Introduction to Regulation
Introduction to Regulation | Different levels of regulation | Access to spectrum (allocations) | Links to national regulation
Introduction to Regulation
Spectrum is a scarce resource which needs to be used rationally and carefully to permit future technological developments. The need to balance the demands of very different sectors constitutes a real challenge for any spectrum regulator.
A stable, well-designed regulatory framework which meets the new technological challenges is of key importance for ensuring that the electronic communications market remains vibrant and effective in a highly competitive global environment.
Radio spectrum management cannot be based only on a market-based approach but also needs to take into account social, cultural and political considerations.
Different levels of regulation
European Regulation | National Regulation
European regulation (EU)
The Lisbon European Council in March 2000 set the objective of transforming the EU into a competitive and dynamic knowledge-based economy. Meeting this target requires ongoing efforts to improve the environment in which firms conduct business along with the development of a regulatory climate that is conducive to investment, innovation and entrepreneurship. This means, inter alia, creating a level-playing field for companies in all sectors, and especially those operating electronic communications networks and services, as well as fostering healthy competition amongst market operators, irrespective of technology or platform.
European spectrum regulation is carried out in cooperation between European Union, CEPT (European Administrations) and ETSI (European Standard Institute).
National regulation (Administrations)
At present, authorisation procedures vary across Member States. Depending on the Member State, the authorisation requirements are more or less formalised, and sometimes rely on competitive procedures. Conditions are generally attached to the authorisations for broadcasters and/or networks operators. These conditions relate to the provision of certain content, and to population or territorial coverage.
Member States also typically attach conditions to the rights of use of radio frequencies, possibly in the same authorisation. These conditions refer, inter alia, to coverage and positive programming, or to the exclusive use of the right for a given channel or service. Although other types of conditions are sometimes also imposed, the above two are the most frequent and are the focus of this study. Today, in most Member States the rights of use of radio frequencies for broadcasting purposes are provided directly to the broadcasters. Fees are set to recover the cost of administrating the licence-issuing organisation, but the spectrum itself is – with a few exceptions - not paid for.
Other players, in particular in the telecoms’ sector, have however had to pay for this resource. With the convergence of networks and the fact that an increasing number of data services are being delivered across broadcast platforms, there have been claims from within the telecommunications sector that broadcasting should no longer have a special status, and that the spectrum it uses should be treated and licensed on the same terms as telecommunications spectrum.
Access to spectrum (allocations)
International treaties | Auctions and Beauty Contests | Spectrum Trading
International recognition of national allocations is granted via ITU and international treaties.
The access to national spectrum is given by administrations in different countries.
Licenses to national frequencies can be given in accordance with national spectrum tables and policies. It can also be given through auctions or beauty contests. Spectrum can be subject to spectrum trading.
International treaties
In addition to the procedures of RR there are International conferences to provide for agreements between states including frequency plans. One such example is the GE-06 Agreement regarding digital broadcasting (T-DAB and DVB-T). This Agreement is binding to European, African and Arabic countries having signed it. It consists of a number of Articles containing regulatory procedures and is supplemented by Annexes containing a frequency plan for T-DAB and DVB-T allocations in 174-230 MHz and for DVB-T allocations in 470-862 MHz. There are also Annexes containing technical criteria and bases for frequency coordination.
Then countries part of this Agreement want to implement entries in accordance with the plan they can just go ahead to use them. If they want to make modifications or implement other services in the bands they have to apply the procedures stipulated in the Agreement.
Auctions and beauty contests
A spectrum auction is a process whereby a government uses an auction to sell the rights to transmit signals in a specific frequency band. There are a number of different auction formats that could be used for assigning spectrum, depending on whether the auction takes place over single or multiple rounds, licences are sold simultaneously or sequentially, and whether bids for licences are submitted separately or linked. A spectrum auction will usually last several weeks from the opening bid to the final winning bid. Auctions have been carried out in a few European countries. Most countries prefer beauty contests.
Under a beauty contest applicants set out their cases for being awarded licences on the basis of the criteria set out in the invitation to bid. Criteria might include, for example, speed of deployment, project viability, spectrum efficiency and ability to stimulate competition. The criteria could be weighted.
Applicants are required to submit information in support of their application. This would include company details, description of services to be offered, roll out plans, business projections and costs, and a technical description of the network used to supply services.
Spectrum trading
It is the opinion of the European Commission Radio Spectrum Policy Group that:
“The introduction of a secondary market in rights of use of parts of the spectrum is perceived as having the potential of increasing the flexibility, hence the efficiency of the use of spectrum. Given the variety of possible situations in different parts of the spectrum and in different geographical areas, this potential advantage has to be evaluated, on a band-by-band basis, keeping in mind the public interest (which includes consumers, manufacturers, R&D, operators, government services, etc), and the general objectives and constraints of frequency management.”
Spectrum trading is applied only in a few European countries and much questioned.
Links to national regulation
All information regarding links to regulatory information on national websites can be found in www.ero.dk under CEPT Administrations.