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Important legal notice: The information on this site is subject to a disclaimer, and a copyright notice. |
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Coordination
of EU spectrum interests
Assignment
and pricing methods for more effective spectrum usage
Action of the RSPG in the field of the digital dividend:
"A unique opportunity for accelerating innovation in wireless communications in Europe"
Background:
The switchover from analogue to digital TV broadcasting creates significant spectrum efficiency gains due to the superior transmission capacity of digital terrestrial platforms such as DVB-T in MPEG-2 and MPEG-4 and soon DVB-T2. This strategic investment by broadcasters is therefore allowing releasing a significant amount of spectrum in a relatively similar time frame in Europe in the most valuable UHF band, the band which has "ideal" propagation characteristics for many uses (long reach and good building penetration). This is usually referred to as the "digital dividend" as it results from the "profit" of replacing the analogue technology by a more efficient digital one. In turn, this offers consumers and service providers with a unique opportunity for cheaper, better and wide-ranging services.
The challenge:
As developed in the Commission Communication COM (2007) 700 on "Reaping the full benefits of the digital dividend in Europe: A common approach to the use of the spectrum released by the digital switchover", it is critical to maximise the potential impact of the digital dividend on the society and the economy. This implies to ensure that local, national, as well as EU level action aim at enabling the most valuable services to access the digital dividend in a both efficient and economical manner. The Commission response to this challenge is outlined in Communication COM(2009)586 on "Transforming the digital dividend into social benefits and economic growth".
History of RSPG's action in the field:
The RSPG adopted an Opinion in February 2007 on the EU spectrum policy implications of the digital dividend. The opinion contained 15 different suggestions for consideration by the Commission.
Already in previous Opinions, in particular on the Digital Switchover and on Multimedia Services in 2004 and 2006, the RSPG had laid out the ground work for action on the digital dividend, in a relatively visionary approach for this early period preceding RRC-06.
In preparing its work programme 2009, the RSPG has therefore decided that revisiting the work that has resulted in the initial RSPG Opinion of 2007 is timely. As the review of Electronic Communications Framework approaches its end, and the European Institutions appear to be coming to a conclusion on several aspects of the switchover from analogue to digital broadcasting, the RSPG considers that in the light of the Parliament’s recommendations (September 2008), and especially, in light of the technological developments and the progress made by national administrations, there is a need to revisit its opinion on this subject with special regard to the fact that any decisions on the digital dividend should allow for the promotion of general interest objectives and the development of new services by electronic communications operators, and should take into account the benefits of a coordinated approach, including harmonisation, where appropriate
Current work and planned deliverables:
The RSPG has created a Working Group on the digital dividend, chaired by Mr. Mike Byrne, Commissioner for ComReg (Ireland), which is examining how the digital dividend can be used on a technology and service neutral basis, while promoting new and innovative applications and services. The group also liaises with the ongoing Commission commissioned study by external consultants.
The main objective of this activity is to ensure that the RSPG provides timely input to the Commission in order to best define a roadmap for Europe in this respect, in line with the work to be done on wireless broadband issues.
13 May 2009: Adoption of the RSPG Position Paper and agreement to submit the draft Opinion to public consultation (public consultation will end on 30 June 2009).
5 November 2009 (RSPG#20): New RSPG Opinion on the Digital Dividend, focused on the 800 MHz band.
Planned on 9 June 2010 (RSPG#22): Adoption of a Report outlining additional possibilities to increase the impact of the Digital Dividend.
Action of the RSPG in the field of "Wireless Broadband"
Background:
Over the past 15-20 years the Internet has fundamentally changed our lives and transformed Europe’s economy: broadband became fundamental. This progress will accelerate as mobile Internet and ultra-fast broadband make it possible to deliver innovative services to more people, reaching out to the poorest and most remote communities of Europe. The European broadband market is developing rapidly. In January 2008, the average broadband penetration in Europe was 20%, with huge differences among Member States. In some Member States the penetration rate is above 30% while in others it is less than 10%.
The challenge:
Wireless communications will become more important as a complement to wired access for consumers, as broadband services seek to penetrate further in rural areas and as the capacity and cost constraints of wired broadband services become more prevalent. A new and competitive wireless infrastructure would allow the introduction of lighter touch regulation, give space for infrastructure competition and deliver consumer benefits. The regulatory decisions to accelerate these developments lie with the Commission and the Member States because these services may require more bandwidth and/or more efficient use of spectrum.
It has been acknowledged recently that the efficient use of spectrum is a vital factor in the development of broadband services in order to overcome the digital divide and to act a as a vector for growth in the European economy at a time of serious economic difficulties. The RSPG considers that there is a need to comprehensively approach the case of the digital divide and to attempt to identify regulatory challenges and market opportunities regarding the development of wireless broadband services. Therefore the RSPG systematically analysed Member States’ practices regarding the digital divide, the development of policy implications of possible fixed network roll-out and the competition issues related to wireless broadband services. The document may serve as an input to the wireless broadband strategy plans in Europe, including in relation to Next Generation Networks and the potential for wireless solutions to assist in delivering Next Generation Access to European citizens and consumers.
The Position Paper:
The RSPG has adopted a Position Paper covering these issues at its 19th Meeting on 13 May 2009. The main objective is to provide strategic guidance for EU policy making, in form of a high level position paper that is designed to maximise the delivery of benefits to consumers, citizens and society as a whole from wireless broadband services. The paper focuses on:
reviewing “Best practices” which could be taken to facilitate the roll-out of wireless broadband services;
ensuring that the potential lack of suitable spectrum does not create a bottleneck in the provision of wireless broadband services and forward this message to the stakeholders.
Action of the RSPG in preparation for the World Radiocommunication Conference in 2011 and for future such conferences
Background:
There is a necessity in representing a more finely-tuned EU approach at international forums such as the ITU Radiocommunications Conferences, regional and international negotiations as well as bordering multinational discussions. It is a common view of the RSPG that the European spectrum community should address these issues in a comprehensive and well thought forward level. As part of the preparation for the next World Radio Conference in 2011 (WRC-11) the RSPG is ready to assist the Member States and the community with common approaches in order to bring the best out of the negotiations. Following the adoption of the revised framework for electronic communications, the RSPG will have the role to advise on the multi-annual radio spectrum policy programme to be adopted by Council and Parliament. In this context, the RSPG should identify as early as possible the main themes of the WRC-11 to be backed by EU-wide support. The group will provide advice on how to best promote the identified policies at the negotiations.
Also, as part of the RSPG’s monitoring exercise the group will look at the outstanding issues of outer border spectrum coordination within the EU.
The challenge:
The Community is not a member of the ITU (all EU Member States are) and the preparations for Europe are conducted within the framework of the CEPT, which has a wider membership than the EU Member States and the other European states that apply EU law. The preparations .start early following the previous conference, which requires reconciling the need for an early input with coherent and up-to date action by the EU Member States in the ITU negotiations, where Community policies are concerned.
History of RSPG's action in the field:
In February 2007, the RSPG adopted an Opinion in view of the preparation of the World Radio Conference 2007 which concluded in November 23, 2005. The opinion contained 9 different suggestions for consideration by the Commission.
Current work and planned deliverables:
The RSPG has created a working group on the WRC preparation, chaired by Mr. Francois Rancy, ANFR (France), which is drafting two Opinions, one one the specific issues on the WRC-11 agenda, and another on the wider issue of coordination of EU Spectrum issues
Draft opinion: RSPG #19, 2Q 2009
Adoption of the opinion: RSPG #20, 4Q 2009
Action of the RSPG in the field of assignment and pricing methods for more effective spectrum usage
Background:
The assignment of spectrum is managed by national governments and relevant national regulatory authorities (NRA). The methods used for the assignment – competitive selection procedures (auctions, beauty contests) and "first come first served" procedures are decided by national authorities. In order to optimise spectrum use, spectrum managers can design specific assignment procedures and apply market mechanisms (spectrum pricing and trading).
The challenge:
Radio spectrum is a public good and essential resource for wireless communications. There is a growing need for spectrum for commercial use and a significant use by public sector bodies at the same time. Long-term spectrum policy goals pursued at EU level are the use of spectrum on the technology and service neutral basis and ensuring a coherent authorisation scheme. The purpose of an assignment method is to identify applicants who are able to maximise the value of spectrum used in both economic and social terms. The transparency and information for spectrum applicants are crucial during the assignment procedure. The decision makers should also take into account other important aspects such as impact on competition (anti-competitive hoarding of spectrum) and social issues.
Current work and planned deliverables:
The RSPG working group on Assignment and pricing methods held its first meeting on 11 March 2009 during which the outline of the activity, working methods and indicative timing were approved. After the meeting, a questionnaire with 37 questions divided into the following subgroups was developed:
I. Background of the assignment procedure
II. Assignment methods
III. Frequency fee and charge systems
IV. Pricing formulas
The questionnaire was sent to RSPG members. The results were discussed at the second meeting of the working group on 4 May 2009. A status report including the summarised results of the questionnaire will be prepared for RSPG#19. The final report should be submitted at RSPG#20 and a decision will be taken on potential next steps.
It is important to emphasise that the working group does not have the intention to elaborate a set of prescriptive rules or recommend a single best practice regarding the assignment and pricing methods, but to enable sharing of experience and to identify a number of best practices among national regulatory authorities in the EU.
Action of the RSPG in the field of competition in cooperation with the European Regulators Group (ERG)
Background:
Convergence, digitalisation and technological advance call for a new regulatory approach allowing more freedom for spectrum users including service and technology neutrality and trading of spectrum rights. Many of the issues on the agenda for the RSPG are directly or indirectly competition related, furthermore, many of the issues on the ERG agenda are spectrum related. Spectrum management and market regulation will increasingly intertwine in the future. Many policy and regulatory aspects related to a new, more flexible, approach would have to involve the ERG as well as the RSPG.
Following a joint meeting between the RSPG and the ERG in Gothenburg early 2008 it was decided to elaborate the potential areas of cooperation and to produce one or more reports focusing on the area of spectrum and competition aspects. Deliverables could then be issued both as an RSPG and ERG Report. The goal is to provide strategic guidance and advice when it comes to the cross border section of sector specific regulation and spectrum management in the field of competition.
The challenge:
A situation is emerging where the distinction between different infrastructure access methods is becoming less important given that similar services can be provided over a number of different platforms. In many cases, there is no fundamental difference any longer between fixed and wireless networks when they offer similar services (or similar user experience despite differences in performances). Convergence in infrastructure and services unavoidably raises questions regarding the need for convergence in policies and regulatory approach. In this context, a common view and approach between regulators are necessary.
This process leads to regulatory challenges and a number of questions that need to be answered. What tools are needed for regulators and spectrum management authorities tomorrow, in particular in the three following areas?
Transitional issues – how does the transition to a liberalised "spectrum management" system affect competition (windfall gains or losses, continuity of existing contracts, etc)?
Increased risk of use of spectrum to establish dominant positions in markets – how can dominance in the spectrum domain be handled (hoarding, etc)? Influence of spectrum management in competition in downstream markets?
Market definitions – how does the emergence and multiplication of new wireless services affect the broader context of definition of relevant markets (at EU level but also at national level)?
Current work and deliverables:
Both the RSPG and the ERG have given a positive view on the first two deliverables which are therefore now adopted and can be found under the following links:
2. Risk of use of spectrum to establish a dominant position in markets
The development of the third report concerning market definitions was started recently. Results are expected by the beginning of next year.
Action of the RSPG concerning cognitive technologies
Background:
Cognitive technologies can be a key driver of innovation and more efficient use of spectrum. They have the potential to offer considerable benefits across a broad range of applications. Cognitive technologies may allow for real time spectrum management and are capable of increasing spectrum efficiency significantly.
The challenge:
The initial work under this activity focuses on the definition of cognitive radio (including the difference with software defined radio), the different models / scenarios for application of cognitive technologies and the foreseen regulatory responses.
The contribution of cognitive technologies to efficiency of spectrum usage and the current (technological and regulatory) developments (for example ‘white space devices’) will also be further addressed.
Current work and planned deliverables:
Work is currently underway in an RSPG working group chaired by Mr. Fokko Bos from the Netherlands.
The first goal is to produce an RSPG report in November 2009.
Action of the RSPG concerning the future of radio broadcasting
At its meeting on the 11th February 2010 the Radio
Spectrum Policy Group (RSPG) decided that there was a need to study in more
detail the future of radio broadcasting in Europe with a view to understand
possible spectrum implications. PTS (Sweden) has volunteered to chair this work.
A report of the group is expected at RSPG#23 in November 2010.