Spectrum Trading & Liberalisation: The impact on Spectrum Management & Monitoring

1. Faouzi HASSINE, Eng. Vice President - SPECTRUM Solutions Mob.:+33 6 85 84 75 37 Fax: +33 1 39 26 46 01 e-mail: faouzi.hassine@ctsholding.com Spectrum Trading & Liberalisation: The impact on Spectrum Management & Monitoring ITU Seminar – ITU/BDT “Trends in Development of National Spectrum Monitoring Systems”The Ukrainian State Centre of Radio Frequencies - Centre "Ukrchastotnaglyad"Kyiv, Ukraine, 19-21 July 2006

2. Agenda • About CTS • The company • International presence • Products • Spectrum Customers • CTS in Ukraine • ELLIPSE Spectrum • Spectrum Trading & Liberalisation • Command & Control Approach • Market Approach • Conclusion

3. About CTS • CTS is a leading software editor for Frequency Spectrum Management systems and Radio Network Planning tools • CTS is based in France, near Paris and operates worldwide • Our customer base includes Telecom Regulatory Bodies, Radio Operators and Equipment Manufacturers over 5 continents • CTS benefits from over 15 years of R&D activity • CTS is an ITU Sector Member • Cril Telecom Software becomes CTS International

4. CTS: A Global Company

5. CTS: The Products • ELLIPSE Spectrum: Dedicated for Radiocommunication Regulatory Bodies and large Operators. • ELLIPSE Microwave Planning: Point-to-Point (PTP) Microwave Links; Transmission Backbone and Backhaul, Fixed Wireless Access Point-to-Multipoints (PMP): WLL,BWA, etc.

6. ELLIPSE Spectrum Major Clients ANRT Morocco ARPT Togo TCRA Tanzania ARPTC Dem. Rep of The Congo ANFR France (Trial) CSA: French Broadcasting Regulator HACA: Moroccan Broadcasting Regulator MTC Eritrea. • France Telecom (Orange) • BIPT Belgium • DGPT (POSTEL) Indonesia for Monitoring Interface • RFD Vietnam • COFETEL Mexico • MTC Peru • MPT Lebanon • NTRA Egypt • NCA Ghana • ANF Algeria • ANATEL Brazil • WPC India

7. CTS in UKRAINE • UMC Ukraine is CTS Client for several years. • UMC uses CTS ELLIPSE MW Planning to plan MW Network. • CTS distributes as well Marconi/ERICSSON Planet EV to UMC.

8. ELLIPSE Spectrum

9. ITU Approach User Management Application Processing Frequency Allocation GIS Data Processing Licence Processing Equipment Approval Report Fee Processing Notification Border Coordination Engineering Analysis Spectrum Monitoring Tasks Data Monitoring Results Spectrum Management Software & Database Recommendation SM1370 Complaint Processing

10. Type approval Spectrum Planning Coordination Spectrum Engineering ELLIPSE Spectrum Environment Services providers Customer License Workflow Management Fee Standardisation Licenses Workflow Invoices Tech.& Adm Database Control International coordination Radio monitoring Frequency assignment International Monitoring Legal

11. ELLIPSE Spectrum Architecture Spectrum Monitoring System Spectrum Management System Administrative Application Windows Technical Application Windows or Linux /Unix or Both GIS Tool Cartographic Database Unique ORACLE RDBMS Reference Database

12. ELLIPSE Spectrum Main Features • Client/Server or Stand-alone PC Windows Platform • UNIX, LINUX or WINDOWS Server • WINDOWS Clients • Multi-Users, Multi-Tasks, Multi-Lingual System • Windows Like and GUI User-friendly Interface • Same Unique ORACLE RDBMS reference database for both Administrative and Technical Applications • Powerful Workflow Module • Based on ITU Recommendations and Handbooks

13. ELLIPSE Spectrum Main Features (cont’d) • High Level of Security • On-line Documentation and Contextual Help • Modular • Several Propagation models • Floating Licences • Interface with Major Monitoring Vendors with respect to ITU-R Recommendation SM 1537. • Validated interface with THALES and Rohde & Schwarz.

14. Spectrum Management & Monitoring

15. Interface between Management & Monitoring 6 3 Request from Management Center Spectrum Management Regional & National center Ellipse Database 7 Database update Result analysis Mission generation Database query 1 Check-list file generation Result file Check-list file 2 2 Spectrum Monitoring Regional center Control station 4 Check-list file Check-list file Automatic Measurement Result file Result file 5

16. Interface between Management & Monitoring Request from Monitoring Center Spectrum Management Regional & National center Ellipse Database 8 Database update Result analysis² Mission generation Database query 2 Check-list file Check-list file generation Result file 3 1 4 7 Spectrum Monitoring Control station Regional center 5 Check-list file Request file Check-list file Mission request Automatic Measurement Mission analysis Result file Result file 6

17. Comparison Measured/Calculated Values Comparison between calculated values and measurements

18. CTS International Spectrum Trading & Liberalisation: The impact on Spectrum Management & Monitoring

19. Spectrum Management • Spectrum Management is moving from “Command & Control” approach to Tradability and Liberalisation • Frequency regulation is changing to meet actual market developments • Exact and up-to-date information about spectrum usage and allocation is crucial for the industry

20. Command & Control Approach • The Radio Spectrum is owned by the State • Frequency assignments are according to the National Frequency Table established by the Regulatory Body • National Frequency Table is generally based on the ITU Radio Regulations (RR)

21. Command & Control approach (cont’d) • Networks radio technologies are generally decided by the Regulatory Body: GSM, UMTS, WiMAX, etc. • Licences are exclusively delivered by the Regulatory Body • Licences are usually valid for a limited period of time.

22. Command & Control approach (cont’d) • The National Regulatory Body is in charge of administrative and technical issues: • Licence application and processing • EMC and Engineering • International coordination • Licence issuance and management • Surveillance and Monitoring • Inspection and enforcement • Etc.

23. Command & Control approach (cont’d) • In this case one National Spectrum Management and Monitoring System is required • This system is usually based on ITU approach and recommendations.

24. Market Approach: Trading & Liberalisation • Portions of the Radio Spectrum are owned by different players: public and private sectors • Spectrum is sold, leased, auctioned, etc. • Spectrum should be free of technology, policy and usage constraints as far as possible

25. Market Approach: Trading & Liberalisation • It should be simple and transparent for licence holders to change the ownership and use of spectrum • Rights of spectrum users should be clearly defined and users should feel comfortable that they will not be changed without good cause.

26. Market Approach: Empowering spectrum users • Allowing licensees to buy and sell (and lease and hire) some or all of their rights of spectrum use • Allowing licensees to change the use they make of the spectrum they hold (provided that this does not cause harmful interference to other users)

27. Market Approach: Empowering spectrum users (cont’d) • Making additional spectrum available to users on a technology and application neutral basis (but in a way that is compatible with existing assignments in neighbouring bands) • But all under the watchful eye of the Regulatory body, who will continue to protect users from harmful interference, and ensure that national and international obligations are fulfilled.

28. Market Approach: Challenges • Keep interference under control • Ensure competition is not harmed by the actions of a few • Persuade regional neighbouring countries to be similarly flexible • Increase the benefits for all.

29. Market Approach: Benefits • More opportunity for competition and innovation • Spectrum gravitates to its most profitable and productive use • Lower prices, new and better products, sooner

30. Market Approach: Benefits (cont’d) • Greater flexibility • Reduces barriers to entry in spectrum – using services • Lower business risk • Permits speedier innovation without lengthy allocation and assignment process.

31. Market Approach: Objections • Pressure on interference • Hoarding, speculation and abuse of market power • Pressure from the industry • Non-discrimination and equal treatment of market players • Fragmentation • Regulatory mistakes • Conflict with international harmonisation.

32. Market Approach: Spectrum Management & Monitoring • In this case, as well, one National Spectrum Management and Monitoring System, managed by the Regulatory Body, is required • A system usually based on ITU approach and recommendations • In addition, there is also a need of some management and monitoring by the Spectrum portions “owners”.

33. Market Approach: Spectrum Management & Monitoring (cont’d) • Regulations need to be adapted to authorise such cases, such as providing for more flexibility, authorising more licence exempt bands and services, etc. • Cooperation frameworks need to be put in place between the National Regulator and the Spectrum “Private” owners • Electromagnetic Compatibility (EMC) Models need to be reviewed accordingly • Specific Monitoring equipment need to be available to accomplish required targets within this specific environment • Monitoring equipment need to evolve and adapt with new technologies: Ultra-wideband (UWB), Software Defined Radios (SDR), Cognitive radios, etc.

34. Conclusion • Spectrum Management is moving from “Command & Control” approach to Tradability and Liberalisation • Access conditions for present users need to be freed from unnecessary regulatory barriers whereas the access to the spectrum for new and innovative services needs to be facilitated • International experience (e.g., USA, Australia, New Zealand, UK, Norway, Guatemala, Honduras) shows liberalisation releases resources and does not lead to interference disasters

35. Conclusion (cont’d) • The process takes time, as entrepreneurs have to bring together spectrum, new technology and other assets • Benefits grow as liberalisation takes off • It is necessary to adapt the regulatory framework in order to reflect the strategic decisions

36. Conclusion (cont’d) • Spectrum management reform would be a structural change which should lower costs, increase choice, and increase the dynamics in the communications sector • Spectrum Trading may provide more liberalized Spectrum Management & Monitoring • Spectrum Management & Monitoring have to evolve continuously to adapt.

37. THE END СПАСИБО MERCI THANK YOU faouzi.hassine@ctsholding.com