APT study on alternatives to Spectrum Auctions

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APT study on alternatives to Spectrum Auctions
Study Question 1.7
Bharat Bhatia, Totsaporn Getu-adisorn, Anil
Kumar, Nguyen Ngoc Tien
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Objective of the study

• The objective of the study was to provide
  guidance to A/P regulators in deciding how to
  make the best selection to match their particular
  circumstances and the circumstances of their
  operators and end users from a range of options
  for allocating the spectrum to users.

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Rapporteur and Associate Rapporteurs for the
study

• Rapporteur
• Mr. Bharat Bhatia, Director, Motorola
• Associate Reporter
• Mr. Totsaporn Getu-adisorn, Director, The Post
  and Telegraph , Thailand
• Mr. Anil Kumar,Department of Telecommunications,
  India  
• Mr. Nguyen Ngoc Tien, Hanoi Post
  Telecommunication, S.R. of Vietnam

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Focus points of the study

• Compare the possible methods of allocation of
  spectrum including those methods already being
  used throughout Asia as well as Globally,
• Determine the situation(s) in which each method
  is the most suitable taking into consideration
  the relative maturity of current
  telecommunication sector in Asia, vs. that in
  other parts of the world
• The need to find ways of reducing spectrum costs

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Work Plan followed

• Developed a preliminary discussion paper with a
  survey questionnaire and distributed it to all
  APT members
• Responses received from Australia, Hong Kong,
  Malaysia Samoa and Thailand.
• Considered the input from the survey and
  undertook detailed study of the responses and the
  earlier reports
• Developed a preliminary draft report and
  discussed with associate rapporteur
• Prepared final report and submitted

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Earlier Study Reports considered

• ITU-D 1994 ( RAS/94/013).
• ITU Workshop on Licensing of 3G Mobile, 19-21
  September 2001
• UK consultation paper on spectrum pricing

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How will it promote common understanding among
APT members?

• The means to licence spectrum runs the gamut of
  first come first served through to spectrum
  rights auctions.
• Spectrum auctions, mostly outside the A/P region,
  have contributed to bankruptcies and slow rollout
  of telecommunication services.
• Asia Pac has a great diversity and number of
  economies and we need to take into account the
  earlier experiences and adopt best practices.
• The Study promotes adoption of common policies in
  similar circumstances.

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Key Recommendations of the study

• The radio frequency spectrum is a limited natural
  resource that is available equally to every
  country.
• This resource holds great potential and with
  proper deployment can be used to increase the
  efficiency and productivity of a nations work
  force as well as to enhance the quality of life.
• Societys increasing use of radio based telecom
  technologies and the tremendous opportunities
  that these technologies provide, highlights the
  importance of radio frequency spectrum

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Key Recommendations of the study

• There is universal acceptance of the need and
  importance of efficient spectrum management and
  strategies are needed to accommodate the needs of
  new technologies and new users
• Administrations should consider various
  alternatives to spectrum auctions as indicated in
  the report and not go for auctions
• In the event an auction becomes in evitable,
  various precautions as mentioned in the report
  may be observed before, during and after the
  auction process

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Key Recommendations of the study

• Overall national, regional and international
  interests in the area of the Spectrum use can be
  best met by accommodating everyones requirements
  through give and take.
• A uniform spectrum pricing policy for all users
  including various government and private users
  should be adopted.
• The spectrum pricing should not be aimed at
  raising revenue but should ensure efficient use
  of the radio frequency spectrum.
• The spectrum needs of social development sectors
  should receive special consideration.

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End use of the output

• The report provides the regulators with material
  they can used by the Asia Pac governments while
  deciding spectrum distribution and pricing
  policies. It provides a set of implementation
  options from which to select a method appropriate
  for each economy.