Wireless local loop

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 ARTs
  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
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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

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2 What was learned from the WLL public
consultation
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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

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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.

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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

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

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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)

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4 Proposed initial orientations for the
procedure
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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

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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.

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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.

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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.

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5 Possible scenarios
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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
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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
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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
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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