1. Spectrum and Mobile Broadband Beyond 2020

2. Mobile Evolution in Australia 30 25 20 15 10 3G CDMA GSM AMPS First fully automatic mobile system Australian Mobile Subscriptions (Millions) LTE / 4G 1981 1987 1993 1999 2000 2003 2007 2011 2012 2013 2014 2015 2018 2020 5G LTE Advanced / 4.5G ??

3. Mobile Broadband Subscriptions - Global 3 OECD 2015

4. Mobile Data Traffic 4

5. …..and the pace of change is accelerating eg - wearables and IoT 5

6. Productivity & Mobile Broadband The CIE 2014 6

7. Capital Expenditure 7

8. Meeting customer demand for quality user experiences with latest generation mobile devices, apps and services depends on industry investing $billions in: latest generation technologies network infrastructure and radio-frequency spectrum Innovation Investment Infrastructure 8

9. Infrastructure - Spectrum Utilisation of currently available MBB spectrum Future spectrum—1.5 GHz, 3.4/3.5 GHz Future spectrum—WRC-15 preparations [600 MHz, 2700-2900 MHz] Spectrum above 6 GHz – WRC-19 9

10. Spectrum Review What does reform look like? Transparency - providing a clear and transparent policy framework Efficiency - promoting efficient allocation and use of spectrum Flexibility - ensuring arrangements are as flexible as possible to promote choice and innovation Certainty - providing confidence about regulatory arrangements and spectrum access terms and conditions and promote international harmonisation in Australia’s interests Simplicity - creating a framework that is simpler, easier to understand and uses the least cost regulation required to achieve the objective The proposed reform approach is to restructure and rationalise the legislative framework to: provide for greater market-based activity simplify regulatory structures, streamline regulatory processes and clarify the role for Government Spectrum Review Dept of Comms 2015 10

11. New Framework thinking Proactive approach – early response to market signals in consultation with industry – ongoing dialogue Simultaneous planning – domestic and regional / international Develop ability to prioritise flow of spectrum to market Work with industry to understand complexities of dealing with demand Long lead times is not a strategy – seek world leading process efficiency Future will rely on flexibility and agility – keep options open Influencing and leading – spectrum and innovation 11

12. Beyond 2020 - Key themes “The ACMA will focus on the desired outcome— that is, delivery of mobile broadband services enabled by mobile broadband capacity, with provision of spectrum being one of several inputs to delivering this outcome.” “The ACMA will….seek to provide the right spectrum at the right time to address the growth in demand for mobile broadband capacity.” 2015 ACMA Beyond 2020 12

13. Beyond 2020…. ACMA strategy – good initial approach with refinements Timing concern given WRC-15 agenda item 1.1 impacts Recommend post WRC feedback on Beyond 2020 – Feb 16 WRC cycle – potential limiting factor Respect for the balancing act for all stakeholders Contemporary policy approach with matching ACMA strategy – a “must have” given ecosystem dynamics 13

14. Summary Strong data growth forecasts – set to continue Video, IoT / M2M will drive increasing growth Mobile broadband role & influence increasing Policy settings must support mobile BB: – Innovation – Investment – Infrastructure – networks and spectrum ACMA Strategy – streamlining implementation is key 14

15. Final thought “Mobile sits at the heart of a new ecosystem that is uniting the digital and physical worlds and powering economic growth.” 2015 Anne Bouverot Director General GSMA 15