1 2 nd INDUSTRY CONSULATION ON PROPOSED UNIFIED LICENSING FRAMEWORK IN KENYA: KCCT 19 th March 2008 Frequency Issues Communications Commission of Kenya Unified Licensing Stakeholders Forum, 19 Mar '08

Spectrum Auctions (1) 1.Spectrum auctions should not be considered as it has failed in various jurisdictions and is likely to increase the cost to the end user. –First come first served and comparative methods not a viable propositions where there are competing demands –Lotteries are competitively neutral and non discriminatory method of granting licenses. –The auction process is the only viable, transparent and fair allocation method where there is great scarcity of spectrum 2Unified Licensing Stakeholders Forum, 19 Mar '08

Spectrum Auctions (2) 2.How often will spectrum auctions be held if this is the way the commission intends to go? –Technological trends, availability of Spectrum and industry demands will dictate the frequency of the exercises –Auctions will not be a way to artificially restrict supply since this will be done with full consultation with the industry 3.Auctions should be done with transparency, efficiency, independence and non discrimination in mind. –Spectrum Auctions will be done on a specific spectrum bands that have been identified as suitable for a service or services in demand. 3Unified Licensing Stakeholders Forum, 19 Mar '08

Need for transparency 1.There is need for transparency on the subject of current spectrum utilization particularly in regard to availability of clean spectrum as well as rules for spectrum auctioning Processes of enabling Spectrum access will be transparent Auction rules will be published and reasonable suggestions will be taken on board 4Unified Licensing Stakeholders Forum, 19 Mar '08

Need for transparency (2) 2.Fair allocation of frequency resources is needed Commission has always ensured fairness. There are avenues for redress 5Unified Licensing Stakeholders Forum, 19 Mar '08

Spectrum Charging 1.Matrix used for charging operators should be looked into and a more appropriate charging system created. 2.Issue of spectrum fees dependent on coverage as well as locality. With regard to 1 & 2 above, Commission agrees and is in the process of reviewing the methodologies of spectrum pricing 6Unified Licensing Stakeholders Forum, 19 Mar '08

Spectrum Charging (2) 3.Tx/Rx per MHz per location charging model should be abolished and replaced with a flat rate within a geographical area. New pricing mechanism to be all inclusive –Transmitted power and bandwidth occupancy –Geographical zoning –Band congestion index –Exclusivity 7Unified Licensing Stakeholders Forum, 19 Mar '08

Existing operators vs new players 1.Spectrum that is available should be split between existing and new players 2.There is need for equitable allocation of spectrum among all Tiers of NFP going forward With regard to 1 & 2 above, market forces will prevail, taking into account competition issues 8Unified Licensing Stakeholders Forum, 19 Mar '08

Transitional issues Spectrum allocation should be guaranteed for full duration of licence period. Any variations to allocation be made only after consultation and agreement by affected licensee. Rights & benefits attached to spectrum allocations should be protected irrespective of whether or not a licensee migrates to the new licensing framework –Service continuity of existing customers, to be fully addressed by the auction rules 9Unified Licensing Stakeholders Forum, 19 Mar '08

Access fees 1.Care need to be taken not to resort to spectrum fee charging modalities that increase the operator costs of operation Spectrum access fees shall be dependent on: the amount of spectrum, locality the coverage (regional, localized or national) and the offers made in the bidding/evaluation process. 10Unified Licensing Stakeholders Forum, 19 Mar '08

3G services Under the unified licensing framework and pursuant to the inherent technology neutrality principle, we expect to be able to provide such services as 3G subject to acquisition of requisite frequency spectrum There are such possibilities subject to the outcome of the consultation process currently going on 11Unified Licensing Stakeholders Forum, 19 Mar '08

Need for transparency A clear view of the current spectrum allocation and how it is used. Spectrum a finite resource, there is more demand than supply. The ever increasing demands is brought about by: –ever increasing number of new services. –ever increasing number of users & providers of existing services Planning done globally, International treaty, ITU Radio Regulations Article 5 Downloadable National Table of Frequency Allocations 12Unified Licensing Stakeholders Forum, 19 Mar '08

SPECIFIC QUESTIONS BY TNOA 1.Spectrum allocation table and how it is used The table is revised after 4 yrs and is available on the CCK website 1.Current assignment of following bands: 450 MHz ( MHz & to MHz) 700 MHz 800 MHz ( MHz & MHz) P-GSM ( MHz and 935 – 960 MHz) 2.3GHz – 2.6GHz 13Unified Licensing Stakeholders Forum, 19 Mar '08

Spectrum allocation Frequency planning starts at global level Article 5 of ITU Radio Regulations Kenya National Table of Frequency Allocations Current assignment are in the following bands 450 MHz ( MHz & to MHz) 700 MHz 800 MHz ( MHz & MHz) P-GSM ( MHz and 935 – 960 MHz) 2.3GHz – 2.6GHz 14Unified Licensing Stakeholders Forum, 19 Mar '08

Insufficient bandwidth Assignment of insufficient bandwidth Spectrum is finite resource an there is more demand than supply and it will never enough at any given time The problem is being addressed in many ways but operators should continually use spectrum efficient technologies 15Unified Licensing Stakeholders Forum, 19 Mar '08

Allocations in 450 MHz band ( MHz & MHz) Band MHz : Government services Fixed wireless access systems Private radio networks Radio alarm networks 16Unified Licensing Stakeholders Forum, 19 Mar '08

Allocations in 700 MHz band 1.Band 470 – 790 allocated to terrestrial television broadcasting 2.Not available to TNOA 17Unified Licensing Stakeholders Forum, 19 Mar '08

Allocations in 800 MHz Band MHz band869 – 894 MHz band 790 – 862 MHz currently assigned to TV Broadcasting/Fixed/footnote allocation to Mobile in Kenya TKL and Govt Band MHz to be relinquished by broadcasting service after transition, year MHz : Guardband 870 – 875 MHz : TKL 875 – 890 MHz : Govt 880 – MHz : TKL 890 – 900 MHz : Safaricom – 890 MHz : Econet 18Unified Licensing Stakeholders Forum, 19 Mar '08

Allocations in P-GSM Band MHz935 – 960 MHz MHz : TKL MHz : TKL MHz : Econet MHz : Econet MHz : Safaricom MHz: Safaricom 900 – 905 MHz : TKL945 – 950 MHz : TKL 905 – 915 MHz : Celtel950 – 960 MHz : Celtel 19Unified Licensing Stakeholders Forum, 19 Mar '08

Allocations in 2.3 – 2.6 GHz band 1.Currently in use government radio networks. 2.Band GHz band currently utilized on shared non protected basis as per CCK guidelines –Maximum eirp 100 mW –Secondary basis –Approval prior to installation 20Unified Licensing Stakeholders Forum, 19 Mar '08

TNOA request for DoD & KBC frequencies What are the plans to release the frequencies currently being held by DoD and Broadcasters ( specifically KBC)? What is the road map? –The frequencies assigned for use by DoD : NO COMMENT –For KBC matters relevant to a broadcasters forum. 21Unified Licensing Stakeholders Forum, 19 Mar '08

22 Thank you Unified Licensing Stakeholders Forum, 19 Mar '08