ARCEP actions in the area of frequency allocation for the development of broadband and ultra fast mo

1
ARCEP actions in the area of frequency allocation
for the development of broadband and ultra fast
mobile networks

• Press conference, 5 March 2009

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Contents

• Introduction French strategy for allocating
  frequencies for high and ultra fast mobile
  networks. 3
• Ultra fast mobile (4G) ARCEP public consultation
  on the award of licences in the 2.6 GHz and 800
  MHz bands ...... 5
• Mobile broadband (3G) 4th 3G licence and
  remaining frequencies in the 2.1 GHz band 24

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French strategy for allocating frequencies for
broadband and ultra fast mobile networks

• On 12 January 2009, the Prime Minister announced
  the overall strategy concerning spectrum
• a combined call for candidates for licences in
  the 800 MHz and 2.6 GHz bands, enabling the
  rollout of broadband and ultra fast mobile
  services that will replace UMTS the awards
  procedure is due to be launched before the end of
  2009
• in light of this objective, the remaining UMTS
  frequencies in the 2.1 GHz band (15 MHz) need to
  be allocated rapidly, with 5 MHz set aside for a
  new entrant (the new entrant will also be
  allocated 5 MHz in the 900 MHz band)
• Today, ARCEP made its first decisions concerning
  the implementation of this strategy

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Ultra fast mobile (4G)

• ARCEP public consultation
• on the 2.6 GHz and 800 MHz frequency bands

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Ultra fast mobile (4G) consultation on the
award of licences in the 800 MHz and 2.6 GHz
bands
ARCEP is launching a public consultation today
whose purpose is to gather feedback from all
parties interested in the system to be used for
awarding spectrum licences in the 800 MHz and 2.6
GHz frequency bands. This consultation is the
first stage in the frequency allocation process.
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Consultation on the award of spectrum licences in
the 800 MHz and 2.6 GHz frequency bands

• Regional development a central issue
• - Vast national coverage for ultra fast mobile
  It was with the goal of achieving vast coverage
  for ultra fast mobile that digital dividend
  frequencies in the 800 MHz band were identified.
  This goal is one of the key points of the call
  for candidates procedure.
• - Complementing the fixed networks
• Ultra fast mobile will help reduce regional
  inequalities in fixed access. In sparsely
  populated areas where fibre cannot be deployed
  quickly ultra fast mobile networks will be able
  to supply consumers with faster connections than
  those provided by the copper network, within a
  relatively short timeframe.
• Ultra fast mobile also provides a complement to
  fixed networks to deliver a continuity and a
  convergence of the services used at home or in
  the workplace and those consumed on a mobile
  device.

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Increasingly fast fixed and mobile networks
Speed
Ultra fast Fixed broadband
Ultra fast mobile
100 to 300 Mb/s
Très haut débit
50 Mb/s
Fixed broadband 17.1 million subscriptions
(30/09/08)
Mobile broadband 9.4 million 3G
subscribers (30/09/08)
5 Mb/s
512 kb/s
Fixe 40.2 million subscriptions 34.7 million
phone lines (30/09/08)
Mobile 55.1 million subscribers (30/09/08)
100 to 400 kb/s
10 to 50 kb/s
Mobility
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Wide array of mobile devices being developed,
from smartphones to Internet-ready laptops, by
way of portable video players and cameras
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The technologies that will replace UMTS have
already been announced
4G (LTE, mobile WiMAX)
3G UMTS and its evolutions (HSDPA, HSPA)
Technologies
2G GSM and its evolutions
1G analogue systems
Voice, multimedia, high-speed mobile Internet
Voice Packet mode data Permanent connection
Services
Voice Low-speed data
Voice
100 Mbit/s
Sharp rise in traffic
10 Mbit/s
Speeds and volumes
2Mbit/s
384 kbit/s
Peak bitrate
30-40 kbit/s
10 kbit/s
2020
1990
2000
2010
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Commercial offers that allow consumers to control
their invoice emerging

• Initially, operators sold data services by volume
  (kb Mb)
• Customers cannot view or control data volume
  failure
• Since late 2007, operators have been innovating
  by marketing offers based on time spent online
  and/or speed which are becoming increasingly
  popular.

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What is ultra fast mobile?

• Ultra fast mobile networks will replace UMTS
  networks during the next decade
• Increased performances thanks to the
  implementation of new technologies, notably LTE
  (Long Term Evolution) and mobile WiMAX
• More powerful technologies have been announced,
  delivering peak rates of over 150 Mbps and
  average rates for users of several dozen Mbps
• Ultra fast mobile makes it possible to reproduce
  the fixed Web experience on mobile, anywhere,
  anytime (ubiquitous access), and to create new
  solutions that employ mobility such as
  location-based services
• They can also help complete the coverage of fixed
  networks for providing residential access

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What to expect from ultra fast mobile?

• Respondents are invited to share their analysis
  of what contribution the deployment of ultra fast
  mobile will make from an economic, social and
  cultural perspective
• Improved competitiveness and productivity for
  businesses
• New ways to consume digital content (available
  on-demand, self-produced and interactive) and to
  access culture, notably in relation to the users
  environment at any give time (public space,
  monuments, etc.)
• Renewal of social ties thanks to new ways to
  communicate, relationship between government
  services and the public, applications in the area
  of healthcare (telemedicine, remote care for
  patients, the elderly or people with restricted
  mobility), security systems

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New frequencies for ultra fast mobile

• To introduce ultra fast mobile and enable the
  deployment of faster technologies, new
  frequencies need to be employed
• The 800 MHz and 2.6 GHz bands were identified for
  this purpose
• The goal of the public consultation being
  launched today is to obtain the analysis of all
  parties interested in the system to be used for
  the allocation of this spectrum

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Spectrum availability national and
international situation

• 2.6 GHz band
• This frequency band has already been allocated
  outside of Europe (in the United States, Japan
  and Hong Kong) as well as in Norway and Sweden.
  It is expected to be allocated in several other
  European countries in 2009
• In France, the 2.6 GHz band, which is currently
  used by the Ministry of Defence, is to be freed
  up region by region, for the most part between
  2010 and 2012
• 800 MHz band (digital dividend)
• The switch from analogue to digital terrestrial
  TV (DTT) broadcasting will free up a large
  quantity of frequencies as DTT requires fewer
  spectrum resources than analogue. The spectrum
  made available by this switchover is what is
  referred to as the digital dividend.
• In France, the Prime Minister has ruled on the
  allocation of a portion of the digital dividend
  (the 790-862 MHz band) for mobile services,
  starting on 1 December 2011. The frequency band
  currently used by the audiovisual sector and the
  Ministry of Defence, must be liberated by that
  date.
• In Europe, the 800 MHz band was also identified
  for providing ultra fast mobile services in
  Finland, Sweden and Switzerland and, more
  recently, in the UK and Germany. Other countries
  will follow suit shortly.

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800 MHz and 2.6 GHz bands are complementary for
the deployment of ultra fast mobile

• The 2.6 GHz band (2500 2690 MHz) for supplying
  capacity in densely populated areas
• Large quantity of spectrum (190 MHz)
• But propagation properties ill-suited to broad
  coverage of the population
• Example in Sweden, the countrys four 3G
  operators a new WiMAX provider were awarded
  licences in this band in 2008
• The 800 MHz band (790 862 MHz), from the
  digital dividend, for achieving broad national
  coverage
• A small quantity of spectrum (60 MHz usable),
  which limits the capacities available in this
  band and allows for a maximum of two 30 MHz
  licences or three 20 MHZ licences
• But propagation properties well suited to
  achieving broad coverage and indoor coverage

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800 MHz and 2.6 GHz bans will be complementary
for the deployment of ultra fast mobile
Current bitrate
National coverage (99 of the population)
Ultra fast mobile
With high Frequencies at 2.6 GHz
Current bitrate
Densely populated areas
With high (2.6 GHz) and low (800 MHz) frequencies
Ultra fast mobile
National coverage (99 of the population)
Need for more lower frequencies (lt1000 MHz)
Need for more higher frequencies (gt1000 MHz)
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Regional development and rollout obligations (1/2)

• The 800 MHz band is well suited to achieving
  broad coverage for ultra fast mobile services,
  and its allocation is thus central to successful
  regional development giving rise to a number of
  questions
• What to expect in terms of coverage? Within what
  timeframe?
• What features for the expected coverage
  (bitrates, services)?
• What coverage target? Equal to GSM (i.e. over 99
  of the population)? Within what timeframe?

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Regional development and rollout obligations (2/2)

• Questions are also being raised concerning the
  coverage obligations to be attached to 2.6 GHz
  and 800 MHz band licences
• Should the same rollout obligations be attached
  to both bands?
• over sharing the installations
• Should all players involved in providing ultra
  fast mobile, with access to the 2.6 GHz band,
  also be given access to 800 MHz frequencies?
• Should there be an obligation to offer roaming
  services on 800 MHz networks?
• over exposing the public to electromagnetic
  fields and environmental issues
• - How should these issues be factored into the
  award of licences for these frequencies?

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Competition issues (1/2)

• Questions are being raised over the impact that
  the allocation of new frequencies will have on
  the competition dynamic between mobile operators
• How does access to these frequencies fit into the
  overall strategy of operators that are already
  present in the 2G or 3G market?
• Is there an economic space for a new entrant in
  the ultra fast mobile segment? Using which
  business model?
• Over opening networks to MVNOs
• How should hosting MVNOs (virtual network
  operators) be factored into allocation procedures
  for each of the two frequency bands?

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Competition issues (2/2)

• Contributors are also invited to express their
  views on the topic of having open and
  technology-neutral networks with respect to
  services and content
• Must an obligation for networks to be open to all
  types of service be imposed (including VoIP and
  bandwidth-hungry applications)?

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Combining the two bands

• Should the 800 MHz and 2.6 GHz frequency bands be
  allocated separately, or should they be combined
  into a single licence?
• The 800 MHz frequencies, which are well suited to
  achieving nationwide coverage, and the 2.6 GHz
  band frequencies which provide additional
  capacity, are complementary
• Combining them would immediately mean operators
  in both bands, but would limit their number to 2
  (or 3 at most)
• Should the call for candidates be simultaneous?

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Allocation system

• Several types of procedure could be used
• A beauty contest wherein candidates are compared
  to one another based on selection criteria such
  as scope and speed of deployment, the service
  offering and price plan, quality of service,
  relations with service providers (including
  MVNOs), environmental protection measures and the
  clarity and feasibility of the project and the
  business plan a financial criterion may be
  included, if necessary
• Auctions which can be based solely on the
  candidates bids or which can be combined with
  other selection criteria for which candidates
  would made commitments (coverage, access for
  MVNOs, etc.)

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Provisional timetablefor preparing the procedure
for allocating frequencies in the 800 MHz and 2.6
GHz bands

• 5 March 2009 launch of the public consultation
• 15 June 2009 deadline for receiving
  contributions
• Summer 2009 examination of feedback from
  consultation and public hearings
• Late 2009 decision proposing that the Government
  launch the procedure
• 2010 award of licences

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4th 3G licence and remaining 2.1 GHz frequencies
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4th 3G licence and remaining frequencies in the
2.1 GHz band a two-step procedure

• There are still three 5 MHz duplexes in the 2.1
  GHz band that have yet to be allocated
• The allocation of these frequencies will take
  place in two stages
• The frequencies set aside for a new entrant (5
  MHz duplex) will be allocated during the first
  stage
• During the second phase, which is open to
  everyone, the remaining frequencies will be
  allocated (2 x 5 MHz duplex or, if there is no
  recipient during the first stage, allocation of 3
  x 5 MHz duplex)

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Decision-making process Parliamentary debate
and Government announcement of the financial
terms

• A statement from the Government was followed by a
  debate in the National Assembly on 5 February,
  and in the Senate on 11 February
• At that time, the Government announced the
  financial terms for the 1st stage
• A set cost for a 5 MHz duplex
• A variable annual portion equal to 1 of revenue
• An annual licensing fee for the 900 MHz band
• A contribution to the spectrum reengineering fund

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Launch of the procedure (1/3)

• ARCEP recently adopted the decision proposing the
  launch of the procedure, and is transmitting it
  to the Government
• The procedure provides for
• Minimal obligations that are identical to those
  established during previous calls for candidates,
  notably with respect to coverage 25 of the
  population within 2 years and 80 within 8 years
• Selection criteria similar to previous calls for
  submissions, to which candidates may add by
  making commitments that go beyond the set minimal
  obligations (notably with respect to coverage,
  the clarity and feasibility of the project,
  financial capacity, access for MVNOs etc.)

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Launch of the procedure (2/3)

• The selection criteria proposed by ARCEP are the
  following
• Consistency and feasibility of the project
• Service offering and pricing plan
• National coverage scope and speed of network
  deployment
• Consistency and credibility of the business plan
  
• Quality of service
• Relations with service providers
• Relations with consumers
• Environmental protection measures
• Job creation/employment

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Launch of the procedure (3/3)

• - New entrants rights
• They are identical to those contained in
  previous calls for candidates and include
• Access to a 5 MHz duplex in the 900 MHz band
  (associated with a licensing fee identical to the
  one that current operators are paying)
• Roaming rights on one of the three GSM mobile
  networks for a period of 6 years (provided 25
  coverage of the population has been achieved for
  voice services and 20 for data services)
• Rights of access to the three other mobile
  operators GSM sites when used for 3G, for the
  collocation of 3G equipment

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Next steps

• Based on ARCEPs proposal, it is now up to the
  Government to launch the procedure for allocating
  the frequencies set aside for a new entrant, in
  the form of a notice in the Official Journal
  (Journal Officiel)
• To this end, the Government will issue a decree
  on the financial terms attached
• The deadline for filing a submission is 30 June
  2009

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Next steps

• ARCEP will then be responsible for selecting the
  winning candidate
• The 2nd phase (remaining frequencies in the 2.1
  GHz band) will be launched as soon as the 1st
  phase is complete
• The system to be used for this 2nd phase should
  be announced before the deadline for submissions
  for the 1st phase, i.e. 30 June 2009