Consultation paper
AUGUST 2014
Canberra
Red Building
Benjamin Offices
Chan Street
Belconnen ACT
PO Box 78
Belconnen ACT 2616
T +61 2 6219 5555
F +61 2 6219 5353 / Melbourne
Level 32
Melbourne Central Tower
360 Elizabeth Street Melbourne VIC
PO Box 13112
Law Courts
Melbourne VIC 8010
T +61 3 9963 6800
F +61 3 9963 6899 / Sydney
Level 5
The Bay Centre
65 Pirrama Road
Pyrmont NSW
PO Box Q500
Queen Victoria Building
NSW 1230
T +61 2 9334 7700
1800 226 667
F +61 2 9334 7799
Copyright notice
http://creativecommons.org/licenses/by/3.0/au/
With the exception of coats of arms, logos, emblems, images, other third-party material or devices protected by a trademark, this content is licensed under the Creative Commons Australia Attribution 3.0 Licence.
We request attribution as: © Commonwealth of Australia (Australian Communications and Media Authority) 2014.
All other rights are reserved.
The Australian Communications and Media Authority has undertaken reasonable enquiries to identify material owned by third parties and secure permission for its reproduction. Permission may need to be obtained from third parties to re-use their material.
Written enquiries may be sent to:
Manager, Editorial and Design
PO Box 13112
Law Courts
Melbourne VIC 8010
Tel: 03 9963 6968
Email:
acma | iii
Contents (Continued)
1. Executive summary 1
2. Introduction 2
3. Reasons to review arrangements in the band 5
3.1 Regulatory context 5
3.1.1 Spectrum and apparatus licensing 5
3.1.2 Current licensing arrangements 7
3.2 Technical properties and licensing arrangements 8
3.2.1 Current underutilisation 8
3.2.2 Changing demand for use of the band 11
4. Future arrangements for the band 13
4.1 Option 1—retain spectrum licensing 13
4.1.1 Technical aspects of spectrum licensing 13
4.1.2 Regulatory aspects of spectrum licensing 14
4.1.3 ACMA preliminary view 14
4.2 Option 2—revert to full or partial apparatus licensing 15
4.2.1 Technical aspects of apparatus licensing 15
4.2.2 Regulatory aspects of apparatus licensing 16
4.2.3 ACMA preliminary view 16
4.2.4 Partial introduction of apparatus licensing 16
4.2.5 Consultation on proposed recommendation to the minister 17
4.3 Pricing arrangements 18
4.4 The principles for spectrum management 18
5. Summary of the options 21
6. Implementation processes 22
6.1 Option 1—retain spectrum licences 22
6.2 Option 2—revert band to apparatus licensing 22
6.3 High-level timeline of key steps for both options 23
7. Invitation to comment 26
Making a submission 26
acma | xiii1. Executive summary
The 26.5–27.5 GHz frequency range (the 27 GHz band) is currently subject to spectrum-licensed arrangements Australia-wide. The technical arrangements for the band were originally optimised to support the deployment of Local Multipoint Distribution Services (LMDS). LMDS was an emerging technology at the time supported by international allocations in the US, and countries throughout Latin America, the Middle East and Asia. However, LMDS did not experience the expected significant international deployment, while equipment costs remained high. As a result, the LMDS technology has not been widely adopted and use of the spectrum licences in Australia across the 15-year licence period has been light. Currently, the main spectrum-licensed use of the band is by a limited number of Earth stations in support of Ka-band satellite services.
Spectrum licences in the band are due to expire on 17 January 2016. Preliminary analysis indicates that the band is currently underutilised and that demand for access to the band by a range of services and licensees is increasing. This is putting pressure on current arrangements in the band in Australia.
The ACMA considers that the approaching expiry of spectrum licences provides an excellent opportunity for the ACMA and stakeholders to review the most appropriate technical and licensing arrangements for the 27 GHz band.
The objective of the review is to identify the licensing arrangements which will maximise the overall public benefit and derive the highest value use from the spectrum. The ACMA also considers it important to provide certainty to the incumbent spectrum licensees in the band.
The ACMA is concerned that the band’s current licensing arrangements may not provide sufficient flexibility to address the current underutilisation and demand. This paper therefore identifies a number of options for the future licensing arrangements. These options include both spectrum licensing and apparatus licensing arrangements.
The ACMA has formed the preliminary view that reverting to apparatus licensing might be the best way to accommodate the range of prospective licensees and technologies that are likely to be high-value users of the 27 GHz band.
This consultation paper outlines the information that has led the ACMA to form this view, and invites stakeholder commentary on matters relevant to future arrangements in the 27 GHz band.
The ACMA emphasises that this paper only reflects the ACMA’s preliminary view. Stakeholder views will be a key element in the ACMA’s consideration of future licensing arrangements in the band.
2. Introduction
Spectrum licences in the 26.5–27.5 GHz band (the 27 GHz band) are approaching the end of their 15-year licence period and will expire on 17January 2016. This band is one of a number of bands in which spectrum licences will expire in the next few years. The ACMA has published a work plan on its website and in the Five-year Spectrum Outlook, outlining time frames for considering issues associated with expiring spectrum licences.[1] Part of the ACMA’s work plan includes the review of regulatory and technical arrangements for the 27GHz band to determine their overall effectiveness for the next spectrum-licensed period. This includes reviewing the existing licensing arrangements to ensure that they meet the future expectations and requirements of the band.
The 27 GHz band is spectrum-licensed on a nationwide basis. The current spectrum licence holders in the band include Optus (under the name Xyzed), iPSTAR and NBN Co Limited (NBN Co). The table below identifies the quantum and location of the spectrum acquired by the three licensees.
Table 1: 27 GHz spectrum holdingsLower
(GHz) / Upper
(GHz) / Regional/Remote SA,
Regional/Remote WA / Regional Remote Vic, NT, East Coast of Australia / Perth, Tasmania,
Regional East Australia
26.5 / 26.85 / Residual
26.85 / 27.35 / Optus (Xyzed)
27.35 / 27.5 / iPSTAR / Residual / NBN
The 27 GHz band is subject to the Radiocommunications (Class of Services) Determination 2012 (the Class of Services Determination) and the Radiocommunications (Spectrum Access Charges) Direction 2012 (the SAC Direction) made on 10 February 2012. The ACMA has commenced a review of the regulatory and technical arrangements in the 27 GHz band with the objective that any future arrangements are to enable the band to meet its highest value use in order to derive the greatest overall public benefit.
The ACMA is considering changing the licensing arrangements in the 27 GHz band from spectrum licensing to apparatus licensing.
The ACMA has identified two broad options for future arrangements in the band:
Option 1: retain spectrum licensing
Option 2: revert to apparatus licensing (full or partial).
Option 1 would allow:
reallocation of spectrum licences via a price-based allocation process
reissue of spectrum licences to incumbent licensees in accordance with subsection 82(1) of the Radiocommunications Act 1992 (the Act)
a combination of both.
Option 2 would allow the introduction of apparatus licensing arrangements in the bands. If only partial revocation occurred, then in those parts of the bands where spectrum licensing remained, reallocation or reissue could occur, as per Option 1.
The ACMA’s preliminary preferred position is Option 2. This is consistent with analysis against the Principles for spectrum management set out in Chapter 4. In addition to the principles, the ACMA considers a range of factors—as identified in its spectrum management decision framework—when making decisions about the use of spectrum.
Figure 1 Spectrum management decision frameworkNote: This proposal is at the ‘public consultation’ stage of the ACMA’s spectrum management decision framework.
For example, in developing its preferred position, the ACMA has considered:
Current usage demonstrated in the band via device registrations.
Increased interest domestically in using the 26.5–27 GHz portion of the band for space research and Earth exploration satellite services. Examples include the licences issued under special circumstances.
Increased worldwide interest in using the 27–30 GHz band to deliver satellite broadband services.
The outcome of the ACMA’s consultation process for the review of the 28 GHz spectrum-licensed band. The 28 GHz band is directly adjacent to the 27 GHz band and shares a number of similarities in regard to the types of services and diversity of operators interested in accessing the band. Submissions to this process largely expressed support for change to the regulatory arrangements to enable increased access to the band by bandwidth-intensive services provided by a variety of different operators. These included satellite, space research and fixed services.
This consultation paper invites interested parties to provide views to the ACMA on what might be the most appropriate future arrangement for the 27 GHz band.
To assist interested parties in providing submissions to the ACMA, and to explain why the ACMA has formed its preliminary view, this paper:
describes the rationale for implementing a review of the arrangements in the 27GHz band—including an explanation of the regulatory context, evidence of current underutilisation of the band, and evidence of how demand has changed since the original allocation
discusses the extent to which Option 1 and Option 2 might each maximise the overall public benefit derived from use of the band.
This consultation paper invites interested parties to provide views to the ACMA on what might be the most appropriate future arrangements for the 27 GHz band.
If, following consideration of the responses to this paper, the ACMA remains of the view that reverting to apparatus licensing is the most appropriate future arrangement for the bands, the ACMA would recommend to the minister that he make a revocation notice for the Radiocommunications (Spectrum Designation) Notice No. 1 of 2000 (31May 2000) (the Designation notice) that currently designates the 27 GHz band for spectrum licensing. This paper provides information on the substance of such a recommendation (see Chapter 4 for details). This paper also gives stakeholders the opportunity to make representations to the ACMA on this recommendation.
3. Reasons to review arrangements in the band
The approaching expiry of spectrum licences in the 27 GHz band provides the ACMA with an opportunity to review the existing arrangements in the band and consider whether current arrangements are effective in enabling spectrum to move to its highest value use.
The ACMA’s preliminary analysis indicates that the current arrangements have led to underutilisation of the spectrum. In addition, at the international level, demand for access for services that are not well supported by the current technical and regulatory framework is beginning to appear. This evidence was also available at the time the ACMA formed its view on the future arrangements for the 28 GHz band.
This chapter explains the regulatory context surrounding expiring spectrum licences in the 27 GHz band. It also explains the situations in which apparatus licensing and spectrum licensing are generally optimal. Further, it explores technical issues, including evidence of current underutilisation in the bands, changing demand and potential complexities created by having different licensing arrangements across the 27 and 28 GHz bands.
3.1 Regulatory context
Spectrum licences can be issued for a period of up to 15 years. Under the Act, the ACMA is responsible for managing the administrative process for expiring spectrum licences. This includes the reissue or reallocation of these licences in a number of bands. It also includes reviewing arrangements in each band, as licences approach expiry, to ensure they are still relevant.
Many of the bands in which expiring spectrum licences exist were included in the Class of Services Determination, making them eligible for reissue consideration under paragraph 82(1)(a) of the Act.[2] The 27 GHz band is one of those bands included in the Class of Service Determination for the provision of satellite services and may be subject to reissue.
Before a spectrum licence is reissued, the ACMA must be satisfied that the licence-holder has met the requirements of subsection 82(1) and pay a spectrum access charge (SAC) for the licence. This is essentially the fee for a spectrum licence. The quantum specified in the SAC Direction payable for the 27 GHz band is $0.00214/MHz/pop.
The ACMA will consider the impact these directions have during the review process. Responsibility for any decision to reissue a spectrum licence remains with the ACMA. Therefore, there is discretion available to the ACMA if undertaking a reversion process encourages efficient and innovative use of the spectrum to derive the maximum public benefit.
3.1.1 Spectrum and apparatus licensing
In general, the Act provides that the operation of a radiocommunications device must be authorised by a licence. There are currently three systems of radiocommunications licence—apparatus, spectrum and class licences. The typical uses of each licensing system are:
apparatus licensing—use of individual devices, usually on a site-specific basis
spectrum licensing—use of a specified frequency range in a defined geographical area
class licensing—broad spectrum access arrangements that are open to all users.[3]
Apparatus licensing
Apparatus licences authorise the operation of radiocommunications devices under specific technical conditions of use, such as frequency, power and geographical area. Spectrum use under apparatus licences is typically site-specific, but there are instances of nomadic Australia-wide use and area-wide systems use. Licences are usually issued over the counter for administratively determined prices, but may be auctioned when there is competing demand.
While apparatus licences can be thought of as providing exclusive access for a particular frequency at a particular location, this approach effectively enables multiple systems to coexist within close spectral and geographic boundaries. Such arrangements are coordinated, in order to achieve a planned outcome that can accommodate a number of users.