Impact of the FCC Spectrum Policy Task Force

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SPECTRUM POLICYAND WIRELESS COMMUNICATIONS
The Challenges and Opportunities
CWTA Information Forum Calgary, AB March 6, 2006
mitchell.guy_at_ic.gc.ca
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Presentation

• Canadian Telecommunications Environment
• The Spectrum Management Program
• Spectrum Resource and Emerging Services
• Range of Opportunities for Wireless Industry
• Endnotes

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. Oversight Over Telecommunications,
Broadcasting and Wireless

• .

Telecommunications Policy and Regulatory Roles
Industry Canada Canadian Heritage
Canadian Radio-television and
Telecommunications Commission (CRTC)
Industry Canada

• Telecommunications
• Radiocommunications
• Broadcasting
• Telecommunications
• Broadcasting
• Radiocommunications

Policies
Regulation
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Canada Has World Class Communications Networks

• Wireline
• One of the most developed telecom networks in the
  world
• More than 99 of the lines are linked to a
  digital network
• Several nation-wide fibre-optic networks
• More than 98 of households have at least one
  telephone
• gt70 of HHs have access to ADSL high speed
  Internet
• A well developed cable distribution network
• 92 of households have access to cable
• 74 of these actually subscribe to cable
• 70 of households have access to high
• speed cable internet
• Wireless
• 3 national mobile networks
• National satellite communications network
• Competitive radio carriers and service providers
• Over the air television and radio broadcasting
• 2 Direct To Home satellite broadcasting licences
• 4 Satellite mobile services
• Fixed wireless (e.g. WCS, MCS, FWA,
  Licence-Exempt)

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Telecom Services Revenue Components

• Both the wired local voice and wired long
  distance markets are expected to continue to
  decline.
• Wireless voice is expected to increase at an
  annual rate of 8.3.
• Data/broadband is becoming an increasingly
  important segment, more than doubling its
  revenues from 2002 to 2009.

Graphic depicts only selected industry segments
and does not constitute the entire
telecommunications industry. Includes retail
DSL, cable modem, corporate data and wireless
data. Numbers may not add up due to
rounding. Source Yankee Group, North America
Consumer Fixed-Line Media, Business Fixed-Line,
and Wireless/Mobile Forecasts (June 2005).
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.
.
A competitive communications industry
Wireless Providers
Paging Companies e.g. PageNet Canada
Bell Partners TELUS Mobility Rogers Wireless
Wireline Carriers
Broadcast Distribution
Incumbents Major Telephone Companies Bell
Canada TELUS Aliant MTS SaskTel
Independent Telephone Companies e.g.
Thunder Bay Telephone Overseas Carrier e.g.
Teleglobe Competitors e.g. Allstream Inc.
(formerly ATT Canada) Call-Net (Sprint
Canada) FCI Broadband (formerly Futureway
Communications)
9.5 Billion
Cable Providers Rogers Communications Shaw
Communications Cogeco Cable Vidéotron
Ltée Persona Cable EastLink Communications Dire
ct-to-Home (DTH) e.g. Bell ExpressVu,
StarChoice Multi-point Distribution
Systems e.g. Look Communications
2004 Revenues 40.0 Billion
23.3 Billion
5.9 Billion
1.3 Billion
Resellers, Satellite Other Telecommunications
Resellers e.g. Primus Telecommunications Satell
ite e.g. Telesat Canada, Globalstar, Mobile
Satellite Ventures
Bell Partners includes Bell Mobility, Aliant
Mobility, SaskTel Mobility and MTS
Mobility. Source Statistics Canada, Survey of
Telecommunications Service Providers (April 2004)
and CRTC, Broadcast Distribution Statistical and
Financial Summaries (April 2004).
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Not Only Are Canadians Moving Online, They Are
Demanding High-speed
Broadband Penetration
Source Yankee Group, North America Consumer
Fixed-Line Media Forecast (March 2005)
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Were making a difference!
Change in served/unserved communities 2000 to
2005
100
Remaining Unserved
90
80
Broadband Pilot Program
70
National Satellite Initiative
60
Federal/Provincial/Territorial Initiatives
Strategic Infrastructure Fund
50
40
Provincial/Territorial Initiatives
30
Marketplace Initiatives
20
Served Pre-2000
10
0
2000
2005
Source Industry Canada, Broadband Office, March
2004
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Broadband Wireless The Third Competitor?
An Estimate of Use of Broadband Technology

• Cable Modem and DSL providing bulk of competition
• Significant spectrum available
• 2.5 GHz, 24/38 GHz and 28 GHz LMDS for many years
• 2.3 GHz and 3.5 GHz more recently
• New technology and standards are promising

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lt 2
Wireless
100
70
90
60
DSL
80
50
70
60
40
50
30
40
Cable
30
20
20
10
10
0
0
2002 NA
2005 NA
Source Industry Canada estimates based on
Yankee Group, North America Consumer Fixed-Line
Media Forecast (March 2005)
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.
Spectrum Management Oversight

• .

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Three Pillars of Spectrum Management.

• Main activities of Spectrum Management Program
• Spectrum Planning and Engineering
• Formulate allocations and spectrum utilization
  policy
• Formulate regulations and standards
• Implement Mutual Recognition Agreements (MRAs)
  and certifying equipment
• Authorization
• Establish licensing policy and processes
• Issue licences on First-come, first-served basis
• or using competitive processes ( auctions or
  administrative comparison)
• Spectrum Compliance and control
• Monitoring facilities
• Interference detection capabilities
• Conformity assessment
• enforcement

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Components of Spectrum Program

• Radio Act and Regulations
• ITU Regulations, incl. Allocation Table
• International Treaties and Agreements
• Spectrum Policy Framework
• Domestic Frequency Allocations and Spectrum
  Policies
• Licensing Policy Frameworks- Auction Framework,
  Satellite licensing Policies, etc.
• Set of radio system standards
• Licensing processes and fees
• Compliance, control and enforcement
• Certifications and MRAs

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Role of Spectrum Policy Framework

• First established in 1992, the Canadian spectrum
  policy framework articulates the objectives and
  policy principles for our spectrum management
  program.
• A review and modernization of the spectrum
  framework is underway to ensure that the spectrum
  program is innovative and responsive.
• Consultation raised a number of issues to engage
  spectrum users on proposed changes.

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Modernizing Our Spectrum Framework

• . Consultation addresses
• A rewrite of the Core Objectives with a set of
  short concise policy statements to provide the
  basis for evolving spectrum management program
• orderly and efficient development of
  radiocommunication
• efficient resource allocation and greater
  reliance on market-forces
• priority spectrum for public safety and national
  security
• regulate wisely and only when required
• facilitate advanced technologies and services
• flexible use of spectrum in rural areas
• advance Canadian interest internationally

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Modernizing Our Spectrum Framework

• Consultation addresses
• A rewrite of Policy Guidelines organized in four
  broad themes to respond to the evolving program
• Facilitate Access to spectrum for all Canadians
• Advocate flexibility and broad definition of
  allocations designate by usage, reallocate and
  displacement economic principles part of
  spectrum management, timely spectrum release
• Spectrum to meet priority requirements and
  societal needs
• support critical services advanced services in
  all regions.
• Improving the use of spectrum resource
• Facilitate advances in technology, radio system
  standards, interference mitigation
• Delivery of the spectrum management program
• New approaches and practices wide public
  consultation promote Canadian interest
  internationally

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Modernizing Our Spectrum Framework

• Consultation addresses a number of challenges,
  opportunities and proposals to advance the
  program over the next 5-7 years
• Harmonized use of spectrum
• Licence exempt spectrum
• Increase spectrum flexibility
• Enhanced spectrum-usage flexibility privileges
• Streamlining first-come, first-served licensing
• Obligation of roll-out requirement
• New technology and management concept
• Relax rules to foster advanced communication in
  rural
• Access to spectrum for public safety

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Next Steps

• Comprehensive public comments were received and
  being studied on modernizing the Spectrum Policy
  Framework
• A publication of a new Spectrum Policy is
  anticipated in mid 2006.
• A good debate has taken place on bringing
  advancements to the Spectrum Management Program
  in next 5-7 years.
• Series of discussion/proposal papers will be
  published on advancements to spectrum management
  based on valuable inputs from this consultation.

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.
Ongoing Spectrum Management Challenges

• .

• Modernizing Spectrum Policy and Management
  Program
• Global and Regional Harmonization
• Economies of scale create conditions which ease
  adoption of next generation services (i.e.
  affordable equipment)
• Ongoing spectrum policy review and opening new
  bands
• Opening new spectrum bands to encourage new
  applications, services competition
• Increasing flexibility to spectrum allocations
  and licenses
• Release new licence-exempt spectrum for consumer
  products
• Finding common spectrum for public safety and
  security communications
• Improving spectrum transfer and secondary market
  trading
• Public discussion on new technologies such as
  UWB, SDR BPL and the opportunities challenges
  they bring
• Technology Neutrality neutral position on
  technologies and services being implemented
• Addressing Black/Grey Market
• World Radiocommunication Conferences spectrum
  planning
• Leadership role in international fora

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Prime Spectrum for Cellular mobile PCS, 3G, AWS
and beyond --

• New Spectrum for Licensing in 2007
• At least 90 MHz 1710-1755 paired with 2110-2155
  MHz in 2007 for Advanced Wireless Services (AWS)
• AWS will include mobile fixed wireless
  components
• Will provide a broad range of applications
  high-mobility, wireless internet access,
  high-speed data and entertainment services,
  multi-media, etc.
• Possible expansion of PCS spectrum at 2GHz
  (20MHz)
• Policy framework will guide licensing auction
  process

Spectrum Licensed
New Spectrum
120
100
80
MHz
60
40
20
0
1710 2110 MHz AWS (3G) 2007
800 MHz Cellular PCS 1985
1900 MHz PCS 1995, 2001
800 MHz High Mobility
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.
Some Policy Considerations to Oversee a
Spectrum Auction

• .

• Each auction is overseen by a policy framework
  setting out the objectives for competition,
  service choice and other aspects of public
  interest
• Auctions provide an open, fair and transparent
  process
• Policy and licensing aspects generally
  considered
• Pursuit of particular telecom objectives such
  as ways to promote competition, innovation,
  extension of services to rural areas, etc.
• Mechanisms used could include eligibility,
  setting aside spectrum for new entrants, a cap to
  control spectrum dominance, geography of spectrum
  licenses national, regional or local, use-it
  or lose-it requirements (service roll-out
  obligations), etc.

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Prime Broadband Spectrum below 10 GHz

• Significant amount of spectrum (205 MHz)
  auctioned in 2004/2005
• 28 companies acquired over 800 spectrum-area
  licenses at 2.3 GHz (WCS) and 3.5 GHz (FWA) for
  broadband access
• As wireless broadband represents less than 2 of
  access facilities, it is hoped that new
  technology i.e. WiMAX will kick-start wireless

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Broadband Spectrum Above 10 GHz

• Large blocks of broadband spectrum opened in late
  1990s
• Over 2200 MHz licensed 28 GHz (LMCS) and
  24/38 GHz BB
• Technology and standards have not produced cost
  effective service to customers
• Extensive RD needed

28 GHzLMCS 1996
38 GHz BWA 1999
24 GHz BWA 1999
33 GHz BWA
29/31 GHz BWA
27 GHz
26 GHz LMCS
23 GHz LMCS
18 GHzBWA
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Spectrum Available for Wi-MAX

• 2.3 GHz WCS band (1515 MHz) --- Fixed and
  limited mobile (impact of out-of-band emission
  on Satellite Radio service)
• 2.5/2.6 GHz bands (190 MHz)--- Fixed and
  broadcasting services mobile service not
  authorized, as yet.
• 3.5 GHz FWA band (175 MHz)--- Fixed service
  only--- mobile service is not compatible with
  important government and the DND operations.
• 5.8 GHz band (75 MHz)--- Licensed exempt and low
  power WLAN .
• Significant deployments of Wi-Max expected in
  2006 Wi-MAX operation needs to meet the
  allocations, licensing and spectrum environment
  of particular bands.

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New Spectrum Opportunities

• Spectrum proposed below 1.7 GHz band
• additional mobile spectrum in bands 216-220 MHz,
  220-222 MHz, 900 MHz
• licensed exempt spectrum for medical telemetry in
  bands 608-614 MHz, 1395-1400 MHz and 1427-1429.5
  MHz,
• Band 1429.5-1432 MHz for utility telemetry such
  as automatic meter reading
• emerging wireless applications in bands 1390-1392
  MHz, 1392-1395 MHz and 1432-1435 MHz
• band 1670-1675 MHz with flexible mobile and fixed
• New Licensed exempt WLAN at 5 GHz, broadband PS
  at 4.9 GHz, ITS at 5.8 GHz, and new technology at
  3650-3700 MHz

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Endnotes

• A number of frequency bands are being opened for
  new technologies and services.
• Radio manufacturing, software developers,
  carriers and service providers, content
  providers- companies of all sizes are provided
  market opportunities.
• Depending on the situation, an FCFS or
  competitive licensing process, would be used to
  assign the spectrum based on the need,
  convenience and necessity.
• Where there is more demand than spectrum, a
  competitive process would be used- a spectrum
  auction provides the most efficient licensing
  process

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Contact Information

• Guy Mitchell
• Industry Canada
• Spectrum and Radio Services
• Telecommunications Policy Branch
• Industry Canada
• Mitchell.Guy_at_ic.gc.ca

http//sitt.ic.gc.ca