SPECTRUM ALLOCATION: 3G MOBILE, DIGITAL TV & WIRELESS

19 March 2001

Tony Shaw

Chairman

Australian Communications Authority

Spectrum Allocation

Spectrum is a scarce resource Need to allocate between competing

interests commercial

carriers, SMEs

community ambulance, fire fighting etc

national Defence, police etc

Government Policy Objectives

efficient and open communications market

self-regulation lower regulatory costs

The Regulatory Framework

IN T ER N AT IO N ALN egotia tionsO bligations

PLAN N IN GSpectrum P lan

Band P lan

ALLO C AT IO NAdm in is trativeP rice Based

LIC EN SIN G PR IC IN GL icence F ees

N AT IO N ALLegis la tion

G overnm ent Policy

International Obligations

Radio Regulations constitute an international treaty

ACA contributes to ITU fora to ensure decisions are in Australia’s best interests

domestic laws and practices align with ITU decisions

National Regulation

Legislation Radiocommunications Act 1992 Telecommunications Act 1997 Australian Communications Authority Act

1997

Australian Radiofrequency Spectrum Plan

Australian Radiofrequency spectrum Plan: allocates bands of spectrum to broad types of

service aligned as closely as possible to international

spectrum arrangements where they exist revised following each ITU WRC

Bandplanning

Planning necessary to ensure: efficient use capacity to meet a wide variety of user needs,

particularly for emerging services and technologies

consistency with international spectrum allocation principles

Licensing

Apparatus Licences approx 200,000 on issue technology specific issued for max. of 5 years necessarily prescriptive issued ‘over the counter’ occasionally auctioned

Class Licences ‘public park’ spectrum

Spectrum Licences spectrum access right technology-neutral fully tradeable issued for up to 15 years usually auctioned

Spectrum Licensing

Decisions about allocation left to the market as much as possible.

Licensees have freedom to shift their services and technologies in response to market changes

ACA committed to self-management in radiocommunications.

Licence Terms

Under Radiocommunications Act 1992 maximum licence periods are 5 years for an apparatus licence 15 years for a spectrum licence

No guarantee of renewal

Changing spectrum use

Balancing demands incumbents’ need certainty compensation? aspirations of new players

– quick band clearance

expectations of community to new services

Accommodating change

Flexibility to introduce new services band planning re-allocating encumbered spectrum allocating spectrum licences converting existing licensees

Tradable licences

Allocating to Users

Issue over the counter licence fees ration access

Issue between competing players Price based allocation

Issue to community uses ambulance, fire fighting etc

Issue over the counter

If prices set appropriately, efficiency of spectrum use will be enhanced use minimum bandwidth; use most appropriate band; and use most efficient technology.

provide a monetary return to the community

Excess Demand

‘Beauty Parade’ open to legal challenge time consuming

Auctions quick, transparent, fair and efficient

Auctions

ACA has auctioned more spectrum than any other country except the USA using both open out cry and simultaneous

multiround

3G underway

Competition considerations

ACCC has primary responsibility for TPA.

Beyond that the Minister can reserve spectrum for new players and set bidding caps in auctions.

ACA consults with ACCC and implements Minister’s directions

Summary

efficiency is best served when resources are allocated to those placing the highest value on them

competition will ensure better outcomes for consumers than heavy government regulation

businesses are better placed to make commercial decisions in a fast changing environment than governments.

ACA’s Challenge

to create and maintain a framework

which supports competition and self-regulation

If the regulator can get the underlying principles right then the market will take care of itself

Thank you

www.aca.gov.au