1. Combine Licensing of 800 MHz and 2.6 GHz Band
Facilitating Key Decisions

2. Purpose
To motivate for combined licensing of the 800 MHz and 2.6 GHz band and to facilitate key decisions in this regard
Before the band can be designed and a licensing framework can be concluded it is important to make key decisions to ensure that any further work is not muddled by contradictions and to reduce uncertainties

3. Main issues of consideration
What socio-economic issues to be considered? What government objectives are we addressing?
What is the motivation for combined licensing of 800 MHz and 2.6 GHz?
Why it makes sense to license 800 MHz now?
What about other BWA or IMT spectrum?
Preferred harmonized frequency arrangements
Why use preferred harmonized frequency arrangements?
What is required to ensure that we are aligned to preferred harmonized arrangements? And what are implications?
Timetable – commitments to realistic timelines
Other issues

4. What socio-economic issues to be considered?
Bridging the digital and urban-rural divide
800 MHz is good for less urban and rural areas (coverage driven)
2.6 GHz good for urban and capacity driven environment
Opportunity costs - Loss of revenue from spectrum license fee collection; Loss of revenue from sale of end-user services; Loss of capital investment (network rollout); Loss of opportunity to facilitate competition; Loss of job creation opportunities; Loss of contribution to tax and excises
Both issues talk to government outcome 6 and outputs 1 and 5
Outcome 6: An Efficient Competitive and Responsive Economic Infrastructure Network
Output 1: Improving competition and regulation
Output 5: Communication and Information technology

5. What is the motivation for combined licensing of 800 MHz and 2.6 GHz?
800 MHz is cost effective for coverage But extremely expensive if environment is capacity driven
Combined 800 MHz and 2.6 GHz is the most cost effective option – the band are complementary to each other
Combined 800 MHz and 2.6 GHz address both urban and rural

6. Why it makes sense to license 800 MHz now?
Definitely 800 MHz should be vacated by broadcasters after dual illumination or by 17 June 2015
Ensures that there is no delay of network deployment after the band is vacated by broadcasters
Possible interplay of Market forces: coordination by winners with incumbents may happen even before dual illumination

7. What about other BWA or IMT spectrum?
(See supplementary slides)
Some are exhausted - e.g. tradional GSM900, GSM1800 and 3G bands
Some are extensively used for other services – e.g. 450 – 470 MHz and 862 – 880 MHz
Some have no preferred harmonised frequency arrangement – e.g. 3.5 GHz
Some provide opportunity for spectrum pooling – e.g – 1920 MHz

8. Preferred harmonized frequency arrangements for 800 MHz and 2
Preferred harmonized frequency arrangements for 800 MHz and 2.6 GHz bands
790
FDD1
FDD2
FDD3
FDD4
FDD5
FDD6
11 MHz
796
801
806
811
816
821
791
832
837
842
847
852
857
862
Downlink
Uplink
(70 MHz) FDD Uplink
(50 MHz) TDD
(70 MHz) FDD Downlink
2500 MHz
2570
2620
2690

9. Why use preferred harmonized frequency arrangements?
To maximise the opportunities and benefits for end users and society
To benefit capital expenditure for operators
To reduce development and implementation costs of manufacturing equipment
To secure future long term investments by providing relevant economies of scale
To reduce complexity in cross border coordination.

10. How to ensure preferred harmonized arrangements? What are implications?
In-band migration of the incumbents is required
Neotel in 800 MHz
Sentech and WBS in 2.6 GHz
There are cost implications associated with migration
WBS have submitted costs
Neotel expected to incur huge cost as well

11. In-band migration in 800 MHz
790
FDD1
FDD2
FDD3
FDD4
FDD5
FDD6
11 MHz
796
801
806
811
816
821
791
832
837
842
847
852
857
862
Downlink
Uplink
One leg of Neotel’s current
assignment
790
FDD1
FDD2
FDD3
FDD4
FDD5
FDD6
11 MHz
796
801
806
811
816
821
791
832
837
842
847
852
857
862
Downlink
Uplink
Neotel proposed
assignment
There is another alternative for Neotel that can be explored in parallel

12. In-band migration in 2.6 GHz band
Sentech (50 MHz)
125 MHz Un-assigned
2500 MHz
2565
2690
WBS
55 MHz unassigned
15 MHz FDD
Sentech
20 MHz TDD
15 MHz TDD
WBS
(BEM restrictions)
2500
2555
2570
2590
2605
2620
2675
2690

13. Activity/deliverable
Time Table
Activity/deliverable
Date
Key decisions made on combined licensing and in-band migration
Mid-August 2011 (Critical path)
Consultation and negotiations with the incumbents completed
By 30 August 2011 (Council)
Combined draft licensing framework approved – including decision to Auction or Not, decision on Universal Service Obligations and targets.
Mid-August 2011 (Approval by Council)
Consultation/ workshop on draft licensing framework (including the Department of Communications and the Minister)
September 2011 (Council)
Final licensing framework
Mid-October 2011 (Approval by Council)
Approved terms of reference for a consultant to assist in licensing
By 30 August 2011 (critical path)
Consultant to assist with the licensing process procured
By 31 October 2011 (critical path)
Draft ITA approved and published
Mid-November 2011 (critical path) (Approval by Council)
Public comments on Draft ITA and public hearings
Mid-November to Mid-January (Council)
Final ITA published
By end of January (critical path)
Licensing
February and March 2012

14. Other issues to be considered as part of the framework
Scenario planning should allow parallel processes, reduce dependencies, mitigate uncertainties
Communication plan – to manage stakeholders and perceptions
Other key decisions to be made:
Auction, “beauty contest, or combination (proposal/ motivation to be tabled to Council)
Proposed Universal Service Obligations and rollout targets
Targets on new entrants and involvement of HDIs