SPECTRUM IN TRANSITION JOCHEN TRAUT Chief Operations Officer ICT Summit 2015

A Changing World for Licensees Conver-gence Digitalisa-tion Changing customer behaviour Demand for more broadband Competi-tive conditions Broad Availability of wireless solutions Requires regulators to “keep their eyes on the ball” in setting spectrum assignment strategies

Who’s got the power Customer More affordable More time spent online ( Always connected) More services and content Doing more on line Mobility Multiple devices Smarter devices New Usage Patterns Higher speeds Demand for new services Customer

The Regulator The Regulator Spectrum is a scarce and limited resource utilised to provide ICT services

Regulatory tools The regulator needs to find a balance between existing spectrum users and the need for transitioning to new technologies, increasing demands for spectrum to accommodate higher utilisation, speed of access and making provision for new entrants The tools available to regulators include Allocation of additional spectrum to services in spectrum band plan Ensure efficient use of spectrum Re-assigning spectrum to other services replacing legacy technologies Changing the cost structure of spectrum access Sharing spectrum

Spectrum Assignment Adhere to regional and international harmonisation of spectrum allocation Enforcement of efficient use of spectrum Balancing public and commercial interest Promoting competition Provide flexibility in use of spectrum for different services Spectrum assignment strategy A comprehensive approach to broadband access

Namibia’s Status Checklist Regional and international harmonisation ITU SADC Promote efficient use  Spectrum use licence conditions Public vs commercial interest  Separate bands for government use Promoting competition  Multiple licensees Providing flexibility Service technology neutral licences Re-farming allowed Spectrum assignment strategy Broadband access

Regulators under pressure To free up more spectrum for broadband wireless network access To find solutions to share spectrum through licensed shared access (LSA) The use of “small cell” technologies and “local area” network topologies to augment traditional mobile cellular Migration or discontinuation of outdated systems to clear spectrum bands for latest and more efficient technologies to provide broadband access in rural and urban areas

Spectrum Requirements for IMT Additional global IMT Spectrum required by the year 2020 (based on ITU Rec. M.2290) To be noted: In some countries the demand for IMT spectrum could be lower than the above figures; Calculations based on assumed traffic densities by 2020; Traffic off-loading to local area networks taken into consideration; Use of currently identified IMT bands must also be considered with a view to optimise its use e.g. re-farming; High bit rates could be accommodated in bands above 6 GHz and could be considered at a future World Radio Conference User density settings Total spectrum requirements (MHz) Region 1** Already identified (MHz)* Additional spectrum requirements (MHz) Low 1 340 981-1 181 159-359 High 1 960 779-979

Changes in regulatory framework after WRC-15 CRAN to amend Namibia’s spectrum band plan in accordance with WRC-15 outcomes May include- More IMT spectrum allocations Co-Allocation of Fixed Services and Fixed Satellite Services in 17 GHz to 30 GHz (Ka-Band) Assignment of services on a co-primary basis within the same spectrum band

Spectrum Assignment Strategy CRAN to develop a forward looking “fit for purpose” spectrum assignment strategy to transition the existing regulatory framework for spectrum management to transition to an ever increasing digital ICT environment for network provisioning and service utilisation by customers

New Spectrum Assignment Models Licence Exempt ISM bands Administrative assignment (First-come-first-serve) Radars Aeronautical and Maritime Professional Mobile Radio (PMR) Other low demand spectrum bands Flexible Rights-of-Use (auctions, comparative selection or beauty contest) Mobile and fixed services Broadcasting (esp. FM Radio) IMT bands High demand spectrum bands exceeding supply Licence Exempt ISM bands Administrative assignment (First-come-first-serve) All other spectrum bands Transitioning

Existing IMT spectrum assignment in Namibia Licensee Total Assigned Spectrum Customer base Operator A 2x 63 MHz > 2.8 Million customers Operator B 2x 93 MHz incl. 2x 48 MHz WiMax* <350K customers Operator C 2x 59.8 MHz incl. 2x 20 MHz for WiMax <10K customers * Wimax is not regarded as a IMT technology by ITU

Existing IMT spectrum assignment in South Africa Licensee Total Assigned Spectrum Customer base Operator A 2x 38 MHz ± 30 million customers Operator B Operator C 2x 27 MHz ± 20 million customers Operator D 2x 24 MHz Not known Operator E 2x 17 MHz Operator F 2x 12 MHz

Legacy Assignments Only two licensees occupy the whole band of the 900 MHz band 50% of the assigned spectrum in the 2600 MHz Band (fully allocated and in high demand) is assigned to one operator One Operator in the 2600 band has access to the band for 4 years, and utilisation almost non existent

Maximum spectrum holdings Should operators have same amount of spectrum Should maximum spectrum holdings be set across a number of bands? Possible implications on networks if spectrum is revoked? Should the opportunity for new entrant(s) be factored in when defining spectrum caps? Number of Licensees Available Spectrum Potential for new Entrants

New approach to spectrum fees CRAN has concluded benchmark studies on restructuring of spectrum fees and is considering the following charging based on- Amount of Licenced bandwidth (in MHz) Single Frequency or range of frequencies (spectrum band) High or low demand spectrum Geographical area( national, regional or specific geographical area) Rural or urban area Aimed at using spectrum as an enabler to provide services to ALL NAMIBIANS Reward licensees to rollout in rural areas by charging lower spectrum fees in those areas

Change in spectrum use licence obligations CRAN will impose rollout obligations with timeframes to be attached to new telecommunications spectrum bands assignments- New coverage sites for 2G or satellite in unserved areas New coverage sites for 3G and LTE to address broadband access These obligations will target specific areas as identified by CRAN after it has completed the Gap Analysis

Tying it all together ICT Development Address Gaps in ICT Services Unserved Areas Broadband Access Service Innovation Convergence Digitalisation Changing Customer Behaviour Enabling Competition Infrastructure Sharing e.g. National roaming Number Portability New Entrants Spectrum Assignment

Thank you