Swedish Post and Telecom Authority Efficient spectrum awards and use Joakim Persson, PTS, Sweden

Mobile coverage - population and area Source: PTS, Operator coverage maps, European Commission, Digital Agenda Scoreboard 2014 Handheld outdoor PopArea Voice>99,9%84% 1 MBps99%39% 10 MBps98%42% 30 MBps61%2% All operators handheld outdoor

Mobile internet access and mobile broadband penetration Source: GSMA Intelligence 2013, European Commission, Digital Agenda Scoreboard 2014

Early years 1G 1980s, analogue Niche market, McKinsey: ” subscribers in US 2000” Televerket (now TeliaSonera) incumbent government de-facto monopolist, spectrum management, ”only market space for one operator” Tele2 establishes NMT900 2G GSM 1990s, digital, pan-European harmonised de-facto standard PTS established and takes over spectrum management from Telia Telia + Tele2: ”only market space for two operators” Europolitan (later Vodafone, Telenor) establishes 3rd GSM-network

Later years 3G Sweden in EU 1994, new legal framework UMTS 2000, ”broadband” Beauty contest 2000, 4 licences (Tele2, Europolitan, HI3G, Orange) ”100%” population coverage = people => Large number of sites Network sharing: SUNAB (Telia+Tele2), 3GIS (Europolitan+HI3G) National roaming HI3G in Europolitan/Vodafone GSM Orange returns license, spectrum divided among the other three Other beauty contests for 4th GSM license, FWA etc. New Electronic Communications Act 2003 enables auctions 450 MHz auction 2005, CDMA2000 HSPA 2007 ”real” broadband met real demand

Today 4G Digital dividend – refarming of 800 MHz broadcasting spectrum A number of auctions for 4G (LTE/WiMax), fixed link- spectrum/backhaul Re-assignment / prolongation / refarming of GSM-bands for UMTS/LTE etc. World’s first LTE-networks in Sweden and Norway by TeliaSonera 2009 Large scale spectrum trading: Tele2 & Telenor pools 2G/4G spectrum in Net4Mobility JV (800 MHz, 900 MHz, 1800 MHz, 2.6 GHz) 2.6 GHz 50 MHz TDD, Intel => HI3G

BandYearFormatBlocksCapMinimum bid ParticipantsWinnersWinning bids (MSEK) System/ Consultants Notes 450 MHz2005Single round sealed bid first price 1 block x 2 x 1.8 MHz FDD 1 license1 SEK 5 1, Nordisk Mobil Telefoni AB 86 MSEKLater expanded to 2x5 MHz GHz 2007 Simultaneous multi round ascending with switching 290 regions (municipal) x 4 blocks x 40 MHz (2 FDD & 2 TDD/ region) 1 40MHz- block per region SEK/ MHz & pop MSEK for 402 out of 1160 licences Optimal Auctions, NERA GHz 2008SMRA with switching 14 blocks x 2 x 5 MHz FDD, 1 block x 50 MHz TDD 140 MHz0.03 SEK/ MHz & pop 5 5, TeliaSonera, Tele2, Telenor, HI3G, Intel 2.1 Bn SEKDotEcon MHz 2008Single round sealed bid first price 1 block x 5 MHz TDD 1 license1 SEK21, iBand0.19 MSEK 28 GHz2009Clock auction 18 blocks x 2 x 28 MHz 8 blocks SEK / block 3 3, Net4Mobility, TeliaSonera, HI3G 0.91 MSEKPGP- encrypted 1 EUR ≈ 9 SEK

BandYearFormatBlocksCapMinimum bid ParticipantsWinnersWinning bids (MSEK) System/ Consultants Notes GHz II 2009 Limited combinatorial single round sealed bid first price, several auctions for clearing 758 municipal blocks x 40 MHz (FDD and TDD), 2 national blocks x 20 MHz (FDD/TDD) -1 SEK664.3 MSEK for 118 licences Left-over licences assigned according to first come-first served 10.5 GHz2011 Full combinatorial single round sealed bid first price 3 blocks x 2 x 28 MHz -1 SEK11, HI3G4 MSEK for 2 blocks GHz 2011Single round sealed bid first price 13 regional (county) blocks x 2 x 28 MHz -1 SEK110.1 MSEK for 1 license 800 MHz2011SMRA with switching 6 Blocks x 2 x 5 MHz FDD 2 blocks, 2x10 MHz 1.6 SEK/ MHz & pop 5 3, Net4Mobility, TeliaSonera, HI3G 2.05 Bn SEKComputech 1 block with 300 MSEK of auction proceeds as roll- out obligation in appointed areas (1 Mbps broadband for households and companies) 1800 MHz2011 Clock auction, Vickrey- Clarke- Groves placement round 7 blocks x 2 x 5 MHz FDD -0.1 SEK/ MHz & pop 3 2, Net4Mobility, TeliaSonera 1.35 Bn SEKOptimal Auctions, NERA 1 EUR ≈ 9 SEK

Today’s challenges Consumers’ rising dependence and expectations of mobile coverage/capacity Mobile behaviour, fixed-mobile substitution Rural, in-door Coverage is not about dBµV/m outdoors - it is based on the consumer experience “if it’s not working – it’s bad coverage” Long-term effects on competition of consolidation, network sharing, spectrum pooling? What is 5G supposed to be?