ruprecht niepold, european commission, dg infso, radio spectrum policy unit telecommunications...

Ruprecht Niepold, European Commission, DG INFSO, Radio Spectrum Policy Unit

Telecommunications Workshop “Convergence or Competition”UFM, Guatemala City, 9-10 June 200524-25 November 2004

Slide 1

Spectrum Policy in Europe:How does it work ?

What are the current issues ?

Ruprecht Niepold, European Commission*

•Disclaimer: the views expressed are those of the author and cannot be regarded as

stating an official position of the European Commission



Slide 2

OverviewOverview

Dealing with spectrum in the EU Legacy of spectrum management in Europe

Spectrum in the policy context

The current EU setting of dealing with spectrum

Current issues Market based approaches

Liberalisation

Harmonisation

Conclusions



Slide 3

This is the US…This is the US…



Slide 4

This is Japan…This is Japan…



Slide 5

This is the EU !!This is the EU !!

+ +

= ??

+ … (x 25)+

+ +

+



Slide 6

25 Member States

• own and regulate spectrum individually, based on different spectrum legacies

• issue spectrum usage rights (different definitions of rights)• are confronted with individual national conditions (economic

development; cultural background; geography / demography; wireless service needs and priorities; etc.)

The legacy of spectrum management The legacy of spectrum management in Europein Europe



Slide 7

The legacy of spectrum management The legacy of spectrum management in Europein Europe

Spectrum ?1 European Union

• economic, social, political integration• internal market• competition rules• common policy objectives• common basis for regulatory environment

(e.g. communications regulatory framework)



Slide 8

Spectrum in the policy contextSpectrum in the policy context

Integration of markets

Integration of markets

InnovationInnovation

CompetitionCompetitionCompetitivenessCompetitiveness

Growth(jobs)

Growth(jobs)

Consumer benefits Consumer benefits

Societal benefitsSocietal benefits

InclusionInclusion

Radio spectrumresources

Radio spectrumresources

Knowledge-basedmobile IS

Knowledge-basedmobile IS

“Lisbon”



Slide 9


inclusive EU Information

Society

innovationR&D

Single European

information Space

Initiative

i2010(ICT as part of “Lisbon” agenda)

Initiative

i2010(ICT as part of “Lisbon” agenda)



Slide 10


Sectorial EU policies increasingly rely in the availability of spectrum: • wireless electronic communication (incl. broadcasting)• transport (aeronautics, maritime, Galileo …)• earth observation (GEOS)• …

Horizontal policies: • internal market (equipment, services)• competition (end user benefit)• innovation capacity (R&D policy)• competitiveness, growth (“Lisbon agenda”)• external trade



Slide 11

The current EU setting: The current EU setting: dealing with spectrum in the EUdealing with spectrum in the EU

European Union

Member States

regulatory authority over spectrum

bound by EU law and ITU RR

EU regulation for the communication sector

policy input to Member States from EU perspective, coordination

harmonisation measures on spectrum usage (binding EU law)

Voluntary coordination on technical spectrum issues

ITUCEPT



Slide 12

• Inter-governmental: voluntary collaboration between states

• 46 European countries (incl. = 32 “EU” + CH!)

• Observer in RSPG/RSC

• “Expert Body” for EU (RSD Mandates)

•Negotiator for Europe in ITU

•MoU with ETSI, etc.

The current EU setting: The current EU setting: dealing with spectrumdealing with spectrum

CEPTEU/EC

• Treaty-based: national competence is legally delegated

• 25 EU + 4 candidates + 3 EEA

• Permanent EU institutions

• EP/Council = political/legislative

• Commission = instigator/guardian

• Sometimes EC is executive (e.g. derogated powers in RSD)

• “Counselor” to CEPT, ITU Observer



Slide 13

The current EU setting: The current EU setting: the regulatory frameworkthe regulatory framework

An EU “regulatory framework for communications(entered into force in the whole of the EU 2003)

• competition: general authorisations; no ex ante regulation, unless non-functioning markets

• convergence: communications includes all modes of transport and associated services

• spectrum: framework confirms principles such as technology neutrality and efficiency of using spectrum

• framework limits conditions attached to the rights of use of spectrum and

• sets out the legal basis for spectrum trading as an option for Member States when transposing EU law into national law



Slide 14

The current EU setting: The current EU setting: coordinated spectrum approachcoordinated spectrum approach

“Spectrum Decision”: The basis for a coordinated spectrum approach at EU level

(676/2000 EC; applicable in the whole of the as of EU 2002)

• possibility to harmonise spectrum allocation at EU level, legal

certainty through mandatory application EU-wide

• provides for a basis to discuss best practices in spectrum

management and to establish consensus on basic approaches

• provides for a basis to increase transparency on spectrum

usage through provisions concerning spectrum usage information

• coordination in international spectrum negotiations (e.g. WRC)



Slide 15

Covers:

• all communications networks and communications services

• not content services

The current EU setting: The current EU setting: dealing with spectrumdealing with spectrum

Regulation for communication

sector

Deals inter alia with:

• rights to use scarce resources such as spectrum (assignment)

Spectrum Decision

Covers:

• radio spectrum policy aspects for all sectors

• radio spectrum access and usage conditions and their harmonization (allocation)Deals inter alia with:

• communications sector spectrum aspects



Slide 16

“Radio and Telecommunications Terminal Equipment Directive”: internal market for equipment

(R&TTE, 97/5/EC, entered into force in 1998)

“New approach” on establishing conformity of (radio) equipment based on self-declaration of compliance with essential requirements.

Compliance declaration allows for free circulation, placing on markets and putting into operation: Essential requirements: developed by European standardisation body (ETSI), under mandate by European Commission

Takes spectrum usage conditions into account

The current EU setting: The current EU setting: internal market of radio equipmentinternal market of radio equipment



Slide 17

Current issues: Current issues: general objectivegeneral objective

Objectives of EU Spectrum Policy: Support other Policies by the timely availability of

sufficient harmonised spectrum access conditions in the EU, in line with policy objectives

Contribute to an efficient approach to spectrum management in Europe

Main concerns: spectrum shortage fragmentation of spectrum access conditions in the EU:

permitted usage; legal certainty of access economic and technical inefficiencies of spectrum

assignment



Slide 18

Current issues: Current issues: basic approachesbasic approaches

exclusive usage shared usage

assignment market decides open access(“commons”)

interferencemitigation

embedded in exclusive usage right

technology based solutions

regulator roledefinition of rights first assignment;

refarming

common technical conditionsrefarming ?

economic efficient use

market as optimal decision mechanism

share approach sub-optimal ?

technical efficient use

market based approach sub-optimal ?

shared use fosters technical efficiency

innovation low access hurdle facilitates innovation

pushes technology development



Slide 19

current situation: Potential of market based spectrum management increasingly

recognised and implementation emerging commons model already implemented in part of the available

spectrum, but implications not fully thought through

policy challenge: right mix of spectrum management approaches ? degree of regulators “interference” ? spectrum for public services ? (state responsibility)

EU specific challenges: satisfy spectrum needs of policies (often conflicting) reconcile national competence with EU coherence Avoiding “competition of regulation” amongst Member States !

Current issues: Current issues: Europe at a transition stageEurope at a transition stage



Slide 20

Current issues: Current issues: introducing spectrum trading in the EUintroducing spectrum trading in the EU

3G auctions in 2000 (UK, Germany) raised awareness of value of spectrum

introduction of new regulatory framework opening regulation to trading triggered Member States to study of spectrum trading

Commission fostered debate by a public study associated with open discussion (public workshops, consultations etc.)

Radio Spectrum Policy Group (high level Member State advisory group to the Commission) recommended cautious and staged introduction of trading in Europe



Slide 21


an increasing number of Member States prepare nationally to introduce spectrum trading

“comprehensive” approach,early phase of implementation UK, [Norway]

“selective” approach,early phase of implementation

AUS, NL (flexible use)DK, EL,HU, I, LUX, PL, P, SK,

SL, SUE (selected bands)

considering modalities of implementation F, DE, IRL, ES

not decided B, CZ, CYP, EE, LT, LV, MT

not implementing FIN



Slide 22


Results of Commission study on introducing trading in the EU:

introduction of spectrum trading in EU brings net benefits• simple trading beneficial, but full potential of benefits realised when in

addition allowing for "change of use" (liberalisation); • costs of introducing trading substantially inferior to benefits• trading yields beneficial impact notably on competition and on

innovation

EU dimension:• Benefits estimated are to a large extent resulting from synergy effect if

all Member States would adhere to introduce trading (~30% of total benefits)

• There are still knock-on effects if individual Member States only would proceed with trading in combination with change of use

• Need to achieve basis for coordinated introduction of trading



Slide 23

Commission proposal to Member States:

Set a target and a time frame:“functioning spectrum markets in the EU by 2010”

Clarify key issues: Bands to be subject to tradability regime Common basis for spectrum rights Information on spectrum usage Develop principle of technology and service neutrality

Gain experience through national cases of trading

Implement regulatory provisions where necessary(review of current regulatory framework)




Slide 24

The debate on liberalisation of spectrum has several roots: Incumbent spectrum right holders would like to make more flexible

usage of their existing assets (not in favour of new entrants)

Allowing flexible usage of radio spectrum should favour emergence of new, more efficient spectrum users

Liberalisation of radio spectrum can help alleviate spectrum scarcity

Digitalisation of broadcasting – “digital dividend”

Technology and service neutrality are supported by a liberal radio spectrum management.

There are different levels of liberalisation, ultimately determined by the regulatory regime

Current issues: Current issues: Liberalisation of spectrum usageLiberalisation of spectrum usage



Slide 25


servicefrequency

technology

service! technology!frequency!

classicalapproach



Slide 26


servicefrequency

technology

“family of options”for a specific service

technology neutrality



Slide 27


servicefrequency

technology

“family of options”,

“convergentservices”

technology+ serviceneutrality



Slide 28


service frequency

technology

full liberalisationservicecategory

technicalconstraints

spectrumspace

coherentapproach



Slide 29


WAPECS: Wireless Access Platforms for Electronic Communications Services

• Radio Spectrum Policy Group tasked to work out a coherent EU approach for for dealing spectrum used for WAPECS

• WAPECS spectrum covers spectrum (incl. broadcasting spectrum) allocated today for mobile wireless, fixed wireless, nomadic wireless, broadcasting etc. applications and services (IP access, data, multimedia, interactive broadcasting, datacasting)

• Aim is to establish service and technology neutrality for managing spectrum resources for WAPECS: removing as much as possible constraints on spectrum resources usage (allocation, assignment)

• WAPECS to consider transition and timeframe

• "Harmonisation of flexibility of spectrum usage" © at EU level

© European Commission …



Slide 30

Current issues: Current issues: Harmonisation measuresHarmonisation measures

Several drivers for harmonisation actions: Overcoming fragmentation of usage conditions

pan-European systems

support to internal market (“R&TTE / class 1”)

first steps towards liberalisation (support to spectrum reform)

policy objectives relating to public interest: e.g. road safety, assistance to disabled people, etc.

System for establishing legally binding harmonisation: shared effort CEPT (technical expertise) / Commission (legally

binding measures)

fast reaction, possibility to revise measures



Slide 31

Current issues: Current issues: Harmonisation measuresHarmonisation measures

Examples for harmonisation measures:

R-LAN 5 GHz: follow-up WRC, minimal technical constraints to ensure non-interference (earth observation, radars), increasing spectrum resources

Broadband Wireless Access (3.4 GHz)

IMT2000: “harmonisation of flexibility” case.

UWB: how to deal with underlay access platforms ? (cumulative interference effect)

Short range devices: generic frame for quick set up of minimal technical constraints of unlicensed applications

SRR/24 GHz : responding to specific policy objective (road safety)



Slide 32

Common points Both face the same problems (we all do !) Both can take advantage of regional synergy effects Innovative approaches by individual countries are suboptimal

Differences Economic integration of EU Member States is far more advanced Cooperation mechanisms on radio spectrum are in place Role of ICT for Europe is crucial: “technology maker” Potential of ICT is essential for LA to satisfy basic communication need

and to overcome digital divide

Platforms of cooperation Regulatory dialogue (REGULATEL / IRG) eLAC initiative (WSIS, similar to eEurope) @lis (Alliance for the Information Society): joint projects (ALICE) R&D cooperation (e.g. INSTINCT project on DVB-H) Standardisation (digital broadcasting)

Spectrum Policy:Spectrum Policy:EU & Latin America comparable ?EU & Latin America comparable ?



Slide 33

ConclusionsConclusions

Reforming spectrum management is a recognised necessity in Europe

Spectrum trading and introducing flexibility in spectrum use is part of this major debate, Europe is moving

Manging spectrum resoruces is relevant to overall objectives: competitiveness, innovation, internal market; reaping the full benefits of reform only if established at EU level

Changes ahead comparable to reform of telecommunications sector over the past decade: spectrum management reform is one "generation" behind and today becomes urgent

EU situation is very complex, tasks ahead will require a balanced and gradual approach: harmonisation of flexibility, common approach

Main procedures to meet this challenge are in place



Slide 34

Thank you for your attention !Thank you for your attention !References: web site: Radio Spectrum Policy reference docs, ongoing work etc.)

http://europa.eu.int/information_society/policy/radio_spectrum/index_en.htm

web site: eCommunications (reference docs, ongoing work etc.)

http://europa.eu.int/information_society/topics/ecomm/index_en.htm

Study spectrum trading in the EU

http://europa.eu.int/information_society/policy/radio_spectrum/docs/ref_info/secontrad_study/secontrad_final.pdf

10th Implementation Report (Communication to Council and EP)

http://europa.eu.int/information_society/topics/ecomm/all_about/implementation_enforcement/annualreports/10threport/index_en.htm

1st Radio Spectrum Implementation report (Communication to Council and EP)

http://europa.eu.int/information_society/policy/radio_spectrum/ref_info/documents/non_legislative_documents/index_en.htm

i2010 initiative (Communication to Council and EP)

http://europa.eu.int/i2010

Digital Broadcasting (Communication to Council and EP)

http://europa.eu.int/information_society/topics/ecomm/useful_information/library/communic_reports/index_en.htm

Contact: [email protected]

http://europa.eu.int/information_society/policy/radio_spectrum/index_en.htm

http://europa.eu.int/information_society/topics/ecomm/index_en.htm

http://europa.eu.int/information_society/topics/ecomm/all_about/implementation_enforcement/%0Bannualreports/10threport/index_en.htm

http://europa.eu.int/information_society/topics/ecomm/all_about/implementation_enforcement/%0Bannualreports/10threport/index_en.htm

http://europa.eu.int/information_society/policy/radio_spectrum/ref_info/documents/%0Bnon_legislative_documents/index_en.htm

http://europa.eu.int/information_society/policy/radio_spectrum/ref_info/documents/%0Bnon_legislative_documents/index_en.htm

http://europa.eu.int/i2010

http://europa.eu.int/information_society/topics/ecomm/useful_information/library/%0Bcommunic_reports/index_en.htm

mailto:[email protected]

ruprecht niepold, european commission, dg infso, radio spectrum policy unit telecommunications...

Documents

spectrum policy

availability of spectrum

eu perspective

eu ch

lisbon agenda spectrum

eu rsd mandatesnegotiator

mobile islisbon spectrum

european countries