Malawi Communications Regulatory Authority (MACRA)

1. Malawi Communications Regulatory Authority (MACRA) DIGITAL MIGRATION, LICENSING & DIGITAL DIVIDEND 1steCRG CONFERENCE ON DIGITAL MIGRATION Presented by: Lloyd Momba Chancellor College Great Hall, Zomba – Malawi 12th December, 2012

2. PART ONE (1) Digital Migration Promoting Universal ICT Access

3. WHAT IS DIGITAL MIGRATION? • All sound is indeed analogue, thus a human ear can easily understand analogue signals. • Digital migration can be described as a transition process from analogue to digital technology in terms of the delivery of broadcasting services (television & radio) using digital compliant platforms as opposed to the current analogue set-up. • While digital migration involves technological development and innovation, in essence, it can be understood as a social and economic process because it will also have unprecedented social and economic benefits. • During the Regional Radio Conference (RRC) in 2006, the ITU set an international deadline of 17th June 2015 for the migration to all-digital television broadcasting, also known as Digital Terrestrial Television (DTT). • SADC considered an earlier migration date of 31st December, 2013. Promoting Universal ICT Access

4. GE-06 FINAL ACTS • GE-06 defines “other primary terrestrial services” as “The primary terrestrial services other than the broadcasting service, and the primary radio astronomy service, to which the frequency bands 174‑230 MHz and/or 470-862 MHz are allocated in the Planning Area in accordance with Article 5 of the Radio Regulations” • Assignments between 790 - 862 MHz (DD1) and 694 – 790 MHz (DD2) have been identified for IMT services. • The Final Acts declaration • “In signing the Final Acts of the Regional Radio Communication Conference for the revision of the 1989 Geneva Agreement (RRC 06 - REV GE 89),The Government of Malawi reserves its right to take any action it deems necessary in the event of any administration failing to comply with the provisions of this agreement”. Promoting Universal ICT Access

5. DIGITAL TV BROADCASTING STANDARDS Terrestrial • Digital Video Broadcasting (DVB-T) - Region 1 – system B. • Advanced Television Systems Committee (ATSC) – USA – sys C • Integrated Services Digital Broadcasting (ISDB-T)- Japan – sys A. • Digital Terrestrial Multimedia Broadcasting (DTMB) - China • Other Standards • Mobile TV (DVB-H, MediaFlo). • Internet Protocol Television (IPTV) for 2 way interactive services. Promoting Universal ICT Access

6. DIGITAL AUDIO BROADCASTING STANDARDS Terrestrial • Terrestrial Digital Audio Broadcasting (T-DAB) – reg. 1 • Digital Radio Mondiale (DRM) – for HF radio broadcasting. • DTSB / ISBD-TSB (Terrestrial Digital Sound Broadcasting). • In Band On Channel (IBOC) – USA standard for FM. • Other Parameters • Set Top Box – with CA for signal access. • MPEG 2 / MPEG 4 for compression. Promoting Universal ICT Access

7. TRANSITION MODELS Transition from analogue to digital broadcasting can be mainly achieved on the end user part through two basic models namely; Use of STB • Reception for both VHF and UHF channels. Use of digital TV • TV receiver with built-in digital tuner for the reception of digital TV signals. You do not necessarily need an HDTV receiver. Promoting Universal ICT Access

8. ANALOGUE SYSTEMS Promoting Universal ICT Access

9. DIGITAL SYSTEMS Promoting Universal ICT Access

10. KEY PLANNING CONSIDERATION #1 Promoting Universal ICT Access

11. KEY PLANNING CONSIDERATION #2 Promoting Universal ICT Access

12. KEY PLANNING CONSIDERATION #3 Promoting Universal ICT Access

13. KEY PLANNING CONSIDERATION #4 Promoting Universal ICT Access

14. KEY PLANNING CONSIDERATION #5 Promoting Universal ICT Access

15. PART TWO (2) Licensing Promoting Universal ICT Access

16. A license authorizes an entity to provide services or operate networks/facilities within the agreed framework as defined by the terms and conditions of the licence. Licenses generally define the terms and conditions under which the operator should provide the service or operate the network. Any licensing framework must be designed to cater for specific competition and consumer protection issues. The right balance between several factors i.e. ease of entry, varying access technologies, technical efficiency and consumer protection must be maintained. WHY LICENSING? Promoting Universal ICT Access

17. Current licensing structure deploys the vertical licensing approach with different modes of service delivery. These different modes can be accessed through distinct end-user devices. Each service had been tightly linked to a specific form of infrastructure and end-user equipment. The framework authorizes the provision of separately defined categories for various services. The use of Radio frequency spectrum is authorized in a separate license CURRENT LICENSING FRAMEWORK Promoting Universal ICT Access

18. VERTICAL LICENSING FRAMEWORK Lease Lines, Int. Gw, Fixed, Fixed Wireless Mobile phone, SMS, Int. G/W Internet Service Provisio TV, Radio Facility Services Not licensed MTL/ ACL AIRTEL/TNM BROADCAST ISP / DATA Operators

19. CONVERGENCE Promoting Universal ICT Access

20. Convergence has evolved over the years catering across several parameters i.e. Services : Evidenced by the convergence of Fixed – Mobile services. Networks: Evidenced by different services through common networks i.e. Fibre optic. Markets: Overlap between markets catering for the sector i.e. e-money. Regulation: The difference of maintaining different rules in a common sector. THE CONVERGENCE PATH Promoting Universal ICT Access

21. Convergence can be described in three (3) basic levels Device combining multiple functions into a single device that accesses multiple services across multiple access technologies i.e. mobile phone. Service combining multiple access based services to create a unified user experience with a single offered service i.e. Fixed – Mobile convergence Networks combining separate networks and support systems to create a unified networking infrastructure. CONVERGENCE LEVELS Promoting Universal ICT Access

22. Convergence is basically driven from several fronts i.e. Technology new trends and innovative devices. (The regulatory framework still remaining technology specific). Industry (supply) Innovative products and services. Market (demand) requirements from customers i.e. e-money. Policies (Regulatory framework) government policy to advance ICT and the regulatory movement to keep pace with technology. DRIVERS FOR CONVERGENCE Promoting Universal ICT Access

23. HORIZONTAL LICENSING FRAMEWORK Content: Television & Radio Telecom: Resellers, ISP, payphones, calling cards, MVNO, VANS SERVICES Facility Network Application Content Network: Fixed network, Wireless network, Bandwidth providers and Broadcasting signal distribution network Facility: Fiber cable, towers, ducts, microwave links, cable landing (submarine), satellite etc OPERATORS

24. Converged licensing framework is a framework that is commonly adopted by administrations to address convergence of networks and services. Four (4) types of licenses are proposed for issuance under the converged licensing framework: Facility Services (FS) Licence. Network Services (NS) Licence. Application Services (AS) Licence. Content Services (CS) Licence. PROPOSED NEW LICENSING CATEGORIES Promoting Universal ICT Access

25. Provides the authority to construct and own electronic communications facility. Examples are towers, poles, cables (fibre optic), switching centre, ducts, satellite hubs, satellite control station, VSAT, earth stations, space station, fixed microwave links, radiocommunication transmitters, landing points (submarine cables), public payphone facilities used in conjunction with other network facilities. This licence category is mainly responsible for the scarce resource. FACILITY SERVICES (FS) LICENCE Promoting Universal ICT Access

26. Provides the authority to operate and maintain electronic communications network services. Examples are telecommunications networks (fixed and/or mobile), broadcasting signal distribution networks, space segment services, bandwidth services. This category is mainly responsible for Interconnection. NETWORK SERVICE (NS) LICENCE Promoting Universal ICT Access

27. Provides the authority to provide electronic communications services to the end users using network services where the licensee might not necessarily own the infrastructure. Examples are payphone services, internet service providers (ISP), switched data services, calling cards, mobile virtual network operators (MVNO), IP telephony, value added network services (VANS). This category is mainly responsible for providing end user services to the consumer. APPLICATION SERVICE (AS) LICENCE Promoting Universal ICT Access

28. Provides the authority to provide broadcasting services (television, radio, text and data) and other electronic media. Examples are satellite television (DTH - subscription and/or FTA), terrestrial television (FTA / FTV / subscription), terrestrial FTA radio services, cable TV, Internet streaming. This category is mainly responsible for provision of broadcasting content services. CONTENT SERVICE (CS) LICENCE Promoting Universal ICT Access

29. PART THREE (3) The Digital Dividend Promoting Universal ICT Access

30. THE SPECTRUM CONCEPT • Mathematical concept? • Abstract concept of no practical value only accepted as a mathematical tool [Fourier (1822) & Maxwell (1873 - EM waves)] • Measurable physical quantity? • Physical & measurable quantity transporting information and energy at a distance with no wired connection [Hertz (1888) & Marconi (1895)]. • Common public resource? • Freely accessible public resource for everybody [Wireless tx. (1901) & BR conf. (1906)]. • Market commodity? • Scarce but vital national resource [Spectrum scarcity (1925) & need for coordinated approach – 1927 (1st International Allocation Table) – 1932 (ITU Treaty – Radiocommunications)]. Promoting Universal ICT Access

31. THE DIGITAL DIVIDEND • The Digital dividend is the realized spectrum that will be available as a result of the digital migration process. • The migration process will see the migration of broadcasting services from analogue platforms to digital platforms. • WRC – 07 identified the digital dividend 1 (DD 1) from 790 MHz – 862 MHz which was confirmed at WRC – 12. • WRC – 12 identified the digital dividend 2 (DD 2) which from 694 MHz – 790 MHz (frozen allocation) which will be confirmed at WRC – 15). • IMT assignments were identified for DD 1 while studies are still continuing under the ITU for assignments below 790 MHz (DD 2) Promoting Universal ICT Access

32. DD BENEFITS • Allows re-use of freed up spectrum for other services, such as mobile broadband, which would bring the much needed socio-economic development to the region. • Allows for increased competition in telecommunications and broadcasting industries due to the innovation opportunities and efficiency gains, thereby, leading to better services and lower prices. • Brings economic benefits over and above the ones mentioned above, such as, increased license fees and operator levies and taxes. Promoting Universal ICT Access

33. THE DIGITAL DIVIDEND (1 & 2) SEGMENTATION 694 MHz 470 MHz 790 MHz 862MHz Promoting Universal ICT Access

34. DIGITAL DIVIDEND – KEY CONSIDERATIONS • Access to correct frequency band with regard to equipment, technical properties and regulations. • Appropriate configuration and band plan (TDD / FDD, bandwidth spacing). • Appropriate sharing conditions (spectrum space, access conditions).. • Sufficient bandwidth to facilitate mobility and true broadband. • Timely access to spectrum when required in line with technology development and equipment availability) Promoting Universal ICT Access

35. DEPLOYMENT PATTERNS (FDD & TDD) Option 1 (FDD) – preferred harmonised frequency arrangement Option 2 (TDD) – alternative option where all spectrum is not available Promoting Universal ICT Access

36. Efficient use of spectrum. Safeguard gains made by Africa to obtain the 800 MHz and 700 MHz DD – Africa fought for these two bands. Obtain maximum bandwidth across the two bands. Harmonisation within Africa – Over 1 billion people and 700 million mobile connections -2nd largest mobile region. Accommodate existing CDMA operators where possible. COMBINED CONSIDERATIONS (DD1 & DD2) Promoting Universal ICT Access

37. COMPARISON OF OPTION 1 & 2 Promoting Universal ICT Access

38. OPTION 1 vs. OPTION 2 Option 1 Option 2 • Slightly less usable spectrum. • 2 x 18 MHz in DD1 may pose licensing challenges (not multiple of 5 MHz). • Allows full use of 2 x 45 MHz of APT 700 MHz plan. • 218 MHz usable spectrum • More usable spectrum. • Requires CDMA operators to relinquish 2 x 3 MHz. • Allows licensing the 700 MHz and 800 MHz bands in blocks of 5 MHz. • Allows full use of 800 MHz DD1 and partial use of 700 MHz plan. • CDMA operators can be given TDD or FDD spectrum and encouraged to retire old technology. • 231 MHz usable spectrum Promoting Universal ICT Access

39. The migration process will bring unprecedented social and economic benefits to the country. Convergence and the migration process ushers with it the need for new licensing categories. The digital dividend requires clarification of the Regulatory interventions in regard of co-existence and sharing of services. Digital dividend will facilitate the promotion of universal ICT access. Coordinated effort from all Stakeholders is required to achieve successful migration within the set deadlines. CONCLUSION Promoting Universal ICT Access

40. END PIECE Thank you all for your attention Malawi Communications Regulatory Authority (MACRA) MACRA House Salmin Amour Road P/Bag 261 Blantyre Tel: 01- 883611 Fax: 01- 883890 E-mail: lmomba@macra.org.mw URL: www.macra.org.mw Promoting Universal ICT Access