Transitioning the 3.5 GHz band forfuture opportunities
Consultation paper
june 2014
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Contents (Continued)

Executive summary 1

1. Introduction 2

Purpose 3

Structure 3

Legislative and regulatory framework 4

Review process 4

2. Changing use of the 3.5GHzband 7

Current use of the 3.5 GHz band in Australia 7

International trends in use of the 3.5 GHz band 9

Harmonised technology standards 9

Implications of harmonised standards for the deployment of IMT 10

Implications of international trends on arrangements in the 3.5 GHz
band in Australia 12

Spectrum licences 12

Apparatus licences 13

Harmonisation 13

Summary 14

3. Licensing options to transition the 3.5 GHz band for future opportunities 15

Option 1. The status quo 15

Unallocated lots in the 3.4 GHz band 16

How the ACMA would implement retention of the statusquo 17

Spectrum-licensing arrangements 17

Apparatus licensing arrangements 18

The ACMA’s preliminary view 18

Option 2. Extension of spectrum licensing 19

How the ACMA would implement an extension of spectrum licensing 21

Spectrum licensing arrangements 21

Apparatus licensing arrangements 22

The ACMA’s preliminary view 24

Option 3. Extension of apparatus licensing in the 3.5GHzband 25

How the ACMA would implement an extension of apparatus licensing 26

Spectrum-licensing arrangements 26

Apparatus-licensing arrangements 27

The ACMA’s preliminary view 28

Option 4. Hybrid model involving extension of both apparatus and
spectrum licensing 30

4. Preliminary preferred outcome—extension of apparatus licensing in the 3.5GHz band 31

Extent of apparatus licensing 32

5. Summary 34

Issues for comment 34

Invitation to comment 36

Making a submission 36

Attachment 1 38

Current use of the 3.5 GHz band in Australia 38

Spectrum licensing: 3425–3442.5/3475–3492.5 MHz and 3442.5–3475/ 3542.5–3575 MHz 38

Apparatus licensing: 3400–3425 MHz 40

Apparatus licensing: 3425–3442.5/3475–3492.5 MHz 41

Apparatus licensing: 3442.5–3475/3542.5–3575 MHz 42

Apparatus licensing: 3492.5–3542.5 MHz 42

Apparatus licensing: 3575–3600 MHz 42

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Executive summary

The 3400–3600 MHz frequency range (the 3.5 GHz band) is a complex band that is subject to a mix of spectrum and apparatus licensing arrangements. These arrangements authorise a variety of services, including wireless broadband, fixed, mobile, satellite and Amateur services. There are also some embargoes in place. Internationally, there are some indications that use of the band may be changing. This is beginning to put pressure on current arrangements in the band in Australia. However, there is no certainty about what uses the band may be put to in Australia in the future. This certainty may not emerge for another three to four years.

To respond to the complexity and growing pressures associated with the 3.5 GHz band, the Australian Communications and Media Authority (the ACMA) considers that it is desirable to implement arrangements that will maximise future flexibility in the band. These arrangements would be intended to accommodate current uses of the band, providing certainty for incumbent licensees. However, these arrangements would also be intended to ensure that there is regulatory flexibility to review planning and licensing arrangements in the future, when there is more certainty about the long-term, high-value uses of the band in Australia.

The ACMA therefore considers that this review of arrangements in the 3.5 GHz band is intended to provide a ‘transition’ mechanism to ensure the ACMA and licensees can take advantage of future opportunities for use of the band.

At the same time, the ACMA is concerned that current licensing arrangements in the 3.5 GHz band may not provide sufficient flexibility to enable this transition. This paper therefore identifies alternative broad options for licensing in the band. Those options are an extension of spectrum licensing; an extension of apparatus licensing; or a mixture of both. On balance, as discussed in this paper, the ACMA considers that the regulatory flexibility of apparatus licensing may mean it is the most suitable licensing arrangement to enable the transition the 3.5 GHz band and position it to take advantage of future opportunities.

The ACMA also considers that apparatus licensing arrangements can be implemented that will provide continuity of access to holders of expiring spectrum licences. While these arrangements would be developed in consultation with affected licensees, the ACMA’s initial view is that area-based apparatus licences could enable deployment of the same kinds and scale of systems as those authorised under the expiring spectrum licences.

The ACMA emphasises that this paper only reflects its preliminary view. Stakeholder views, and the potential impact on future services, will form a key element in the ACMA’s consideration of future licensing arrangements in the 3.5 GHz band.

1.  Introduction

In Australia, the 3.5 GHz band is currently used for a range of services including wireless broadband, fixed, mobile, satellite, Amateur and radiolocation services.

Segments of the band are currently subject to spectrum licensing—this spectrum-licensed part of the frequency range is known as the 3.4 GHz band. These spectrum licences will reach the end of their 15-year licence period and expire on 13 December 2015.[1] In addition to the spectrum licences within the band, there is a range of apparatus licence arrangements. There are also spectrum embargoes in place to preserve the ACMA’s future planning options in the band.

Internationally, there are strong indicators that the use of the 3.5 GHz band is moving from fixed wireless access to a combination of both fixed and mobile services. The ACMA changed the status of mobile services in the 3.5 GHz band from secondary to primary in the Australian Radiofrequency Spectrum Plan 2013 (ARSP 2013) to provide additional flexibility in the use of the band.[2]

In conjunction with the changing use of the band, international harmonised standards have been defined in the 3.5 GHz band. These cover the deployment of International Mobile Telecommunications (IMT) technologies for both frequency division duplex (FDD) and time division duplex (TDD) profiles.[3] But it is not clear whether either—or both—of these profiles will be deployed in Australia in the future.

The ACMA considers that current licensing arrangements in the 3.5 GHz band are not sufficiently flexible to allow planning arrangements to change without regulatory intervention. Consequently, the ACMA is concerned that the 3.5 GHz band will not efficiently accommodate emerging uses and technologies because of the lack of flexibility in existing licensing arrangements. For example, the current planning arrangements for both fixed and mobile broadband services do not align well with internationally harmonised standards for the 3.5 GHz band. Also, they are not optimised for equipment that conforms to the harmonised IMT standards. As a result, the current mix of licensing arrangements in the band limits replanning.

In light of the changing use of the band and the approaching expiry of spectrum licences, options for future licensing arrangements in the band need to be considered.[4] The objective is to identify the option or options that would maximise the regulatory flexibility available to both the ACMA and licensees in the band. This would ensure that the band can transition to future high-value uses, when certainty about the nature of those uses emerges internationally.

It will be important that current and potential future users of this band are properly consulted on any future arrangements. Current users range from major commercial operators, such as Telstra and Optus, to amateur users. Potential uses include mobile telecommunications and fixed wireless broadband services.

The ACMA emphasises that it is premature to review planning arrangements in the 3.5GHz band, in the absence of certainty about international or domestic directions for the band. Instead, the ACMA is seeking to identify licensing arrangements in the band, which would maximise future flexibility for a review of planning issues, when it is clearer what uses and technologies are likely to dominate in the band in Australia.

Purpose

The purpose of this paper is to identify licensing arrangements in the 3.5 GHz band that might maximise regulatory flexibility for both licensees and the ACMA. This flexibility would mean that the outcomes of a future review of planning arrangements in the band could be readily implemented. The aim of the review would be to ensure the band can support demand, facilitating the highest value uses of the band and increasing its overall use. The ACMA considers that the current lack of international certainty about the use of the band means that it would be premature to undertake the review of planning at this time. The ACMA is also uncertain about when a future review might occur, given that it is not clear when international arrangements are likely to be known. However, the ACMA anticipates that such a review might happen in three to four years.

To maximise future flexibility, it is appropriate that the ACMA’s consideration of licensing options for the 3.5 GHz band should cover the entire 3400–3600 MHz band Australia-wide, including both spectrum and apparatus-licensed parts of the band. Consideration of this broad frequency range is appropriate because use of the entire band appears to be changing internationally; there are spectrum licences approaching expiry; and much of the apparatus-licensed parts of the 3.5 GHz band appear to be only relatively lightly used. Detailed information on current use is in Attachment 1.

The ACMA emphasises that the discussion in this paper does not mean it has made any decisions on future licensing arrangements in the 3.5 GHz band. While this paper identifies a preliminary preferred view—an extension of apparatus licensing—consideration of submissions from stakeholders will be a key element in allowing the ACMA to refine its view.

Structure

This consultation paper is intended to identify licensing arrangements that might maximise the future flexibility in the 3.5 GHz band for both the ACMA and licensees. While it occasionally touches on planning issues, it is primarily concerned with short- to medium-term licensing arrangements.

Chapter 2 of this paper summarises current Australian arrangements and emerging international trends in use of the band and. It explains that a combination of the complexity of current arrangements in the band and the lack of certainty about future uses of the band in Australia means that the ACMA considers it is desirable to ensure there is flexibility in licensing arrangements in the band.

Chapter 3 sets out four broad options for future licensing arrangements in the band:

  the status quo—this would see no change to current licensing arrangements in the band, with retention of the current distinction between apparatus licensed and spectrum-licensed bands.

  extension of spectrum licensing—existing spectrum licensing arrangements would be retained, but in addition spectrum licensing would also be introduced in additional parts of the 3.5 GHz band, in specific geographic areas. The particular parts and geographic areas into which spectrum licensing would be introduced would be informed by responses to this discussion paper.

  extension of apparatus licensing—apparatus licensing arrangements would be extended, with the parts of the band and geographic areas informed by responses to this discussion paper. It may range from simply lifting some current embargoes to the introduction of apparatus licensing where spectrum licences currently exist.

  hybrid model involving extension of both apparatus and spectrum licensing—some spectrum that is currently spectrum licensed could become subject to apparatus licensing arrangements, while other frequency ranges—currently apparatus licensed—could move to spectrum licensing arrangements.

The chapter considers the advantages and disadvantages of each option, and invites stakeholder commentary on issues raised.

Chapter 4 explains that the ACMA has formed the preliminary view that the preferred outcome for future arrangements in the band may be an extension of apparatus licensing into at least some geographic areas and frequency ranges that are currently subject to spectrum licensing.

Chapter 5 summarises the issues on which comment has been sought throughout the paper, while Chapter 6 provides information on how to make a submission to the ACMA.

Legislative and regulatory framework

In managing the radiofrequency spectrum, the ACMA is guided by the objects of the Act. Two of the principal objects outlined in section 3 of the Act are to:

(a) maximise, by ensuing the efficient allocation and use of the spectrum, the overall public benefit derived from using the radiofrequency spectrum

…

(c) provide a responsible and flexible approach to meeting the needs of users of the spectrum.

In addition to the objects, the ACMA is also guided by the Principles for Spectrum Management (the Principles). The options set out in this paper are informed by both. The key theme of the objects of the Act and the Principles is to maximise the overall public benefit derived from use of the radiofrequency spectrum. The ACMA achieves this goal through a balanced application of market and regulatory mechanisms.

The purpose of this consultation paper is to identify licensing arrangements to maximise future regulatory flexibility in the 3.5 GHz band. In this process the ACMA is also keen to provide as much certainty as possible for incumbent licensees. At this stage, the key focus of the ACMA’s consideration against the Principles is therefore associated with Principle 4—to the extent possible, promote both certainty and flexibility.