Radio Spectrum Policy
Memorandum
2016
Radio Spectrum Policy
Memorandum 2016
Developments
Increased societal
dependence on
wireless communications
New technology
creates opportunities
More and more
spectrum users
Policy aims
IoT
A market
that operates
efficiently
Meet
social developments
Safeguard
public interests
Actions
Develop multi-annual
strategies for
mobile and broadcast
Stimulate
shared use
of spectrum
Facilitate
business-specific
applications
Radio Spectrum Policy Memorandum 2016
Surveillance and
mediation in case of
interference
3
Contents
4
1
1.1
1.2
1.3
1.4
1.5
Introduction7
The process
8
The government’s role in the radio spectrum policy
9
Objectives of the new radio spectrum policy
10
Consultation10
Reading guide
11
2
2.1
2.2
2.3
2.4
Context13
Dialogue with stakeholders
13
Social developments
14
Developments in technology
14
International context
16
3
Objectives of the radio spectrum policy
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
Policy challenges
21
Allocating spectrum
21
Scarce licences and market regulation
22
Spectrum for performing public-interest tasks
26
Business-specific applications
27
Licence-exempt use of spectrum
29
Televulnerability31
Implementation and surveillance
32
5
In conclusion
19
37
Appendix 1 Report on the dialogue with stakeholders
42
Appendix 2 Reaction to the consultation
44
Radio Spectrum Policy Memorandum 2016
Chapters
7
Introduction
Context
21
13
37
Policy challenges
In conclusion
Objectives
19
42
Appendix 1
44
Appendix 2
Radio Spectrum Policy Memorandum 2016
5
6
1
Introduction
Wireless communication has become an indispensable
commodity for Dutch society, resulting in increased
societal dependence on wireless communications.
It has become a precondition for economic growth in the
Netherlands, with strong positive external effects on the
economy. It enables the innovation of products and
services.
With good connectivity, that is a reliable wired and
wireless telecommunications infrastructure and
associated services, companies can strengthen their
competitive position through costs savings, increased
productivity, development of new applications and/or
creating logistical advantages. In essence, it allows
organisations to perform at a higher level, in terms of
their competitive position in the Netherlands and in
competition with other countries. Examples include
international airports, municipalities aiming to make
themselves more attractive to international companies
thanks to outstanding facilities, and container terminals
looking to preserve their attractiveness as Europe’s
mainport. Consumers benefit from a diverse and
affordable range of services. The government benefits from
good connectivity and technological developments in
performing its vital tasks.
Like the House of Representatives1, the Cabinet recognises
the importance of a strong digital infrastructure.
The Netherlands has an outstanding starting position,
in part thanks to the rapid roll-out of new wired and
wireless telecommunications infrastructure and
associated service provision.
To maintain a strong position in this field in the future,
and to ensure that the Netherlands remains an attractive
location for IT organisations, the future demand for and
the supply of digital connectivity in the Netherlands and
how these correspond to one another will be explored,
as was announced in the Digital Agenda2. As indicated,
reliable and fast networks with sufficient availability are
of ever increasing importance for economic growth in
1
2
the Netherlands. It is clear that the need for such networks
will continue to increase on account of developments such
as cloud computing and the Internet of Things.
The exploration will also indicate whether and which role
the government foresees for strengthening of the wired
and wireless digital infrastructure in the Netherlands.
A precondition for a strong digital infrastructure is the
availability of spectrum. As a result of developments such
as cloud computing and the Internet of Things, there is
increasing demand for spectrum, and society in general is
imposing ever greater requirements on the availability and
reliability of (wireless) telecommunications infrastructure.
These, together with other developments, including the
introduction of new wireless applications and services and
the demand for higher data speeds and increasing data
volumes, necessitate more efficient and more effective use
of the radio spectrum. As such, the radio spectrum policy
plays a prominent role in facilitating the aforementioned
developments. In specific terms, the radio spectrum policy
must address issues such as the availability of broadband
services in rural areas, provide options for innovative
forms of service provision, and the use of new
technologies to allow for more efficient (third-party) use of
the radio spectrum.
In this respect, the radio spectrum policy not only has a
traditional planning function, to help prevent
interference, but also a market regulatory function to help
ensure the proper functioning of the market for
telecommunications services. This includes the allocation
of spectrum for licence-exempt applications, whereby end
users and a broad range of market parties have easier
access to frequencies, but also the licensing of scarce,
commercially attractive radio spectrum for mobile
telecommunications and broadcasting.
Verhoeven motion, House of Representatives, session 2015-2016,
34300 XIII, No. 45.
House of Representatives, session 2015-2016, 29515, No. 390.
Radio Spectrum Policy Memorandum 2016
7
For market regulation, the frameworks provided by the
Telecommunications Act for market regulation based on
significant market power are also relevant alongside
specific radio spectrum policy relating to licensing and
licence requirements. Market regulation based on
significant market power is the responsibility of the
Authority for Consumers and Markets (ACM) and does not
form part of the radio spectrum policy. The ACM is
involved in an advisory role in the award policy of scarce
licences, after all the award policy is increasingly
dependent upon the actual level of competition in
the market.
In other words, the radio spectrum policy is part of a much
broader telecommunications policy. Convergence of
networks and services makes it necessary to provide new
and stronger emphasis within the telecommunications
policy, in particular on the expanding integration of
wireless (mobile) and fixed networks. Society trusts that
networks can continue to function, even in the event of
defects, interference, overload and power failure for
example, which means that safeguards need to be
provided to ensure the continuity and reliability of
telecommunications services. To this end, the Ministry of
Economic Affairs is also pursuing policy to address the
continuity of telecommunications by means of a duty of
notification and duty of care imposed on telecoms
operators. This also touches upon other policy areas,
including consumer protection, privacy, cyber security,
national security and innovation policy.
Finally, radio spectrum policy also affects sustainability.
Sustainability is of great importance to society, and will
remain so in the years ahead. On the one hand, it is
anticipated that the energy requirements of (wireless)
telecommunication will rise over coming years, driven in
part by increased use of (wireless) telecommunication.
At the same time, it could be argued that (wireless)
telecommunications services are in a position to help
enhance the sustainability of society.
This memorandum sets the general objective and
principles of the radio spectrum policy, i.e. for the
allocation, assignment and use of radio frequencies for the
forthcoming period. This memorandum replaces the radio
spectrum policy memorandum from 2005 (hereinafter:
NFB2005). In the last 10 years, the principles, choices and
intentions included in that memorandum have defined the
radio spectrum policy. In order to effectuate all principles
and intentions, implementation of the NFB2005 involved a
revision of the Telecommunications Act, which entered
into effect on 15 March 2013. This included a pledge to
evaluate the radio spectrum policy two years after its
implementation. The evaluation was carried out in 2015 by
independent consultancy firm Kwink Groep,3 and served as
the basis for a review of the radio spectrum policy to
ensure its suitability for the forthcoming period. This
review intended to reshape application of the current set
of instruments to better suit different developments, and
where necessary, to adjust the set of instruments itself.
The evaluation broadly concluded that the use of
instruments as announced in the Radio Spectrum Policy
Memorandum 2005 contributed towards achieving the
objectives of the radio spectrum policy. Key principles in
the radio spectrum policy appear to have been effective,
including technology-neutral and service-neutral use of
frequencies, licence-exempt use of spectrum where
possible, not extending scarce licences and automatic
extension of non-scarce licences. However, for a number of
other instruments, effectiveness is not (yet) sufficient,
including the needs justification plan for the use of
spectrum for public-interest tasks, third-party use of
licensed frequencies and the tradability of licences.
1.1
Given the considerable social importance attached to the
use of spectrum, a number of round-table sessions were
held between October 2015 and April 2016 in order to gain
input from stakeholders in the drawing up of a new radio
spectrum policy memorandum. These discussions were
held on four main topics:
Table 1: Scarce licences
Table 2: Spectrum for market and government
Table 3: Licence-exempt use of spectrum and
televulnerability
Table 4: Innovation in spectrum (management)
Invitations to participate in the round-table sessions were
distributed widely, resulting in participation from a
diverse group of stakeholders, including private and public
users of spectrum, service providers, television and radio
broadcasters, manufacturers and representatives from the
fields of science and academia. Sessions were characterised
by a high degree of interaction between participants.
In short, the sessions concluded that the success of
wireless communication has turned wireless or mobile
connections from being ‘nice to have’ to ‘need to have’, which
in the years ahead will lead to greater demand for more
sector-specific and business-specific telecoms
3
8
The process
House of Representatives, session 2015-2016, 24 095, No. 392.
Radio Spectrum Policy Memorandum 2016
applications. Increased use puts pressure on the frequency
spectrum, necessitating more efficient use, which may be
encouraged through sharing and third-party use.4
The outcome of this process has provided valuable input
for use in drawing up the new Radio Spectrum Policy
Memorandum 2016. Section 2 summarises the information
gathered per sub-topic.
1.2
The government’s role in
the radio spectrum policy
As far as radio spectrum policy is concerned, the
government’s role has planning, allocative and supervisory
aspects. The radio spectrum policy aims to support all
forms of frequency use. The government’s duty is to
allocate the radio spectrum in such a way that it is of
overall benefit to the economic, social and cultural
interests that are attached to frequency use. To prevent
interference, it is important to manage spectrum use by
limiting the number of applications per frequency band,
by limiting the number of users per frequency band and by
imposing further requirements on the use of frequencies.
This is necessary because frequencies for specific
applications are scarce and because the use of frequencies
may result in interference affecting other users, both
within and outside of the borders of this country, and
because it is important to safeguard applications with
public interest.
There are a number of reasons for managing radio
spectrum. First and foremost, radio waves originating from
different sources can interfere with each other (at the
receiver). This is typically referred to as interference.
This means that it is necessary to make arrangements
regarding the use of frequencies for the purpose of
protecting users against interference caused by others.
As radio waves propagate across country borders,
international agreements are, in most cases, essential.
Secondly, spectrum is limited and relatively scarce.5 In many
4
5
Sharing means that the National Frequency Plan (NFP) allocates
a frequency band to several users or applications. In this context,
it may concern a frequency band that is used by several users
offering the same application but also shared use of the band by
various applications. Third-party use involves licensees admitting or
having to admit other users to ‘their spectrum’.
The radio spectrum that is used for radio communication covers the
range from 9 kHz to 1000 GHz. This may appear large, but not all
frequencies are equally suited to a certain application. As frequency
increases its range becomes smaller. However, higher frequencies
offer more bandwidth.
cases, a certain frequency may only be used by a single user
in a certain area. But even if certain frequencies can be used
by more than one user, shared use is limited. This has the
effect of creating a scarcity of frequencies. This scarcity is
exacerbated by that fact that some frequency bands are
better suited to a certain application than others. Finally,
the increased demand for spectrum further increases the
scarcity of frequencies in certain frequency bands.
A third reason for spectrum management is
harmonisation. For certain applications, such as radio
communication for shipping and air traffic, satellite
communication and radio navigation, international
harmonisation is inevitable on account of the nature of the
application. Harmonisation can also be of importance for
other applications. Users, manufacturers and service
providers can all benefit from harmonisation of services
and their associated equipment. Harmonisation allows
services to be supplied over a large geographical area,
working on the same frequency and using the same
equipment, such as digital (DAB) radios and mobile
telephones.
The government plays an active role in the field of (national
and international) allocation of the mostly scarce
frequencies to a large number of applications. Naturally,
this includes adequate surveillance by this same
government over the effective use of the frequencies that
have been assigned.
The radio spectrum policy serves to ensure that support is
provided for the wide diversity of frequency use.
This demands that the government carefully consider the
best way to use the instruments that are available and
where necessary, adjust them, as well as ensuring
appropriate implementation and surveillance. As such,
the government looks not only at whether or not the rules
are being followed but also at ways of facilitating more
efficient use of spectrum, including ways of supporting
frequency sharing through the use of technology.6
One of the government’s tasks in its radio spectrum policy
is to ensure that the radio spectrum policy pursues not
only economic interests but also social and cultural
interests. In this respect, it is essential to ensure access to
spectrum for applications with a public character.
This means that the government has a number of
public-interest tasks. Public-interest tasks include tasks
that have traditionally been undertaken by the
government, such as the police force, public order, state
6
An example of this is automated licence granting via Licensed
Shared Access, see Section 2 for further information.
Radio Spectrum Policy Memorandum 2016
9
security, emergency and rescue services and defence.
Traffic services7, public broadcasting and scientific use,
including radio astronomy, meteorological and climate
research, are also considered to be public-interest tasks.
As indicated, societal dependency on the use of spectrum is
rising. The Minister for Economic Affairs holds the view
that more has been invested in this memorandum in
safeguarding this societal dependence and the public
interest in the use of spectrum than before (see Section 3).
It is not only use of wireless equipment that is increasing,
but also the use of electrical and electronic equipment in
general. Such equipment includes audiovisual equipment,
(LED) lighting, household appliances and electric vehicles.
In principle, all electrical equipment can cause
unintentional interference for other equipment, but also
the reception of radio communication. The government
shall ensure that interference from equipment is kept to a
minimum. Equipment that satisfies the EMC Directive has
been constructed in such a way that the risk of
electromagnetic interference for other equipment is
acceptably low. The construction also ensures that the
likelihood of the equipment experiencing interference
from other equipment is sufficiently low (see paragraph 2.4
and 4.7).
In recent years, the use of mobile communication has
given rise to questions about possible adverse effects on
health. Objections to transmitter masts in human living
environments are common owing to doubts about the
dependability of exposure limits and the safety of the
equipment being used. Scientific research has not
demonstrated any link between exposure to radio
frequency fields and health complaints, provided that they
remain within the norms. As part of the antenna policy,
Radiocommunications Agency Netherlands is responsible
for monitoring compliance with exposure limits and the
Antennebureau provides information.
The use of frequencies also touches on other government
roles, such as safeguarding of privacy, authentication,
internet security and the prevention of misuse. In these
areas, the government is already active and will continue
to focus attention on the position of both business and the
consumer in the years ahead.
7
10
1.3
Objectives of the new radio
spectrum policy
Both the evaluation of the radio spectrum policy and the
discussion with stakeholders indicated that the central
objective of effective frequency use appears robust.
Effective frequency use means that the frequencies are
used efficiently and effectively. However, Kwink has
indicated a number of challenges that the future radio
spectrum policy may need to address, namely stimulating
that (parts of) acquired spectrum rights can be traded,
increasing the predictability of policy relating to awards
(auctioning or extending), building in stronger incentives
for efficient use of frequencies for public-interest tasks and
safeguarding public values such as availability and
reliability.
The Minister for Economic Affairs shares Kwink’s view that
the central objective appears robust, but that amendments
are needed to better match the radio spectrum policy to
(recent) social and technological developments.
The central objective of effective frequency use continues
to be upheld in the radio spectrum policy, however a shift
in focus is needed. Where the Radio Spectrum Policy
Memorandum 2005 primarily focused on the economic
interest, a shift in focus takes place that is aimed at the
ever increasing societal dependence and public interest.
In addition, increased spectrum sharing is needed
between different users and applications in order to better
accommodate the increased demands on wireless
communication.
The key principle of the radio spectrum policy remains a
market that operates efficiently, whilst safeguarding
public-interest tasks. In the first instance, this is achieved
by awarding (scarce) licences. Scarce licences continue to
be awarded principally through auctions, with extensions
granted where social reasons necessitate them. In this
context, it is essential to shape the market in such a way
that it is capable of responding to social developments to
the fullest extent possible. Where necessary, additional
rules are imposed in order to safeguard public interests.
The objectives are developed further in Section 3.
Consider air traffic, shipping, rail transport and road transport.
Radio Spectrum Policy Memorandum 2016
1.4
1.5
Consultation
A consultation was held in the run-up to this
memorandum. Twenty parties took the opportunity to
submit a response. The consultation responses showed
that there is broad support for the policy and endorsement
for the developments and shift in focus of the central
objective as specified in the memorandum. Responding
parties highlighted the increased societal dependence on
the use of wireless applications in particular. Parties
suggested that this would likely lead to licence conditions
in order to safeguard this public interest, such as a
tightening of coverage obligations.
Several responses related to specific topics connected to
ongoing decisions or which are primarily of importance to
the implementation of the policy formulated in this
memorandum. In particular, these concerned the medium
wave policy, focus on regions and the classification of the
allotments for commercial digital radio licences, the
protection of radio astronomy and the importance of
different frequency bands for satellite communication.
Where relevant, specific comments like these will be
incorporated into the implementation of the
memorandum for the files in question, such as the
Strategic Memorandum on Broadcasting Distribution and
the position adopted by the World Radio Conference 2019.
Reading guide
The memorandum is further structured as follows. Firstly,
Section 2 describes a number of developments that serve as
the basis for the shift in focus of the central objective and
are of additional importance to the formation of the radio
spectrum policy for the years ahead. Section 3 addresses
the shift in focus of the central objective as required to fine
tune the radio spectrum policy to these developments.
Section 4 then looks at the consequences of this shift in
focus for the instruments as applicable to the different
parts of the radio spectrum policy. This section also points
out the actions that will be taken by the Ministry of
Economic Affairs to help to shape this shift in focus. An
overview of these actions is provided in the final section.
The consultation did not give cause for major amendments
to the text, however some responses did give cause for
sections of the text to be refined. See Annex 2 for an
explanation of amendments made as a result of the
consultation.
Radio Spectrum Policy Memorandum 2016
11
12
2
Context
This section addresses developments that are determinant
for further development of the radio spectrum policy for
the years ahead. First and foremost, this section looks at
the demands of the market itself using a brief summary of
the dialogue held with stakeholders. This is followed by an
examination of the relevant social and technological
developments. The section concludes with an outline of
the international framework within which the national
radio spectrum policy is shaped.
2.1
Dialogue with
stakeholders
Before drawing up the Radio Spectrum Policy
Memorandum 2016, the Ministry of Economic Affairs gave
stakeholders the opportunity to indicate the topics and
issues that they wanted to see included in the
memorandum. To this end, a number of round-table
sessions were organised between October 2015 and April
2016. This paragraph outlines the key findings from the
round-table sessions. Annex 1 contains a more detailed
summary of the round-table sessions.
For scarce licences (for broadcasting and mobile
communication), parties emphasised the importance of
predictable policy in the form of timely and stable decision
making by the government in policy preparation for
awarding of licences. The broadcasting sector cited the
unique nature of broadcasting and made a plea for the
allocation of specific spectrum to accommodate this.
Parties expressed their desire for a single policy framework
to be established for licences for both broadcasting and
mobile.
With respect to ‘spectrum for market and government’,
the parties held the common view that a shift is underway in
the direction of more business-critical and mission-critical
wireless and mobile applications, in other words, a shift
from nice-to-have to need-to-have. In addition to public
order, security and disaster management, examples such as
airports, seaports, the railways, hospitals and (large) cities
were named. For these applications, approaches proposed
included harnessing the technology used in mobile
networks, such as 4G and 5G and network virtualisation,
to play a crucial role. However, in this context supply and
demand appear too far apart. The Ministry of Economic
Affairs could play a facilitating role here. To increase
efficient spectrum use for public-interest tasks, three points
were mentioned: (1) Cooperation between governments,
(2) Consideration of whether or not the government can
purchase the service on a commercial basis, and (3) More
third-party use of spectrum (by other parties). As far as
third-party use is concerned, the Ministry of Economic
Affairs could play a facilitating role by bringing supply and
demand closer together.
For ‘licence-exempt’ use of spectrum, attention was
requested for the fair sharing of spectrum (‘fair use’).
Further growth of licence-exempt use, such as for the
Internet of Things, requires a focus on international
harmonisation, the co-existence of equipment (with fair
use) and sufficient spectrum. An appeal was made for
enabling innovation in licence-exempt use by simplifying
legislation.
On televulnerability, it was stressed that organisations/
companies have a private responsibility, but that sufficient
attention is not always given to risks. The government can
play a role in raising awareness of vulnerability.
When it comes to the role of technology in the radio
spectrum policy, the round-table sessions discussed a pilot
by Radiocommunications Agency Netherlands aimed at
granting multiple users a certain level of Quality of Service
(QoS) in the same part of the spectrum. This form of
sharing can help to alleviate pressure on the spectrum.
Technological developments relating to 5G were also
discussed. 5G is seen as the realisation of a new generation
of network architecture based on network virtualisation
– a development that allows software to create different
virtual networks on a physical foundation, and offering
(new) providers the opportunity to supply specialised
services, particularly for mission-critical and businesscritical applications.
Radio Spectrum Policy Memorandum 2016
13
2.2
Social developments
The Netherlands needs good telecommunications
facilities. In a certain sense, they are the basis for a
(potentially) flourishing economy. Research shows that
telecommunication plays an important role in economic
growth.8 Within the array of telecommunications options,
the tremendous increase in the use of wireless applications
is striking. Telecommunication (including wireless
communication) has become an important driving force
for the economy.
The strong societal dependence on connectivity and the
opportunities presented by modern technologies such as
LTE will see sector-specific and business-specific demands
on telecoms increase significantly in the years ahead.
This development is in line with the social trend for being
available anywhere and at any time, ‘the ubiquitous
connectivity’, which is reinforced by the emergence of the
Internet of Things. An important catalyst for the success of
this trend is the availability of both licensed and licenceexempt spectrum for both networks managed by operators
and networks managed by end users. Excellent coverage
and availability of public mobile networks is becoming
ever more important as more and more applications rely
on this type of communication. In some areas, such as
indoors, mobile network coverage, particularly in rural
areas and at home, can pose an additional challenge.
This problem is likely to worsen as the introduction of IoT
applications accelerates.9 A specific example is that all new
vehicle types will be equipped with an eCall-system from
31 March 2018.10
For Dutch society, excellent wireless telecommunications
networks and the services provided through them have
become a necessity. However, providers of these services
also rely on the availability of frequencies for an adequate
revenue model, such that it also stimulates (additional)
investment. In this respect, social and business interests
coincide.
In defining the spectrum requirements for commercial use,
the scale and existing investments in networks are
important points for consideration. In previous years,
established market parties have attempted to maintain
their (market) positions in spectrum awards. The market in
the Netherlands is by no means unique in this respect.
Research by Dialogic (2004) carried out on behalf of the Ministry of
Economic Affairs shows that telecommunication accounts for 36%
of the growth in GNP.
9
Stratix, Internet of Things in the Netherlands, summary p. 2.
10
Regulation (EU)2015/758 dated 29 April 2015.
8
14
Recent auctions in a number of European countries have
seen established market parties reacquire licences.
In addition, a wave of (international) consolidations is
apparent, stretching to the integration of and cooperation
between market parties with fixed and mobile networks.
This forms an additional point for consideration as far as
the awarding of spectrum is concerned.
2.3
Developments in
technology
The use of wireless communication has grown significantly
in recent years. It is anticipated this growth will continue as
consumers and companies use more wireless equipment,
sectors embark on further digitisation and more and more
equipment is connected to wireless networks as electronics
and radio equipment becomes smaller.
The spectrum needs of these users differ greatly. Spectrum
use differs in time, the extent to which the location is
specific, reliability requirements and the amount of
spectrum required. For example, the active reading of
sensors may involve considerable regularity but likely
requires minimal capacity and therefore frequencies,
by contrast live reporting of events for television is
unpredictable in terms of location, time-critical and
requires a relatively high amount of spectrum for the
bandwidth that it needs. Demand differs greatly.
In developing 5G, the next standard for mobile network
technology, this diversity has been taken into account by
developing the technology to allow it to handle as many
different users as possible. The development of network
virtualisation plays a crucial role in providing a service that
meets the specific requirements of certain users and user
groups.
Technological development also contributes to the ability
to fit more and more use within the confines of a finite
amount of spectrum. As such, the trend towards
digitisation of frequency use continues. This is a positive
step, as digital technologies allow for more efficient use of
a certain amount of spectrum than is possible with
analogue technologies. The utilization of spectrum for a
certain application – spectral efficiency – is generally on
the increase for many forms of use as technologies
continue to be developed. However, the increase in
spectral efficiency also raises new questions. Modern
mobile networks are sensitive to an elevated noise floor
that is triggered by other applications and the increased
number of (wireless) equipment devices within the vicinity
of the consumer.
In addition to increased spectral efficiency, the flexibility
of frequency use is also improving. As such, technology is
Radio Spectrum Policy Memorandum 2016
increasingly capable of enabling a device to make use of
different frequencies within a certain range. Amongst
other things, this means that in the event of local pressure
on the spectrum, alternative frequencies may be used for
the same purpose. This also means that reallocation of
frequencies, or loss of a licence for a certain frequency,
will not automatically lead to a destruction of capital.
Additionally, this creates more flexibility for the
government in its designation policy.
The frequency range that can be beneficially used for
different applications will continue to increase in the years
ahead. New antenna technologies and the growth in
computing power will continue to allow frequencies
higher up the radio spectrum to be utilized.
5G developments focus on the use of frequencies above
24 GHz. The ability to make use of higher frequencies is a
very positive development, owing to the wide availability
of frequencies higher up in the spectrum and the larger
bandwidths that are available in that range. This raises the
question of how this spectrum can best be made available.
High up in the spectrum, signals generally travel a reduced
distance, allowing frequencies to be reused at relatively
short distances. This may reduce the rationale for
licensing, and in particular exclusive licensing on a
national basis.
In recent years, the boundaries between different networks
and network technologies have become increasingly
blurred. As a result, services that could previously be
provided by one specific technology now have a number of
alternatives. Technology such as 4G, for example, allows
for radio transmission, television transmission and live
reporting on location.11 This means a technology such as
LTE (4G) competes with more broadcast-specific networks
such as DVB-T, FM, DAB+ and satellite networks. On the
other hand, there is a rise in new technologies such as
LoRaWAN and Sigfox, which in turn are competing with
4G to become the standard for the Internet of Things.
Broadcast technology such as DAB+ can even be used for
this purpose. The number of parties using technology like
4G is also on the increase, attracted by the economies of
scale such a global technology offers, and by the provision
of frequencies for which 4G has been standardised on a
licence-exempt basis12 and on a first-come, first-served
basis13. Mobile network providers can thus on the one hand
tap into new markets, while on the other hand the number
of competitors increases.
Therefore, wireless networks become increasingly neutral
to the services that they are capable of supporting.
The result is competition between technologies and
networks, where previously such competition was absent.
To support this, it is essential that the government remains
technology-neutral in allocating, granting use of and
supervising frequency use. Furthermore, it may also be
worth looking at whether or not a more service-neutral
approach to (re)allocation may be taken, and where
possible, to make frequencies for which technology is
standardised available to as many parties as possible.
Boundaries between fixed and mobile service provision
blur as a consequence of the technological developments
that make wireless networks more versatile. Consumers
and commercial users demand connectivity wherever and
whenever, irrespective of how this is achieved. Providers of
these services can take advantage of this by attempting to
provide both services in a single package, often combined
with television services as well. For this to work, providers
need to operate both a fixed and mobile network, or at
least have access to them in one form or another. In order
to safeguard an effective and efficient market, it may be
necessary to ensure that multiple companies can provide
their services via both fixed and mobile networks.
The degree to which services are bundled should also be
taken into account. How this is dealt with is an issue that
must also be considered when revising the legislative
framework for telecommunications.
Finally, cognitive (reconfigurable) radio is a relevant
technological development. This type of technology
enables equipment to search for available frequencies
autonomously and coordinate use with other equipment
nearby. Although considerable time has been invested in
this form of radio technology, and it continues to undergo
development, it is not yet in use for large-scale commercial
applications.
However, trials are taking place, including in the
Netherlands, to enable more flexible shared use of
spectrum. To this end, Radiocommunications Agency
Netherlands has begun trails with Licensed Shared Access,
whereby a band is shared dynamically by a number of
users. Users receive automated access to frequencies for
the duration of their use. New concepts like these enable
more efficient use of spectrum, helping to reduce scarcity.
http://www.liveu.tv.
A 2x5 MHz channel is reserved in the 1800 MHz band for licenceexempt mobile communication.
13
Spectrum is allocated in the 3.5 GHz band for local licensing for
business-specific applications, both under in-house management
and on the basis of service provision to third parties.
11
12
Radio Spectrum Policy Memorandum 2016
15
2.4
International context
To a great extent, it is international agreements and
commitments that influence and provide the framework
for national radio spectrum policy.
The allocation of frequencies for certain applications is
largely determined at an international level. At its base are
the global agreements made in the International
Telecommunication Union (ITU). The ITU is a specialist
organisation of the United Nations. Agreements made
under the ITU relate to the classification of the frequency
spectrum into frequency bands, the allocation given to
frequency bands and the procedures that must be adhered
to in order to coordinate use of frequencies with
neighbouring countries.
ITU agreements on allocation are determined in the Radio
Regulations. These are modified to accommodate market
and technological developments every 3 to 4 years during
a World Radio Conference (WRC). ITU Radio Regulations
are of a binding nature. Allocation deviations are
permitted only if they do not cause interference to other
countries.
Some of the outcomes and conclusions of a WRC are
directly incorporated into the National Frequency Plan.
This applies in particular to global services, such as
satellite, aeronautical and maritime services. Other
outcomes are first elaborated in a European context before
concrete decisions are taken. This takes place in the CEPT14,
a collaboration between 48 European countries,
but increasingly in the European Union (EU) as well.
CEPT decisions are not legally binding, EU decisions are
legally binding.
EU decision making is generally based on the Radio
Spectrum Decision concerning a legislative framework for
the radio spectrum policy in the European Community15
and/or on the multi-annual Radio Spectrum Policy
Programme.16
The Radio Spectrum Decision gives the European
Commission (EC) the authority to achieve a coordinated
approach to spectrum policy and, where appropriate,
(technical) harmonisation of the conditions for availability
and efficient use of the radio spectrum. This strengthens
CEPT: European Conference of Postal and Telecommunications
Administrations (http://www.cept.org).
15
Decision No. 676/2002/EU of the European Parliament and of the
Council dated 7 March 2002.
16
Decision No. 243/2012/EU of the European Parliament and of the
Council dated 14 March 2012.
the internal market in certain areas of community policy,
such as electronic communication, transport and research
and development since (technical) harmonisation enables
equipment development for the internal market
(economies of scale). The EC is supported in this by the
Radio Spectrum Committee, which comprises
representatives of Member States and is chaired by the EC.
Technical implementation measures drawn up by the
Commission are based on studies in CEPT, which have
been carried on the basis of mandates. The outcomes of
these mandates may be used for decision making.
The multi-annual Radio Spectrum Policy Programme
incorporates the objectives for strategic planning and
harmonisation of spectrum use.
In addition, the regulatory framework for electronic
communication services contains provisions with respect
to procedures for the provision of frequencies and
associated conditions of use. The regulatory framework for
electronic communication services contains provisions
within which Member States must operate. The Framework
Directive17 and the Authorisation Directive18 in particular
contain regulations that are applicable to the national
radio spectrum policy.
The European Commission recently published a proposal19
to revise the legislative framework. As far as spectrum is
concerned, the proposal contains regulations for greater
coordination of radio spectrum policy within the EU,
aiming for greater consistency in decision making across
Member States. Furthermore, the proposal intends to
adapt the legislative framework for spectrum to the
development of ubiquitous connectivity (available
anywhere and at any time) and the introduction of 5G.
The objective and principles defined in this memorandum
are a starting point for discussions on this topic with the
Commission and other Member States.
National circumstances can vary widely, meaning that it
should be possible to adapt the method of awarding
spectrum to the national situation. As such, a degree of
national freedom or flexibility is needed when it comes to
realising collective political objectives. In addition,
flexibility is required in the allocation of harmonised
frequency bands for wireless and/or mobile broadband
applications if the demand for that spectrum lags behind
that of other Member States, so that this spectrum may be
used for other purposes, such as private use or
14
16
Directive No. 2002/21/EC dated 7 March 2002, amended on
25 November 2009 in accordance with Directive No. 2009/140/EC.
18
Directive No. 2002/20/EC dated 7 March 2002 (also amended
in 2009).
19
http://europa.eu/rapid/press-release_MEMO-16-3009_en.htm.
17
Radio Spectrum Policy Memorandum 2016
governmental use, whilst maintaining internationally
harmonised technical conditions. This would help to
prevent less efficient use or even vacant frequency bands.
The Radio Spectrum Policy Group is working on enhanced
coordination of radio spectrum policy between Member
States on the basis of best practice and friendly peer
reviews of proposed award procedures.
Radio equipment, as well as other electrical equipment and
installations, must be constructed in such a way that
interference to other users is prevented and the equipment
can be used safely. Equipment must therefore be
constructed (in accordance with European legislation) in
such a way that these objectives are demonstrably
safeguarded.
To be able to launch radio equipment products on the
European market, specific product requirements must be
met. These requirements are defined in the European
Radio Equipment Directive.20 Requirements are formulated
as objectives and are intended to safeguard public
interests, which could otherwise be harmed through the
use of radio equipment. These requirements are known as
‘essential requirements’ and relate to aspects including
safety/health, electromagnetic compatibility and efficient
and effective spectrum use. These essential requirements
are incorporated into technical specifications by the
European Telecommunications Standards Institute ETSI
and contained in the harmonised standards. These
standards may be used by manufacturers to demonstrate
that the essential requirements of the RED have been
satisfied. In the event that a manufacturer chooses not to
use a harmonised standard, he must still demonstrate that
the essential requirements from the Directive have been
satisfied. In the majority of cases, the manufacturer must
then bring in a ‘competent authority’.
Electrical equipment other than radio equipment, such as
televisions and household appliances, can, if poorly
constructed, also cause radio interference. In addition,
such poorly constructed equipment may also experience
interference itself if strong electromagnetic fields are
located nearby, for example as the result of broadcasts
from broadcasting stations. The European EMC Directive
limits these risks by imposing EMC (electromagnetic
compatibility) product requirements on electrical
equipment.
20
“Increasingly, Dutch healthcare
facilities, including hospitals, depend on
the extent to which they can realise and
safeguard their communication
requirements 24/7, with it often
being said that life depends on it.
Consequently, the availability of
wireless communication is of
considerable importance to society.”
Jan van Alphen, Strategic Advisor,
ICT & Information Management at
the University Medical Center Utrecht
DIRECTIVE 2004/53/EU OF THE EUROPEAN PARLIAMENT AND OF
THE COUNCIL dated 16 April 2014 on the harmonisation of laws of
the Member States relating to the making available on the market of
radio equipment and repealing Directive 1999/5/EC. Frequently
known simply as the Radio Equipment Directive (RED).
Radio Spectrum Policy Memorandum 2016
17
18
3
Objectives of the
radio spectrum policy
The Ministry of Economic Affairs is of the view that the
radio spectrum policy requires a shift in focus in order to
be able to support and continue to assist the social and
technological developments referred to in Section 2.
This shift in focus can take place within the frameworks of
the central objective of effective frequency use. The central
objective remains determinant for the radio spectrum
policy, meaning that frequencies are allocated, assigned
and used effectively. This involves both efficiency, i.e. not
using more frequencies than is necessary for a specific
application, and effectiveness, i.e. having sufficient
spectrum to achieve the intended economic and social
objectives. However, the central objective will see a shift in
focus. Where the Radio Spectrum Policy Memorandum
2005 primarily focussed on the economic interest, a shift
in focus takes place that is aimed at the growing societal
dependence on wireless communication and safeguarding
the public interest.
This shift in focus of the central objective of effective
frequency use is aimed at:
• A market that operates efficiently
• Meeting social developments
• Safeguarding public interests
Recent years have shown that a market that operates
efficiently produces high-quality mobile networks and
a wide selection of services. As such, the underlying
principle of the radio spectrum policy remains a market
that operates efficiently, whilst safeguarding publicinterest tasks. In this context, it is essential to shape the
market in such a way that social developments can be
absorbed and safeguarded by the market itself to the
fullest extent possible. Where necessary, additional
regulations may be imposed to support these
developments and safeguard public interests.
Increasing use also adds to pressure on the frequency
spectrum, necessitating an increase in efficient use of
spectrum. To accomplish this, greater focus is being placed
on sharing and third-party use of spectrum.
Creating a market that operates efficiently is primarily
achieved through the awarding of (scarce) licences.
A competitive market supplies high quality, affordable
services and opportunities for operators (static efficiency)
and incentives for innovation and technological progress
(dynamic efficiency). The (scarce) licence should be granted
to the party able to generate the most value with the
licence, which means that, in the event of an auction,
a realistic revenue is an important objective and that,
in the event of an extension of a licence, a realistic price
must be paid. In addition, a competitive market also
requires licence-exempt access to the spectrum.
This enables new innovative applications.
Social developments, such as changes to the demand for or
adaptation to new technology, are served primarily by
effective competition. The set of instruments is therefore
primarily market-oriented, where auctioning remains the
general rule for scarce licences and an extension is granted
only if, in the opinion of the Minister, it is underpinned by
sound social reasons. Given the increasing dependence on
frequencies and with a view to continuity (of business case
and service provision) and investment security, market
parties have, now more than ever, a need for predictable
policy and early clarity on the allocation of frequencies,
availability and the means and time of award. As such,
a predictable and transparent policy is a precondition
for ensuring investment security. It may, however,
be necessary to impose additional regulations to allow
the market to operate efficiently. The availability of
information (e.g. on speeds and coverage) also plays an
important role here.
If necessary, mandatory regulations may be imposed in
order to safeguard interests that cannot be realised by the
market or that are considered politically desirable. In this
context, such regulations might include requirements
attached to the licence with respect to availability and
coverage or stipulations on the (broadcast) programme
being offered.
Radio Spectrum Policy Memorandum 2016
19
20
photo: ESA
4
Policy challenges
Improving and adapting the current set of instruments is
crucial to support the developments identified.
For instance, society’s dependence on (mobile)
telecommunication is increasing. In addition, society is
imposing ever greater requirements on the availability and
reliability of (mobile) telecommunications infrastructure.
These, together with other developments, including the
introduction of new wireless applications and services and
the demand for higher data speeds and increasing data
volumes, necessitate more efficient and more effective use
of the spectrum.
In the Radio Spectrum Policy Memorandum 2005, different
functions for spectrum use distinguished, with three
‘domains’ of frequency use identified – public-interest
tasks, the licensed domain and the licence-exempt
domain. The licensed domain is further divided into scarce
and non-scarce licences.
In principle, this memorandum distinguishes the same
domains, however they are known by different names in
order to better illustrate the shift in focus of the central
objective. The old domain of ‘public-interest tasks’ can be
found in the paragraph concerning spectrum for the
government. The non-scarce licence domain primarily
concerns the licensing of spectrum for (business-) specific
applications, and can also be found in that paragraph.
The other domains, scarce licences and licence-exempt
use, remain the same.
The aforementioned domains form a coherent ensemble to
arrive at a market that operates efficiently. A market that
operates efficiently provides space not only for mobile
providers on the basis of exclusive licences, but also for
niche operators to provide (business-) specific applications
on the basis of a non-scarce (local) licence, as well as
licence-exempt use owing to the low entry barrier and the
space that this offers for innovative developments.
This section identifies the significance of the shift in focus
on the different domains. In addition, attention is also
given to the increased televulnerability of the use of
spectrum and how implementation and surveillance of
the shift in focus may be adjusted.
4.1
Allocating spectrum
To a great extent, international agreements provide the
framework for the Dutch radio spectrum policy. This is
inherent to the subject matter itself: radio waves
originating from different sources may interfere with one
another’s reception and are not obstructed by national
borders. This means that it is necessary to come to
(international) agreements about the use of frequencies
for the purpose of protecting users against harmful
interference caused by others. In addition, international
agreements are made about the harmonised use of
frequencies. For users, as well as service providers and
manufacturers, it may be of great benefit for services and
their associated equipment and technology to be
standardised. For certain applications, standardisation is
even essential, such as for radio communication for traffic
services.21
With regard to the divergent and disparate interests, it is
the government’s responsibility to balance the interests
within the context of the international allocation process.
The government balances new frequency needs against the
interests of current users and any other interested parties.
It is the duty of the government to act in a transparent and
independent manner in this process. Therefore the various
users and user groups are involved in the international
decision-making.
At this international allocation level, the first scarcity
assessment is made, i.e. whether and to what extent
frequencies are to be made available for specific
applications, also having regard for other existing or new
applications. International decisions on the allocation of
frequency bands and the allocation to specified services
provide the framework for the national radio spectrum
policy and as such restrict the degree of freedom for
21
Consider air traffic, shipping, rail transport and road transport.
Radio Spectrum Policy Memorandum 2016
21
national frequency policies. National allocations may
deviate, however, from international agreements as long
as these do not cause interference to other countries.
The Netherlands’ room for manoeuvre is limited because it
is geographically a small country surrounded by several
neighbouring countries. Nevertheless, the Ministry of
Economic Affairs is of the opinion that the Netherlands
should be able use its freedom to the greatest possible
extent within these frameworks. In this context, the
government is prepared to utilise opportunities to permit
new use or third-party use even in areas that have not yet
been harmonised internationally, on the condition that
this does not jeopardise the existing primary use.
In determining opportunities for sharing, it is important
to take account of vulnerable radio applications with
a sensitive receiver, such as earth observation, radio
location and radio astronomy.
The government organises the spectrum by laying down
the allocation decisions in the National Frequency Plan
(NFP). A key principle in this context concerns effective
frequency use. When allocating frequencies, inherently
a choice must be made between different kinds of
application. One of the factors affecting this choice is that
some frequency bands are more suitable for a specific
application than others, which may give rise to ‘allocation
scarcity’. This allocation scarcity should be distinguished
from scarcity that may subsequently arise at the level of the
assignment to users, a concept known as assignment
scarcity’. See paragraph 4.2 for the most recent form of
scarcity.
Significance of the shift in focus
Allocation scarcity occurs when allocating spectrum for
specific applications. Such applications might include
radio applications and mobile telecommunications
applications, but also licence-exempt applications and
spectrum for typical governmental tasks. This first scarcity
consideration occurs when considering how spectrum is
allocated in the NFP. The requirements for the application
in question are then assessed taking into the account the
objective of an efficient market and the safeguarding of
public interests. Part of the consideration is also if and
how the different application opportunities can be
mutually valued (from a financial perspective). In addition,
when allocating frequencies for the safeguarding of public
interests, incentives that could promote efficiency will also
be looked at. This is expressed first and foremost by also
assessing whether or not frequency bands (and licences)
lend themselves to sharing. Efficiency can be strongly
encouraged if different applications can be used in the
same spectrum by different users alongside one another
(see paragraph 4.3).
22
There can be marked differences in terms of the degree to
which the details of the allocation have been defined,
for example with respect to the specific application and
service. In order to give the market as much scope as
possible to operate efficiently, the allocation in the NFP is
as independent of technology and service as possible. To a
great extent, allocations are determined internationally.
The Ministry of Economic Affairs shall make the case
internationally for the continuation of the movement that
has already been set in motion, in order to arrive at
allocations that are as broad as possible and independent
of technology and services. However, it may be necessary
to implement specific allocations in order to anticipate
social and cultural interests.
The Netherlands attaches great importance to ensuring
adequate opportunities for scientific use of spectrum,
including radio astronomy. A proper balance between
scientific and commercial use of spectrum must be aimed
for, including by implementing arrangements for
shared use.
In order to be able to offer opportunities for new
innovative applications, it has been and continues to
be possible to deviate from the allocations in the NFP for
the purpose of conducting experiments, on the basis of
an experimental licence.
The evaluation revealed that stakeholders experience the
procedure for amending and adopting the NFP as
complicated and lacking in transparency. An assessment
will be carried out into how the procedure for amending
the NFP can be made more comprehensible and how
greater transparency can be ensured.
Actions
Actions that will be taken are:
• Allocations that are as broad as possible, with space to
provide for (national) social and cultural interests,
including through arrangements on shared allocation.
• The Ministry of Economic Affairs shall make the
procedure for amending the NFP more comprehensible
and shall facilitate greater transparency.
4.2
Scarce licences and
market regulation
Assignment scarcity occurs in the concrete distribution of
licences for the use of spectrum where, in all likelihood,
demand for that spectrum exceeds supply. This may mean
that there are more (market) parties with interest in the
licences in question than there are available licenses
(absolute scarcity), or it could mean that a limited (in some
Radio Spectrum Policy Memorandum 2016
cases very limited) number of (market) parties have
mutually divergent interests in different ranges of
frequencies or specific parts of the spectrum. This is
referred to as ‘relative scarcity’. For scarce licences
(absolute and relative), an auction remains the designated
award instrument for each application. Nevertheless,
this does not diminish the option for other scarcity
instruments to be used for awarding in relevant cases,
including a comparative review whether or not combined
with a financial bid.
An auction ensures that licences go to market parties who
ultimately are able to realise the most value with the
commercial use of spectrum. Consequently, an auction
format promotes competition. An auction is not, however,
the only market-oriented instrument with which efficient
allocation can be achieved. Tradability of licences further
increases the opportunities for efficiency. This option is
encouraged by the government. Surveillance is exercised
to ensure that licences are actually used. Investigations
shall also be conducted to examine the possibility of
forcing a licensee to sell or lease unused frequencies if the
licensee fails to adhere to the requirements that are
attached to the licence, such as a commissioning
obligation or coverage requirement. Such a measure would
promote efficient frequency use and may help prevent
licences from being acquired for speculative purposes.
In addition, it would also prevent the current set of
instruments, such as the withdrawal of licences by the
government, being deployed in haste.
When awarding scarce licences, it is necessary that the
parties, in an open and transparent process, have equal
opportunities to gain access to the spectrum. Besides,
the rights to the use of scarce licences should not be
perpetual; from time to time, new parties should have the
opportunity to gain access to the spectrum. After award,
licences can also, in principle, be traded either in full or in
part. If this is the case, the licences to be traded continue
to be subject to the same rights and obligations as those
attached to the original licence. In addition, tradability
may also mean that the licensee has the opportunity to
permit third-party use of spectrum. This relates in
particular to third-party use at specific locations and at
specific hours. In this case, the licensee remains
responsible for the frequency use and adherence to the
applicable conditions.
When it comes to certain frequencies, mostly those that
are of great commercial interest, it is clear beforehand that
they are scarce, in either an absolute sense or a relative
sense. Where other frequencies are concerned, it is not
always obvious that they are actually scarce until a later
stage is reached. In cases like these, it may be useful to test
the market first to assess the level of scarcity based on
concrete licence applications, in order to then transition to
awarding. If scarcity appears to be absent, licences can be
awarded on a first-come first-served basis; where there is
scarcity, an auction format may be used. The current set
of instruments contains provision in this regard by way of
the Award on Request (VOA, ‘Verdeling op Afroep’) system.
See paragraph 4.4 for further information.
When awarding scarce licences, including for purely
commercial use (in essence), the government must
consider a number of objectives and their prioritisation.
These must be transposed into the set of instruments.
By way of example, specific provisions may be applied to
auctions for newcomers and/or existing licensees.
In addition, requirements may be attached to the licences
themselves, such as coverage obligations.
“Predictable (spectrum) policy is crucial
to T-Mobile, but also to other operators
in the Netherlands. It plays a major role
in investment readiness in the
Netherlands’ mobile infrastructure and
helps to ensure that our mobile
networks are amongst the best in
Europe.”
Miriam van Deursen,
Regulatory & European Affairs Counsel at
T-Mobile Nederland
Objectives and shifts in focus
As far as (commercial) scarce licences are concerned,
the Radio Spectrum Policy Memorandum 2005 focused
primarily on facilitating market function and
flexibilisation. Together, these were to ensure that through
commercial use of their licences, market parties could
achieve not only a sound business case but could also
supply high-quality and affordable services to society.
Efficient allocation, i.e. the awarding of licences to market
parties who themselves could derive the most benefit from
them, would ensure that social interests are safeguarded.
The objective of efficient market function remains just as
important. Efficient use of scarce spectrum and adequate
control and surveillance serve both (short-term) static
efficiency and (long-term) dynamic efficiency. It can, on
the one hand, help to ensure the continuity of service
Radio Spectrum Policy Memorandum 2016
23
provision, while at the same time support innovation.
End users can choose from varied and diverse services or
programmes with adequate prices – ‘something for
everyone’. In addition, a competitive environment of this
nature provides incentive for market parties to embark on
innovation. Over the last 10 years, since the Radio
Spectrum Policy Memorandum 2005, the success of this
approach has become apparent.
Where, back in 2005, the adage ‘nice to have’ was the
foundation for the policy with respect to scarce licences,
the successes have facilitated a greatly increased
dependence on the availability of the services being
offered. For society as a whole, this availability has changed
to ‘need to have’, with solid characteristics of a public
service. This shift in focus imposes new requirements on
the radio spectrum policy, whereby efficient market
function remains both the principle and the objective.
When it comes to scarce licences, use of a market-oriented
instrument remains chiefly a necessity. These licences are
auctioned, and extended only in exceptional cases, where
doing so is in the public interest, for example if an
extension is critical to supporting the transition from
analogue to digital technology. These interests must be
explicitly clear; a price must be determined for the licence
extension that is market based, a price that accurately
reflects the value of the market opportunities for other
potential users of the licence in question.
24
• Security and reliability must also have public safeguards.
• The pluriformity of the supply of broadcast services is
also important.
These interests are safeguarded through an adequate mix
of various instruments. The usual supervisory framework,
both ex-ante and ex-post, aimed at maintaining efficient
market function plays a role in this. In addition, and of a
different nature, requirements and/or provisions may be
put in place for licence extensions to ensure that this
public interest is properly safeguarded, e.g. with regard to:
• Coverage requirements and obligations regarding
availability;
• For broadcast applications: pluriformity demands;
• Rules to ensure the continuity of service provision,
for example when (re)awarding licences;
• Service and/or technology requirements;
• Reservations at auctions.
These requirements and provisions can only be deployed
with great caution and well-argued, by way of a tailored
approach. It must be made explicitly clear that without
these provisions, public interests can no longer be
safeguarded.
Safeguarding the public interest of adequate telecom­
munications and/or broadcast services requires a solid
combination of early clarity and predictability of policy
and an adequate licence period. This is necessary given the
(in some cases) large investments and timely investment
decisions that are sometimes associated with setting up
and continuing to operate networks and service provision.
When determining adequate licence periods, the timing of
licence (re)awarding in different frequency bands is also
important, owing to the increased opportunity for
different frequencies to be used flexibly alongside (or even
instead of ) one another.
In this context, the government must seek the right
balance between the different interests and objectives.
In some cases, these may be contradictory. As such, the
policy generally strives to create opportunities for access
to the market for all parties, both existing parties and
newcomers. This may also support innovation. At the same
time, there may also be a social interest in the continuity
of the existing service provision. This dilemma is
particularly visible when considering whether or not
existing licences due to expire should be auctioned or
extended. The preferred choice remains to auction
licences. An extension purely for the purpose of preserving
the continuity of service provision is undesirable and is
can be conducted solely in highly exceptional cases.
An extension may be granted, also in exceptional cases,
if the Minister for Economic Affairs considers it to be of
particular social, economic or cultural interest.
A number of public interest areas are linked to scarce
licences:
• It is essential to prevent economic market positions
from being established that could put pressure on the
affordability and availability of the services being
provided.
• For the Netherlands, it is important to remain proactive
in terms of the availability of up-to-date networks;
incentives must be provided to stimulate innovation.
• Availability and coverage are increasingly public
interests.
Within the context of preparing an auction, the question
of whether or not specific provisions need to be put in
place to safeguard the objective of effective competition
may also pose a dilemma. Is it possible to rely on a
competitive market situation continuing as it is, or should
frequencies be reserved for newcomers or restrictions be
placed on existing licensees attempting to acquire
additional spectrum? These questions are not to be
answered a priori and require careful consideration of all
interests – those of existing market parties and potential
newcomers, as well as the (end) users of the spectrum.
Radio Spectrum Policy Memorandum 2016
The principle in this respect continues to be that a market
characterised by effective competition will continue to
yield positive results. In this context, a tailored approach
will be used when setting up a concrete auction. When
awarding (by auction) licences of commercial importance,
the Authority for Consumers & Markets must be consulted
on the extent of effective competition. When evaluating
this, it may be necessary to consider the (potential) effects
of increased convergence between fixed and wireless
infrastructures. In addition, the positive effects of
(increased) scale must also be examined and the resulting
decisions on major investments by market parties must be
taken into account when awarding scarce licences. When
preparing an auction, experiences from previous auctions
must also be considered.
In view of the differing types of use of (commercial) scare
licences, it makes sense to continue to distinguish
between mobile telecommunication on the one hand and
(commercial) broadcasting on the other. It is anticipated
that the convergence of networks and service provision in
the digital domain will cause the differences to reduce,
particularly following the final switch-off of analogue
technologies such as AM and FM. Broadcasting parties are
in a critical transition phase from old (analogue)
technologies – from AM and FM to DAB+ on radio and
from DVB-T to DVB-T2 on television. In addition, there is
ever increasing pressure on broadcasting bands,
particularly television broadcasting bands, alongside
convergent platforms, while the current linear
broadcasting distribution system (‘one to many’) loses
more and more ground to on-demand services over the
internet (‘one to one’). Finally, when it comes to
broadcasting, public interest is partly safeguarded through
public broadcasting.
The differences in nature between scarce licences for
mobile communication and broadcasting therefore require
a differentiated elaboration of the aforementioned
framework. For both mobile communication and
broadcasting distribution, the Ministry of Economic
Affairs shall elaborate upon the objectives and framework
specified here and develop them into a Strategic
Memorandum for Mobile Communication and a Strategic
Memorandum for Broadcasting Distribution.22 These
memoranda shall contain the principles that underlie the
22
award of spectrum for mobile communication and
(commercial) broadcasting respectively for the period
ahead.
The Strategic Memorandum for Broadcasting Distribution
shall be compiled in liaison with the Ministry of Education,
Culture and Science. This Strategic Memorandum shall also
address the consequences of the continued convergence
(of broadcasting/mobile technology), as this is increasingly
determinant in the matter whether specific licences (and
therefore exclusive spectrum) for broadcasting
applications are required. It is anticipated that the
convergence and digitisation of broadcasting networks in
the future will lead to differences between these sectors
disappearing and therefore a cessation of the need for
separate strategic memoranda.
Actions
Actions that will be taken are:
• The Ministry of Economic Affairs shall clarify the
objectives of awards and concrete elaboration
(in auction models) in a timely and predictable manner
to allow the market to better prepare for investment
decisions.
• The Ministry of Economic Affairs shall compile the
Strategic Memorandum for Mobile Communication to
set out the objectives for the award of licences for
mobile communication, specify the dates at which
licences will be awarded and justify and where
possible, flesh out the need for requirements to be
attached to the licences, including a need for coverage
obligations.
• In addition, the Ministry of Economic Affairs shall
compile a Strategic Memorandum for Broadcasting
Distribution in liaison with the Ministry of Education,
Culture and Science concerning the frameworks for
the award of (commercial) broadcasting licences, with
a focus on aspects including the transition from
analogue to digital, the opportunities for cooperation
and tradability.
• The Ministry of Economic Affairs shall formulate policy
to address how third-party use and tradability can be
promoted in conjunction with one another in the event
that the licensee does not adhere to the licence
conditions, including the possibility of forced sale or
leasing.
In the AO Telecom of 24 May 2016, the House of Representatives
requested a vision for broadcasting distribution with a focus on
(inter alia) the transition from analogue to digital, the identity of
public broadcasters, the balance between public and commercial
broadcasting, regionality and the role of Radiocommunications
Agency Netherlands.
Radio Spectrum Policy Memorandum 2016
25
4.3
Spectrum for performing
public-interest tasks
Spectrum for performing public-interest tasks includes the
use of spectrum to which a public interest is attached, and
comes under the direct responsibility of a minister.
Public-interest tasks include tasks that have traditionally
been undertaken by the government, such as the police
force, public order, state security, emergency and rescue
services and defence. Traffic services7, public broadcasting
and scientific use, including radio astronomy, meteoro­
logical and climate research, are also considered to be
public-interest tasks. A public-interest task does not
necessarily have to be performed by the minister himself,
but may also be carried out remotely, where responsibility
for the required spectrum remains with the minister.
These tasks are of such public interest to society that they
must be allowed guaranteed and uninterrupted (i.e.
without the occurrence of harmful interference) access to
sufficient spectrum for them to be completed. The
Telecommunications Act sets out that the National
Frequency Plan (NFP) designates frequency bands in which
public-interest tasks are performed.23 Exclusive use of
spectrum for public-interest tasks is, however, detrimental
to other options for using the spectrum, and renders
remaining spectrum more scarce. The designation of
frequencies in the NFP (as well as their subsequent
assignment) is done on the basis of a needs justification
plan (NJP), which has a legal basis.24 In the NJP, an
appropriate minister sets out and substantiates how much
spectrum is required for the public-interest task in
question. International obligations and the importance of
international harmonisation may form part of this
motivation.
Developments in network virtualisation and 5G25 play an
important role in providing a communications service that
meets the specific requirements of certain users or user
groups, and if possible, also for (certain) public-interest
tasks. This may reduce the need for exclusive allocation of
spectrum for public-interest tasks. In this context, there is
a link in terms of the functional requirements between
applications for which spectrum is allocated using the NJP
instrument (also known as mission-critical applications)
and business-critical applications.26 Sharing spectrum
between both categories can also help to further more
efficient use of spectrum.
Bulletin of Acts and Decrees 2013, 48.
Government Gazette 2013, No. 3366, 15 February 2013.
25
See paragraph 2.3.
26
See paragraph 4.4.
23
The introduction of the NJP is an important step towards
more efficient use of spectrum by government parties.
Where the first evaluation phase in 2013 of the needs
justification plans submitted by governmental parties
emphasised mapping governmental use of spectrum for
public-interest tasks, further steps have now been taken to
ensure that the NJP instrument is used to further (more)
efficient frequency use.
Significance of the shift in focus for use of
the NJP
Safeguarding public interests is one the three areas of
focus for the (new) radio spectrum policy. The benefits of
and need for adequate availability of spectrum for
public-interest tasks are not up for discussion. However,
the use of spectrum is increasing, which in turn increases
the need for more sharing and third-party use of spectrum.
The needs justification plan (NJP) is the next step towards
fully efficient use of spectrum. The criteria for assessing an
NJP will be made more explicit for:
• Potential collaboration with other government parties;
• The possibility for the task in question to also be
performed on the basis of a commercial service;
• Options for third-party use and sharing.
Collaboration with other government parties promotes
sharing spectrum and reduces the likelihood of conflicting
claims for spectrum. Additionally, collaboration provides a
more solid basis for considering whether or not the task in
question can be performed on the basis of a commercial
service. This consideration is the responsibility of the
minister(s) whose public-interest task it concerns.
Opportunities for third-party use and sharing will need to
be assessed on a case-by-case basis. In this context,
adequate surveillance and protection of the primary user
are important preconditions. In some cases, and certainly
in exceptional circumstances, exclusive use by the primary
user must continue to be possible. An assessment of the
opportunities for sharing and third-party use will be based
on categories that are established and elaborated on in the
next NJP phase in liaison with the departments concerned.
This categorisation may range from bands with no or
virtually no opportunities for third-party use to bands
which feature (almost) continuous third-party use and are
used for performing public-interest tasks only in
exceptional circumstances. Where necessary, assessment
of whether or not third-party use is possible will also use
measurements of the actual use for specific public-interest
tasks. The expectation is that opportunities for third-party
use can be increased as the result of technological
developments.
24
26
Radio Spectrum Policy Memorandum 2016
In principle, third-party use and sharing of spectrum are
clarified in the NFP within the context of allocating
spectrum for public-interest tasks. The allocation also sets
out the practical rules of use.
Unlike direct allocation for public-interest tasks, public
broadcasting continues to be subject to the current
preferential licensing regime. The Minister for Economic
Affairs shall liaise with the Minister for Education, Culture
and Science in order to develop a vision for the long-term
objectives of the (broad) broadcasting distribution policy
and associated set of instruments (see paragraph 4.2).
Actions
Actions that will be taken are:
• The next NJP phase (2017-2020) will be designed
primarily to provide input to more efficient spectrum
use.
• The elaboration of opportunities for collaboration
between governmental services, opportunities for
commercial service provision and opportunities for
third-party use and sharing when assessing the NJP.
• In addition, the Ministry of Economic Affairs/
Radiocommunications Agency Netherlands shall
establish a process within the context of the NJP to
facilitate and stimulate third-party use and sharing.
Supply and demand shall be brought closer together.
• The outcomes of this NJP phase shall be evaluated in
2020-2021 (for their contribution to more efficient
spectrum use).
“Where feasible, promote mutual
third-party use of sparsely used
frequencies.”
Alle de Jong,
Radio Spectrum Manager,
Ministry of Defence
4.4
Business-specific
applications
Currently there is an increase in the number of businessspecific applications and reliance on wireless
communication continues to increase in businesses.
In this context, we refer to what is known as ‘businesscritical communication’. Without access to
communication, business processes would grind to a halt,
or be impaired at the very least – consider automated
processes in healthcare for example, industry, seaports
and airports, as well as municipal services. Increasing
dependence gives rise to specific requirements being
imposed on communications systems, such as a high
degree of availability and reliability, speed and network
prioritisation.
In turn this increases the importance of such networks
owing to the high degree of dependence on wireless
communication. The increase in the number of businessspecific applications also places greater pressure on the
frequency spectrum. In view of this, more efficient use is
of greater importance than ever.
Set of instruments
In principle, it is assumed that taking into account future
technological developments, the demand for businessspecific applications will be largely covered by mobile
providers. Developments in network virtualisation and 5G
can play a significant role in this. At present however,
commercial operators do not offer adequate solutions for
business-specific applications.27 It practice, it appears
difficult to properly translate the demand that exists in
different sectors (‘verticals’) into specific requirements
that allow operators and other suppliers to make a
commercial offer.
This requires both the sectors in which there is demand
and the providers to play an active role. It is vital that the
demand side makes clear which aspects are important and
what requirements are imposed on communications
systems. On the supply side, it is essential to provide
clarification on what can and cannot be provided, taking
into account the requirements being imposed. This
approach will allow supply and demand to move closer
together. In this context, it is assumed that services are
purchased from operators and other suppliers.
27
From a technical perspective, providing business-specific services
over 2G and 3G networks is an unsuitable solution.
Radio Spectrum Policy Memorandum 2016
27
Attention must be given to the interplay between supply
and demand and the way in which this is achieved, as well
as the extent to which the prerequisites for this are
satisfactory. The government’s role in this is a facilitating
role – it would serve no purpose for the government to
step into the shoes of market parties and determine which
requirements need to be imposed on communications
systems and the requisite spectrum. This is the
responsibility of the market itself. The government can,
however, facilitate the market by bringing parties together,
such as through platforms such as the Cognitive Radio
Platform (CRPlatform.NL).28
both using their own infrastructure and as service
providers using the infrastructure of an infrastructure
provider.
To stimulate the interplay between supply and demand,
it may be necessary to make spectrum available for
business-specific applications if the government’s
facilitating role does not yield an outcome. In this respect,
the set of instruments is focused on sharing of the
spectrum. Whenever possible, spectrum will be made
available in a way that is consistent with existing
ecosystems for mobile communication (e.g. LTE).
European harmonisation of technical conditions also
remains important; however, national space is required for
assigning a specific form of service provision.
Shift in focus: difference with 2005
‘The quality of business-critical mobile
data can only be guaranteed with access
to spectrum – the same way we have
done for decades with voice over PMR
systems.’
Koen Mioulet,
Interim Wireless Consultant
at Schiphol Telematics
As far as the supply side is concerned, the interplay
between supply and demand covers not only traditional
telecoms operators, but also other parties operating on
the supplier side, what are referred to as niche players. It is
precisely these parties who may be able to offer specific
solutions for business-specific applications, leading to a
broadening of the market and increased competition.
Making spectrum available for business-specific
applications may also be beneficial in this regard. It gives
niche players the opportunity to offer specific services,
28
28
The CRPlatform.NL is an independent platform that may be used by
a wide range of stakeholders, including the government, to discuss
the use of (new) radio technology for wireless communications
solutions.
As pressure on the frequency spectrum grows, more
efficient use of the spectrum becomes essential. Key ways
of improving this include third-party use and sharing, as
well as spectrum leasing. The latter in particular could help
to facilitate business-specific applications and the
corresponding spectrum requirements. The way in which
this can be implemented needs further analysis.
The principles as formulated in the Radio Spectrum Policy
Memorandum 2005 with respect to non-scarce licences
have been maintained. In principle, non-scarce licences
are extended automatically and preferably for short
periods. This aids flexibility. Non-scarce licences are
awarded on a first come first served basis.29 Actual scarcity
is not a factor and cannot therefore be included in any
price. If scarcity does arise, it is desirable to adjust the
policy; the licences will not be extended in that case.
This may involve a transfer to the scarce licences domain or
making additional spectrum available. In addition, more
space may be created by forcing use of more efficient
technology by, for example, reducing the available
spectrum per licence.
In the case of non-scarce licences, tradability is not a factor
as a general rule. As long as they are not scarce, licences
may simply be ‘collected’ from the licensing authority.
This does not alter the fact that licensees are in a position
to transfer the licence.
As a general rule, non-scarce spectrum is virtually always
shared. Non-scarce licences do not include the option of
third-party use as they make use of frequencies that must
be shared.
In principle, spectrum that is allocated to business-specific
applications is assigned on a first come first served basis.
In this context, a licence is required as business-specific
applications frequently involve business-critical
communication in which interference is undesirable and
guarantees are needed for aspects including network
reliability. This means that coordination (by the
government) is required to prevent mutual interference.
Scarcity can also occur for spectrum allocated to businessspecific applications, and for this reason, it is important to
ensure that the preconditions under which the spectrum is
assigned are properly and clearly formulated.
29
Annual costs are charged for implementation and surveillance.
Radio Spectrum Policy Memorandum 2016
A particularly specific application is the use of spectrum
for the provision of broadband services in rural and
outlying areas. In a broader perspective, great value is
attached to the availability of high-speed internet across
the Netherlands. At the start of 2015, approximately
330,000 households and businesses were unable to access
high-speed internet with a minimum speed of 30 Mbps.30
Areas without access to high-speed internet tend to be
located in sparsely populated, usually rural areas. In these
areas, mobile networks can offer an improved internet
connection with limited speed, but do not at present offer
a structural solution on account of restrictions on data
use. In order to realise high-speed internet access in rural
and outlying areas, the focus is primarily on the
construction of fixed networks or ‘fixed wireless’
networks31, or a combination of the two.32 Spectrum is
available for the provision of internet access via fixed
wireless networks. The development of this type of use will
be watched closely, as it is essential that adequate
spectrum is available.
The Award on Request instrument is used if it cannot be
determined in advance whether or not scarcity is to be
anticipated in the assignment of certain frequencies.
The most important characteristic of this method of
assignment is that the market determines the point at
which award occurs, rather than the government.
This point is determined by the first applicant for the
spectrum in question that is allocated in the frequency
plan. This instrument aims to provide the flexibilisation
announced in the Radio Spectrum Policy Memorandum
2005 and to provide maximum scope for innovative
applications.
To date, Award on Request has not been used.
Development and implementation of Award on Request
has been a time-consuming task, while at the same time,
the allocation of specific bands that are actually suitable
for assignment via Award on Request appears difficult.
Nevertheless, Award on Request remains the instrument
that can be quickly put into practice whenever there is
uncertainty as to whether or not spectrum is scarce, and
that offers maximum flexibility for the assignment of
spectrum. It is anticipated that increased pressure on the
spectrum, in part due to a higher number of businessspecific applications, will lead to Award on Request being
used more frequently. This includes in particular higher
frequency bands, which will be used more and more and
Stratix, investigation into LTE coverage in the Netherlands,
February 2015.
31
These solutions are also known as Wireless Local Loop (WLL).
32
In addition, satellite communication may offer a solution.
30
which may be of interest to the aforementioned niche
players. For this reason, the way in which Award on
Request can be used will be examined in more detail.
Actions
Actions that will be taken are:
• The Ministry of Economic Affairs shall facilitate the
growing need for wireless communications solutions for
business-specific applications.
• Where necessary, the Ministry of Economic Affairs
shall play a facilitating role in the interplay between
supply and demand and the way in which this is
achieved.
• If applicable, the Ministry of Economic Affairs shall
offer spectrum for business-specific applications that
is consistent with existing standards such as LTE.
To obtain space for this at a national level in European
harmonised frequency bands, amendments to the
European telecoms framework are necessary. These
shall be introduced in negotiations for revision of the
legislative framework for electronic communication.
• With a view to efficient use of the spectrum, the
Ministry of Economic Affairs shall place more
emphasis on spectrum leasing, which shall involve
assessing ways in which leasing can best be
implemented. See the related action for scare licences
and market regulation.
• The use of Award on Request requires further
consideration by the Ministry of Economic Affairs,
to include consideration of the anticipated increase in
pressure on use of the spectrum.
4.5
Licence-exempt use of
spectrum
The licence-exempt domain safeguards easier access to the
spectrum. As such, licence-exempt frequency use is an
important breeding ground for innovation and contributes
towards dynamism in the market. Easier access to the
spectrum provides opportunities both for news users and
for new applications. All companies, consumers and
organisations have the opportunity to create a wireless
network or to use wireless equipment without having to
apply for a licence or having to purchase paid-for services.
This helps the market for innovative products and services
to flourish, including ‘smart devices’ (devices connected to
the internet) and telecoms services in buildings. By way of
example, WiFi is a viable alternative to mobile networks for
communication over short distances.The licence-exempt
use of spectrum varies widely – from wireless broadband
(e.g. WiFi) to wireless microphones, communication
between vehicles, social alert systems, etc. Licence-exempt
Radio Spectrum Policy Memorandum 2016
29
use of spectrum has increased considerably in recent years,
and that growth is expected to continue. For the
government, ensuring that the licence-exempt domain can
continue to function effectively in the face of growing use
poses an interesting challenge. The Ministry of Economic
Affairs intends to create the right preconditions for this,
through adequate licence-exempt spectrum, clear
(European) legislation and high-quality equipment
standards, as well as proper surveillance.
Set of instruments
between the licence-exempt spectrum and the licensed
spectrum.
A licence is required if:
• It is necessary for the safeguarding of effective frequency
use or other objectives of economic, social or cultural
interest;
• Coordination (by the government) between users is
required for the prevention of harmful interference or to
guarantee the technical quality of electronic
communications networks and services;
• Use is not possible throughout the Netherlands or only
for a limited time.
The absence of individual requirements attached to the use
of frequencies does not mean that the use of these
frequencies is entirely free, as it is also subject to rules.
These rules are related to the effective use of frequencies.
Although frequency users do not need to apply for a
licence, they must adhere to a set of general requirements
that are linked to the use of frequencies. Their radio
equipment must also satisfy technical requirements.
In certain cases, such as maritime mobile communication
and amateur radio equipment, users are required to
register and must meet certain admission requirements,
such as completing an examination.
Within the context of the allocation of frequency bands in
the National Frequency Plan, the necessity of a licence or
possibility of licence-exempt use will be assessed on the
basis of these criteria. Consideration will also be given to
whether or not licence-exempt use can be enabled with use
of registration requirements. However, it is not always
clear to frequency users how this approach differs in
practice from licensing. For this reason, the way in which
the registration requirement relates to licensing and in
what cases the registration requirement can be applied,
will be examined further.
The registration requirement was introduced in the Radio
Spectrum Policy Memorandum 2005 to be able to monitor
users in the event that no individual licence requirements
are imposed, such as for marine radios, owing to water
safety. As such, the marine radio and amateur radio licence
categories could be converted to the (lighter) licenceexempt use. In this context, registration allows the
possibility of transferring the use to the licensed spectrum
domain where frequencies become scarce, where abuse
has been proved or where there is a need to reallocate the
relevant spectrum.
The sharp increase in licence-exempt use creates pressure
on the available spectrum. There appears to be adequate
spectrum available for now, but it may become insufficient
in the medium term due to developments such as the
‘Internet of Things’ (IoT). The policy is oriented towards
this spectrum demand, and the Netherlands will promote
this at the European level. International harmonisation of
frequency bands is crucial to exploiting economic
advantages of scale. Monitoring will focus more on trends
in growth, including the emergence of IoT and on
monitoring the actual use of common frequency bands in
order to be able to identify bottlenecks in a timely manner.
Shift in focus
Strict conditions of use and reliable equipment standards
are essential to creating an environment in which the
licence-exempt domain can be used effectively and
efficiently. These are largely determined at a European
level. However, over the course of time, legislation and
standards have become more complex. The Ministry of
Economic Affairs is therefore endeavouring to simplify and
clarify technology-neutral and application-neutral
European legislation and corresponding equipment
standards. Simplification of legislation should lead to
more opportunities for innovative use and sharing of
licence-exempt spectrum.
More and more companies and organisations depend on,
for example, WiFi or private GSM networks (for coverage
indoors). If that becomes critical to business, then
licence-exempt users may experience vulnerabilities (risk
The Ministry of Economic Affairs is working towards a
licence-free environment, where possible. To facilitate as
straightforward as possible access to the spectrum, and to
stimulate sharing with a view to efficient use of the
spectrum, licence-exempt use of spectrum remains a key
principle. This was also the case in the previous Radio
Spectrum Policy Memorandum from 2005. Adequate
licence-exempt spectrum is and remains necessary,
however in certain situations, the market can be better
shaped through (continued) use of licences, such as when
the provider of a commercial service needs a degree of
certainty about the payback time of his investments in
infrastructure or when a company needs certainty in
relation to the quality and reliability of a connection.
In that case, it is also important to seek the right balance
30
Radio Spectrum Policy Memorandum 2016
of interference and congestion) and seek alternatives.
For business-critical applications that require more
protection, accessible alternatives can be created. Options
under consideration include a light licence regime for
private networks, see paragraph 4.4, or a licence-exempt
band dedicated to certain applications or use profiles.
In addition, the government is also seeking to increase
knowledge and awareness of vulnerabilities for licenceexempt use of spectrum (see paragraph 4.6).
Finally, proper surveillance is an important precondition.
The growing amount of equipment poses a challenge.
To avoid problems, illegal equipment (that does not satisfy
the requirements) is identified and withdrawn from the
market. Nevertheless, the risk of interference and
congestion is rising, including from legal use.
Radiocommunications Agency Netherlands is now offering
some intervention, albeit limited, as licence-exempt users
must accept a certain level of incidental interference.
Greater and more diverse use of licence-exempt spectrum
increases the chance of structural interference. Preventing
and counteracting this requires more intensive
surveillance and suitable authorities (see paragraph 4.7).
Actions
Actions that will be taken are:
• The Ministry of Economic Affairs shall work towards
adequate opportunities and towards lowering barriers
for the use of licence-exempt frequencies.
• Efforts to simplify European legislation and standards.
At EU level, the Ministry shall argue for a clarification
and simplification of European legislation. Since these
rules are implemented into technical standards, the
Ministry of Economic Affairs shall, where necessary,
make concrete proposals for the establishment of
standards.
• Explore spectrum demands of the Internet of Things
(IoT) within a European context.
• Monitor licence-exempt use and trends, such as IoT.
• Investigate whether certain licence categories can be
made licence-exempt and the role of a registration
requirement.
4.6
Televulnerability
Since the Radio Spectrum Policy Memorandum 2005,
telecoms services have increased in importance across a
range of social processes. Our use of the internet, mobile
telephones and smart devices has increased. IT and
communications networks are linked, increasing
possibilities. Motorway traffic is monitored and controlled
through telecommunication, through remote care, the
elderly can retain their independence for longer, and
companies can outsource their administration to data
centres. Telecommunication has become an essential basic
provision that is indispensable for Dutch society and the
economy. Wireless communication also forms an
important part of this basic provision. Society has become
increasingly dependent on telecommunication, in many
cases consciously but in some cases gradually, without
necessarily noticing. And rightly so, requirements have
been imposed on availability and reliability.
Although communication is generally reliable in the
Netherlands, faults can occur. A major telecoms fault in
Rotterdam in 2012 brought the metro system to a
standstill, and customers as far away as Groningen and
Maastricht encountered problems. Parties themselves are
primarily responsible for preparing for faults like this.
Telecoms parties are already taking the necessary
precautions to safeguard the reliability of
telecommunication and to prevent faults. These
precautions are in the interest of telecom parties, as a
telecommunications failure can lead to a loss of
customers. In addition, the Ministry of Economic Affairs is
pursuing policy to safeguard the continuity of
telecommunication, partly through legislation that
imposes a duty of care on operators. Telecom operators are
also obliged to compensate users in the event of a lengthy
outage. Telecommunications outages can, however, have
a significant impact on society. The Ministry of Economic
Affairs intends to examine how in addition, the selfreliance of society can be boosted by providing support to
parties.
To achieve this, Radiocommunications Agency Netherlands
commenced the Televulnerability programme at the end of
2015. This programme aims to raise awareness of the
dependence on telecommunications use amongst parties,
support parties in determining their greatest risks and
potential management measures, and by sharing best
practice, research results and a helping hand, help parties
to reduce their televulnerability and in so doing, increase
their resilience. The manner in which parties can be
supported in setting up robust (wireless) business-critical
systems will also be examined.
Radio Spectrum Policy Memorandum 2016
31
Monitoring of risks and the signal effect form an explicit
part of the Televulnerability programme. Further attention
will be given to specific sectors each year. For 2016, these
sectors are transport and logistics, companies with a risk
of severe accidents and public order and public
administration.
Actions
Actions that will be taken are:
• Radiocommunications Agency Netherlands commenced
the Televulnerability Programme at the end of 2015.
This programme aims to a) raise awareness of
telecommunications use and dependence on
telecommunication amongst parties and b) by sharing
best practice, research results and a helping hand, help
parties to reduce their televulnerability and in so doing,
increase their resilience. The Ministry of Economic
Affairs shall assess how this social interest task can be
perpetuated following the end of the programme.
4.7
Implementation and
surveillance
The increasing importance of wireless communication and
pressure on spectrum necessitate changes and some
expansion to the set of instruments for implementation
and surveillance. Telecommunication is a basic need, and
as such the role and position of implementation and
surveillance is changing. Society needs a government
agency that it can rely on, that can anticipate social
developments, that is available to play a facilitating role in
the event of bottlenecks and that can alert and implement
adjustments when society needs them.
As pressure on the frequency spectrum increases, it is vital
that opportunities are maximised and that a smart mix of
instruments is used to give society, business and the
government adequate spectrum combined with adequate
surveillance to the fullest extent possible. This means that
implementation must incorporate frequency sharing,
stimulate efficient use of spectrum and provide for
surveillance. Having and maintaining a frequency register
that provides insight into opportunities for use of
spectrum can also play an important role.
Radiocommunications Agency Netherlands is responsible
for both implementation and surveillance of legislation
and regulations relating to telecommunication, but also of
the law on mandatory exchange of information concerning
underground networks and aerospace legislation, for
example. The Agency is an important link in the
implementation and monitoring of the new radio
32
spectrum policy. To this end, the Agency undertakes tasks
including licensing, maintaining registrations, awards
including auctioning licences, and formulating
preconditions for effective frequency use. In addition, the
Agency also carries out surveillance of frequency use, EMC,
the trade in equipment and continuity of the
telecommunications infrastructure.
Developments in implementation
The increase in use of frequency is also visible in
implementation. There is increased need for local and
sometimes only temporary spectrum, for example during
major events. ‘Hotspots’ are also appearing in urban,
industrial areas that have a need for very different types of
telecommunication at the same location. The emergence
of new applications is also on the rise, including increasing
automation and use of robots, drones, the Internet of
Things and local broadband data communication for
which additional spectrum is needed. All of this means
that the existing set of instruments for assigning licences
and licence-exempt use needs to be in a position to
facilitate the dynamic, frequently complex and increasing
demand. In view of this, more sharing of spectrum is
needed between different applications so as to create
adequate room for growth in the future.
The set of instruments referred to in the previous
paragraphs remains suitable for Radiocommunications
Agency Netherlands in pushing through the shifts in focus
of the radio spectrum policy. However, more dynamic use
of spectrum does need to be created, for example through
digital service provision based on Licensed Shared Access.
This requires suitable prerequisites for spectrum sharing.
More spectrum sharing raises new questions about
interference. Radiocommunications Agency Netherlands
shall work to stimulate sharing, perform interference
analyses and formulate requirements for use.
Radiocommunications Agency Netherlands shall play an
important role in advising on the allocation of spectrum
for public-interest tasks on the basis of needs justification
plans. This might include facilitating spectrum sharing
amongst governmental users, but also between the
government and the market. In addition, as demand from
governmental users grows, a critical assessment will be
needed of technological developments, opportunities for
more efficient use and alternatives such as making use of
commercial telecommunications services.
Radiocommunications Agency Netherlands shall
investigate how these new components can be
incorporated into the process for evaluating the needs
justification plans.
Radio Spectrum Policy Memorandum 2016
The increased societal dependence on wireless
communications facilities necessitates a shift in focus of
the implementation. In addition, the increased complexity
and dependence together mean that obtaining an insight
into the use of telecommunication has become even more
important. This requires society-oriented research to
ensure that bottlenecks and obstacles are identified early
on, such as the result of the risks of congestion and
interference. In the event of risks which could jeopardise
the safeguarding of social interests from the market,
implementation could well offer an alerting and agenda
system. An adequate combination of instruments is
therefore required, according to the situation.
Radiocommunications Agency Netherlands can help to
bring about improvements through dialogue with sectors
and stakeholders. It may also be necessary to set new
preconditions to ensure that the system functions more
effectively. In other cases, a programme of active
education may be the most suitable method of raising
awareness in society and in so doing, provide a framework
for action, for example, when it comes to the dependencies
and risks of telecommunication (in the event of outages),
known as ‘televulnerability’. Radiocommunications
Agency Netherlands has a new role in enhancing social
resistance (see also paragraph 4.6 and the corresponding
action).
It is anticipated that complex interference scenarios will
occur more frequently as the result of increased use and
sharing of spectrum. This concerns radio equipment and
its effect on other radio equipment, but also the effects of
and on electrical equipment and cable infrastructure.
Radiocommunications Agency Netherlands shall conduct
risk assessments and analyse interference scenarios and
offer advice to the sector or for policy. In addition,
Radiocommunications Agency Netherlands shall focus on
actions that could reduce the risk of interference through,
amongst other things, educating installers and
manufacturers in preventing interference from their
equipment. Furthermore, it is also important that
frequency users are aware that the robustness of receivers
is important in preventing intentional and unintentional
interference. Where possible, work will be conducted in
collaboration with industry associations so that education
for individual companies can be passed on to the industry
association (see also the Televulnerability Programme in
paragraph 4.6).
Standardisation is a reliable basis for a harmonious
spectrum use model in the licence-exempt bands. As the
pressure on spectrum in the licence-exempt bands
increases, increased use without interference can only be
facilitated by making more efficient use of spectrum.
Thus it is important to find solutions for better ‘sharing’
methods and technologies that help to prevent mutual
interference with ‘smart’ conditions of use that are based
on compatibility studies and that take into account the
expected concentrations of users.
The aforementioned objectives of efficient and
interference-free use can only be accomplished if the radio
equipment being used meets ‘state of the art’
requirements. For receivers, these requirements include
robustness (for unintentional signals) and sensitivity, and
for transmitters, quality. For these requirements to be
implemented correctly, they must be implemented using
adequate requirements from the harmonised standards
(within the context of the Radio Equipment Directive).
These standards form the requirements for market access
for radio equipment within the EU. Given the importance
of standardisation, Radiocommunications Agency
Netherlands shall play an active role in the creation of
adequate frequency use and (European) equipment
requirements in order to support the objectives of the
radio spectrum policy.
Additionally, the Agency has an ever more important
(surveillance and implementation) task with respect to
monitoring the aforementioned spectrum use and
equipment requirements within the spectrum legislation
and equipment standards. The change in spectrum use
(e.g. through increased use in the band or new use of
adjacent frequency bands) also causes the ‘electromagnetic
environment’ to change. Even an increase in the noise
floor as the result of unintentional emissions from
electrical equipment (EMC) causes an environmental
change.
If these changes are not (adequately) anticipated in the
compatibility and society studies, it may be necessary to
adjust the spectrum use and/or equipment requirements in
order to prevent an unacceptable level of risk of
interference and/or network degradation.
Radiocommunications Agency Netherlands shall measure
the (increase in the) noise floor that is caused by increased
use of radio equipment, but also the increased use of
electrical equipment in general. This measurement will
then be used to examine the extent to which the noise
floor is actually increasing and whether or not the
standards for equipment need to be updated as a result.
Developments in surveillance
Citizens, companies and administrative bodies must be
able to rely on an independent supervisory body that has a
clear overview of the playing field, can share the correct
information about the playing field and can intervene
where necessary. Enforcement of the regulations by
Radio Spectrum Policy Memorandum 2016
33
Radiocommunications Agency Netherlands that have been
derived from national and international legislation is
essential in safeguarding the public interest of the use of
wireless telecommunication.
Surveillance also has an important role in tracking down
and rectifying acute faults in frequency use. To this end,
the regular work of surveillance focuses on investigating
interference. Interference that hinders the security and
continuity of public-interest tasks and important social
processes receives additional attention. For public-interest
tasks, 24-hour accessibility and availability is provided for
by the supervisory body in order to safeguard continuity of
these vital processes in the field of frequency use to the
fullest extent possible.
Developments take place very quickly in the
telecommunications field. Increased internationalisation,
digitisation and flexibilisation give rise specifically to a
reduction in the specific requirements within licences and
provide more scope for users to shape the way in which the
licence requirements are satisfied. This is not always
consistent with previously granted frequency use rights.
In addition, the use of licence-exempt bands is
permanently increasing. Within the context of the
surveillance of licence-exempt frequency use and crossfrequency band interference in particular, it is not always
possible to rely upon the original preconditions. This leads
to a broadening of the role of the supervisory body to that
of arbiter and mediator in cases where regulations have
not been contravened but where government guidance is
nevertheless preferable. In those cases where the
safeguarding of social interests demands this, and
mediation does not facilitate an improvement, the
supervisory body must have additional powers, for
example the power to issue instructions. For this reason,
an assessment will be made as to how the possibility of
binding instructions may be implemented for interference
if mediation does not lead to an improvement.
A surveillance framework will also be developed for this.
Surveillance develops into a proactive and reflective
supervisory body, one that observes, analyses, alerts and
regulates from a distance. Specifically, this means that
information gathering and monitoring of the surveillance
field is becoming ever more important. Having and being
able to use suitable interventions is essential for a
supervisory body that aims to be effective when it comes
to surveillance and enforcement.
In addition to the surveillance of frequency use, the
importance of surveillance on the trade in equipment is
equally high. The risks of interference as the result of using
equipment that deviates from the EMC and RED
stipulations or use that otherwise contravenes the
34
applicable standards are rising, primarily in licenceexempt bands with intensive use.
Frequency use requirements and equipment requirements
in legislation and standards are based on an expected risk
of interference. If the risk of interference is no longer
acceptable (e.g. due to changes in frequency use or an
increase in the noise floor), this may necessitate an
amendment to the requirements by feeding this back to
the relevant committees for frequency use and
standardisation.
With the increase in use of licence-exempt bands, adequate
surveillance of the actual use taking place in these bands is
crucial. Additionally, the development of surveillance may,
in the future, require adjustment to the financing model
for surveillance of licence-exempt applications owing to
the anticipated growth in the amount of equipment and
number of devices and applications and the increased
societal dependence on use.
“Telecommunication has become a
basic need and demands on frequency
spectrum are increasing, both in terms
of size and dynamics.
Radiocommunications Agency
Netherlands shall approach its role from
the perspective of social objectives and
risks. This memorandum gives us
additional instruments such as being
able to act as a mediator or arbiter in the
event of interference.”
Peter Spijkerman,
Director and Chief Inspector
Radiocommunications Agency Netherlands
The role of monitoring
Monitoring and analysis play an important role when it
comes to information-led and risk-oriented surveillance
and enforcement. In the future, monitoring and analysis
will focus not only on frequency monitoring, but also on
monitoring developments in electronic communication
domains, such as monitoring social and technical
developments, trends in (frequency) use and trade flows
for equipment on the internet. In addition to supporting
Radio Spectrum Policy Memorandum 2016
compliance monitoring, the general provision of
monitoring information for the purpose of facilitating
shared frequency use is increasingly important. A third
function is monitoring the effects of the radio spectrum
policy. To this end, a set of indicators will be developed,
with which developments can be monitored in the long
term. Monitoring policy effects at objective level is
dependent on many factors (including outside of the radio
spectrum policy), where the effect at main objective level is
difficult to determine. The policy effect indicators to be
developed will therefore dovetail as closely as possible
with the set of instruments that is used to accomplish the
objectives. This will help to create effect indicators that
match the effectiveness of the set of instruments.
Actions
Actions that will be taken are:
Implementation:
• In conjunction with sectors and stakeholders,
Radiocommunications Agency Netherlands shall
examine how the method of implementation can be
better tailored to developments and needs and how the
mix of available instruments can be used effectively.
• In the assignment of licences, Radiocommunications
Agency Netherlands shall aim for increased sharing
and more dynamic use of spectrum. This shall include
the use of the Licensed Shared Access (LSA)
instrument.
• Within the context of assessing the needs justification
plans (NJP), Radiocommunications Agency
Netherlands shall make use of elaborated criteria and
establish a process to facilitate third-party use.
• Based on the new social developments,
Radiocommunications Agency Netherlands shall map
the risks of interference.
• Radiocommunications Agency Netherlands shall
conduct research into interference scenarios that
occur through increased use and more sharing and
third-party use of spectrum.
• Radiocommunications Agency Netherlands shall
measure the (increase in the) noise floor that is caused
by the increased use of (radio) equipment.
• Radiocommunications Agency Netherlands shall
educate installers and manufacturers in preventing
interference.
• Radiocommunications Agency Netherlands shall give
further attention to the topics of standardisation,
spectrum useage requirements for licence-exempt use
and EMC and where appropriate, draw up proposals
for amendments to equipment requirements and
standards.
Surveillance:
• Radiocommunications Agency Netherlands provides for
24-hour accessibility and availability for vital
government tasks.
• A broadening of the role of supervisory body to that of
mediator and arbiter.
• Radiocommunications Agency Netherlands shall
mediate in cases where no regulations have been
contravened but interference has nevertheless
occurred.
• Research shall be conducted into how
Radiocommunications Agency Netherlands can
implement powers to issue binding instructions
following unsuccessful mediation in situations where
interference has occurred. This research shall form
the basis for a surveillance framework.
• The Ministry of Economic Affairs shall undertake
actions to reduce the risk of interference occurring as
the result of increased pressure on spectrum and
sharing.
• Radiocommunications Agency Netherlands shall
intensify surveillance of licence-exempt applications
and monitoring of the associated frequency bands.
Research shall be conducted into a possible amendment
of the related financing model.
Monitoring:
• Radiocommunications Agency Netherlands shall
investigate how monitoring information can be made
generally available.
• In collaboration with Radiocommunications Agency
Netherlands, the Ministry of Economic Affairs shall
develop policy indicators that provide insight into the
effectiveness of the instruments of the radio spectrum
policy.
Radio Spectrum Policy Memorandum 2016
35
36
5
In conclusion
The Netherlands needs good telecommunications
facilities. In a certain sense, they are the basis for a
(potentially) flourishing economy. Research shows that
telecommunication plays an important role in economic
growth.33 Within the array of telecommunications options,
the tremendous increase in the use of wireless applications
is striking. Telecommunication (including wireless
communication) has become an important driving force
for the economy.
In recent years, frequency use (wireless communication)
has developed from ‘nice to have’ into ‘need to have’.
The strong societal dependence on connectivity and the
opportunities presented by modern technologies such as
LTE (and, in the near future, 5G) will see sector-specific and
business-specific demands on telecommunication increase
significantly in the years ahead.
The Ministry of Economic Affairs holds the view that, with
respect to the Radio Spectrum Policy Memorandum 2005,
a shift in focus is required in the new radio spectrum
policy in order to support and provide further assistance to
social and technological developments. This shift in focus
can take place within the framework of the central
objective of effective frequency use. This central objective
remains determinant for the radio spectrum policy, in
other words that frequencies are allocated, assigned and
used effectively. This involves both efficiency, i.e. not using
more spectrum than is necessary for a specific application,
and effectiveness, i.e. having sufficient spectrum to
achieve the intended economic and social objectives.
Where the Radio Spectrum Policy Memorandum 2005 gave
the policy scope primarily for economic interest, a shift in
focus takes place that is aimed at the growing societal
dependence on wireless communication and safeguarding
the public interest.
33
This shift in focus of the central objective of effective
frequency use is aimed at:
• A market that operates efficiently
• Meeting social developments
• Safeguarding public interests
Recent years have shown that a market that operates
efficiently produces high quality mobile networks and a
wide selection of services. The key principle of the radio
spectrum policy remains a market that operates efficiently,
whilst safeguarding public-interest tasks. In the first
instance, this is achieved by awarding (scarce) licences.
These continue to be awarded principally through
auctions, with extensions granted where social reasons
necessitate them. In addition, a competitive market also
requires licence-exempt access to spectrum. This offers
scope for new innovative applications.
It is essential to shape the market in such a way that social
developments can be absorbed and safeguarded by the
market itself to the fullest extent possible. Where
necessary, additional regulations may be imposed to
support these developments and safeguard public
interests.
In this context, increasing use adds to pressure on the
frequency spectrum, necessitating more efficient use of
spectrum. To accomplish this, more focus is being placed
on sharing and third-party use of spectrum.
Specifically, the following actions are proposed.
Allocating spectrum
In order to allow the market to operate as efficient as
possible, the allocation in the National Frequency Plan is
as independent of technology and service as possible.
However, it may be necessary to implement specific
allocations in order to meet social and cultural interests.
Research by Dialogic (2004) carried out on behalf of the Ministry of
Economic Affairs shows that telecommunication accounts for 36%
of the growth in GNP.
Radio Spectrum Policy Memorandum 2016
37
Actions that will be taken are:
• Allocations that are as broad as possible, with enough
space to provide for (national) social and cultural
interests, including through arrangements on shared
allocation.
• The Ministry of Economic Affairs shall make the
procedure for amending the NFP more comprehensible
and shall facilitate greater transparency.
Scarce licences and market regulation
When it comes to scarce licences, use of a market-oriented
instrument remains a necessity. These licences are
auctioned, and extended only in exceptional cases, where
doing so is in the public interest, for example if an
extension is critical to supporting the transition from
analogue to digital technology. These interests must be
explicitly clear; a price must be determined for the licence
extension that is in line with the market price, a price that
accurately reflects the value of the market opportunities
for other potential users of the licence in question. Within
the context of auctions, specific provisions may be applied
and requirements imposed on the licence in order to
safeguard the public interest.
Actions that will be taken are:
• The Ministry of Economic Affairs shall clarify the
objectives of awards and concrete elaboration
(in auction models) in a timely and predictable manner
to allow the market to better prepare for investment
decisions.
• The Ministry of Economic Affairs shall compile the
Strategic Memorandum for Mobile Communication to
set out the objectives for the awarding of licences for
mobile communication, specify the dates at which
licences will be awarded and justify and where
possible, flesh out the need for requirements to be
attached to the licences, including coverage
obligations.
• In addition, the Ministry of Economic Affairs shall
compile a Strategic Memorandum for Broadcasting
Distribution in liaison with the Ministry of Education,
Culture and Science concerning the frameworks for
the awarding of (commercial) broadcasting licences,
with a focus on aspects including the transition from
analogue to digital and the opportunities for
cooperation and tradability.
• The Ministry of Economic Affairs shall formulate policy
to address how third-party use and tradability can be
promoted in conjunction with one another, including
through the possibility of forced sale or leasing.
38
Spectrum for performing public-interest tasks
For public-interest tasks, it remains necessary to have
access to adequate spectrum. The instrument of needs
justification will continue. Attention is desired in the
needs justification for (the creation of) opportunities for
third-party use and the role of commercial service
provision for the exercising of public-interest tasks.
Actions that will be taken are:
• The next NJP phase (2017-2020) will be designed
primarily to provide input to more efficient spectrum
use.
• The elaboration of opportunities for collaboration
between governmental services, opportunities for
commercial service provision and opportunities for
third-party use and sharing when assessing the NJP.
• In addition, the Ministry of Economic Affairs/
Radiocommunications Agency Netherlands shall
establish a process within the context of the NJP to
facilitate and stimulate third-party use and sharing.
Supply and demand shall be brought closer together.
• The outcomes of this NJP phase shall be evaluated in
2020-2021 (for their contribution to more efficient
spectrum use).
Business-specific applications
The government as well as business has a growing need for
wireless communications solutions for business-critical
applications. However, the market currently meets this
need to only a limited extent. Attention must be paid to
the interplay between supply and demand and the way in
which this is achieved. The government can play a
facilitating role in this.
A solution may be to reserve spectrum for these
applications. In this respect, the set of instruments is
focused on sharing of the spectrum. Third-party use of
government spectrum and spectrum leasing also play a
role here.
Actions that will be taken are:
• The Ministry of Economic Affairs shall facilitate the
growing need for wireless communications solutions for
business-specific applications.
• Where necessary, the Ministry of Economic Affairs
shall play a facilitating role in the interplay between
supply and demand and the way in which this is
achieved.
• If applicable, the Ministry of Economic Affairs shall
offer spectrum for business-specific applications that
is consistent with existing standards such as LTE.
To obtain space for this at a national level in European
harmonised frequency bands, amendments to the
European telecoms framework are necessary.
Radio Spectrum Policy Memorandum 2016
These shall be introduced in negotiations for
revision of the legislative framework for electronic
communication.
• With a view to efficient use of the spectrum, the
Ministry of Economic Affairs shall place more
emphasis on spectrum leasing, which shall involve
assessing ways in which leasing can best be
implemented. See the related action for scare licences
and market regulation.
• The use of Award on Request requires further
consideration by the Ministry of Economic Affairs,
to include consideration of the anticipated increase in
pressure on use of the spectrum.
Licence-exempt use of spectrum
An efficient market offers space not only for service
provision on the basis of exclusive licences, but also
adequate space for licence-exempt use on account of the
low access threshold and the scope that this offers for
innovative developments. In some respects, the legislation
for licence-exempt spectrum is very specific and detailed.
Consequently, efforts are being made to ensure
simplification. As the playing field is of an international
nature, efforts shall be made to simplify and clarify
European legislation. Since these regulations are
implemented by means of standards, attention to
standardisation is also required here.
Actions that will be taken are:
• The Ministry of Economic Affairs shall work towards
adequate opportunities and towards lowering barriers
for the use of licence-exempt frequencies.
• Efforts to simplify European legislation and standards.
At EU level, the Ministry shall argue for a clarification
and simplification of European legislation.
Since these rules are implemented into technical
standards, the Ministry of Economic Affairs shall,
where necessary, make concrete proposals for the
establishment of standards
• Exploration of frequency demands for the Internet of
Things (IoT) within a European context.
• Monitor licence-exempt use and trends, such as IoT.
• Investigation of whether certain licence categories
can be made licence-exempt and the role of a
registration requirement.
Televulnerability
The economic and societal dependence on wireless
networks is increasing, and in turn, so is (tele)vulnerability.
The government needs to play an active role to raise
awareness in the market of the issue of televulnerability,
brought about by wireless communication.
Action that will be taken is:
• Radiocommunications Agency Netherlands commenced
the Televulnerability Programme at the end of 2015.
This programme aims to a) raise awareness of
telecommunications use and dependence on
telecommunication amongst parties and b) by sharing
best practice, research results and a helping hand, help
parties to reduce their televulnerability and in so doing,
increase their resilience. The Ministry of Economic
Affairs shall assess how this social interest task can be
perpetuated following the end of the programme.
Implementation and surveillance
Implementation must be tailored more to stimulating and
facilitating sharing and third-party use, including through
dynamic sharing (such as LSA).
• In conjunction with sectors and stakeholders,
Radiocommunications Agency Netherlands shall
examine how the method of implementation can be
better tailored to developments and needs and how the
mix of available instruments can be used effectively.
• In the assignment of licences, Radiocommunications
Agency Netherlands shall aim for more sharing and
more dynamic use of spectrum. This shall include the
use of the Licensed Shared Access (LSA) instrument.
• Within the context of assessing the needs justification
plans (NJP), Radiocommunications Agency
Netherlands shall make use of elaborated criteria and
establish a process to facilitate third-party use.
• Based on the new social developments,
Radiocommunications Agency Netherlands shall map
the risks of interference.
• Radiocommunications Agency Netherlands shall
conduct research into interference scenarios that
occur through increased use and more sharing and
third-party use of spectrum.
• Radiocommunications Agency Netherlands shall
measure the (increase in the) noise floor that is caused
by the increased use of (radio) equipment.
• Radiocommunications Agency Netherlands shall
educate installers and manufacturers in preventing
interference.
• Radiocommunications Agency Netherlands shall give
further attention to the topics of standardisation,
spectrum useage requirements for licence-exempt use
and EMC and where appropriate, draw up proposals
for amendments to equipment requirements and
standards.
Increased frequency use and societal dependence on
frequency use increase the importance of a modern and
adequate surveillance approach in which the supervisory
Radio Spectrum Policy Memorandum 2016
39
body has appropriate powers to act in a mediating and
guiding role (including when all users comply with the
regulations). In this context, it is essential that surveillance
for frequency use and equipment policy (EMC) are
coherent.
• Radiocommunications Agency Netherlands provides for
24-hour accessibility and availability for vital
government tasks.
• A broadening of the role of the supervisory body to that
of mediator and arbiter.
• Radiocommunications Agency Netherlands shall
mediate in cases where no regulations have been
contravened but interference has nevertheless
occurred.
• Research shall be conducted into how
Radiocommunications Agency Netherlands can
implement powers to issue binding instructions
following unsuccessful mediation in situations where
interference has occurred. This research shall form
the basis for a surveillance framework.
• The Ministry of Economic Affairs shall undertake
actions to reduce the risk of interference occurring as
the result of increased pressure on spectrum and
sharing.
• Radiocommunications Agency Netherlands shall
intensify surveillance of licence-exempt applications
and monitoring of the associated frequency bands.
Research shall be conducted into a possible amendment
of the related financing model.
40
This brings with it the need for the government to
maintain a good overview of how the market operates.
In this respect, monitoring of use is not only necessary for
proper surveillance, but also for policy. It provides insight
into actual use and the extent to which public interests are
actually being realised. This information may be used to
adjust policy as necessary.
• Radiocommunications Agency Netherlands shall
investigate how monitoring information can be made
generally available.
• In collaboration with Radiocommunications Agency
Netherlands, the Ministry of Economic Affairs shall
develop policy indicators that provide insight into the
effectiveness of the instruments of the radio spectrum
policy.
Radio Spectrum Policy Memorandum 2016
Radio Spectrum Policy Memorandum 2016
41
Appendix 1
Report on the dialogue
with stakeholders
The Ministry of Economic Affairs gave a diverse group of
stakeholders the opportunity to indicate the topics and
issues that they wanted to see included in the
memorandum. To this end, a number of round-table
sessions were organised between October 2015 and
April 2016.
The first topic, ‘scarce licences’, endorsed the principle that
scarce licences are finite and that, at the end of the licence
period, they are redistributed. However, participants
requested that attention be paid to ensuring timely award
or extension of licences and that the question of whether
or not there is scarcity be adopted as a principle in the
corresponding policy assessment. In addition, the
importance of predictable policy was also emphasised.
The government was requested to make timely and stable
decisions and to provide clarity regarding the policy
objectives it intends to achieve. The latter also relates to
any auction model that may be selected.
The broadcasting sector cited the unique nature of
broadcasting and made a plea for the allocation of specific
spectrum to accommodate this. Parties expressed their
desire for a single policy framework to be established for
licences for both broadcasting and mobile, and cited
primarily the duration of licences as an issue.
The tradability of licences was seen as a positive
instrument for allowing the market to work efficiently,
with the avoidance of speculation seen as the most
important point for attention.
In the second topic, ‘spectrum for market and
government’, the common view was that a shift is
underway in the direction of more business-critical
applications – in other words, a shift from nice-to-have to
need-to-have. Examples included airports, seaports,
the railways, hospitals and (large) cities. Two possible
solutions were specified for this social trend: private
frequencies for these companies and institutions, and the
purchase of the service from mobile operators. Technology
in mobile networks (4G/5G) increasingly makes it possible
to differentiate supply and to provide various guarantees
and Service Level Agreements with the aid of ‘network
slicing’ (network virtualisation). This could offer an
42
opening for business-critical and mission-critical
applications. The issue of doing it yourself (with own
frequencies) or purchasing services is a very current one
with governments that deal with mission-critical systems,
especially given the increase in technological possibilities.
However, the sessions concluded that, at present, supply
and demand are too far apart and that the Ministry of
Economic Affairs could play a facilitating role to help bring
these two processes closer together.
Given the increasing demand for spectrum, participants
considered the exclusive use of spectrum as something
that should only be done very occasionally and saw
sharing, and third-party use, of spectrum as a standard to
be aimed for. For broadband in rural and outlying areas,
there appears to be a tendency towards fixed connections
and in the transition period, spectrum is required for
specific solutions.
Furthermore, discussions at these round-table sessions
also dealt with the question of whether or not the
government might consider cooperation with other
governments (sharing) with regard to spectrum
requirements for public-interest tasks, and whether or not,
and to what extent, a service may be purchased on a
commercial basis. In relation to this topic, the sessions
also dealt with increasing third-party use of spectrum, but
that would require a case-by-case approach, classifications
of third-party use, adequate surveillance and sound
agreements for emergency situations. For government use
of spectrum, participants considered the needs
justification plan (NJP) the most adequate instrument for
ensuring more efficient spectrum use. By giving more
attention to the opportunities for sharing and third-party
use in the assessment of an NJP, this instrument can be
moved upwards to a higher level. In this context, the
government could help to move demand for spectrum
(e.g. from operators) and supply (by government users)
closer together.
The third topic considered ‘licence-exempt use of
spectrum and televulnerability’. It ought to be possible to
use ‘licence-exempt where possible’ as a guiding principle.
For licence-exempt use in particular, the principles
concerning use are important, as such they must be
Radio Spectrum Policy Memorandum 2016
properly regulated, especially concerning fair sharing of
spectrum use, i.e. ‘fair use’. Further growth of licenceexempt use, such as for the Internet of Things, requires a
focus on international harmonisation, the co-existence of
equipment (with fair use) and adequate spectrum.
Calls were made for innovation in licence-exempt use by
simplifying regulationapplying a small set of equipment
criteria based on spectrum load and efficiency. On the
issue of televulnerability, the responsibility on
organisations/companies was the central theme of the
discussion, but that sufficient attention is not always given
to risks. Risks can be classified according to the type of
application – is it a nice-to-have application, or one that is
critical to business? Can the risks be accepted?
And customers of telecommunications services should
look at more than just price; additionally, providers should
properly inform customers of the risks. The government
could play a role in raising awareness of vulnerability.
The fourth topic, ‘innovation in spectrum (management)’,
looked at two subjects: the defining role of technology and
the specific requirements of business-critical and missioncritical applications. Developments relating to businesscritical and mission-critical applications have already been
described under the topic ‘spectrum for market and
government’.
A far as the defining role of technology is concerned,
two areas were discussed in further detail.
In the first area, a pilot conducted by
Radiocommunications Agency Netherlands explored the
future opportunities for Licensed Shared Access (LSA).
LSA is an instrument for dynamic spectrum use, whereby
multiple users receive a defined level of Quality of Service
(QoS) in the same section of the spectrum. The pilot is
currently focused on one user group in the 2.3 – 2.4 GHz
frequency band. In the event that the pilot is a success,
LSA can be used at operational level and be expanded to
other user groups and possibly other frequency bands.
Participants expressed great interest in the opportunities
offered by LSA in the near future.
The second area looked at technological developments
relating to 5G, network virtualisation and software-defined
networks. 5G is seen as the realisation of a new generation
of network architecture based on network virtualisation – a
development that allows software to create different virtual
networks on a physical foundation, and offering (new)
providers the opportunity to supply specialised services,
particularly for mission-critical and business-critical
applications. The example was given of a virtual network
operator that can focus on a certain sector such as
healthcare, or even on service provision at European level.
When it comes to the radio spectrum policy, attention must
be given to considering whether or not a common physical
foundation needs to be facilitated to which providers each
contribute their own frequencies (a pool of frequencies)
which multiple operators can then use.
Finally, the tables looked at the issue of network security
and the importance of clean frequencies, free from
interference such as that caused by electrical equipment.
Detailed reports from the round-table discussions can be
found on the website of the Central Government.34
34
https://www.internetconsultatie.nl/nfb2016/document/2385.
Radio Spectrum Policy Memorandum 2016
43
Appendix 2
Reaction to the
consultation
In the consultation, a number of parties referred to the
importance of a coherent and efficient approach at
European level as a key principle. Only in exceptional cases
may deviations from this be possible. The desire for
harmonisation is justified, as scaling and international
standardisation of equipment do have a positive effect.
However, certain possibilities for exceptions remain
desirable, such as the allocation of harmonised frequency
bands for wireless broadband communication if the
demand for that spectrum lags behind that of other
Member States. The text in paragraph 2.4 has been refined
for this point.
In general, a longer licence period is advocated for licences
for mobile communication. Respondents in the mobile
sector endorse the use of auctions as means of awarding
licences, but advocate maintaining the current option of
extending licences in exceptional cases where this is
generally required or in the public interest. In the
broadcasting sector, various respondents cite the social
interest and character of the business case to indicate that
‘extend unless’ should be the general rule when assigning
frequencies for (commercial) radio broadcasting.
The principle of awarding scarce licences and not
extending them contributes to the government making a
careful assessment of economic and social interests when
deciding whether to auction or extend. The thinking
behind this principle is that important objectives such as
allocative efficiency and competition can best be
safeguarded if the rights to use of scarce licences are not
perpetual and if new parties regularly have the chance to
gain access to the spectrum. This is and remains relevant
both within the context of (scarce) frequencies for mobile
communication and for the distribution of (commercial)
analogue and digital radio broadcasting. This does not
imply that extension is out of the question entirely,
although this option is used only in exceptional cases
where it clearly serves the public interest. The text in
paragraph 4.2 has been clarified for this point.
Where there is generally support for the use of a marketcompliant set of instruments, respondents remark that
radio spectrum policy must not be confused with (general)
44
competition policy. Imposing requirements on the
awarding of licences (e.g. stricter coverage requirements) is
not a problem, but respondents do not wish to see
(wholesale) access obligations imposed. This is addressed
in the general regulatory framework of ACM. In the event
of demonstrable considerable market power, access
obligations can be imposed on the basis of this framework.
Another element concerns the forced sale or leasing of
licences. Respondents rightly report that decisions on sale
and leasing generally rest with the market parties
themselves. An active government role would only be
appropriate if the licence requirements are not properly
satisfied. The text for this point has been refined and
clarified. Moreover, the set of instruments includes,
alongside (forced) sale or leasing, the option of withdrawal
of licences if the licence conditions are not satisfied.
Mobile licensees continue to endorse the developments in
convergence towards fixed and mobile networks as
described in the memorandum. In this context there is a
difference of opinion amongst licensees as to the extent of
the consequences that this could have for radio spectrum
policy and, more specifically, awarding policy. This is an
aspect that has primary importance when it comes to
implementation of the policy in the award of licences for
mobile communication, given that convergence could play
a role in determining the extent of effective competition
on the market. The text of the memorandum has been
amended for this point.
Within the context of licence-exempt use of spectrum, it is
noted that there needs to be a proper balance between the
licensed spectrum and the licence-exempt spectrum,
as licence-exempt spectrum cannot be used for all
applications. In addition, it is also important to stress the
importance of international harmonisation, both in the
allocation of frequency bands for licence-exempt use and
for the conditions under which the licence-exempt
spectrum may be used. In view of the fact that this point is
already largely represented in the text, this has led to only
a minor amendment to the text.
There was broad support for the continuation of the
instrument of needs justification for spectrum for the
Radio Spectrum Policy Memorandum 2016
performance of public-interest tasks. A number of parties
questioned the scope of the NJP and made a plea for more
attention to be given to opportunities for third-party use
and commercial service provision. The text for this point
has been amended and refined.
Furthermore, reference was also made to the growing
relationship between mission-critical applications, for
which spectrum is allocated using the NJP instrument, and
business-critical applications. In this context, the sharing
of relevant spectrum between public order and security on
the one hand and business-critical use on the other was
cited as one specific solution. The text has been clarified
for this point.
Responses relating to business-specific applications are
mixed. A number of parties expressed satisfaction with the
attention given to business-specific applications in the
Radio Spectrum Policy Memorandum 2016. By contrast, a
number of parties disagree with the proposal for specific
provision of spectrum for business-specific applications,
or would prefer to see a degree of restraint. Doubt was
expressed as to whether or not current operators are able
to satisfy specific wishes with respect to service provision
in certain sectors. In addition, a number of parties do not
accept the option of incorporating a wholesale obligation
into a licence, which would compel the licensee to offer
access to his network to third parties.
The various responses indicate that when it comes to
making available specific spectrum for business-specific
applications, there is a need to seek a proper balance,
certainly when the supply of business-specific applications
is inadequate. In principle, it may be assumed that, taking
into account future technological developments, the
demand for business-specific applications will be largely
covered by mobile providers. Where this is not the case
however, the Ministry of Economic Affairs would like to
retain the option to make spectrum available. Imposing a
wholesale obligation is not deemed appropriate, in view of
the existing legislative framework. Therefore, reference to
this has been removed from the text.
In areas where parties consider that the government could
play a role, interpretation of the rules on net neutrality is
such that there is adequate certainty that business-critical
services may be legally offered with the necessary quality
guarantees.
The Ministry of Economic Affairs shall, with due
consideration for innovation and future technological
developments, carefully monitor the effects of the
European Regulation35 and the corresponding guidelines
of BEREC and, if necessary, urge the European Commission
to perform a timely evaluation of the regulations relating
to net neutrality and/or amend the guidelines.
When it comes to implementation and surveillance, there
is broad support for the changing role and responsibilities
of Radiocommunications Agency Netherlands. Many
parties emphasise the importance of surveillance and the
need for a widening of the surveillance function to that of
mediator and arbiter. One party challenged the legal
options for retrospective adjustments through the
issuance of binding instructions. As such a binding
instrument constitutes a far-reaching measure that should
be implemented with restraint, the text for this point has
been amended. It is now suggested that a binding
instruction can only be possible if mediation fails to reach
the desired result and that a supervisory framework must
be developed for its use.
Various parties refer to the increased risk of interference
due to the growing (shared) use of spectrum.
The importance of risk analyses and research into
interference is therefore on the increase. The text and the
actions to be taken by Radiocommunications Agency
Netherlands have been amended for this point.
In the responses there is also broad support for the
Televulnerability Programme and for increasing awareness
and resilience amongst citizens and business through
education. As this is already adequately covered in the text,
the text for this point has not been amended.
35
Regulation (EU) 2015/2120 dated 25 November 2015.
Radio Spectrum Policy Memorandum 2016
45
46
Radio Spectrum Policy Memorandum 2016
This is a publication of:
Ministry of Economic Affairs
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P.O. Box 20401 | 2500 ek The Hague
t (+)31 70 379 89 11
www.minez.nl
December 2016 | 100578