1. ITU Arab Regional Development, 17th September 2012
Impact of the spectrum management on regional mobile broadband development: challenge and opportunities
Wladimir Bocquet
Senior Director
Global Spectrum Policy
GSM Association
We all know that mobile broadband demand is growing rapidly – faster that we thought possible even a few years ago. The rise of touch screens and smart phones has changed the way people use the internet. The idea that everyone would need a laptop to access broadband content via dongles has changed. Whilst it is clear we need more spectrum, that is not the whole story. We need the right type of spectrum too. Contiguous blocks of sufficient size will be required for as long as we have analogue front end devices in phones/tablets. This will need to feed into the decision process that will end with new IMT identifications at WRC15 (I hope!).
The growth predictions that we hear so often is a credit to all who make these technologies work but now we face a ‘nice’ problem…..you (or we as an industry) have made them too popular, that people have come to rely on them for their communication and entertainment as well as business, that data running across our mobile networks is running away from us too! I’d like to take a few moments to share with you some figures on where this growth is coming from, what the industry is currently trying to do to cope and after the WRC-12, what we really need to achieve to ensure longevity in our industry.

2. What’s at stake for mobile industry?
Data Explosion: Rapid changes in mobile service provision such as usage trends and number of important social and behavioural changes have led to previously unpredicted patterns of data consumption amongst mobile users. Mobile data traffic is still expected to significantly increase in the coming five years
Spectrum Resource: Spectrum is the lifeblood of the mobile industry. The amount of spectrum made available and the regulatory conditions on which it is made available fundamentally drive the cost, range and availability of mobile services. Spectrum is a scarce resource and public State property
Vital input to many industries
Radio waves do not stop at national borders
cross border issues have a significant role in spectrum management
Spectrum Policy: Choosing the appropriate spectrum policy licensing framework to facilitate the large investments required in rolling out networks and introducing updated technologies and new services

3. Agenda Data Traffic for Mobile Broadband
Spectrum Management for Mobile Broadband
Global Benefit of Releasing Harmonised Spectrum for Mobile Broadband

4. Mobile global data traffic
Estimates data traffic based on multiple sources
The growing adoption of data services has become the major source of traffic since 2010
On the Analysis Masson forecasts , mobile traffic is expected to grow at a CAGR (Compound annual growth rate) of 42% to reach 28 000 PB per year in 2015.
Source: ITU-R M.2243 Report

5. Mobile global data traffic
Comparison of ITU-R M.2072 with Current Data
The ITU-R M Report concludes
“The current data traffic (in year 2010) is more than 5 times greater than some of the estimates for Report ITU-R M (WRC-07). “
“Actual traffic being experienced by some operators today (year 2011) is even greater than some of the 2020 forecasts given in Report ITU-R M.2072.[…].”
Source: ITU-R M Report
This Report clearly indicates that the ITU-R should consider this increasing mobile broadband traffic demand.”

6. Factors impacting traffic forecast Diversity of devices
Mobile traffic (PB per year) by device type
Tablet generates 500 times as much data traffic as a basic mobile phone
Smartphones generate, on average, around 50 times more data per month than a basic phone
Average modem/dongle use, with laptop users generating as much as 1300 times that of a “standard” 3G phone
Source: ITU, Analysys Mason
 Mobile data usage is heavily device-dependent

7. Factors impacting traffic forecast Number of devices
2020
12 Billion
Mobile Connected Devices
2011
6 Billion
24 Billion
Total Connected Devices
9 Billion
Source: Machina
Here we have research company Machina predicting that by 2020 we will have 24 billion connected devices of which 12 billion will be mobile….that growth is staggering but actually real if we look at how we have predicted data growth in the past…..
Mobile world has reached another milestone with Internet becoming increasingly mobile. Ericsson, based on industry information, estimates that the number of mobile subscription will reach 9 billion end of 2017
Spectrum is a key resource/element for Mobile Broadband development

8. Licensing to support Mobile Broadband
GSMA has commissioned a report that takes an in-depth look at spectrum licensing best practices and real-world case studies
Licensing to support the mobile broadband revolution ensing-to-support-the-mobile- broadband-revolution-report/

9. Meeting the growing demand Freeing up spectrum resources
Identifying spectrum rights allowing provision of additional spectrum capacity
Enabling flexible/technology neutral use of spectrum (e.g UMTS/LTE at 900/1800 MHz)
Publishing a road map of the planned release of additional spectrum bands
to maximise overall benefits from the use of spectrum taking into account the benefits of international harmonisation
aligning spectrum rights with the internationally harmonised mobile spectrum bands
Removing service and technology restrictions in existing mobile spectrum usage rights
to enable operators to choose when to deploy mobile technologies that can technically co-exist.
However, Operators themselves are likely to be best placed to determine the speed of migration particularly recognising that 2G services are likely to remain important for the next 5 to 10 years.

10. Meeting the growing demand Harmonisation
Crucial to secure the same allocation and band plan to support harmonisation
Leverage from the existing deployment and maximise the economy of scale
Facilitate innovation and roaming
Reduce the device costs by
limiting the complexity of the radio design and the cost of mobile hardware
helping managing cross- border interference

11. Maximise the harmonisation Digital Dividend: 790 – 862 MHz
Support the following band plan with 5MHz block size for LTE technology
Favour contiguous 2x10 MHz per operator to fully leverage on Mobile Broadband technology
Maximise the harmonisation
Leverage on the economy of scale (facilitate the access)
Facilitate the cross-border coordination
791
832
862
FDD downlink
FDD uplink
Guard
band
790
Duplex
gap
821
30 MHz (6 blocks of 5 MHz)

12. Maximise the harmonisation 2.6 GHz band: 2500 – 2690 MHz
Fixed vs. flexible band plans
Adopting a fixed band plan is best and lead to global harmonization in the use of the band
Clear from both prior auctions and operator announcements that the ITU Option 1 band plan is preferred
In addition,
The Arab states markets should preferably adopt global band plans
The adoption of ITU Option 1 for 2.6 GHz will yield large economies of scale in both network equipment and handsets
2500
2620
2690
FDD uplink
FDD downlink
TDD
2570

13. Meeting the growing demand Spectrum & Infrastructure Sharing Aspects
Regulatory framework should facilitate operator’s engagement in voluntary infrastructure and/or spectrum sharing.
Regulatory framework should remove restrictions on operators negotiating and concluding agreements governed by private law on sharing in bands dedicated to Mobile Broadband.

14. Meeting the growing demand Licensing framework to support investment
Stability of the overall licensing framework facilitates investment
announcing in advance a long term plan for reform of the spectrum and operating licensing framework
facilitating international harmonisation so that equipment and devices use the same frequency bands to support international roaming and enable the realisation of scale economies in manufacture
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

15. Meeting the growing demand Assignment and renewal of licenses
Importance to set out approach to licence renewal in advance of the expiry of the licence
At least 2 to 4 years in advance
Avoid network investment being postponed
Publish the criteria to be used to assess renewal as well as the terms and conditions to be applied to the renewed licence

16. Study on socio-economic benefits Kingdom of Saudi Arabia
GSMA performed a study case on the benefit to release internationally harmonised spectrum band plans at 2.6GHz and at 800MHz.
Highlight considerable socio-economic benefits from the release of harmonised spectrum for use by mobile operators to deliver next- generation mobile broadband service
 Key opportunity – broadband improves GDP and job growth…..
For the full report, please visit:
economic\_benefit_of_allocating_harmonised_spectrum_in_Kingdom_of_S audi_Arabia

17. Impact on Mobile Broadband subscriber
Socio-economic benefit Allocating harmonised mobile broadband spectrum in the Kingdom of Saudi Arabia (1/3)
Impact on Mobile Broadband subscriber
A delay in spectrum assignment of 5 years would reduce the expected number of mobile broadband subscribers to 20 million by 2020 and to 47.5 million by 2025.

18. Impact on GDP (Gross domestic product) growth
Socio-economic benefit Allocating harmonised mobile broadband spectrum in the Kingdom of Saudi Arabia (2/3)
Impact on GDP (Gross domestic product) growth
The impact of spectrum release on GDP in KSA [Source: Analysys Mason, 2012]
In 2020, the additional GDP resulting from enhanced growth in mobile broadband subscriptions would amount to SAR52.4 billion, if spectrum is released by A five-year delay in assigning the spectrum would reduce this gain to SAR9.3 billion.

19. Socio-economic benefit Allocating harmonised mobile broadband spectrum in the Kingdom of Saudi Arabia (3/3)
Impact on job growth
The impact of spectrum release on employment in KSA [Source: Analysys Mason, 2012]
In 2020, the additional employment resulting from enhanced growth in mobile broadband subscriptions would amount to 424 000 jobs, if spectrum is released by A delay in spectrum assign of five years would reduce this gain to 75 000.

20. Summary Meeting the growth in demand for mobile services
Data demand continues to grow
Additional spectrum being made available and ensuring that the spectrum goes to the use and users which will maximise its benefits to society
Facilitating international harmonisation to support roaming and enable scale economies to lower the cost of equipment
Licensing issues are critical
Removing unnecessary restrictions on the use of spectrum including allowing for new Mobile Broadband technologies
Ensuring a fair and predictable licensing environment facilitates the investments required to take full advantage of a country’s spectrum resources 20