1. TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4 Radcomms 2014 Balancing certainty and flexibility — an industry perspective Brian Miller, General Manager Regulatory Operations Telstra Corporation September 2014

2. Industry values both certainty and flexibility Industry is seeking:  Regulatory certainty – clearly defined and stable rules for the allocation and use of spectrum  Regulatory flexibility – rules provide flexibility for changes in use of spectrum over time Both are possible - need to find the right balance What does industry value? Balancing certainty and flexibility — an industry perspective

3. Certainty and flexibility – existing licences Balancing certainty and flexibility — an industry perspective Certainty Flexibility Spectrum licences Apparatus licences Class licences Class licences Scientific apparatus licences

4. Promoting investment in radiocommunications infrastructure Minimise regulatory risk so industry can focus on the technology and commercial risks Billions of dollars invested in mobile infrastructure, and the wider economic benefits, depend on regulatory certainty Why is regulatory certainty important? Balancing certainty and flexibility — an industry perspective

5. Key requirements:  Frequency range  Geographic area  Power constraints  Term of rights – at least 15 years for mobile  Presumption of renewal  Easements for sharing Clearly defined and timely administrative processes for planning, assigning and changing rights Strategic APT and ITU engagement to create certainty for existing and future use of spectrum rights in Australia Delivering certainty – robust spectrum access rights Balancing certainty and flexibility — an industry perspective

6. Spectrum access rights are meaningless without effective compliance and enforcement Key issues  Stemming supply of unauthorised transmitting devices – especially from offshore sources (e.g., mobile repeaters)  Managing increasing RF emission levels from non- radiocommunications devices  Stronger penalties and more enforcement resources  Education of industry and public  Effective dispute resolution mechanisms (conciliation process in RC Act has not been used) Delivering certainty – compliance and enforcement Balancing certainty and flexibility — an industry perspective

7. Adapting to changes in customer demand Adapting to ongoing changes in technologies Adapting to changes in international spectrum plans and standards (e.g., ITU and 3GPP) Innovation! Why is flexibility important? Balancing certainty and flexibility — an industry perspective

8. Technology neutral rights Ability for right holders to easily reshape and trade/lease rights Use proceeds from government sale of spectrum to compensate displaced incumbent right holders Sell rights with incumbent use rather than waiting for clearance Open access rights (class licences) for ubiquitous low power wireless devices Temporary rights for testing ideas – e.g., scientific apparatus licences Review boundary between regulator control and industry self management – and between prescription and principles Delivering flexibility Balancing certainty and flexibility — an industry perspective

9. Certainty and flexibility - car sharing Balancing certainty and flexibility — an industry perspective

10. Strong property rights are used to deliver certainty and flexibility in car sharing schemes. Spectrum is becoming increasingly expensive and users are looking for more affordable ways of gaining access but with more certainty and flexibility than a class licence (public transport) Can insurance play a role in providing right holders with greater confidence to share spectrum with other users? Is the equivalent of a online car sharing market an option to assist spectrum access? What regulatory incentives can be put in place to promote sharing of spectrum while maintaining the integrity of rights? What can we learn from car sharing? Balancing certainty and flexibility — an industry perspective

11. Spectrum rights  Robust design  Presumption of renewal  Use of spectrum sale proceeds to compensate incumbents  Sell rights with incumbent use Operational arrangements  Clarity and timeliness of administrative processes  Effective APT and ITU engagement  Strengthen compliance and enforcement  Greater use of principles and industry self management? Summary – some key opportunities Balancing certainty and flexibility — an industry perspective

12. Thank you – questions? Balancing certainty and flexibility — an industry perspective