1. Session 4: Commercial Opportunities Panel Discussion: Reviewing spectrum pricing mechanisms & relationship with spectrum efficiency Bashir Patel

2. Spectrum Assignment & Management
Spectrum Management Overview
Must be managed to ensure effective use
Governments and regulators must consider public & commercial benefits
Spectrum should be allocated appropriately
Based on the 3 types (either “Beauty Contest”, Unlicensed, Auction (price based) approaches)
Economic considerations are necessary
Scarcity of spectrum demands efficient use and management

3. Telecom & Spectrum Pricing Overview
Types
One-Off
Mechanism
Annual recurring
Telecommunications
Service Licensing Fee X
Free, 2. Cost-based or 3. AIP (driven Mkt value, time period)
Local, National or Intl,
Numbering
Fixed per block
Renewal fixed fee
Universal Service Contribution
N/A
1-5% of T/O
Arbitrary
Spectrum
Licensing Fee
Amount of MHz, time period & coverage
Based on formula - amount MHz and coverage area
Stations licensing
Fixed fee Per site
Type approval
One-off admin
Remind that 5G requires a mix of technologies, each with its own characteristics and requirements
Highlight satellites provide often unique services thanks to global harmonization, vendors do not depend on global harmonization to reduce cost
Ultimately both technologies & their services are components of the future telecoms eco-system
Are we not `over taxing the operators ‘

4. Spectrum Pricing & Efficiency
A range of factors influence spectrum value
Spectrum in one band may not be substitutable with that in another:
Physical characteristics
Equipment availability and cost
Technical licence conditions
Regulatory constraints
Harmonisation status
There is no one spectrum market, but a series of discrete submarkets
The value of spectrum is likely to exhibit discontinuities 4

5. Panel Discussions Spectrum Pricing & Efficiency
“Reviewing Spectrum Pricing mechanism and relationship with Spectrum efficiency”
Is there a correlation ?
- Goal has to be to have maximum efficient use of this scarce resource - spectrum
Does AIP mechanism bring about efficient use of spectrum ?
Designed for licensee to optimally use spectrum, Promotes optimal use, Provides value of spectrum, should be market driven / demand based
How can we incentivise to bring about more efficient use of spectrum ?
- Greater contractual flexibility, long term foresight, spectrum trading, re-farming

6. Panel Discussions Spectrum Pricing & Efficiency
Efficient use of spectrum
May include that all spectrum be assigned
Efficient assignment of spectrum
Spectrum is assigned to the bidders that value it most
Ensuring and/or safeguarding competition
Could include promoting new entrants or ensuring minimum number of competitors
Increasing broadband penetration and roll-out and/or enhancing coverage in rural areas
Promoting innovation
Promoting business opportunities and employment (economic development)

7. Thank You!