1. Licensing policies and criteria Supporting the Digital Dividend Wladimir Bocquet Senior Director Global Spectrum Policy GSM Association ITU Regional Initiative for Europe on Digital Broadcasting 5-7 November 2012, Budapest, Hungary

2. About GSMA Representing the interests of the worldwide mobile communications industry. Nearly 800 operator members covering over 200 countries. More than 200 associate members from the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organization www.gsma.com

3. Agenda International regulatory framework of the Digital Dividend Policy initiatives for the Analogue Switch-off and the Digital Dividend Licensing framework for the Digital Dividend Importance of the harmonisation Summary

4. Agenda International regulatory framework of the Digital Dividend Policy initiatives for the Analogue Switch-off and the Digital Dividend Licensing framework for the Digital Dividend Importance of the harmonisation Summary

5. Regulatory Framework - 790-862 MHz Radio Regulation Region 1 790-862 MHz FIXED BROADCASTING MOBILE except aeronautical mobile 5.316B 5.317A 5.314 5.315 5.316 5.316A 5.319 5.312 The band 470-862 MHz is allocated to the broadcasting service on primary basis Digital Dividend List of countries where the band 790 - 862 MHz is allocated to the mobile, except aeronautical mobile, service on a primary basis List of countries where the band 645-862 MHz is also allocated to the aeronautical radionavigation service on a primary basis

6. Outcomes of WRC-12 - 790-862 MHz The sharing issues in the 800 MHz band were successfully resolved Compatibility between mobile and broadcasting services Consensus reached on the option associated to no additional arrangements (no change in the geographic area of the Geneva 2006 Agreement) to facilitate the deployment of Mobile Broadband Compatibility between mobile and ARNS services WRC-12 agreed to keep the regulatory environment under 9.21 but reduce the distance of coordination, method based on signature of bilateral agreement to facilitate the introduction of Mobile service in the digital dividend when protecting ARNS in neighbouring country

7. Outcomes of the WRC-12 – 694-790 MHz Additional provision of Mobile Service after WRC-15 Footnote in the article 5 making a simple reference to a Resolution No country footnote for an additional allocation, no change in the Table decision in principle because the allocation is made but need to be enforced at the end of WRC-15 The lower frequency is to be refined and WRC-15 will have to confirm the decision The technical and regulatory conditions for the allocation to be defined by WRC-15 WRC-12 decision on the Agenda dedicated to 694-790 MHz band 470-790 MHz BROADCASTING 5.149 5.291A 5.294 MOD 5.296 5.300 5.302 5.304 5.306 5.311A 5.312 ADD 5.3XX Extension of Digital Dividend Radio Regulation Region 1 The band 694-790 MHz is allocated to the mobile, except aeronautical mobile, service after WRC-15 subject to the provisions of Resolution COM5/10 (WRC-12). See also Resolution 224 (Rev.WRC-[12]).

8. Agenda International regulatory framework of the Digital Dividend Policy initiatives for the Analogue Switch-off and the Digital Dividend Licensing framework for the Digital Dividend Importance of the harmonisation Summary

9. Policy initiatives for Analogue Switch-off and the Digital Dividend (1/4) Global support Ensure government-wide support for a digital economy led by TV and broadband by promoting benefits to – Jobs – Education – Economic growth Create Digital Task Force Create specialised cross-government structure to smooth path to Analogue Switch Off and the Digital Dividend, including industry where necessary – Ministries: Communications, Finance, Environment and others – Regulators: Broadcast, Communications – Industry representation (broadcast and communications) – Specialised experts

10. Policy initiatives for Analogue Switch-off and the Digital Dividend (2/4) Clearly Define Responsibility for Delivery of Targets Lay out clear guidelines for responsible bodies for each target and legislate the power to complete tasks where necessary – Create robust structure for Digital Task Force – Ensure agencies have solid guidelines for delivery – Where multiple agencies exist, clearly define roles Define Governments Financial Stimulus Package and Role of Industry Consult broadly in order to clearly define government and industry roles, considering – Set top box subsidies – Network roll out costs – Universal service funding – Access to spectrum

11. Policy initiatives for Analogue Switch-off and the Digital Dividend (3/4) Ensure Cohesion with International Framework Closely coordinate on a regional and global basis to ensure harmonisation is maximised – Ensure ASO and Digital Dividend plans adhere to latest ITU agreements – Hold detailed coordination with neighbouring and regional countries – Move forward in coordination with ITU-R expertise Carry out Detailed Planning for Analogue Switch Off Set realistic and strong target dates for 3 key phases and ensure coherent public communication strategy at each phase – Introduction of DTTB – Simulcast period – ASO and Digital Dividend allocation

12. Policy initiatives for Analogue Switch-off and the Digital Dividend (4/4) Invest in Comprehensive Communications Strategy to Maximise Public Benefit Public awareness campaign to smooth transition should preferably – Increase awareness of benefits of digitisation: more broadband, more TV channels – Encourage viewers to readily take up Digital TV – Carry out technical education campaign to ensure TV households stay switched on Continue to use of Digital Task Force to maximise Broadband Roll-out and the Digital Dividend Ensure long-term government commitment to digitisation and continuation of centralised infrastructure policies by ensuring Task Force works closely with – Infrastructure ministry – Environmental agencies – Local government

13. Challenge and opportunity of the ASO Legal and Political issues Licensing, number and ownership of Multiplexes, Network Operators, Public TV services, commercial TVs, local TV Standards, Analogue Switch Off (ASO), etc. Technical issues Standards, compression system (MPEG2/MPEG4), Spectrum availability, network planning (MFN/SFN), coverage areas, end users equipment (Set- Top Box/D-TV), etc. Economical related issues Introduction of new business model, transition costs, subsidizing vulnerable people, etc. Allocation of Digital dividend Deployment of Mobile broadband Based on Regional and international harmonisation

14. Agenda International regulatory framework of the Digital Dividend Policy initiatives for the Analogue Switch-off and the Digital Dividend Licensing framework for the Digital Dividend Importance of the harmonisation Summary

15. GSMA has recently published a report that takes an in-depth look at spectrum licensing best practices http://www.gsma.com/spectrum/licensing-to-support- the-mobile-broadband-revolution-report / Licensing framework for the Digital Dividend Supporting Mobile Broadband Rapid growing take-up of mobile broadband applications Data services has become the major source of traffic since 2010 Mobile data traffic expected to increase 18-fold between 2011 and 2016 Direct impact of the licensing framework on mobile broadband applications Data Traffic ExplosionLicensing for Mobile BB

16. Remove service and technology restrictions in existing mobile spectrum usage rights – To enable operators to choose the mobile technology to be deployed – To issue new spectrum usage rights within the mobile bands should on a service and technology neutral basis subject to the use of technologies which can technically co-exist without intolerable interference Be subject to the same terms and conditions when offering similar services Ensure that current rights to use spectrum are clearly specified Licensing framework for the Digital Dividend Mobile spectrum usage rights

17. Licensing framework for the Digital Dividend Roadmap of the spectrum release Announce in advance a long term plan for reform of the spectrum and operating licensing framework – publishing a road map of the planned release of additional spectrum bands to maximise overall benefits from the use of spectrum including taking into account the benefits of international harmonisation – Publicly setting out the criteria and process to be followed in licensing decisions and including public written consultation in advance of key decisions being made Stability of the overall licensing framework facilitates investment

18. Agenda International regulatory framework of the Digital Dividend Policy initiatives for the Analogue Switch-off and the Digital Dividend Licensing framework for the Digital Dividend Importance of the harmonisation Summary

19. Maximise the harmonisation in ITU-R Region 1 Digital Dividend: 790 – 862 MHz Harmonised technical conditions of use in the 790-862 MHz frequency band for mobile broadband – ITU-R Recommendation M.1036 Maximise the harmonisation in ITU-R Region 1 791832862 FDD downlinkFDD uplink Guard band 790 Duplex gap 821 30 MHz (6 blocks of 5 MHz)

20. Importance of the harmonisation Facilitate innovation and roaming Enable economy of scale Respond quickly to market needs and bridge the Digital Divide Help managing cross-border interference Importance of aligning spectrum rights with the internationally harmonised mobile spectrum bands Impact on handset costs 800 million units per year 80 million units per year 8 million units per year Extra cost on a handset 15 cents(US) $1.5 dollars (US) $15 dollars (US) Resulting in a $30 (US) handset costing $30.15 (US)$31.5 (US)$45 (US) The performance cost of adding a non-harmonised band to an existing multi band phone (or dongle) is at least 1 dB per band and that this performance loss increases as the number of bands increased and can easily be of the order of 2 to 3 dB. When applied in the context of a data dominant mobile broadband data network a loss of 3dB of link budget translates into a 30% decrease in coverage area or 40% increase in the number of base stations needed. Source: GSMA White Paper, March 2012 Illustration

21. Agenda International regulatory framework of the Digital Dividend Policy initiatives for the Analogue Switch-off and the Digital Dividend Licensing framework for the Digital Dividend Importance of the harmonisation Summary

22. Summary Licensing framework of the digital dividend Stability of the overall licensing framework facilitates investment Remove service and technology restrictions in existing mobile spectrum usage rights Announce in advance a long term plan for reform of the spectrum and operating licensing framework Importance of aligning spectrum rights with the internationally harmonised mobile spectrum bands Facilitate innovation and roaming Enable economy of scale Help managing cross-border interference

23. Summary Awarding the digital dividend band Justification of band clearance to facilitate mobile broadband use Economic justification for clearance Structural challenges to clearance Obstacles faced to clear historic users from the band Completion of the Analogue Switch Off Clearing DTT from the band Clearing Programme-making and special events (PMSE) use from the band Clearing military users from the band Ensuring mobile broadband in the digital dividend band does not negatively impact other spectrum uses DTT use beneath the 700MHz/800MHz band Cable TV use within the 700MHz/800MHz band Uses in neighbouring countries

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