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Combine Licensing of 800 MHz and 2.6 GHz Band

Combine Licensing of 800 MHz and 2.6 GHz Band. Facilitating Key Decisions. Purpose. To motivate for combined licensing of the 800 MHz and 2.6 GHz band and to facilitate key decisions in this regard

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Combine Licensing of 800 MHz and 2.6 GHz Band

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  1. Combine Licensing of 800 MHz and 2.6 GHz Band Facilitating Key Decisions

  2. Purpose • To motivate for combined licensing of the 800 MHz and 2.6 GHz band and to facilitate key decisions in this regard • Before the band can be designed and a licensing framework can be concluded it is important to make key decisions to ensure that any further work is not muddled by contradictions and to reduce uncertainties

  3. Main issues of consideration • What socio-economic issues to be considered? What government objectives are we addressing? • What is the motivation for combined licensing of 800 MHz and 2.6 GHz? • Why it makes sense to license 800 MHz now? • What about other BWA or IMT spectrum? • Preferred harmonized frequency arrangements • Why use preferred harmonized frequency arrangements? • What is required to ensure that we are aligned to preferred harmonized arrangements? And what are implications? • Timetable – commitments to realistic timelines • Other issues

  4. What socio-economic issues to be considered? • Bridging the digital and urban-rural divide • 800 MHz is good for less urban and rural areas (coverage driven) • 2.6 GHz good for urban and capacity driven environment • Opportunity costs - Loss of revenue from spectrum license fee collection; Loss of revenue from sale of end-user services; Loss of capital investment (network rollout); Loss of opportunity to facilitate competition; Loss of job creation opportunities; Loss of contribution to tax and excises • Both issues talk to government outcome 6 and outputs 1 and 5 • Outcome 6: An Efficient Competitive and Responsive Economic Infrastructure Network • Output 1: Improving competition and regulation • Output 5: Communication and Information technology

  5. What is the motivation for combined licensing of 800 MHz and 2.6 GHz? • 800 MHz is cost effective for coverage But extremely expensive if environment is capacity driven • Combined 800 MHz and 2.6 GHz is the most cost effective option – the band are complementary to each other • Combined 800 MHz and 2.6 GHz address both urban and rural

  6. Why it makes sense to license 800 MHz now? • Definitely 800 MHz should be vacated by broadcasters after dual illumination or by 17 June 2015 • Ensures that there is no delay of network deployment after the band is vacated by broadcasters • Possible interplay of Market forces: coordination by winners with incumbents may happen even before dual illumination

  7. What about other BWA or IMT spectrum? (See supplementary slides) • Some are exhausted - e.g. tradional GSM900, GSM1800 and 3G bands • Some are extensively used for other services – e.g. 450 – 470 MHz and 862 – 880 MHz • Some have no preferred harmonised frequency arrangement – e.g. 3.5 GHz • Some provide opportunity for spectrum pooling – e.g. 1880 – 1920 MHz

  8. Preferred harmonized frequency arrangements for 800 MHz and 2.6 GHz bands (70 MHz) FDD Uplink (50 MHz) TDD (70 MHz) FDD Downlink FDD1 FDD2 FDD3 FDD4 FDD5 FDD6 FDD1 FDD2 FDD3 FDD4 FDD5 FDD6 11 MHz Downlink Uplink 811 790 791 796 801 806 816 821 832 837 842 847 852 857 862 2500 MHz 2570 2620 2690

  9. Why use preferred harmonized frequency arrangements? • To maximise the opportunities and benefits for end users and society • To benefit capital expenditure for operators • To reduce development and implementation costs of manufacturing equipment • To secure future long term investments by providing relevant economies of scale • To reduce complexity in cross border coordination.

  10. How to ensure preferred harmonized arrangements? What are implications? • In-band migration of the incumbents is required • Neotel in 800 MHz • Sentech and WBS in 2.6 GHz • There are cost implications associated with migration • WBS have submitted costs • Neotel expected to incur huge cost as well

  11. In-band migration in 800 MHz FDD1 FDD1 FDD2 FDD2 FDD3 FDD3 FDD4 FDD4 FDD5 FDD5 FDD6 FDD6 FDD1 FDD1 FDD2 FDD2 FDD3 FDD3 FDD4 FDD4 FDD5 FDD5 FDD6 FDD6 11 MHz 11 MHz Downlink Downlink Uplink Uplink 811 811 790 790 791 791 796 796 801 801 806 806 816 816 821 821 832 832 837 837 842 842 847 847 852 852 857 857 862 862 Neotel proposed assignment One leg of Neotel’s current assignment There is another alternative for Neotel that can be explored in parallel

  12. In-band migration in 2.6 GHz band 55 MHz unassigned 55 MHz unassigned Sentech (50 MHz) WBS 125 MHz Un-assigned 20 MHz TDD Sentech 15 MHz TDD WBS 15 MHz TDD (BEM restrictions) 2500 MHz 2565 2690 15 MHz FDD Sentech 2500 2555 2570 2590 2605 2620 2675 2690

  13. Time Table

  14. Other issues to be considered as part of the framework • Scenario planning should allow parallel processes, reduce dependencies, mitigate uncertainties • Communication plan – to manage stakeholders and perceptions • Other key decisions to be made: • Auction, “beauty contest, or combination (proposal/ motivation to be tabled to Council) • Proposed Universal Service Obligations and rollout targets • Targets on new entrants and involvement of HDIs

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