Regional Seminar on Economic aspects of
spectrum management for Arab States
Latest developments on
spectrum management
in EU/CEPT/UK
Terry Jeacock (United Kingdom)
Retired Head of Spectrum Engineering Radiocommunications Agency (& Ofcom)
Former Chairman CEPT Working Group Spectrum
Engineering
Former Vice Chairman CEPT WRC Preparatory Group
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
Introduction
• Overview of the European regulatory
environment for spectrum management:
- Relationship between EU/EC, CEPT,
national
administrations;
- Summary of the mandatory and other
harmonisation measures relevant to
spectrum economics in Europe;
• EU Directives: Regulatory framework for
spectrum;
• CEPT/ECC Decisions: harmonisation and
flexibility;
• United Kingdom: the road to spectrum
trading.
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
Relationships: EU, CEPT,
national administrations
Spectrum policy
Community policy input,
where justified
Member States
Spectrum managemen
CEPT:
ETSI:
spectrum
technical
harmonization
Member States:
allocation, assignment
European Common Positions to e.g. WRC
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
European spectrum
harmonization mechanisms
EU Directives and
Decisions
Instruments for high level
policy issues, legally binding
on Member States.
ECC Decisions
Used to implement detailed
elements of policies.
Implementation “strongly
encouraged”, especially for
EU members. The national
implementation process is
intended to provide “legal
certainty” to industry.
ECC
Recommendations
ECC Reports
Voluntary harmonisation
mechanism.
Multi-lateral coordination agreements
Mutual agreements between
countries to assist frequency
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sharing in border areas.
Provide guidelines and
describe options.
Regional Seminar on Economic
aspects of spectrum management for
Arab States
EU Regulatory environment for communications
Ex ante regulation
communications

Framew
ork
Directiv
e
(Art. 95)
Authorisation
Directive
Competition regulation
communications

Access &
Interconnection
Directive
Universal Service &
Users’ Rights
Directive
Data Protection
Directive
Liberalisation
Directive
(Art. 86)
Spectrum
Decision
(Art. 95)

Harmonization
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spectrum policy
Regional Seminar on Economic
aspects of spectrum management for
Arab States
EU Framework Directive:
•
•
•
•
Obligation for national administrations to cooperate
amongst each other and with the Commission (incl.
on spectrum matters);
Imposes principle of efficient use and efficient
management of radio spectrum when regulating the
sector (e.g. licensing);
Member States to promote harmonization of radio
spectrum (see Spectrum Decision;
Allows (but does not mandate) the establishment of a
secondary market for spectrum, but trading cannot
result in change of usage where spectrum usage has
been harmonized.
EU Authorization Directive:
•
•
Member States are bound in the context of
authorizing network and services in the
communication sector by measures established with a
view of harmonizing spectrum. Member States
cannot deviate from them when licensing nor impose
additional conditions;
Spectrum Decision: links harmonization measures
taken pursuant to the Spectrum Decision to the
Authorization Directive and the Framework
Directive.
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
EU Spectrum Decision
• Establishes a Radio Spectrum Policy
Group to provide a platform for MS to
discuss policy issues (no decision power,
advisory only);
• Establishes a Radio Spectrum Committee
for decisions on technical implementing
measures. Interface with CEPT through
mandates for spectrum harmonisation.
Legally binding decisions for MS through
follow-up EC Decisions;
• Legal obligation on MS to publish
spectrum use information;
• Ensures full involvement of EU institutions
in international negotiations (confirmation
of current practice).
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
Market-based spectrum
management and
The European Communications
Committee
(CEPT/ECC)
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
CEPT/ECC Decisions
(inherent flexibility)
• Outcome of any decision making process [only] on
matters of significant harmonisation in the electronic
communications regulatory field;
• Developed and written in as flexible a way as possible;
• Neither impose nor discriminate in favour of the use of
a particular type of technology (“technology neutral”);
• Strong encouragement (for EU members) to
implement. The “legal” certainty is self-provided by
the administration in the design of the national
implementation measure;
• Members signing the Decision commit themselves to
make spectrum available according to market
demand;
• Reviewed by the ECC every three years from date of
adoption to determine the extent of its implementation
and the take-up of any frequency bands designated
(maintain, revise or abrogate). “Sunset clause”!
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
ECC studies on harmonisation and
flexibility
ECC studies are well advanced on:
• The overall direction of [ECC] harmonisation
policy, bearing in mind that harmonising
measures should be technology neutral, flexible
and include review stages; Investigating ways
and possibilities of establishing a more flexible
regulatory structure for spectrum management
to better enable the introduction of new radio
technologies and adapt to the changing market
demand;
• Studing additional opportunities for spectrum
sharing, including sharing on the basis of
geographical area(s), time and service, as well
as the possible introduction of a flexible “noise
temperature limit”.
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
ECC studies on harmonisation and
flexibility
• CEPT has developed a report containing
results of preliminary investigations into the
issues of harmonisation and flexibility and
the current regulatory framework for
spectrum management. It is intended to
inform and assist CEPT members, operators,
manufacturers and other interested parties
and presents proposals for further work to be
undertaken by ECC and its Working Groups;
• The Report considers the scope for
enhancing flexibility at all levels: national,
European (EU and CEPT) and international
(ITU-R).
Some of the Report’s preliminary conlusions
are considered in the following slides:
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
ECC studies on harmonisation
and flexibility
Two licensing models under consideration for additional
flexibility:
• Flexible bands, where licensing conditions are laid down
only for the protection of neighbouring bands whilst
omitting any restrictions on services or technologies.
These frequency bands should be harmonised at
European level. Actions have been initiated at the CEPT
level to find adequate frequency bands for such flexible
bands and for defining the minimum requirements for
compatibility. This work should be proactively pursued
with high priority;
• Light licensing regimes, where the position and
characteristics of the stations are recorded on a database
on a first-come first-served basis, with responsibility for
subsequent users to ensure the compatibility with
previously notified stations.
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
ECC studies on harmonisation and
flexibility
Categorisation of bands
• Category 1 band: full harmonisation essential
mandated by international treaty - international
services; safety and security; protection required;
• Category 2 band: designated use
includes bands designated in ECC Decisions,
(which may also be designed in frequency
Directives and possible future Commission
Decisions);
• Category 3 band: flexible use
within specified technical criteria while allowing
maximum flexibility to adapt to changing
circumstances and ensuring that different uses (inband and adjacent band) coexist without
interference risk;
• Category 4 band: no harmonisation
A requirement for harmonisation has not yet been
identified.
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
Related ECC Reports
• ECC Report 16: Refarming and
secondary trading in a changing
radiocommunications world
(2002);
• ECC Report 65: Auctions and
“Beauty Contests” in CEPT
administrations (2005).
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
A European case study:
The United Kingdom’s
approach to market-based
spectrum management.
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
United Kingdom: the road to spectrum
trading
• 1982: An Independent Review of the radio
spectrum concluded “Spectrum pricing is likely to
be an ineffective and contentious method of
rationing spectrum at either the allocation or
assignment levels. This does not exclude a role for
economic judgements in spectrum management….”
• 2004: Ofcom Statement on Spectrum Trading:
Ofcom is taking forward its reform programme
through three inter-related projects. These are:
- Spectrum Trading: mechanisms for allowing
spectrum to change hands;
- Spectrum Liberalisation: relaxation of constraints
on the use of spectrum;
- Spectrum Pricing: updating of annual fees for
spectrum not acquired through auction.
• 2005: Public Sector Spectrum Audit: recommends
trading and spectrum pricing for public sector
spectrum (including defence spectrum)
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
1985 prediction of cell-phone growth
in the UK
Millions of users
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
1985 1987 1989 1991 1993 1995 1997
Source : Deregulation of the Radio Spectrum in the UK, DTI, 1987 17
Regional Seminar on Economic
aspects of spectrum management for
Arab States
United Kingdom: the road to spectrum
trading
•
•
•
•
•
Since December 2003, most non-military spectrum in the
UK has been managed by the Office of Communications
(Ofcom), an independent regulator also responsible for
regulating telecommunications and broadcasting;
Ofcoms principal duties: to promote the interests of
citizens and consumers, where appropriate through
competition; secure the optimal use of the radio spectrum
in the interests of all users. Believes that these objectives
are, in general, best achieved through market
mechanisms;
Overall control of spectrum, including allocation for
military use, remains with the government;
since 1998, administrative incentive pricing and auctions
used to promote optimal use of the radio spectrum.
Introduced spectrum trading (December 2004) and
liberalisation (January 2005);
In 2004 Ofcom published its Spectrum Framework
Review, which sets out its high level approach to
spectrum management. Progressive shift from ‘command
and control’ to market mechanisms and licence exempt
by 2010.
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
Ofcom: Command & Control; Market
Mechanisms Licence-Exempt
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
Ofcom: shifting from command and
control to market mechanisms
Getting the balance
right:
Ofcom preference is to move away from central
management, allowing market forces to prevail and
increasing the use of licence-exemption.
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
Summary of Ofcoms plans to make spectrum
available to market
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
Audit on UK Public Sector Spectrum
Holdings
The consultation document:
• Identifies specific bands which may have the potential for more effective
use;
• Proposes that, in the future, the public sector will need to meet new
spectrum demands through market mechanisms in all but exceptional cases;
• Expresses support for public bodies being able to trade spectrum rights –
and benefit from doing so – if they wish and addresses possible barries to
this;
• Assesses the need for the public sector to adopt a more stregic approach to
spectrum management, suggesting that the UK Spectrum Straegy
Committee should produce a regular forward look of public sector
spectrum need;
• Examines possibilities for improving Administrative Incentive Pricing
including extending it in some areas e.g. in the aeronautical sector and
changes to better reflect band sharing;
• Sets out the audits intention to encourage more band sharing, through
clarification of the incentive structure and the possibility of engaging a
third party to facilitate the process;
• Addresses specific organisational issues which may be preventing more
efficient use of the spectrum holdings such as procurement processes and
information sharing.
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Regional Seminar on Economic
aspects of spectrum management for
Arab States
Finally:
Thank you for your attention!
Terry Jeacock has retired from the UK Administration
and is attending this Workshop as an independent
expert. He does not represent Ofcom, the United
Kingdom, CEPT or the ITU. The information
presented has been obtained from publicly available
sources, including:
European thematic portal
(europa.eu.int/information_society)
European Radiocommunication Office (www.ero.dk)
Ofcom (United Kingdom) (www.ofcom.org.uk)
Audit of Spectrum Holdings:
(www.spectrumaudit.org.uk)
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