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SECONDARY SPECTRUM TRADING. OPPORTUNITIES AND DIFFICULTIES IN EU Ana Gónzalez David Rojo Claudio Feijóo Sergio Ramos Grupo de Tecnologías de la Información y las Comunicaciones (GTIC) Escuela Técnica Superior de Ingenieros de Telecomunicación Universidad Politécnica de Madrid (Spain)
Summary Introduction Spectrum trading: new approach for spectrum management in the EU Opportunities from spectrum trading Difficulties from spectrum trading Conclusions
Introduction radio spectrum: valuable/scarce natural resource Detailed regulation over time harmonisation and interference control Technological convergence source of innovation, but scarcity Spectrum management policy Are traditional methods proper? spectrum scarcity innovation not agile Possible solutions for improving efficiency? Technological based Market based oriented secondary spectrum trading Situation in EU: new EU regulatory framework for electronic communications
Spectrum trading: new approach for spectrum management in the EU Traditional approach Development of a pan-European services market boost EU industry (i.e. GSM) Centralised decision making (allocation/assignments) avoid interferences Other mechanism since liberalisation: unlicensed use of spectrum, auctions Liberalisation (regulation) + growing demand for spectrum new tools? Harmonisation and efficiency New EU regulatory framework for electronic communications Awareness of increasing importance of radio spectrum Decision No 676/2002/EC on “a regulatory framework for radio spectrum policy in the EU” general principles
Spectrum trading: new approach for spectrum management in the EU (II) General principles established in the “Radio spectrum Decision” facilitate policy making with regard to the strategic planning and harmonisation of the use of radio spectrum in the Community taking into consideration inter alia economic, safety, health, public interest, freedom of expression, cultural, scientific, social and technical aspects of Community policies as well as the various interests of radio spectrum user communities with the aim of optimising the use of radio spectrum and of avoiding harmful interference; ensure the effective implementation of radio spectrum policy in the Community, and in particular establish a general methodology to ensure harmonised conditions for the availability and efficient use of radio spectrum; ensure the coordinated and timely provision of information concerning the allocation, availability and use of radio spectrum in the Community; ensure the effective coordination of Community interests in international negotiations where radio spectrum use affects Community policies;
Spectrum trading: new approach for spectrum management in the EU (III) Main novelty regarding radio spectrum management in new EU framework “Member States may make provision for undertakings to transfer rights to use radio frequencies with other undertakings ” as an effective mean of increasing efficient use of spectrum Not mandatory statement Secondary spectrum trading General conditions Notification to NRA responsible of radio spectrum Follow NRA procedure, made public Safeguard “competition” Respect previous harmonisation by Decision regarding “change of use” Further details left to Member States Already, some differences (implementation, scope, conditions, etc.) Early stages
Opportunities from spectrum trading Efficiency in usage + basic input for services overall benefits for sector Potential opportunities/difficulties depend on specific conditions laid down Scope of trading: transfer of rights vs. change in use Transfer of rights assignment by “user” Change of use allocation by “user” Possibility of mixture of both: degree of liberalisation Implementation details left to EU Member States
Opportunities from spectrum trading (II) Spectrum efficiency: infra-used spectrum Spectrum management flexibility: dynamism of telecommunications sector (adjustment to demand/offering changes), individual asset, less administrative burdens Innovation promotion: incentive in wireless technologies innovation, principle of technological neutrality Competition: lower market entry barriers Spectrum pricing: fairness in market values based on demand characteristics Transparency promotion: critical issue, NRA support, favour decision making in complex/dynamic environment
Difficulties from spectrum trading Legislative underpinning: additional regulation for details regarding practical implementation, clear regulatory framework, “primary” assignment International harmonisation and coordination: interferences in cross- border regions, standardisation of radio equipment, previous harmonised radiofrequencies under “Radio spectrum Decision” are to be respected, differences in Member States best practices and discussion Interference control Fragmentation of radio spectrum: special attention to “change of use”, impact on scale economies Hoarding of radio spectrum: competition rules should avoid hoarding and blocking access to competitors, possible speculation, application of competition rules and case-by-case study Different frequencies particularities: uses, scarcity, social-economic importance, attention to specific bands (i.e. broadcasting)
Conclusions Evolution of radio spectrum management policy in EU Specific service based (harmonisation) general principles efficiency Alignment with a more “flexible” EU regulatory framework Spectrum trading: market-oriented tool Opportunities and difficulties regarding practical implementation Early stages General principles, but details? Feasible a-priori solution for improving efficiency, but “Progressive” liberalisation scope: from “transfer of rights” to “change of use” Avoid speculation against general objectives Avoid fragmentation Pilot experiences in Member States Best practices and discussions Transparency for improving decision making Major role by Spectrum Management Authorities Further research: detailed implementation of spectrum trading across Member States
Questions? Thank you for your attention
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