee + f (parameters)

13. Reasons for Spectrum Pricing Fact: Radio wave spectrum is a godsend resource • Non-uniform use of frequency bands, • Non-uniform income using frequency bands, • Various groups of spectrum users, • Supporting of Administrative costs for the: National coordination; International coordination; Legal protection of assignment; Physical protection of assignment and monitoring; Conducting various type of relevant studies;

14. Total Charge = Registration fee + Monthly fee Developed Formula Nature of service Location coefficient User classification Monthly fee = B.A.T.S.L.U Bandwidth (MHz) Covered area (km2,km3) Using Duration (1-59)

15. Classification of Users • Governments: • Non-beneficial organizations, • Beneficial organizations, • Non-Governmental Organizations, • Emergencies, • License-free applications, • Users with inter-governmental agreement such as embassies, • Amateurs and Scientific researches, • Vessels and on board users,

16. 00:00 - 07:00 07:00 - 14:00 14:00 - 18:00 18:00 - 24:00 duration 0.1 0.4 0.3 0.2 weight hours 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 1 2 3 4 5 6 0.3 0.6 0.9 1.2 Coef. 1.6 2.4 1.0 1.2 1.2 2.0 2.8 0.2 0.6 0.8 0.7 0.4 0.4 0.5 0.4 0.3 0.6 0.2 0.8 0.1 Assigned spectrum using duration • Unifying of spectrum using distribution verses time, • Decreasing of spectrum cost, using duration coefficient (T) • Coefficient for 24 hours is 5.9,

17. Actual covered area Approximated covered area Antenna radiation pattern w Receiver Transmitter d Distance HF TX Kabul HF TX Covered Area HF-Band oversea coverage partial coverage Total coverage Covered area examples

18. Nature of services coefficient of service type (S)

19. Geographical Location coefficient and User Classification Geographical locations coefficient (L) User classification (U)