1. Spectrum Sharing and Trading Africa Asia Regulatory Conference 2012 Helasiri Ranatunga Telecommunications Regulatory Commission of Sri Lanka 1

2. Table of contents Introduction Spectrum Sharing Spectrum Trading Trends in Reform Leading Practices Country Examples Conclusions 2

3. IntroductionIntroduction The demand for radio spectrum is growing very rapidly. Traditionally, use of radio spectrum has been highly regulated. Delayed the introduction and growth of a variety of beneficial technologies and services. Cost of the spectrum has increased due to an artificial scarcity. Gradual changes in practice of spectrum management and regulation. Light-handed regulation. 3

4. Spectrum Sharing Leasing of a given quantum of airwaves within a licensed service area for a mutually agreed period. Not a universal trend for all Regulators. Approaches are not similar. Increase efficiency in spectrum utilization and temporarily fulfilling the demand for spectrum. Spectrum sharing is generally treated as part of active infrastructure sharing. 4

5. Spectrum Sharing Spectrum sharing involves several techniques. Administrative Technical Market-based Interference cannot be eliminated in any of these methods and remain as an ongoing challenge for spectrum engineers 5

6. Spectrum Sharing Administrative Sharing Involves the Regulator’s actions to establish where sharing should take place and what rules should apply. Consultations with stakeholders to obtain necessary information to support decisions on sharing and technical standards. Encourage solutions based on negotiations between affected parties. Should adopt efficient and transparent processes for awarding licences. 6

7. Spectrum Sharing Technically enabled Sharing Technical efficiency can be measured as occupancy and data rate. Spectrum sharing technologies include Spread spectrum, Dynamic access and Ultra-wideband (UWB). Spread spectrum Underlay technique Signals with a very low spectral power density Technique of spreading a signal over a very wide bandwidth 7

8. Spectrum Sharing Technically enabled Sharing Ultra-wideband Underlay technique Short-range and indoor applications Easier to engineer extremely high data rates due to short duration of the UWB pulses Dynamic Spectrum Access Overlay technique Associated with, technologies and concepts such as Software Defined Radio (SDR) and Cognitive Radio. Detect unused frequencies Changing frequency bands and adjusting power as needed 8

9. Spectrum Trading More economically efficient use of frequencies. Trade will only take place if the spectrum is worth more to the new user than to the old user. Spectrum is initially assigned through the auction. Allows parties to transfer their spectrum rights and obligations for certain value. Possible for companies to expand more quickly. Easier for prospective new market entrants to acquire spectrum. 9

10. Spectrum Trading Should be few bureaucratic obstacles to the transfer of spectrum. Trust in unrestricted market forces. Should construct trading rules for the release of spectrum in ways that promote competition. Initial assignment mechanism chosen by the regulatory authority shapes the market structure by Dividing up the spectrum Limiting the maximum amount of spectrum any one user may acquire. 10

11. Spectrum Trading Availability of clear information, which frequencies are available, what they can be used for, who is currently using them, what needs to be done in order to obtain a right of use. After the primary assignment of spectrum, the regulator would only have to intervene if users wished to return spectrum, or right of use were withdrawn due to a breach of the conditions of use. Risk of a structure emerging which contains a monopoly or a dominant firm or firms. Acquisition of “excessive” spectrum, should be prevented by the regulatory authority 11

12. Spectrum Trading Establish rules that specify how spectrum trading should take place Prior approval of trades or transfers of spectrum. Set spectrum caps. Regulator should have the power to scrutinize and if appropriate, prohibit certain spectrum trades. Alternatively, Regulator decides the extension of spectrum usage right. Make sense to give the regulatory authority the option of withdrawing spectrum usage rights due to imperfections in the market. 12

13. Trends in Reform Policy and regulation have evolved considerably. Shift from traditional model, in countries where demand for radio spectrum use is rising fast. Some of the concepts supporting reforms include: Liberalization and flexibility; Technology and service neutrality; and Licensing reform including spectrum transfers. 13

14. Trends in Reform Regulatory Structure Combination of telecommunications, broadcasting and spectrum regulators can facilitate spectrum sharing. Examples; Australia, UK, Canada and Germany Debatable whether an independent spectrum Regulator should be combined with those of regulating competition and protecting consumers in downstream service markets. 14

15. Leading Practices In most countries, radio spectrum is, very closely managed and supervised as per ITU guidelines. Minimize harmful interference and referred to as the “command and control” model. Shift from traditional model, countries where demand for radio spectrum use is rising fast. 15

16. Leading Practices Spectrum User Rights Rights should be established to avoid conflicts Permit parties to re-negotiate rights when circumstances change. Licence Database The ability of potential sellers and buyers to keep track of current licences is important. Enable regulators to track and assess the usage of spectrum. Dispute Resolution Essential to have effective means of resolving issues between parties. 16

17. Country Examples New Zealand – Spectrum Trading Pioneered the application of competitive assignments based on auctions for radio spectrum. India – 3G and Broadband Wireless Access Department of Telecommunications (DOT) auctioned 3G spectrum in 22 service areas throughout the country in 2010, followed by auctioning of 2.3GHz band for BWA. Brazil – Broadband Wireless Access ANATEL in Brazil issued 4 licences per licensed area for 3G wireless deployment in the whole country. Operators are allowed to share spectrum in order to provide services in municipalities with less than 30,000 inhabitants. 17

18. Country Examples United Kingdom – Flexible User Rights and Spectrum Trading OFCOM is shifting spectrum policy towards a flexible system through the liberalization of spectrum usage rights and spectrum trading. Service and technological neutrality. United States – Flexible Spectrum Use and Broadband Wireless Access. Moved progressively in the direction of flexible use of spectrum. Spectrum trading, including the ability to lease spectrum. 18

19. Conclusion Should match with the Government overall policy. Proper regulatory framework should be in place. Rules, Regulations and Guidelines should be clearly specified. Determine practical methods for compliance monitoring. Effective mechanism should be available for dispute resolution. Shift away from exclusive use require both time and negotiation with stakeholders. Countries need to identify the challenges involved. 19

20. 20 Thank You.