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Presentation on theme: "EFFICIENCY, LEGITIMACY, IMPACT Robert Horvitz  Director OPEN SPECTRUM FOUNDATION Amsterdam/Prague."— Presentation transcript:


2 1. SPECTRUM EFFICIENCY: Using the least amount of spectrum to deliver the greatest amount of information Erlangs/MHz/km 2 (voice) MBits/MHz/km 2 (data)

3 Spectrum Efficiency Bandwidth Efficiency Amount of information transmitted in a span of frequencies Usually expressed in bits per Hz. Frequency Re-use Using same span of frequencies at several locations simultaneously – Cellularity, antenna directivity, polarization, encoding Systems that are bandwidth efficient tend to have poor frequency re-use characteristics Time-sharing TDMA, listen-before-talk

4 1a FUNCTIONAL EFFICIENCY: The extent to which spectrum use fulfills specific practical needs

5 Private Mobile Radio (PMR) vs. Cellular/GSM GSM more technically efficient but less functionally efficient than PMR PMR: –Always-on/instant connectivity important for short calls –Group chat –Low-cost infrastructure –Fixed operating cost (no per-minute charges) –100 users can share a single PMR voice channel vs 40 for GSM (but GSM capacity improving/expandable)

6 2.BROADCAST EFFICIENCY Using the least amount of spectrum to reach the largest audience Cable is most efficient Satellites more efficient than terrestrial Compressed digital more efficient than analog Shared towers more efficient than solos Trade-off between number of channels and output power (coverage area) per transmitter

7 3.ECONOMIC EFFICIENCY Creating the most economic value with the least costly inputs

8 Economic Efficiency “Technical efficiency” - creating the most output with the least input (equipment, capital, labor, other resources including spectrum) “Allocative efficiency” – cost to user equals the marginal cost of production “Distributive efficiency” – goods are distributed in such a way that there are no further gains from trading

9 4.MODAL EFFICIENCY Using the simplest or least-costly infrastructure to deliver the widest variety of informational formats Digital broadband - convergence

10 “Modeling The Efficiency Properties Of Spectrum Management Regimes” by Carol Ting, Steven S. Wildman, Johannes M. Bauer - Michigan State University, 2004

11 Needed for an efficient spectrum market:  Large number of buyers and sellers –to create competition and choice  Clearly defined spectrum rights for buyers & sellers  Free entry and exit to the secondary markets  Fungibility of spectrum  Relevant information available to all buyers and sellers  A mechanism to bring buyers and seller together and facilitate the transaction with reasonable administrative costs and time delay.

12 LEGITIMACY Those who are part of agency’s operating environment accept the agency’s right to do what it does

13 Why does it matter? “Legitimacy is a source of strength. The agency’s effectiveness, and even its survival, depends on establishing its legitimacy. This is especially true of a new regulatory agency, and especially difficult for new agencies since legitimacy is usually accumulated gradually...” ---ECTA Regulatory Scorecard

14 Regulatory Impact Assessments (RIA) The process of systematically estimating the costs and benefits of a proposed regulation, in order to improve the effectiveness and efficiency of adopted regulations. At the beginning of 2001, regulators in 20 of 28 OECD countries routinely performed RIAs... although not in the same way

15 “When introducing measures which significantly affect trade in accountancy services, Members shall endeavour to provide opportunity for comment, and give consideration to such comments, before adoption...” ---WTO Council for Trade in Services, 1998: ”Disciplines on Domestic Regulation in the Accountancy Sector”

16 Robert Horvitz OPEN SPECTRUM FOUNDATION Amsterdam/Prague

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