Discussion document on the award of available spectrum 1452 – 1492 MHz: Technical aspects

Introduction

Introduction

1.1 Ofcom, in March 2006, consulted on its proposals for the award of available spectrum in the 1452 – 1492 MHz frequency band (“the consultation document”). In the consultation document, Ofcom set out a number of factors relevant to the spectrum award. These included:

• the current use of the available spectrum (Section 2);
• background on potential uses of the available spectrum, based on a market study commissioned by Ofcom (Section 2);
• potential substitute spectrum that could be used to deliver similar services as those identified in the market study (Section 2);
• Ofcom’s powers and duties (Section 3);
• Ofcom’s approach to spectrum management, including its objectives for the award (Section 4);
• a range of international issues and an assessment of how these could impact on potential users of the available spectrum (Section 5);
• options for packaging the spectrum for the award (Section 6);
• issues to consider when determining auction formats for the award of spectrum (Section 7);
• options of auction formats for auctioning the available spectrum (Section 7); and
• proposed technical and regulatory conditions that would be specific to the wireless telegraphy licences that would be awarded to allow use of the available spectrum (Section 8).

1.2 As explained in the consultation document, Ofcom’s main objective in this award is to promote the optimal use of the electro-magnetic spectrum, particularly in the 1452 –1492 MHz frequency band. The proposals in the consultation document (and in this discussion document) are intended to secure that objective.

1.3 The proposed technical conditions in the March 2006 consultation document were intended to be the minimum necessary to a) ensure compliance with international agreements; and b) ensure effective use of the licensed frequencies, controlling interference between different licensed services.

1.4 For the 1452-1479.5 MHz sub-band this included:

• effective limits based on the Maastricht 2002 Special Arrangement;
• an out-of-block spectrum emission mask; and
• a proposal for an industry code of practice on engineering coordination to control adjacent-channel interference.

1.5 An extract from Section 8 of the consultation document that discusses the technical licence condition for 1452-1479.5MHz is included at annex 5.

Developments since the consultation document

1.6 For the 1452-1479.5 MHz sub-band the consultation asked the specific question, “Do you agree with the proposals for an industry code of practice on engineering coordination to control adjacent-channel interference?”

1.7 Although many respondents to this question agreed with the concept of an industry code of practice, many felt that there could be problems with the approach in practice as it could create unquantifiable risks. The central views could be summarised as saying that the approach would mean that bidders would not know at the time of auction what services would be in the adjacent spectrum. As a result it would be difficult to assign a value to a spectrum block prior to the auction as the extent and the ways that block could be used would be unknown. This uncertainty would have to be reflected in their bids and therefore the spectrum would not be allocated efficiently in the primary market.

1.8 Arqiva stated that “Not knowing the uses which the rest of the band is likely to be used for makes an investment case for bidding for some of this spectrum more difficult. There may be requirement to cap ERP and to use approved sites, requirements which may not be part of bidder’s business plans and consequently, may render licensees’ proposed services non viable.”

1.9 A number of other respondents (e.g. ASMS, Digital One, BT, Intellect) simply noted that the approach would be difficult to carry out if there were different technologies in adjacent spectrum which would cause uncertainty.

1.10 If an industry code of practice could not be agreed the BBC wanted Ofcom to be responsible for “instigating, implementing and enforcing a regulatory code of practice to control ACI”

1.11 NGW felt that the issues raised by different technologies, trading and liberalisation could be “managed or minimised by careful and co-ordinated network design and / or through tighter control of receiver specification”.

1.12 ESOA felt that the usage rights as currently defined were not clear enough and that the consultation did not explain how it would clarify those rights. Alcatel wanted each licensee to be provided with clear technical guidelines. In addition ONDAS, Fuba automotive, Mecel AB and Grundig Car InterMedia Systems felt that the measures laid out in the Maastricht and Wiesbaden Plans were sufficient and that no further code was required.

1.13 Orange suggested that Ofcom needed “to provide a clear time frame for the establishment and implementation of spectrum user rights and build an appropriate framework for this spectrum award”.

1.14 On 1st November 2006, Ofcom published a note on next steps arising from its consultation on Spectrum Usage Rights (SURs). The note stated:

“Ofcom accordingly proposes to focus further work on developing specific proposals for SURs on one or more forthcoming spectrum awards. Detailed proposals for the terms of possible SURs will be developed and presented alongside those for the more conventional spectrum mask approach, as part of the planned consultation process for these awards. It is likely that either or both of the 1452-1492MHz or 2500-2690MHz awards will present a suitable opportunity.”

Accordingly, this discussion document includes consideration of the form of SURs which would be suitable for 1452 – 1492 MHz frequency band.

Purpose of this discussion document

1.15 In this document, Ofcom has laid out a number of alternative approaches to the technical conditions associated with the award of the 1452-1479.5MHz sub band. These proposals are designed to address a number of the technical issues raised by the respondents.

1.16 At this point this document does not seek to fully address all of the points made by respondents to the original consultation or to revisit the other areas relevant to the award of the available spectrum which were addressed in the consultation document, e.g. options for packaging the available spectrum or auction design. As such this document should be read in conjunction with the consultation document. In addition Ofcom is simultaneously publishing a sister document that is looking at auction design for the award of this spectrum. Ofcom’s decision on all of these issues will be set out in its Statement on this award expected in the summer of 2007.

1.17 With any set of technical conditions there is a trade off between flexibility and thereby encouraging a wider range of services and technologies and giving the market greater certainty, but potentially reducing the flexible use of the spectrum. The conditions in the March 2006 consultation were closer to the former while the consultation responses suggested a preference for the latter. In addition the consultation responses raised a number of concerns that the proposed approach may not lead to an efficient allocation of the spectrum and as such may not fulfil Ofcom’s statutory duties. The revised technical conditions proposed in this document are designed to give the market sufficient certainty while not unduly inhibiting alternative technologies.

1.18 In this document Ofcom is laying out four proposals for the technical conditions of this band:

• Proposal 1 – A spectrum mask approach based on an augmented Maastricht mask, as referred to in the consultation document.
• Proposal 2 – A spectrum mask approach based on the ETSI critical mask
• Proposal 3 – A SURs approach based on an augmented Maastricht mask
• Proposal 4 – A SURs approach based on the ETSI critical mask

1.19 The technical conditions as they relate to SURs are laid out in detail in section 3 and Annex 6, however a few points are worth drawing out

• At this stage the proposal from the original consultation to have an industry agreed code of practice to deal with Adjacent Channel Interference remains
• Users of the spectrum still have the ability to negotiate with other users in the band if they require different usage rights

1.20 It should be noted that the technical rights of use of this band are still subject to all relevant international arrangements including EU harmonisation measures. As laid out in Ofcom’s statement in October 2006, the Radio Spectrum Committee ( RSC) has requested the European Conference of Postal and Telecommunications Administrations (CEPT) to make an assessment of the technical regulatory conditions and to recommend relevant provisions that can be made within the framework of the Maastricht 2002 Special Arrangement to allow a range of mobile multimedia technologies, in addition to T- DAB, to use the band. Following consideration of this report, one possible outcome could be that RSC will seek to develop an EC Decision regarding future use of the 1452-1479.5 MHz band which, if adopted, would be binding on the UK and other Member States. As such there is a possibility that the international conditions associated with the band may change.

1.21 Ofcom would welcome comments or views on any aspect of this discussion document by 12 April 2007 In particular on the following question:

Do stakeholders have any comments on the technical proposals made in this document or have any other comments on the contents of this document?

Structure of this discussion document

1.22 Section 2 of this discussion document summarises the proposed licensing options and the reasons for considering them. Section 3 explains the key features of a SURs-based approach to the technical conditions. Section 4 summarises the next steps.

1.23 Annex 1 sets out the process for responding to this discussion document, with Annex 2 setting out Ofcom’s consultation principles. Annex 3 contains a consultation coversheet, with Annex 4 setting out the question to which Ofcom is seeking stakeholders’ responses. Annex 5 is an extract from section 8 from the consultation document, which described the technical conditions as proposed in that document. Annex 6 describes in detail the SURs for the award and describes the assumptions used to calculate them. Annex 7 describes the assumptions and inputs used in the SUR modelling tool.