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Securing Long Term Benefits from Scarce Spectrum Resources

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Securing Long Term Benefits from Scarce Spectrum Resources Securing long term benefits from scarce spectrum resources A strategy for UHF bands IV and V Consultation Publication date: 29 March 2012 Closing Date for Responses: 7 June 2012 UHF strategy consultation Contents Section Page 1 Executive summary 1 2 Purpose and scope of this consultation 8 3 Future mobile broadband spectrum requirements 15 4 Future DTT spectrum requirements 35 5 Other uses of UHF band IV and V 46 6 Securing long term benefits for citizens and consumers 51 7 The wider impacts of changing the use of the 700 MHz band 65 8 Proposed approach for securing future benefits and next steps 71 Annex Page 1 Responding to this consultation 75 2 Ofcom’s consultation principles 77 3 Consultation response cover sheet 78 4 Consultation questions 80 5 Summary of responses to the April 2011 Call for Input 83 6 Glossary of abbreviations 88 UHF strategy consultation Section 1 1 Executive summary In this consultation we are aiming to secure long term benefits from scarce spectrum resources in UHF spectrum bands IV and V 1.1 Spectrum is an essential building block in the communications sector, enabling the delivery of a wide range of services spanning television and radio through to mobile telephony, emergency services and outside broadcast event coverage. 1.2 Changing the use of spectrum from one service to another can take several years and in some cases more than a decade, especially where new international agreements are required and where there are existing users of the spectrum whose requirements need to be taken into account. 1.3 In contrast the pace of innovation and change in the communications sector is accelerating. In particular, there is an unprecedented growth in the demand for mobile broadband capacity. 1.4 This tension raises the need for a long term strategic approach which can help both: • Matching the future supply of spectrum with demand for services capable of delivering significant benefits to citizens and consumers; and • Retaining sufficient flexibility to respond to uncertain future service, market and international harmonisation developments. 1.5 The need for this approach is particularly relevant for UHF band IV and V spectrum (shown in figure 1) because: • This spectrum is in scarce supply and is in demand by a wide range of services including: digital terrestrial television (DTT), mobile broadband, local TV, programme making and special events (PMSE), emergency services, and applications using white space devices (WSD); • The use of high power DTT transmitters in this spectrum requires international agreements to co-ordinate any significant changes to its use. 1.6 In this consultation we set out a proposed strategic approach for this spectrum capable of achieving positive outcomes over the long term. These are: • Sustaining the delivery of DTT and other services which make shared use of its spectrum; and • Enabling the future release of potentially valuable harmonised mobile broadband spectrum in the 700 MHz band to meet the growth in demand for mobile data capacity. 1.7 We consider that this strategic approach is a crucial step towards ensuring the best possible use for these important bands over the long term. However, it is important to recognise that decisions on the most appropriate processes and timescales for any 1 UHF strategy consultation future change of use in the 700 MHz band need to be taken closer to the time of implementation and will need to be informed by more detailed work. Figure 1 - UHF bands IV and V and the 700 MHz band 100 kHz 1 MHz 10 MHz 100 MHz 1 GHz 10 GHz 100 GHz 1 THz 10 THz 100 THz 1 PHz Radio frequencies Infra red UV LF MF HF VHF UHF SHF EHF FIR MIR NIR NUV 1 GHz 3 GHz 300 MHz 2.6 GHz UHF bands IV and V 2G 2G 3G (old analogue TV spectrum) auction Cleared by switchover Cleared by switchover 470 MHz 862MHz DTT DTT (Digital Terrestrial TV) 600 MHz Mobile broadband In 2013 Interleaved spectrum also Interleaved spectrum also used by: PMSE / local TV (from used by: PMSE / local TV band PMSE 2013) / white-space technology (from 2014) (800 MHz award) (from 2013) / white-space technology (from 2014) Ch.21 Ch.31 Ch.38 Ch.61 Ch.69 694 MHz 790 MHz Mobile broadband? After 2018? 700 MHz band Ch.49 Ch.60 Demand for mobile broadband capacity is increasing rapidly 1.8 There is a rapid growth in the demand for mobile broadband capacity driven by the increasing use of video and data services on smart phones and tablet PCs. Under a mid-level growth scenario, mobile data capacity demand will experience an 80 fold increase between 2012 and 20301, and a 300 fold increase under a high-growth scenario. 1.9 Meeting this growth in demand could deliver significant benefits to citizens and consumers by: • Enabling the future delivery of higher capacity mobile services, supporting further innovation in mobile applications; • Ensuring that the UK’s mobile infrastructure is capable of supporting future growth in the wider economy; and • Enabling the future delivery of next generation video and data based emergency service applications. Additional mobile broadband spectrum will be needed to meet this growth in demand 1.10 Mobile operators can use a range of different approaches to increase the capacity of their networks. These include: 1 See Real Wireless report on techniques for increasing the capacity of wireless broadband network: http://www.ofcom.org.uk/static/uhf/real-wireless-report.pdf 2 UHF strategy consultation • Using more high and low frequency spectrum. We estimate this could provide between a 7 and 13 times increase in mobile data capacity by 2030; • Upgrading existing mobile networks to more efficient mobile broadband technologies, including LTE (Long Term Evolution). We estimate this could provide between a 3 and 10 times increase in mobile data capacity by 2030; • Offloading mobile data onto fixed networks using Wi-Fi and Femtocells. We estimate that this could serve over half of the predicted increased demand for mobile data capacity; and • Building more mobile sites. This tends to be a higher cost option for mobile operators and can be constrained by the need to secure planning consent for new sites. 1.11 To meet the expected increase in mobile capacity demand a combination of these approaches is likely to be needed. 1.12 The use of additional mobile broadband spectrum can play a special role in reducing the number of new mobile sites that need to be built, reducing network deployment costs and the need to secure planning consent for a large number of new sites. 1.13 In practice, only additional spectrum which has been internationally harmonised for mobile broadband is likely to be used because harmonisation increases economies of scale, widening the availability of handsets and reducing prices. 1.14 Additional harmonised spectrum is likely to be made available by: • The planned 800 MHz and 2.6 GHz spectrum awards; • The re-farming of existing 2G mobile bands to 3G and LTE; • Government’s plans to release 500 MHz of public spectrum, part of which could provide a significant amount of additional higher frequency harmonised spectrum including the 2.3 GHz and 3.4 to 3.6 GHz bands; and • Other emerging higher frequency spectrum options include the 1.452 to 1.492 GHz and 3.6 to 3.8 GHz bands, which are subject to ongoing harmonisation work in Europe. Additional lower frequency mobile broadband spectrum in the 700 MHz band could be particularly valuable 1.15 The availability of additional harmonised mobile broadband spectrum at lower frequencies is likely to be limited. Lower frequency spectrum can be particularly valuable for mobile broadband use because its good propagation characteristics mean that it can: • Deliver important savings in the number of new mobile sites that will need to be built to meet the expected growth in demand for mobile data capacity; and • Provide better quality of service in difficult to reach indoor and outdoor locations. 3 UHF strategy consultation 1.16 The 700 MHz band, which is currently used to deliver DTT and other services on an interleaved basis, represents the most attractive option for providing additional lower frequency spectrum. This is because there is now global momentum behind it being harmonised for mobile broadband: • In the US, the 700 MHz band is being used for mobile broadband LTE services; • In Asia, Australia and New Zealand are planning to use the 700 MHz band for LTE, whilst India as well as various other countries are exploring a similar approach; 1.17 In Europe, Africa and the Middle East a resolution was passed at the 2012 World Radio Conference (WRC 12) paving the way to a decision to enable the 700 MHz band to be used for mobile broadband after the next World Radio Conference in 2015. A key driver for this was a strong desire by several African countries to launch LTE services in the 700 MHz band. 1.18 Enabling the use of the 700 MHz band for mobile broadband in the UK would require a new international frequency co-ordination agreement. This could take several years to complete and will depend on the position adopted by other European countries. Our current view is that the earliest date this could be achieved is 2018, provided there is sufficient agreement in Europe. The use of the 700 MHz band for mobile broadband could affect DTT and other services sharing the spectrum it uses 1.19 The DTT platform currently performs a very important public policy role in providing universal low cost access to Public Service Broadcasting (PSB) content, whilst also providing a wider consumer choice of channels, receiver equipment and platforms.
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