Towards Efficient Spectrum Allocation

1
Towards Efficient Spectrum Allocation

• APT Policies and Regulation Forum
• July 2003
• Hiroshi ASAMI
• Director
• International Cooperation Division,
• Ministry of Public Management, Home Affairs,
• Posts and Telecommunications (MPHPT), JAPAN

2
Frequency Allocation
3
Transparent Frequency Allocation Process
Development of licensing policy and technical
conditions
Surveillance of actual radio frequency use,
publicity and evaluation thereof
Domestically decided frequency allocation
Radio station license
International frequency allocation
(Specific requirements for licensing)
(Frequency assignment plan)
(Individual assignment)
Ensuring fairness and improving transparency in
the process of decision-making process
Participation of the private-sector members in
the delegation to ITU WRC
Implementation of the procedures for gathering
opinions widely from the public and reflecting
the public comments to the policy
ltRadio Regulatory Councilgt
Deliberations upon assignment plans, etc. are
being made in accordance with the principle of
disclosure through public comment procedures.
Implementation of public comment procedures in
developing Japans proposals
ltTelecommunications Councilgt
Deliberations upon technical conditions are
being made in accordance with the principle of
disclosure.
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Frequency Assignment Plan

• Table outlining conditions concerning allocated
  services, objectives of radio stations and use of
  frequencies

• Publicizing via the Internet, etc.

• In altering the Frequency Assignment Plan,
  transparency is maintained through inquiries to
  the Radio Regulatory Council, invitation of
  public comments, etc.

2110 2170 MHz bands (excerpts from the
Frequency Assignment Plan
Purpose of Radio Stations (5)
Conditions for Use of Frequencies (6)
Commercial Telecommunications Service
The use of this frequency band in the Fixed
Service is allowed only until 30 November 2002.
Commercial Telecommunications Service (Portable
Radio Communications)
An assignment to the Portable Radio
Communications is subject to Annex 7-2.
SPACE RESEARCH (deep space) (Earth-to-space)
SPACE RESEARCH (deep space) (Earth-to-space)
Public Service General Service
Commercial Telecommunications Service
Commercial Telecommunications Service
The use of this frequency band in the Fixed
Service is allowed only until 30 November 2002.
Commercial Telecommunications Service (Portable
Radio Communications)
An assignment to the Portable Radio
Communications is subject to Annex 7-2.
Commercial Telecommunications Service
The use of this frequency band in the Fixed
Service is allowed only until 30 November 2002.
SPACE RESEARCH (deep space) (Earth-to-space)
Commercial Telecommunications Service
Commercial Telecommunications Service Public
Service

  Columns (1) through (3) in this Table indicate
the international frequency allocations contained
in the RR of ITU. Japan belongs to Region 3.
5
Examination Procedures for Application for Radio
Station License

• Applications for radio stations are processed by
  a comparative examination system on a competitive
  basis or first-come-first-served basis.
• Standards for comparative examination system are
  to be decided through procedures for inviting
  public comments and then made public.

• Procedures for competitive application process

MPHPT accepts applications for radio station
licenses within a period of time as specified by
the Minister for Public Management, Home Affairs,
Posts and Telecommunications, and after this
period examines those applications accepted.

• Base stations for use of telecommunications
  services
• Satellite stations for use of telecommunications
  services
• Broadcasting stations

• Examples of competitive application process

Licenses of base stations for IMT-2000 (3G mobile
telephone) and land mobile stations (April
2000) Licenses of satellite stations for use of
mobile satellite systems in 2.5/2.6GHz bands
(October 2001)
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Efficient and transparent Allocation
7
Trends in use of radio spectrums

78.32 million stations
Number of radio stations
About 20 times
3.81 million stations
Mobile 75.80 million
About 700 times
Mobile 1.07 million
5.317 stations
Mobile 4,119
Fixed 90,000
Fixed 38,000
Fixed 593
Broadcasting 24,000
Broadcasting 30,000
Broadcasting 129
Other 2.68 million
Other 2.40 million
Other 476
December 2002
September 1950
March 1985
8
Realization of New Frequency Reallocation
Severe shortage of assignable frequencies
Appropriate response to new demand for radio
spectrums including wireless access is vital.
Large-scale and swift reallocations are vital.
In order to allocate necessary frequency bands
for new demand
ltEnsure transparencygt The amended Radio Law was
enacted on April 26, 2002, and promulgated
October 31, 2002.
ltSwift implementation of reallocationsgt Conclusion
will be reached within FY2003
(1) Surveillance on actual use of radio
spectrums, and publication thereof Prior survey
was commenced in late November 2002 All
frequency bands will be surveyed within a 3-year
period. (2) Expanded information disclosure
Launch of disclosure in March 2003 http//www.tele
.soumu.go.jp/j/musen/index.htm One million
accesses were recorded in 10 days after launch
(1) Compensation for existing licensees Where
a period until the reallocation is five years or
less, remaining book values of facilities are to
be compensated. (2) Desirable burden sharing for
compensation Appropriation of cost sharing of
new licensees and the Spectrum User Fees (new
licensees will shoulder at least 50)
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Radio Policy Visions
10
Development of mid- to long-term vision (Radio
Policy Vision)
Develop a mid- to long-term vision (the Radio
Policy Vision) for drawing up a blueprint on
future radio spectrum use and for promoting
radio regulatory administration from the
viewpoints of the ICT strategy and international
strategy. (A report will be compiled by mid
FY2003.)
Development of the Radio Policy Vision
Circumstances surrounding radio administration
Policy targets in the future and promotion
measures thereof
Mid- to long-term perspectives

• Socioeconomic roles of radio spectrums in the
  future
• Future perspectives of radio spectrum use
• Future trends in radio spectrum use
• Demand forecast for radio spectrums in the future

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Radio Spectrum Auction(1)
(1) Merits/demerits of auction systems
Demerits
Merits

• Swiftness of frequency assignment procedures
  higher transparency clear reasons for winners
  and losers
• Incentives for effective radio spectrum use
  through collection of prices
• Contribution to the national financial basis

• Skyrocketing of bid prices caused negative
  effects on managerial basis/investment of
  telecommunications carriers, affecting
  manufacturers
• For users, concern about an increase in charges,
  deteriorated service quality
• Fear of radio spectrum monopoly by a carrier
  with abundant funding

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Radio Spectrum Auction(2)
(2) Examples in Western countries
ltExample in the U.S.gt
ltExample in Europegt
Nonpayment of winning bidders
Effects on managerial basics

• Skyrocketing of bid prices
• U.S. cellular telephones
• Some 2.15 trillion yen
• U.K. next-generation
• mobile phone
• Some 3.75 trillion yen
• German next-generation mobile phone
• Some 5 trillion yen

• Delay in service start-up
• Emergence of areas without service
• Mobile telephony service provision status
• Cellular telephone (C block)
• Implementation area ratio 17
• Population coverage ratio 15

• Credit rating was lowered due to increased debts
  and corporate bonds
• British Telecom
• the U.K.
• Aa1?Baa1
• lowered 6 ratings (Moodys)

Loss of IT industry vigor due to delay in
facilities investment
Introduction of auctions in Japan is
inappropriate.
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Desirable Radio Policy(1)
Construction of the worlds most advanced
wireless broadband environment

• Advancement and expanded use of mobile
  communications
• 330 to 340 MHz bandwidth frequencies shall
  be ensured within 5 years
• 1.06 to 1.38 GHz bandwidth frequencies 4
  to 5 times the current frequencies
• shall be ensured for a long term (10
  years after)
• Advancement and expanded use of wireless LAN
  (mainly in 5GHz bands)
• Maximum 480 MHz bandwidth frequencies
  shall be ensured within 5 years
• For best-effort type wireless LAN systems,
  maximum 740 MHz bandwidth
• frequencies about 5 times the current
  frequencies shall be ensured for a long
• term (10 years after)
• Advancement and introduction of systems for
  radio spectrum use toward
• realization of ubiquitous networks
• To appropriately respond to demands for
  RFID (ultrasmall chips),
• the Quasi-Zenith satellites, etc.

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Desirable Radio Policy(2)
Promotion measures for the mid- to long-term
frequency assignment and reallocation

• Ensuring of transparency and fairness in
  licensing procedures
• Consideration of new comparative
  examination system
• Smooth and swift implementation of frequency
  reallocation
• Implementation of frequency reallocation
  by making use of surveillance radio
• spectrum use and disclosure system thereof
• Consideration of a compensation scheme for
  existing licensees upon the
• short-term reallocation
• Flexible assignment of radio spectrums
• Expansion of shared use (commons) for
  further diffusion of low-power radio systems
• Expansion of radio spectrum assignments
  considering differences in localities
• Consideration of UWB introduction
• Grouping of similar radio systems

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Desirable Radio Policy(3)
Promotion of RD

• Promotion of prioritized RD
• RD on technologies for effective radio spectrum
  use
• Fostering of researchers in the radio field
• Simplification of licensing procedures for
  short-term test station

Further strengthening of international strategy

• Strengthening of industry-government-academia
  tie-ups toward WRC,
• international standardization
• Promotion of harmonization with Asian countries
• Human capacity building in response to
  specialized technical studies at ITU
• Ensuring of orbits and frequencies
• Strengthening of international strategy for
  expanding the wireless industry

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Desirable Radio Policy(4)
Preparation of safe and secure environment for
radio spectrum use

• Promotion of bio-EMC
• Promotion of EMC
• Preparation of environments for radio spectrum
  use (ensuring of security)
• Promotion of countermeasures against illegal
  radio stations, etc.

Promotion of smooth introduction of radio
terminals

• Implementation of supplier's declaration of
  conformity system
• Further promotion of MRA
• Preparation of frameworks for international
  roaming of terminals

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Mobile Communication Systems
18
Number of Subscribers to Cell Phones in Japan
January 200379.4million(including PHS)
(Million)
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Development of Mobile Phone Services
Voice telephony
Analog Digital
Internet
Multimedia (pictures,moving images)
Growing demand for multimedia
-1-
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Changing Generations of Mobile-communications
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Present status of IMT-2000
-4-
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Wireless access system in JAPAN
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Evolution of Mobile Internet Access Systems
Mobility
High (Vehicle)
New element of systems beyond IMT-2000 (4G)
Enhancement of IMT-2000 (3.5G)
Existing Cellular (2G)
IMT-2000 (3G)
Low (Pedestrian)
PHS
Nomadic (indoor)
Wireless LAN/access (2.4GHz)
Wireless LAN/access (5GHz)
Wireless LAN/access (25GHz)
Wireless LAN/access (60GHz)
Fixed
FWA(Fixed Wireless Access)
Transmission speed 0.1
1 10
100 1000
(Mbps)
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Systems beyond IMT-2000
Systems beyond IMT-2000
A long-term plan required for RD and
allocating frequency Discussion has already
begun within the ITU-R (WP8F) MPHPTs
Telecommunications Council has reported the basic
concept (June 2001)
Key Elements
1. Very high-speed communication (50-100Mbps)
equivalent to OPT fiber 2. All IP network
(IPV6) 3. Integration of cellular type and
wireless LAN type system. 4. Use of Software
Defined Radio technology (Note3G network
will not be replaced by new elements,
rather co-exists with them)