Spectrum Fee pricing related issues

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Spectrum Fee pricing related issues
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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

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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
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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
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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.

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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

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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.

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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

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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.

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

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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)
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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

1. National coordination
2. International coordination
3. Legal protection of assignment
4. Physical protection of assignment and monitoring
5. Conducting various type of relevant studies

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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)
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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,

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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,

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Covered area examples
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Nature of services
coefficient of service type (S)
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Geographical Location coefficient and User
Classification
Geographical locations coefficient (L)
User classification (U)