Issues and challenges associated with re-farming 2G bands Presentation for ASEAN Spectrum Policy Forum #5 Amit Nagpal 18 March 2015 2 Contents • Benefits of re-farming of 2G spectrum • Impact of re-farming on different stakeholders • Opportunities for re-farming of spectrum • Technical impact of liberalisation of spectrum use (technology neutrality) • Spectrum management considerations • Impact of re-farming on competition • Practicalities of deployment of new technologies 3 Benefits of re-farming of 2G spectrum • Improved spectral efficiency • Enabling widespread deployment of new technologies e.g. UMTS900 Voice spectral efficiency evolution • Provide additional capacity • Faster introduction of new technologies e.g. LTE using 1800MHz band • Support for higher data rates using Carrier Aggregation Technology • Increasing pace of technological innovation Source: ‘Efficient Use of Spectrum’, Rysavy Research, May 2011 4 Impact of re-farming on different stakeholders Stakeholder Perspectives Regulators Efficient use of spectrum Guardians of competition and other policies Governments As above Opportunity for revenue raising? Spectrum users Maximise value generated from spectrum assets Protect competitive position Equipment manufacturers New revenue opportunities Economies of scale through harmonisation Consumers New/better quality of services Lower costs International interoperability Continued availability of service for those with 2G-only handsets and other devices 5 Opportunities for re-farming of spectrum Regulator-led versus operators’ own decisions? • Timing of re-farming • How much of spectrum in each band? Mandated switch-over? Some options for the appropriate timing: • International decision to harmonise band for new technologies • Review of usage conditions at time of licence expiry • As part of re-assignment of spectrum in context of wider market development e.g. mergers and acquisitions • In conjunction with assignment of spectrum in new bands Objective is to maximise benefits for consumers, whilst ensuring users of the spectrum are treated as equitably as possible 6 Technical impact of liberalisation of spectrum use Issues • Mandating specific technologies in each band versus a technology-neutral approach? • Co-existence of different technologies in same band (inc 2G) European approach • Technology-neutral usage conditions • Use of Block Edge Masks (BEMs) to manage in-band interference • Adjacent channel interference – use of guard bands where required • Co-ordination at international borders 7 Spectrum management considerations Background • GSM requires 200kHz paired channels LTE carrier spectral efficiency • UMTS requires 5MHz paired channels • LTE benefits from 20MHz channels • Support continued use of part of bands for 2G services Source: ‘HSPA To LTE-Advanced’, Rysavy Research, Sept 2009 Maximising spectral efficiency • Creation of large contiguous blocks of spectrum • Require operators to work together to re-configure band (as condition for allowing re-farming of participation in related spectrum assignment process) • Complete re-organisation of band in event of new assignment process 8 Impact of re-farming on competition Background • Operators may have very different existing spectrum portfolios • Re-farming could benefit some operators more than others European approaches • Re-assign spectrum on expiry through new competitive process – with new usage conditions (technology neutral) e.g. Ireland • Review of existing spectrum assignments and regulator-led rebalancing of spectrum assignments in individual bands (e.g. Denmark, Italy, Spain) • Timing of re-farming set to coincide with assignment of new spectrum bands which are viable alternatives for new technologies e.g.UK 9 Practicalities of deployment of new technologies Mobile networks Consumer equipment • Availability of sufficient infrastructure at base station sites can be a challenge when introducing new technologies • Availability of compatible terminal equipment (handsets, dongles) at affordable prices for consumers – Physical space, power, air conditioning • Wide choice of terminals • Adoption of ‘Single RAN’ solutions • Re-use of existing antennas in re-farmed frequency bands • Economies of scale and international interoperability Importance of a harmonised regional approach 10 Contact details Amit Nagpal Partner amit.nagpal@aethaconsulting.com Tel: +44 7546 912355 Aetha Consulting helps players in the telecommunications industry to develop creative and sustainable solutions to the challenges facing them in a constantly changing environment We specialise in undertaking rigorous, data-driven and quantitative assessments to support major strategic and regulatory decisions. We work with our clients to develop the tools and methodologies appropriate to solve each new business problem as it arises Our staff have been contracted to advise on key industry issues, including: market strategy development, radio spectrum policy, spectrum valuation and auction support We are committed to quality and exceeding our client's expectations. We have a strong track record of successful assignments with operators, regulators, and manufacturers, as well as financial and legal institutions Aetha Consulting Limited Terrington House 13–15 Hills Road Cambridge CB2 1NL United Kingdom www.aethaconsulting.com
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