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No.90 - The radio spectrum: A shift in paradigms?

DigiWorld Economic Journal - C&S - 24/06/2013 No.90 - The radio spectrum: A shift in paradigms?

2nd quarter 2013

Demand for the use of the radio spectrum is constantly and rapidly growing, not only as a means of carrying Internet traffic, but also for new or expanding use by the military, public protection and disaster relief, at the same time that more traditional applications such as aeronautical, maritime, and radio astronomy remain. Is spectrum policy entering a trackless wilderness, or can a new direction and a new set of paradigms be expected to emerge? The contributions to this special issue of Communications & Strategies cover a great deal of ground. They serve to provide valuable signposts for spectrum policy going forward.

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The radio spectrum:

A shift in paradigms?

Edited by J. Scott MARCUS, Gérard POGOREL & Frédéric PUJOL


By the Editors


Spectrum Crunch vs. Spectrum Sharing:
Exploring the 'Authorised Shared Access' Model

Antonio NICITA & Maria Alessandra ROSSI

Next Generation Spectrum Regulation: Price-Guided Radio Policy
Kenneth R. CARTER

Theoretical Analysis of Mobile Operators’ Spectrum Strategies
Kiyotaka YUGUCHI

Cognitive Radio: How to Proceed? An Actor-Centric Approach
Peter ANKER & Wolter LEMSTRA

Evolution of the Public Safety and Security Mobile Networks



Gilles BRÉGANT, CEO of ANFR (French national spectrum agency)
Conducted by Frédéric PUJOL

Paul E. JACOBS, Qualcomm's Chairman & CEO
Conducted by Frédéric PUJOL


Firms and Markets
EU Markets in the Global ICT dynamics
Pascal PÉRIN & Didier POUILLOT

Technical Innovations
The 700 MHz Band: a New Harmonised Frequency Band for LTE?
Frédéric PUJOL

Book Review

Nir KSHETRI: Cybercrime and Cybersecurity in the Global South
By Lorenzo Maria PUPILLO

Howard RHEINGOLD: Net Smart - How to Thrive Online
By Paul de BIJL

Author biographies

Service section

- Events
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The radio spectrum:
A shift in paradigms?

Spectrum Crunch vs. Spectrum Sharing:
Exploring the 'Authorised Shared Access' Model

Antonio NICITA & Maria Alessandra ROSSI
Key words: Spectrum Management, Authorized Shared Access, Spectrum Trading and Leasing, Collective Use, Hybrid Collective Use.

This paper provides an overview of a recently proposed spectrum sharing model – ‘Authorized Shared Access’ or ‘Licensed Shared Access’ (ASA/LSA) – and compares it to other sharing models in order to outline its distinctive features and fields of application. The main feature of this new concept is to allow sharing among a limited number of licensees with guaranteed, but shared, spectrum usage rights so as to achieve a comparable quality of transmission as in the case of exclusive individual usage rights to all sharing parties. For this reason, the ASA model is able to support both large-scale and small-scale investments in spectrum-hungry technologies. We conclude that LSA/ASA is a promising new model that, absent ‘one-size-fits-all’ spectrum management solutions, may provide a valuable tool, complementary to other existing and developing tools, to face the spectrum crunch challenge and to meet the Digital Agenda purposes.

Next Generation Spectrum Regulation: Price-Guided Radio Policy
Kenneth R. CARTER

Key words: spectrum policy, auctions, price-guided policy, regulation.

This article explains how market signals in the form of pricing information can be introduced into spectrum management in order to optimally guide not only assignment, but also determinations concerning type of use, emissions characteristics and exclusivity. It presents a mathematical model to illuminate how one possible implementation of such price-guided policy might function to make these determinations. As compared to conventional spectrum auctions, price-guided mechanisms for determining allocation and policy would arrive at an assignment of spectrum rights to the highest value users as well as ensure that the contours of those rights were the most efficient possible. In the mathematical model, participants in a hypothetical auction are free to express their demand for spectrum licences which are different on several dimensions such as permissible power output and bandwidth. The most actionable initial implementations of this new approach include determinations of maximum power limits, bandwidth, duration of rights and channelisation. Other early potential implementations include boundary interference standards and possibly congestion-based protocols. Price-guided policy holds substantial promise because it encourages allocative efficiency of spectrum due to the fact that bidders can acquire exactly the set of spectrum rights they need. Further, price-guided policy mitigates the allocation errors inherent in administrative determinations.

Theoretical Analysis of Mobile Operators’ Spectrum Strategies
Kiyotaka YUGUCHI

Key words: spectrum, Shannon-Hartley theorem, technical standards.

In this paper, I construct a mathematical model based on the Shannon-Hartley theorem and find profit-maximizing conditions for a mobile operator as for its channel bandwidth, the number of the channels, the S/N ratio, density of base stations in congested areas and the number of its subscribers. The following results and implications are obtained by the theoretical analysis. Firstly operators will fix their prices so that the price elasticity of demand can be one in the absence of congestion. However, once congestion arises, the optimum number of subscribers under the congested circumstances should be less than the number without congestion. Secondly, operators will choose their investment either in devices or in base stations to keep a throughput speed, so that the technical marginal rate of substitution can equal the ratio of the marginal costs. This result implies that operators may increase density of base stations in congested areas instead of ameliorating the network equipment. Thirdly, there is a difference between the marginal revenue and the marginal costs as for the bandwidth of the each channel, and this difference becomes larger as the bandwidth of each channel becomes narrower, and as the number of channels becomes more. Fourthly, the optimum channel bandwidth becomes narrower in general, if operators can choose both channel bandwidth and the number of channels. Finally, the spectrum cap per operator does not make sense in spectrum assignment. Either through spectrum auctions or through beauty contests, if the costs of acquisition of spectrum increase as the assigned bandwidth becomes larger, operators may use spectrum efficiently in the sense that they economize the bandwidth.

Cognitive Radio: How to Proceed? An Actor-Centric Approach
Peter ANKER & Wolter LEMSTRA

Key words: Cognitive radio, technology introduction, regulations, community of practice.

This paper proposes to use an actor-centric approach to deal with the alignment between technology and the radio spectrum regulatory environment to facilitate the successful introduction of Cognitive Radio. The value of this approach is demonstrated through a review of historical cases of changes in radio spectrum regulations and the introduction of new (radio) technology. It proposes to apply this approach to explore Use Cases within a Community of Practice as the way forward for realising the necessary coordination between the actors involved to facilitate the successful deployment of cognitive radio and to realise – at the same time – the goal of improved utilisation of the radio frequency spectrum.

Evolution of the Public Safety and Security Mobile Networks

Key words: public safety and security networks, PSS, scenario planning, TETRA, TEDS.

The emergency services which we all take for granted will in future need high speed mobile data transfer to deliver these services to the people who need them. There are, however, numerous obstacles to implementing high speed data functionalities for PSS (Public Safety and Security) organizations; the two main critical factors being the limited available spectrum to deliver these emergency services as well as the challenge of financing the necessary modifications to improve the current system. The study undertaken here seeks an answer to the question of how to meet the future needs of PSS organizations by devising a number of hypothetical scenarios for investigation. The contemporary mainstream technology, TETRA (Terrestrial Trunked Radio), is chosen as the scenario starting point when defining the roadmap of the future solutions. Using the scenario planning method, which is based upon the change forces identified, four future scenarios are defined, the timescale being the next ten year period up until 2022. According to the scenarios defined, alternative strategies for network operators are proposed. The following conclusions have been drawn: (1) emergency services need a dedicated network, the commercial BB (broadband) cellular network is, nevertheless, a feasible solution for non-critical data transmission; (2) the radio spectrum needs to be allocated for WB (wideband) in the <470MHz area and for BB in the <1GHz area; (3) the WB data network (50…200kbit/s) is an economical high speed mobile data solution in rural areas; (4) LTE (Long Term Evolution) technology is a feasible solution for PSS BB mobile communication and; (5) in future, PSS networks will consist of a set of technologies with appropriate coverage and capacity.

The Editors

is a Director for WIK-Consult GmbH (the consulting arm of the WIK, a research institute in economics and regulatory policy for network industries, located in Bad Honnef, Germany).  From 2001-2005, he served as Senior Advisor for Internet Technology for the United States Federal Communications Commission (FCC), a position equivalent in rank to the FCC's Chief Economist or Chief Technologist. Prior to that, he was the Chief Technology Officer (CTO) of Genuity, Inc. (GTE Internetworking), one of the world's largest Internet backbone service providers at that time. Mr. Marcus was attached to the European Commission (DG INFSO) in 2004. Mr. Marcus is a member of the Scientific Committee of the Communications and Media programme at the Florence School of Regulation (FSR), a unit of the European Union Institute (EUI) / Robert Schuman Centre for Advanced Studies (RSCAS). He is also a Fellow of GLOCOM (the Center for Global Communications, a research institute of the International University of Japan), and a Visiting Fellow of the University of Southern California's Center for Communication Law and Policy. He has served as co-editor for public policy and regulation for IEEE Communications Magazine. He is a Senior Member of the IEEE. He was a Brussels-based Transatlantic Fellow of the German Marshall Fund of the United States in 2004. He served on the board of the American Registry of Internet Numbers (ARIN) from 2000 to 2002, on the Meetings and Conference Board of the IEEE Communications Society from 2001 through 2005, and as Chair of IEEE CNOM. He is the author of numerous papers and of a book on data network design: Designing Wide Area Networks and Internetworks: A Practical Guide, Addison Wesley, 1999. Mr. Marcus holds a B.A. in Political Science (Public Administration) from the City College of New York, and an M.S. from the School of Engineering, Columbia University.

Gérard POGOREL is Professor of Economics and Management-Emeritus, Telecom ParisTech, France. He published numerous articles, books, and reports including: The Radio Spectrum: managing a strategic resource – with J. M. Chaduc, former Director General ANFR (Wiley-ISTEC London, January 2008), "Nine Regimes of Spectrum Management: A 4-Step Decision Guide", in Communications & Strategies, April 2007. Gérard POGOREL works as an independent member of regulatory bodies, Chair/Rapporteur of the European Spectrum Management Conferences 2006-2011 (Forum Europe). He was previously Chair of the European Union Framework Research & Technology Development Programme Monitoring Panel, and Chair of the Monitoring Committee of the EU Information Society and Technologies Research Programme. He participates in numerous Government-level and regulation Authorities Committees and study groups on telecom and media policy and regulation in France, Italy, and Germany, with the European Commission and in countries in Asia. He is a member of the international panel of experts for the World Competitiveness Yearbook, (IMD, Lausanne). Gérard Pogorel is "Officier des Palmes Académiques".

Frédéric PUJOL is head of radio technologies and spectrum Practice at IDATE. He is responsible for coordinating mobile industry forecasting and technical-economic analysis reports. Previously, Frédéric acquired solid experience in mobile network architecture working for the France Telecom Group (Sofrecom, Telesystems). Mr. Pujol holds a post-graduate degree in engineering from ISEN (Institut Supérieur d'Electronique du Nord, Lille, 1986), where he majored in Telecommunications, and from CITCOM (Centre d'Ingénierie des Technologies de la Communication, Paris, 1987), where he majored in Network Architecture.

The interviewees

Gilles BRÉGANT was born in Chambery in September 1963. He graduated from Ecole Polytechnique (1986) and from Telecom ParisTech (1988). Following an 8-year-career at France Telecom research center, Gilles Brégant was appointed technical adviser to the Minister in charge of Research (1996-1997). He had to coordinate international projects and themes in relation with information technology. He then worked for the department of trade and industry as deputy director in charge of Prospective. He was appointed secretary general of the ministerial task force "Digital Economy" (2001-2005). He was then appointed Technical Director of Conseil supérieur de l'audiovisuel (the French Media Regulator) in 2005. Gilles Brégant is the CEO of ANFR since 2011.

Paul E. JACOBS is chairman of Qualcomm's board of directors and the Company's chief executive officer. A leader in the field of mobile communications for over two decades and a key architect of Qualcomm's strategic vision, Dr. Jacobs' responsibilities include leadership and oversight of all the Company's initiatives and operations. Following the completion of his Ph.D. in 1989 and a year as a post-doctoral researcher at a French government lab in Toulouse, Dr. Jacobs joined the Company full time in 1990 as a development engineer leading the mobile phone digital signal processor software team. Five years later, Dr. Jacobs became vice president and general manager of the combined handset and integrated circuit division, which was subsequently divided into Qualcomm Consumer Products (QCP) and Qualcomm CDMA Technologies, respectively. In 1996, Dr. Jacobs was named senior vice president of the Company and in 1997, president of QCP. In 2000, Dr. Jacobs was named executive vice president of Qualcomm and in 2001, group president of Qualcomm Wireless & Internet (QWI). Dr. Jacobs became CEO in July 2005 and was appointed Chairman in 2009. As an innovative leader of a broad range of technical teams within Qualcomm, Dr. Jacobs has been granted more than 40 patents for his inventions in the areas of wireless technology and devices. Dr. Jacobs serves on the Board of Directors for A123Systems, is chairman of the Advisory Board of the University of California, Berkeley College of Engineering; is a trustee of the Museum of Contemporary Art San Diego; and is a member of the US-India CEO Forum and the Young President's Organization. Dr. Jacobs received his bachelor's (1984) and master's (1986) degrees as well as his doctorate (1989) in electrical engineering from the University of California, Berkeley, and subsequently endowed the Paul and Stacy Jacobs Distinguished Professor of Engineering chair at the school. He is a member of the Phi Beta Kappa, Eta Kappa Nu and Tau Beta Pi honor societies. Dr. Jacobs is a recipient of a number of industry, academic and corporate leadership awards.

The authors

Peter ANKER is a Senior Research Fellow at the Economics of Infrastructure department within the Department of Technology, Policy & Management at Delft University of Technology. His Ph.D. research is on spectrum management, including the role of new technologies, such as Cognitive Radio. He is also working as a Senior Policy Advisor on frequency management at the ministry of Economic Affairs. He is actively involved in policy to further liberalise spectrum usage at the worldwide, European and national level. He took the initiative that led to the founding of the Dutch Cognitive Radio Platform.NL.

Paul DE BIJL is head of the Competition & Regulation department at CPB Netherlands Bureau for Economic Policy Analysis, the Dutch government think-tank for economic policy, and extramural fellow of TILEC (Tilburg Center for Law and Economics), Tilburg University. He obtained a Ph.D. in Economics at Tilburg University (research partly carried out at the University of Toulouse, within the European doctoral program ENTER). He has experience in academia, business and policy. With Martin Peitz, Paul wrote the book Regulation and Entry into Telecommunications Markets (Cambridge University Press, 2002; Chinese translation 2006; paperback edition 2008), which has received positive critical acclaim from academics, consultants and regulators. He has published in various academic journals, and is a member of the International Editorial Board of Communications & Strategies and the Editorial Board of the Journal of Information Policy. Paul's research interests include competition and regulatory economics, in particular applied to telecommunications markets, ICT markets and innovation policy.

Kenneth R. CARTER is an independent Internet analyst with world-wide experience in telecommunications policy, business strategy, finance, and regulatory economics -- analyzing both complex legal and business issues.  He was recently Policy Counsel for Advanced Networks and Access Services at Google.  Mr. Carter was previously a Senior Consultant in the NGN and Internet Economics Department at WIK-Consult GmbH, in Bad Honnef, Germany.  At WIK, he advised both private- and public-sector clients on matters relating to Next Generation Networks.  Prior to joining WIK, Mr. Carter was Senior Counsel for Business and Economics in the Office of Strategic Planning and Policy Analysis at the Federal Communications Commission.  He co-authored OSP Working Paper #39, "Unlicensed and Unshackled", widely cited as an authority on the FCC's Part 15 Rules.  In addition, the Chairman recognized Mr. Carter and two other colleagues with the Commission's Excellence in Economic Analysis Award for their cutting-edge experimental economics work on market-informed radio spectrum policies.  Before the FCC, he served as the Deputy Director of the Columbia Institute for Tele-Information (CITI) at Columbia University.  He is also a GLOCOM Fellow at the Center for Global Communications at International University of Japan.  Mr. Carter has served on several advisory boards and committees, including the Telecommunications Policy Research Conference (TPRC) and the Policy Program Committee of IEEE DySPAN.  In 2008, he served on an International Advisory Forum on Next Generation Broadband Networks to Minister Eamon Ryan of the Department of Communications, Energy and Natural Resources in the Republic of Ireland.  Mr. Carter holds an Executive MBA from Columbia Business School, a JD from the Benjamin N. Cardozo School of Law, and a BA from Colgate University.

Wolter LEMSTRA is a Senior Research Fellow at the Department of Technology, Policy & Management at Delft University of Technology, and Senior Lecturer at the Strategy Academy, Rotterdam, in The Netherlands. His current research is focussed on telecommunication sector governance, industry structure developments, firm strategic behaviour and innovation trajectories. He has been (co)author in research projects for the Ministry of Economic Affairs and for the European Commission. His most recent co-authored and co-edited book is: The innovation journey of Wi-Fi – The road to global success. He is a co-founder of the Cognitive Radio Platform NL.

Antonio NICITA is Professor of Economic Policy at the University of Roma Sapienza. He is on the Board of Directors of the Italian Society of Law and Economics, the European Association of Law and Economics and the International Society for New Istitutional Economics (ISNIE). In 2006/2007 he was an economic adviser to the Italian Minister of Communications and a member of the Governmental Unit for the Improvement of Regulation. He has been OECD consultant and Economist at the Italian Antitrust Authority. His research interests cover industrial organisation, law and economics, competition economics and regulation, as well as communications and media.

Matti PELTOLA, 64, currently acts as a consultant of telecommunication systems in Mapelcon consulting company, owned by himself. Matti Peltola received his MSc in telecommunication science at TKK in 1973 and the degree of Lic.Sc.(Tech.) at Aalto university in 2011. He has a long experience with Nokia and EADS. This includes various tasks in Nokia Data and Nokia Telecommunications, 1972-1994. His business experience cumulated as vice president in Nokia Transmission Systems (1995-1999), as senior vice president in Nokia TETRA Networks (2000-2005), and as managing director of EADS Secure Networks in Finland (2005-2007).

Pascal PERIN is Head of Macroeconomics Department at the Group General Secretary of Orange (Regulatory Affairs). He is graduated from Institut d'Etudes Politiques (Paris) and from Paris University: major in History.

Didier POUILLOT is Director of Studies and Head of business unit "Telecom Strategy" at IDATE. A specialist in telcos and telecom services markets, he contributes to a variety of research and study assignments on the sector's regulatory, technological and industrial issues (ultra-broadband outlook, telecommunications investments and employment, European industry's competitiveness…). Didier is also the editor-in-chief of the annual DigiWorld Yearbook on the stakes and challenges of the digital economy. Before joining IDATE (in 1986), Didier worked as a consultant for Paris firm, B.I.P.E. Didier is a graduate from the ESSEC business school in Paris, France (1982).

Lorenzo Maria PUPILLO is an Executive Director in the Public & Regulatory Affairs Unit of Telecom Italia and Affiliated Researcher at Columbia Institute for Tele-Information. In Telecom Italia, he is working on  Internet Policy, Next Generation Networks, ICT & Energy, and is providing Policy Advising to senior management. He is an economist by training and has worked in many areas of telecommunications demand and regulatory analysis, publishing papers in applied econometrics and industrial organization. He has also been Advisor to the Global Information and Communication Technologies Department of the World Bank in Washington. Before joining Telecom Italia in 1992, he was a member of the technical staff at AT&T Bell Laboratories in Murray Hill, New Jersey. Dr. Pupillo also serves on numerous committees for international organizations and on scientific and advisory boards around the globe.  He obtained a Ph.D. and an M.A. from University of Pennsylvania, an MBA from Istituto Adriano Olivetti in Ancona Italy and an MS in Mathematics from University of Rome.

Maria Alessandra ROSSI is Assistant Professor of Economic Policy, University of Siena. Her research interests cover industrial organisation, law and economics, competition economics and regulation, as well as communications and media.

Kiyotaka YUGUCHI was born in Tokyo, JAPAN in 1972.  He obtained the Ph.D in commerce from Hitotsubashi University in Tokyo in 2001.  During his study in commerce in the undergraduate school of Hitotsubashi University, he stayed in France for one year as an exchange student to H.E.C. and experienced an internship in the French National Railways for 2.5 months.  He was a researcher in the Research Institute of Telecommunications and Economics between 2000 and 2004 and analyzed spectrum policies in the world.  He became a lecturer in Sagami Women's University in 2004, an associate professor in 2007 and a professor in 2011.  He was director of the societal management department between 2008 and 2012.  He is also an expert advisor of the Telecommunications Council under the Ministry of Internal Affairs and Communications.




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