Consultation paper
October 2012
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acma | xiii
Contents (Continued)
1 Invitation to participate 1
1.1 Principles for spectrum management and decision framework 2
1.2 Scope of this strategy 3
1.3 Stages of this consultation process 4
2 The 1800 MHz band 7
3 Key discussions 8
3.1 Apparatus licensing arrangements 8
3.1.1 Review of pricing in 1800 MHz 8
3.1.2 Status of fixed links 8
3.1.3 Priority access arrangements 9
3.2 Spectrum sharing 9
3.2.1 National rail communications solution 9
3.2.2 Infrastructure park 9
3.3 Longer term spectrum licensing 10
4 Invitation to comment 11
4.1 Attending the workshop 11
4.2 Collaborating online 11
4.3 Making a submission 11
acma | xiii1 Invitation to participate
The purpose of this paper is to outline the Australian Communication and Media Authority’s (ACMA) consultation process for developing technical and regulatory arrangements for the 1800 MHz band.
It provides background information to assist people in making comments to the ACMA on the issues addressed. Information in this paper should not be taken to indicate the ACMA's commitment to a particular policy or course of action.
The ACMA recognises that there is increasing demand for access to spectrum in the 1710–1785 MHz and 1805–1880 MHz frequency ranges (the 1800 MHz band) from various industry sectors. As a result, the ACMA is developing a spectrum management strategy for the band that is intended to address this demand and provide arrangements suitable for the short and longer term. Demand has been demonstrated from:
telecommunications operators—to deploy next generation communications services
railway authorities—to build a national GSM-R network to support safety and signalling systems
mining companies—to facilitate autonomous mining and transport systems
energy companies—to enable ‘smart infrastructure’.
Much of this demand is due to the availability of long term evolution (LTE) equipment for the band. There is also increasing demand for spectrum in regional areas (including spreading populations around metropolitan areas) and some specific remote areas.
The approaching expiry of existing spectrum licences in the band gives the ACMA an opportunity to consider the appropriate regulatory arrangements in the 1800MHz band for the short and longer term. The ACMA is keen to engage with interested parties to develop and finalise a strategy for the longer term. The strategy must be consistent with the broader regulatory environment and the ACMA’s other spectrum management arrangements. Importantly, it must also meet the needs of current and prospective licensees in the band.
This paper provides information on how interested parties can actively participate in the consultation process to develop the strategy. It also provides an initial opportunity for current and prospective licensees to identify the key issues for the band. The ACMA intends to develop further issues papers that will actively engage stakeholders on particular 1800 MHz band issues.
The ACMA has identified three key issues that will be the subject of future consultation papers. They are:
A proposal to make spectrum in regional and remote areas available for use via public telecommunications service (PTS) apparatus licences.
A proposal to develop arrangements to encourage greater spectrum sharing between industries.
A proposal considering the possible future expansion of spectrum licensing arrangements in regional and remote areas.
Section 3 provides further explanation of each of these issues. The ACMA will also host a workshop where these key issues, along with other matters, will be discussed. The contribution of information and ideas from current and prospective licensees is vital to the ACMA developing the right mix of regulatory and licensing arrangements for the 1800 MHz band. Information on how to participate in the workshop is provided in section 4.
The availability of LTE equipment for the 1800 MHz band has led to significant interest from a number of sectors in deploying 4G communications networks and smart infrastructure systems in this band across Australia. At the same time as addressing the expiry of spectrum licences in major metropolitan areas, the ACMA will work with interested stakeholders to ensure that the arrangements for the whole band are cohesive and maximise the public benefit derived from use of this spectrum.
1.1 Principles for spectrum management and decision framework
The ACMA is guided in its spectrum management functions by the objects of the Radiocommunications Act 1992 and its Principles for spectrum management. The key theme of both objects and 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 principles for spectrum management are:
Principle 1—Allocate spectrum to the highest value use or uses
Principle 2—Enable and encourage spectrum to move to its highest value use or uses
Principle 3—Use the least cost and least restrictive approach to achieving policy objectives
Principle 4—To the extent possible, promote both certainty and flexibility
Principle 5—Balance the cost of interference and the benefits of greater spectrum utilisation.
The strategy for the 1800 MHz band supports all of the principles with each of the key issues supporting particular principles based on the technical or policy objective to be achieved.
Table 1: Principles for spectrum managementKey issues / Principle 1 / Principle 2 / Principle 3 / Principle 4 / Principle 5
Make spectrum in regional and remote areas available for use via PTS apparatus licences / P / P / P / P
Develop arrangements to encourage greater spectrum sharing between industries / P / P / P / P
The possible future expansion of spectrum licensing arrangements in regional and remote areas / P / P / P
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 (see Figure 1).
The ACMA’s view is that implementing the 1800 MHz strategy will:
ensure that the band is allocated to its highest value uses, as defined by reference to the overall public benefit derived from the use of the spectrum
clarify arrangements for access to the band by prospective licensees and promote efficient use of the spectrum
clearly articulate spectrum management arrangements for the band, with certainty about those arrangements into the future
promote specific licensing solutions that support and encourage greater efficiency in spectrum use.
The ACMA will actively discuss proposed arrangements with stakeholders to consider how best to promote certainty and flexibility in licensing arrangements. The ACMA will also seek advice from prospective licensees about how spectrum-sharing arrangements might balance the cost of possible interference with the benefits of greater spectrum utilisation and efficiency.
Figure 1: Spectrum management decision framework1.2 Scope of this strategy
This interactive and discursive consultation process is intended to develop a strategy for the ACMA’s approach to spectrum management in the 1800 MHz band. By engaging with interested parties, the ACMA will design spectrum management and licensing arrangements that facilitate greater use of this spectrum and will maximise the public benefit derived from that use.
The timing of this work coincides with the expiring spectrum licence processes for the band.[1] Given the ongoing nature of these activities, discussions regarding those processes are outside the scope of this consultation. However, the outcomes of these activities may have an impact on the development of the long-term strategy for the 1800 MHz band. Therefore, the outcomes of the reissue consideration and aggregation processes may inform the implementation of future strategies.
The 1800 MHz strategy will be informed by the outcome of arrangements in the spectrum-licensed segment of the band, but will specifically consider only those portions of the band that are not currently spectrum licensed. It will focus on access arrangements for apparatus licences, strategies for enhancing the efficiency of spectrum use through greater spectrum sharing and consideration of whether spectrum licensing should be extended to cover more of the band.
Possible outcomes of this review include:
the lifting of Embargo 62 to release the band for access by prospective licensees
the publication or amendment of a Radiocommunications Assignment and Licensing Instruction (RALI) to provide coordination and access arrangements for apparatus licences
revised taxation for PTS apparatus licences in the band
new licence conditions for fixed services, clarifying their status in the band
the development of tailored licensing solutions for particular industries or circumstances, including a possible infrastructure park or private park
a recommendation that the Minister for Broadband, Communications and the Digital Economy extend spectrum licensing arrangements to cover more of the band.
Q1. The ACMA invites feedback on the scope of the consultation process.
Does it cover all the matters of importance to spectrum management for the 1800MHz band? If not, what other matters should be considered as a part of this process?
1.3 Stages of this consultation process
A series of consultation elements will allow participants to help shape the discussion. Running from the release of this paper through to the first quarter of 2013, the ACMA will host a workshop and several online interactions, and release a series of formal issues papers. Participants are encouraged to engage in dialogue through any or all of these forums and to make more formal, written submissions as appropriate.
Comments and submissions made to the ACMA during the early stages of this process will be incorporated into the development of the strategy and reflected in the later issues papers. Therefore, participants may wish to raise matters of particular interest with the ACMA earlier, rather than reserving all comments until the end of the process.
Consultation process stagesWhen / What / Description
October 2012 / This consultation paper / Invites consultation participants to consider what the regulatory arrangements of the 1800MHz band should look like in the short and longer term. It also raises the key issues that the ACMA considers will require further discussion. This paper will be open for comment throughout the consultation process and underpins the discussions to take place during that period.
November 2012 / Workshop / To be held on 15 November at the ACMA Sydney office and online to discuss what current and prospective licensees see as the key issues for the band. The ACMA will present its initial positions on key issues. Participants may also wish to present an item for discussion and, if so, should contact the ACMA before 1November to make arrangements.
November 2012 / Issues paper 1—Release of band for PTS licences / Paper 1 will cover access arrangements for regional and remote spectrum and the status of fixed services in the band. It will also present a review of pricing for apparatus licences to be issued in the band.
February 2013 / Issues paper 2— Possible expansion of spectrum licensing in regional/remote areas / Paper 2 will consider the relative merits of extending spectrum licensing in the band including how much of the band should be spectrum licensed, how the transition should be achieved (e.g., conversion or reallocation) and when any such transition should be made.
April 2013 / Issues paper 3—Arrangements to encourage spectrum sharing / Paper 3 will discuss possible approaches to spectrum-sharing arrangements in the band, including possible licensing arrangements for specific infrastructure industries, including rail and mining.
To encourage dialogue on each of the issues papers, the ACMA will initiate online discussions following the release of each paper. The input generated in these forums will be captured, analysed and considered as part of the consultation discussion alongside any formal submissions that are received.
Throughout the consultation period, participants may contribute to the conversation via Twitter using the hashtag #1800MHzstrategy.
Figure 2 shows an anticipated timeline for the consultation process and its outcomes.
Q2. The ACMA invites feedback on its proposed approach to consultation.
In particular, will a staged, discursive consultation facilitate more considered and timely input from our 1800 MHz stakeholders, or impose undue demands on stakeholders’ time and resources?
Figure 2: Expected timeline for the 1800 MHz strategy2 The 1800 MHz band
In Australia the 1800 MHz band is spectrum licensed in major metropolitan areas, but generally apparatus licensed in regional and remote areas. This is demonstrated in Figure 3 below.
Figure 3: Areas subject to spectrum and apparatus licences in the 1800 MHz bandBand (MHz) / Metropolitan / Regional / Remote
1710–1725 / 1805–1820 / Spectrum / Spectrum / Apparatus
1725–1785 / 1820–1880 / Spectrum / Apparatus / Apparatus
Figure 3 shows that spectrum licences also cover regional Australia in the frequency ranges 1710–1725 MHz and 1805–1820 MHz. Spectrum licences in the 1800 MHz band will expire in two tranches—the first in June 2013 and the second in May 2015. The ACMA is currently considering whether these spectrum licences may be reissued to incumbent licensees or will be offered for reallocation by auction.