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Wireless local loop

Wireless local loop. Possible scenarios for the allocation of wireless local loop resources. Informal consultation (December 2004). Introduction. This document, as well as the compete summary of the public consultation, are available on ART’s web site.

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Wireless local loop

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  1. Wireless local loop Possible scenarios for the allocation of wireless local loop resources Informal consultation (December 2004)

  2. Introduction • This document, as well as the compete summary of the public consultation, are available on ART’s web site. • Interested parties are invited to share their comments on the scenarios proposed by ART. Comments should be received by 5 January 2005. • Presentation outline: • Review of the number of available frequencies • What was learned from the WLL public consultation • Issues and objectives of the allocation procedure for new authorisations in the 3.4-3.8 GHz band • Initial orientations for the procedure methods • Macroscopic scenarios

  3. 1 – Review of the number of available frequencies

  4. Conclusions • 60 MHz duplex will eventually be available in addition to the Altitude duplex… • … and no longer 15 MHz duplex as stated in the public consultation. This is a much more favourable situation Frequencies available in the 3.4-3.8 GHz band • The 15 MHz duplex on the WLL was returned to ART in 2003 • An additional 15 MHz block in the 3.4-3.6 GHz band will be freed by end 2006 at the latest • A 30 MHz duplex block in the 3.6-3.8 GHz band will be freed by end 2006 at the latest

  5. 2 – What was learned from the WLL public consultation

  6. Uses and availability of equipment • Main uses of point to multipoint: • connecting subscribers • implementing transport networks • eventually, roaming services • Availability of WLL equipment compatible with IEEE standards • Proprietary solutions based on IEEE 802.16a (generic between 2 and 11 GHz) • IEEE standard 802.16-2004 adopted by the Wimax Forum - equipment available in 2005 • IEEE standard 802.16.e (mobility) planned for early 2005 - equipment available in 2006-2007

  7. A continuum of projects • The contributions present a continuum of projects from national to very local. • Large operators prefer a high level (national or regional) • Local operators and municipal governments prefer a lower level (preferably départemental, otherwise regional or national) • Very few projects mentioned are intended for very local areas. Players note that local projects would benefit from being included in larger projects.

  8. The 3.6-3.8 GHz versus 3.4-3.6 GHz band • The 3.4-3.6 GHz band is the traditional WLL band • The first band identified by the WIMAX Forum • The first proprietary solutions based on the IEEE 802.16a standard • The first interoperable solutions will appear in this band • The 3.6-3.8 GHz band • Wimax Forum plans to open the 3.3-3.8 GHz band • Adaptation to this band is not a technical obstacle but industry will use it if there is the prospect of a significant market • The ideal band for extending the 3.4-3.6 GHz band

  9. 3 – Concerns and objectives of the allocation procedure for new authorisations in the 3.4-3.8 GHz band

  10. Primary concerns • Contribute to national coverage in high-speed services • Serve ADSL shadow zones by providing high-speed access via WLL (residential, professional, small-business services) • Connect certain secondary distribution frames via wireless links • Encourage the development of innovative services competing with existing offers, including in relatively dense areas • Target: professionals, small businesses or residential customers • High-speed access, voice on IP, transmission of multimedia content • Roaming • Allow flexible use of frequencies because of uncertainties on the market and the technology • Allow high-speed infrastructure connections for mobile networks

  11. Primary objectives • To encourage the extension of coverage of high-speed services via WLL • WLL is a solution for areas not covered by ADSL • Who are the players? ADSL and new players • These players will be able to find economic balance in operating the WLL to complement ADSL • However, need to avoid restricting innovation by allocating the entire resource to players who wish to use the frequency resource only partially • To encourage the appearance of attractive and innovative offers including in relatively dense areas • The development of high-speed roaming offers is based on an economic model which remains to be confirmed and whose success is not guaranteed... • ... although this would allow the establishment of innovative and competitive offers to existing offers, including in dense areas • Ensure the use of these frequencies is not limited to complementing ADSL coverage • Allow the emergence of innovative offers which compete with existing offers • Licences must include mechanisms to allow flexible use of frequencies by operators, because of uncertainties on the market and the technology • Contrast between the duration of a licence, which takes into account the time required to amortise network investments (several years) and the speed at which technologies evolve in the 3.4-3.8 GHz bands • Uncertainties related to the current technological explosion (e.g.: different versions of Wimax are planned, not yet completely mature, which include fixed, mobile and roaming services)

  12. 4 – Proposed initial orientations for the procedure

  13. Orientation no. 1: • Two new licences in addition to that of Altitude Telecom, i.e. • two 25 MHz duplex licences to be allocated immediately • two new 15 MHz duplex licences initially and possibly additional allocations in the future Initial orientations for the procedure • Define a number of licences suited to the market and a quantity of frequencies suited to the needs of players • It would probably not be economically viable to have five WLL operators present on the same point; three WLL operators (not counting players using other technologies on the high-speed market ) would currently be sufficient to encourage the development of effective competition on a given point of the country • A larger number of frequencies could make it possible to provide an attractive and varied offer - 15 MHz might seem a bit low

  14. Orientation no. 2: • For new licences, choose granularities which are at least regional, if not multi-regional or national • Allow partial transfer (secondary market with possible fragmentation of authorisations) • Introduce mechanisms which encourage transfer on the secondary market of unused authorisations (in particular: automatic return to the regulator of authorisations whenever frequencies are not used by a certain deadline) Initial orientations for the procedure • Define granularity compatible with the development of innovative and competitive services in dense areas which make it possible to find the economic equilibrium needed for deployment in less dense areas • Too low granularity could compromise the economic equilibrium of the deployment of these technologies – Less uncertain cost effectiveness in a coverage area that must be at least regional, if not multi-regional or national. • In these areas, these players could benefit from sufficient returns of scale to amortise fixed costs resulting from the constraints of the operator business and specific WLL developments • The introduction of flexibility and mechanisms to make it possible, where frequencies are no longer used, an evolution of their use • authorise the partial transfer of authorisations • encourage players to transfer unused frequencies to other players • encourage players to acquire frequencies by creating licences which do not contain any more restrictive measures than are necessary for proper spectrum management.

  15. Orientation no. 3: • Use an auction procedure to allocate authorisations • Allow partial transfers (secondary market with possible fragmentation of authorisations) Initial orientations for the procedure • The comparative submission selection procedure would be difficult to apply in the current WLL context • This procedure leads to inflexible licences: licences which retain as obligations the commitments made by candidates (e.g.: deployment obligations) • Comparative submission incompatible with the rapid creation of a secondary market • Auction with secondary market • An auction would satisfy the objectives of flexibility and objectivity. It would also allow economic players to anticipate the possible arrival of new services • The secondary market complements an auction well. It makes it possible to develop primary allocation which could be less than optimal depending on the current uncertain evolution of the market and technology • The risks of pre-emption should be planned for by encouraging players to resell unused frequencies on the secondary market (e.g.: authorisations automatically returned to the regulator under certain conditions) – Other players could then acquire a local licence on the secondary market.

  16. Orientation no. 4:The orientations described above will answer regional development concerns Initial orientations for the procedure • Reasonable competition to municipal governments’ calls for tenders is ensured through: • The existence of a sufficient number of authorised WLL operators on all points of the country (2 new + Altitude), and • The fact that if an operator does not use its licence, it can resell it locally to another player on the secondary market and is encouraged to do so by properly established obligations in the specifications (automatic return to ART of a licence not used by a certain deadline) • A review will be held 18 months following the allocation of frequencies. This will be the opportunity to determine whether additional frequencies may be required, whose quantity will depend on the scenario chosen.

  17. 5 – Possible scenarios

  18. Scenario A: Two regional 25 MHz duplex licences Regional licence 1 • Description of the scenario: • Granularity • 2 new regional licences allowing the appearance of regional and multi-regional players • Spectrum quantity: 25 MHz duplex • Breakdown into frequency bands: For the two licences, part in band A and part in band B • Availability • Licence 1 fully available end 2006 • Licence 2 partially available now • Rules • This scenario establishes the number of players at three on any point of the country: Licence 1, Licence 2 and Altitude • No accumulation of licenses possible • The secondary market will allow the geographic fragmentation of licences • An additional 10 MHz will be kept for future allocation • Analysis: • Advantages • Band B will be used as an extension band • 25 MHz will allow players to propose more attractive offers Regional licence 2

  19. One national licence 25 MHz duplex Scenario B: One regional licence Regional licence • Scenario description : • Granularity - 1 new regional licence (Licence 1) - 1 new national licence (Licence 2) • Spectrum quantity: 25 MHz duplex • Breakdown into frequency bands: For the two licences, part in band A and part in band B • Availability - Licence 1 fully available end 2006 - Licence 2 partially available now • Rules • This scenario establishes the number of players at three on any point of the country: Licence 1, Licence 2 and Altitude • No accumulation of licenses possible • The secondary market will allow the geographic fragmentation of licences • An additional 10 MHz will be kept for future allocation • Analysis: • Advantages • Band B will be used as an extension band • 25 MHz will allow players to propose more attractive offers National licence

  20. Scenario C: Variant of scenarios A and B with 15 MHz duplex and possibility of future additional allocation National or regional licence • Similarity: • This scenario establishes the number of players at three on any point of the country: Licence 1, Licence 2 and Altitude • Licences are national or regional • Differences: • 15 MHz duplex licences in the 3.4-3.6 GHz band • A quantity of frequencies set aside for future allocation • Analysis: • Licences of just 15 MHz could be small per operator for long-term development of truly high-speed services • Band B could be used in the future according to need, in particular as an extension band • After 18 months, determine the appropriateness of allocating frequencies in the 3.6-3.8 GHz band National or regional licence

  21. A specific measure will be implemented for overseas départements and municipalities • 42 MHz duplex licences • In Guadeloupe, Martinique and Reunion: Two 42 MHz duplex licences in the 3.6-3.8 GHz band • In Guyana: Four 42 MHz duplex licences in the 3.4-3.8 GHz band • In Mayotte and Saint Pierre et Miquelon: Two 42 MHz duplex licences in the 3.4-3.6 GHz band • 14 MHz duplex lots which can be accumulated up to 42 MHz duplex • In Guadeloupe, Martinique and Reunion: Seven lots of 14 MHz duplex in the 3.6-3.8 GHz band • In Guyana: Thirteen lots of 14 MHz duplex in the 3.4-3.8 GHz band • In Mayotte and Saint Pierre et Miquelon: Seven lots of 14 MHz duplex in the 3.4-3.6 GHz band

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