DOCSLIB.ORG

The Economic Significance of Licence- Exempt Spectrum to the Future of the Internet

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Economic Significance of Licence- Exempt Spectrum to the Future of the Internet The Economic Significance of Licence- Exempt Spectrum to the Future of the Internet Richard Thanki June 2012 About the Author Richard Thanki was the lead author of the 2009 Perspective Associates study ‘The economic value generated by current and future allocations of unlicensed spectrum’ He is currently the economic advisor at Real Wireless and is completing a PhD at the Institute for Complex Systems Simulation at the University of Southampton. Previously he was a senior consultant at Perspective Associates and acted as the deputy for Kip Meek, the UKʹs government-appointed Independent Spectrum Broker. Richard was a Senior Associate economist at Ofcom, the UK telecommunications regulator, where he specialised in economic modelling, spectrum valuation and competition issues across the sector. Acknowledgements I would like to thank Paul Garnett, Pierre de Vries, Steve Song, William Webb, Bill Kisch, Charles Barr and Rakel Fredriksen for their help in completing this study. This study was supported by funding from Microsoft but the views expressed are entirely those of the author. [email protected] 2 Contents 1 Introduction and Overview ........................................................................................................ 6 1.1 Connecting all the people ................................................................................................... 7 1.2 Connecting all the things .................................................................................................. 10 1.3 Building resilient and flexible networks ......................................................................... 12 1.4 Implications for policy ....................................................................................................... 13 2 A brief introduction to the radio spectrum and its management ....................................... 16 2.1 The nature of radio communications .............................................................................. 16 2.2 The methods of spectrum management ......................................................................... 18 3 Connecting all the people ......................................................................................................... 23 3.1 The reach and economic significance of the internet .................................................... 23 3.2 Costly existing delivery methods and the underserved billions ................................. 26 3.3 Licence-exempt technologies decrease the costs of delivering broadband and increase the quality of the product .............................................................................................. 31 3.4 Future changes concerning licence-exempt technologies ............................................ 44 3.5 The evolving model of broadband delivery ................................................................... 47 4 Connecting everything else ...................................................................................................... 49 4.1 What is the internet of things? ......................................................................................... 49 4.2 The applications and economic potential of the internet of things ............................. 56 4.3 The role being played by licence-exempt spectrum ...................................................... 59 4.4 The role that could be played by new licence-exempt technologies........................... 64 4.5 The economic repercussions of spectrum unavailability – the example of Europe’s smart grid ........................................................................................................................................ 65 5 Creating robust and adaptable networks – the benefits of user configurable wireless spectrum .............................................................................................................................................. 74 5.1 The importance of robustness and flexibility in our global communications systems 74 5.2 The robustness of individual licence-exempt links ....................................................... 75 5.3 The robustness and adaptability of networks built with licence exempt links ......... 80 5.4 The role of upcoming licence-exempt technologies ...................................................... 87 6 Policy implications and directions for further work ............................................................. 89 3 6.1 The overwhelming case for licence-exempt access to TV white spaces ..................... 89 6.2 Finding an efficient balance of new licensed and licence-exempt allocations to meet the world’s growing demand for data ........................................................................................ 90 6.3 Building economic theory around a better understanding of ‘spectrum’.................. 91 References ........................................................................................................................................... 95 Annex 1 – Broadband affordability data by continent and country ......................................... 101 Annex 2 – Value of Wi-Fi to fixed broadband by country .......................................................... 107 Annex 3 – Value of Wi-Fi to mobile operators ............................................................................. 112 4 Table of figures Figure 1 - Fixed broadband unaffordability by country ................................................................................. 7 Figure 2 - Traffic carried by different channels for different types of device (PB per month) .................. 8 Figure 3 – The traffic generated by UK smartphones on an average weekday split between Wi-Fi and 3G data .................................................................................................................................................................. 8 Figure 4 – The allocation of spectrum in the USA ......................................................................................... 17 Figure 5 – The differing propagation of radio signals in high and low frequency spectrum ................. 18 Figure 6 – The utilisation of spectrum over a 24-hour period in Brno, Czech Republic .......................... 19 Figure 7 – The ISM bands available in ITU Region 2 .................................................................................... 21 Figure 8 – Take up of key communications technologies since 1900 .......................................................... 24 Figure 9 – internet usage frequency in the developed and developing world .......................................... 26 Figure 10 – The proportion of people who would find fixed broadband unaffordable by country ...... 28 Figure 11 - Traffic carried by different channels for different types of device (PB per month) .............. 34 Figure 12 – Comparing the capacity of the Wi-Fi and cellular networks in selected countries .............. 35 Figure 13 – Economic value generated by Wi-Fi through fixed broadband value enhancement ........... 36 Figure 14 – Balance of cellular data traffic and Wi-Fi for selected countries ............................................. 37 Figure 15 - Total weekday smartphone traffic split by means of transport and time of day. ................. 37 Figure 16 - Extra cell sites required in the absence of Wi-Fi by continent ................................................. 38 Figure 17 – Cell sites required globally in the presence and in the absence of Wi-Fi ............................... 39 Figure 18 – The TV white spaces, exiting licence-exempt bands and global mobile allocations ............ 44 Figure 19 – The increase in Wi-Fi speed over time ........................................................................................ 46 Figure 20 – Sales of internet capable devices since 1990 .............................................................................. 50 Figure 21 - Sales of microcontrollers over time ............................................................................................. 52 Figure 22- Devices containing microcontrollers ............................................................................................ 53 Figure 23 - Machine terminals on the internet of things .............................................................................. 54 Figure 24 – Comparison of projections for the size and scale of possibilities of the internet of things . 57 Figure 25 – An illustration of human and machine interactions over the internet ................................... 58 Figure 26 – The varied attributes of licence-exempt technologies suitable for machine to machine connections ......................................................................................................................................................... 61 Figure 27 – The transition to the smart grid ................................................................................................... 66 Figure 28 – The links between the components and benefits of the Smart Grid ....................................... 68 Figure 29 – The balance of technologies used in smart meter shipments in Q1 2011 .............................. 69 Figure 30 – The organisation of a mesh network for smart metering ........................................................ 70 Figure 31 - Advantages and disadvantages of PLC and cellular systems in smart metering application .............................................................................................................................................................................
Load more

Recommended publications
  • PLATINUM Sponsors COLLOCATED Events
    ITEXPO-Austin-11-Guide-NEW-CA:Layout 1 8/25/2011 12:02 PM Page 1 PLATINUM Sponsors COLLOCATED Events TM CONFERENCE A DevCon5 Event SUMMIT ITEXPO-Austin-11-Guide-NEW-CA:Layout 1 8/25/2011 12:02 PM Page 2 ITEXPO-Austin-11-Guide-NEW-CA:Layout 1 8/25/2011 12:02 PM Page 1 Welcome To Dear Colleague, It is my great pleasure to welcome you to ITEXPO at the Austin Convention Center. TMC has been hosting this event for more than a decade and each year it gets bigger and better—the ITEXPO West 2010 Event earned top honors from Trade Show Magazine—Ranking #3 on the Fastest 50 Growing Tradeshow list. I would like to thank you for making ITEXPO the premier event within the technology and communications field. ITEXPO On The Go! We’re extremely excited to bring ITEXPO and its collocated events to Austin, Texas, and we are certain you will enjoy the venue, the hotels, the dining and entertainment, and of course, the extraordinary content featured in ITEXPO programs. Download the The Austin Convention Center is a world-class facility, with state-of-the-art communications capabilities. We have even arranged for all ITEXPO participants to enjoy free, fast WiFi connections ITEXPO On The Go! throughout the center’s massive network, capable of serving 5,800 simultaneous users. App For Your iPhone There are lots of exciting events collocated with this edition of ITEXPO: Cloud Communications Expo, 4GWE Conference, M2M Evolution Conference, SIP Tutorial: Bringing SIP to the Web, Super WiFi Conference, Business Video Conference, ChannelVision Expo (CVx), Voice Interconnect
    [Show full text]
  • Open Wireless Vs. Licensed Spectrum: Evidence from Market Adoption
    Harvard Journal of Law & Technology Volume 26, Number 1 Fall 2012 OPEN WIRELESS VS. LICENSED SPECTRUM: EVIDENCE FROM MARKET ADOPTION Yochai Benkler* TABLE OF CONTENTS I. INTRODUCTION ................................................................................ 71 II. POLICY APPROACHES ..................................................................... 76 III. THE ACADEMIC DEBATE .............................................................. 81 A. Background ................................................................................ 81 B. The Arguments in Favor of Open Wireless Models ................... 84 1. The Core Scarcities are Computation and Electric Power, Not “Spectrum” .................................................... 84 2. Transaction Costs and the Dynamic Shape of Demand for Wireless Capacity Make It Unlikely that Markets Defined in Spectrum Allocations Could Achieve Optimality ........................................................... 87 C. Rebutting the Primary Arguments Against Open Wireless Systems ...................................................................... 90 1. Open Wireless is Not a Form of Deregulation, but Merely Another Form of Regulation ................................ 90 2. “Tragedy of the Commons” and Technology Will Always Drive Demand Faster than Supply ....................... 93 3. Market Adoption and Failures to Thrive ................................. 97 D. Conclusion ............................................................................... 100 IV. EVIDENCE FROM MARKETS .......................................................
    [Show full text]
  • Towerstream OTARD Petition for Declaratory Ruling V.4.0
    Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 ) In the Matter of ) ) Towerstream Corporation ) ) CRS- Petition for Declaratory Ruling Regarding ) Application of the Over-the-Air Reception ) Devices Rule to San Francisco Zoning ) Ordinances and Antenna Siting Procedures. ) ) PETITION FOR DECLARATORY RULING Scott Emond Donald L. Herman, Jr. Director of Small Cell Acquisition and Deployment Gregory W. Whiteaker Towerstream, Corporation Susan C. Goldhar Ornstein Tech II, 55 Hammarlund Way Herman & Whiteaker, LLC Middletown, RI 02842 3204 Tower Oaks Blvd. Suite 180 Rockville, MD 20852 (202) 600-7273 Counsel for Towerstream Corporation SUMMARY Towerstream, a competitive broadband and Wi-Fi service provider in San Francisco, seeks a declaratory ruling that the complicated and inconsistent antenna permitting process and siting restrictions contained in the City and County of San Francisco’s (“City”) WTS Guidelines violate the Commission’s Over-the-Air-Reception Devices (“OTARD”) Rule. Preemption of the City’s burdensome permitting process is appropriate under OTARD because Towerstream is providing fixed wireless services in San Francisco utilizing antennas less than one meter in diameter on premises in which it has a property interest. The City’s antenna permitting process is overly burdensome and costly and has been applied inconsistently to Towerstream by various City departments. As such, the City’s application and enforcement of its WTS Guidelines has significantly impaired Towerstream’s ability to install, maintain, and use antennas to provide wireless high-speed Internet services to customers living and working within San Francisco. Furthermore, the City’s WTS Guidelines are not legitimate safety restrictions and were not adopted primarily for historic preservation purposes.
    [Show full text]
  • Wimax Versus Wi-Fi
    WWiiMMaaxx vveerrssuuss WWii--FFii AA CCoommppaarriissoonn ooff TTeecchhnnoollooggiieess,, MMaarrkkeettss,, aanndd BBuussiinneessss PPllaannss Michael F. Finneran dBrn Associates, Inc. Telephone: (516) 569-4557 Email: [email protected] June 1, 2004 Wireless LANs based on the IEEE 802.11 or Wi-Fi standards have been a resounding success, and now the focus in wireless is shifting to the wide area. While Wi-Fi has virtually obliterated all other contenders in the local area, the wide area market is still up for grabs. The cellular carriers got into the market first with their 2.5G/3G data services, but their offerings are positioned as an add-on to what is essentially a voice service. Sales have been lackluster to say the least. The real challenge to the cellular data services will come from the two emerging data-oriented technologies, WiMax and Mobile-Fi. With chip-level components due for shipment in the last quarter of 2004, WiMax will be the next to debut. WiMax, short for Worldwide Interoperability for Microwave Access, is defined in IEEE 802.16 standards, and is being promoted by the WiMax Forum. The Forum looks to develop interoperability test suites to insure a multi-vendor solution that will result in lower cost products based on open standards. Internationally, a European Telecommunications Standards Institute (ETSI) initiative called HIPERMAN addresses the same area as WiMax/802.16 and shares some of the same technology. With increased market recognition for WiMax, it is now regularly compared with Wi-Fi. While the two do indeed share some fundamental technical characteristics, they are approaching the wireless space from completely different perspectives.
    [Show full text]
  • Wimax in Africa: a New Frontier
    WIMAX IN AFRICA: A NEW FRONTIER Sandra C. Leet "Technology is not neutral, neither economically, nor pedagogically. I. INTRODUCTION The struggle to bridge the digital divide has endured in many African na- tions for decades.2 The most impeding factors oftentimes depend on whether some of the most basic elements necessary for a telecommunica- tions infrastructure are intact. Africa has the lowest concentration of tele- phone lines in the world as well as the fewest Internet users.' The landline infrastructures that do exist largely have deteriorated due to inadequate t J.D. and Comparative and International Law Institute Certificate Candidate, May 2008, the Catholic University of America, Columbus School of Law. The author would like to thank her family and friends for their unwavering support. She also would like to thank Davina Sashkin, Mark C. Del Bianco, Alisa Chunephisal, and the staff at CommLaw Conspectus for their contributions to this article. 1 U.N. Conference on Trade & Dev., Div. for Serv. Infrastructure Dev. & Trade Effi- ciency, E-Commerce and Development Report 2004, 113, U.N. Doc.UNCTAD/SDTE/ECB/2004/1 (Dec. 15, 2004) [hereinafter E-Commerce and Devel- opment Report], availableat http://www.unctad.org/en/docs/ecdr2004_en.pdf. 2 The digital divide refers to the uneven spread of the Internet. Although oftentimes referring to the gap that exists between developed and developing countries, a digital divide can also exist between urban and rural areas as well as across varying economic and social groups in one country regardless of whether it is a developing or developed country. See generally Mauro F.
    [Show full text]
  • Broadband Study for the Maine Off-Shore Islands Of
    Broadband Study for the Maine Off-Shore Islands of: Islesford, Great Cranberry, Sutton, Vinalhaven, North Haven, Monhegan, Matinicus, Frenchboro, Swan’s, Chebeague, Long Island, Isle Au Haut, Cliff, and Peaks Submitted to: The Island Institute Prepared by: Tilson 245 Commercial Street, Suite 203 Portland, ME 04101 Phone: 207-591-6427 E-mail: [email protected] Submitted: November 6, 2015 Note: Price and cost information included in the following report is an estimate based on recent quotes, historical data, assumptions about the project scope and approach, and the current regulatory environment and market conditions. Tilson recommends updating the estimates and allocating sufficient contingency to allow for changes in prices, costs, scope and market conditions as time passes. Tax estimates, where provided, are approximate. It is the responsibility of service providers to assess and collect taxes in accordance with local, state and federal law. Table of Contents Study Background .............................................................................................................1 Report Structure ...............................................................................................................1 Executive Summary ...........................................................................................................2 Defining Broadband ..........................................................................................................4 The Town of Cranberry Isles .............................................................................................8
    [Show full text]