The spectrum policy dictionary Spectrum primer series Produced February 2017 Introduction to the primer series The spectrum policy dictionary Intro These handbooks provide a general introduction to mobile spectrum, how it is managed and the challenge posed by rapidly growing data usage. They have been designed for readers who don’t have a technical background in the subject. While this is only a very brief introduction to the subject, these handbooks ductionshould hopefully provide a useful overview. to Prime Series Intro The titles in this series are: Introducing radio spectrum; Introducing spectrum management; and duction The spectrum policy dictionary. to Prime SeriesThe spectrum policy dictionary 55 1G The first generation of ‘cellular’ mobile phone systems used in the late 1970s until the early 1990s. These analogue-based systems were replaced by 2G digital mobile systems — most notably GSM. Examples include Advanced Mobile Phone System (AMPS), Nordic Telecommunication System (NMTS) and Total Access Communications (TACS). 2G The second generation of ‘cellular’ mobile phone systems which appeared in the 1990s were the first to employ digital coding. The vast majority of 2G mobile networks around the world use GSM technology. However, there are other 2G systems including D-AMPs, PDC, iDEN and most notably cdmaOne which continues to be used by some operators around the world. 2.5G (See GPRS) 2.75G (See GPRS) 3G The third generation of ‘cellular’ mobile phone systems were the first to be designed from the outset to support high speed data services as well as voice. The most dominant system used is WCDMA which was deployed by the operators which previously used GSM. However, other systems are used including CDMA2000 (largely by operators that previously used cdmaOne) and the Chinese system TD-SCDMA. 66 The spectrum policy dictionary 3.5G (See GPRS) 3GPP (3G Partnership Project) The body which defines the standards for GSM (2G), WCDMA (3G), and LTE (4G) technologies. 3GPP2 (3G Partnership Project) The body which defines the standards for cdmaOne (2G) and CDMA2000 technologies (3G) that are sometimes referred to as the ‘CDMA family’. 4G The fourth generation of ‘cellular’ mobile phone technologies that support higher data rates through wider channel bandwidths and the use of Orthogonal Frequency Division Multiplexing which delivers higher spectrum efficiency. The vast majority of networks use the LTE (Long Term Evolution) system which is the fastest growing mobile technology in history although a small number use a similar but incompatible system called WiMAX. Use of the term 4G to describe LTE and WiMAX networks is sometimes controversial but the ITU decided it was an acceptable marketing term for the technologies as they present a significant advance on its IMT2000 criteria. However, the term may also be used to describe technologies which meet the ITU’s criteria for IMT-Advanced (see IMTAdvanced). 5G Next generation network architecture that could dramatically improve the delivery of services and support a variety of new applications. The mobile industry, wider telecommunication industry, academic institutions and national governments are currently defining requirements and investigating what technologies could be used in 5G networks. The speed and reach of 5G services will be heavily dependent on access to the right amount and type of spectrum. The spectrum policy dictionary 77 AA 88 The spectrum policy dictionary Administered Incentive Pricing (AIP) A model for setting fee levels for spectrum. It is based on the regulator’s estimate of the value of the spectrum rather than directly by the market, as in an auction. Administrative approach Sometimes known as ‘command and control’ this is the traditional regulatory approach whereby a regulator has overall control and chooses who should be assigned spectrum, often through a beauty contest where several companies outline their proposed service and the regulator chooses the one with the greatest socioeconomic benefit. This allows the regulator to protect spectrum for non-revenue making public interest services like the police, but decisions are subjective and can fail to ensure spectrum is used efficiently. Administrative Incentive Pricing (AIP) The concept where a fee is levied on the users (e.g. mobile operators) in order to incentivise them to only use the spectrum they need, and therefore freeing spectrum up for other services. AIP uses the opportunity cost method of valuation (see opportunity cost). Advanced Wireless Services (AWS) A collective term used to describe a number of different spectrum bands. The most well- known one is the 1710-1755 MHz and 2110-2155 MHz spectrum range — the former is used as the uplink and the latter for downlink traffic. African Telecommunications Union (ATU) A continental organization fostering developments of information and communications technologies infrastructure and services in Africa. The organisation was founded in 1977 and took its present name in 1999. Aggregation risk The risk of failing to aggregate spectrum. Aggregation risk arises when a spectrum bidder needs to secure two spectrum bands to offer a particular service, but there is a risk they may only secure one which will fail to meet their need and therefore be worth less than they would otherwise have paid. The spectrum policy dictionary 99 Allocation (of a spectrum band) The services which may operate in a specific frequency band (e.g. mobile services or terrestrial TV broadcasting). This process is overseen by the ITU and reviewed at its World Radiocommunication Conference when a band may be reallocated to allow it to be used differently. This is sometimes confused with assignment which is the decision made by a national regulator to grant a band for use by a specific company (e.g. a specific mobile operator). The ITU designates allocations as ‘primary’ when the service has priority use of the band (this is co-primary where there are several services) or ‘secondary’ when the service may operate as long as it does not interfere with ‘primary’ services. Ancillary Ground Terrestrial Component (ATC) The ground based infrastructure of a mobile satellite system. It is used to improve coverage in areas where traditional satellites struggle, such as cities. Arab Spectrum Management Group (ASMG) An organisation whose task is to manage and coordinate all issues related to Spectrum Management, World Radiocommunications Conferences and other spectrum matters between the Arab States. Ascending clock auction (aka Japanese auction) Sometimes known as a ‘Japanese auction’, this is a method whereby the auctioneer begins at a low price and only the bidders willing to pay it proceed to the next round. The price is raised again and the process is repeated until only one bidder remains. 1010 The spectrum policy dictionary Asia-Pacific Telecommunity (APT) An intergovernmental organisation that operates in conjunction with telecom service providers, manufacturers of communications equipment, and research and development organisation active in the field of communication, information and innovation technologies. Assignment (of a spectrum band) The process of awarding spectrum to a particular user (e.g. a mobile operator). It is usual for the national regulator acting on behalf of the government to be responsible for the process of spectrum assignment. They use a number of techniques to allocate spectrum to particular users: auctions and beauty contests are the most common. Often the term is confused with ‘allocation’. Auction A method used by a regulator to assign a licence to a specific user (e.g. a mobile operator) allowing them to use a specific frequency band in a certain area, at certain times, for a specific period. There are numerous auction methods (see ascending clock auction, combinatorial clock auction, Dutch auction, English auction, sealed bid auction, simultaneous (ascending) multi-round auction). The spectrum policy dictionary 1111 BB 1212 The spectrum policy dictionary Band (Spectrum Band) A discrete block of spectrum that may be allocated for use by certain services (e.g. mobile services) and assigned by a national regulator to a specific user (e.g. a mobile operator). Base station (aka cell tower) A base station is a structure that contains radio equipment which is used to link mobile devices in a specific geographical area to a mobile operator’s network. A base station may provide coverage over a large area (several miles), just a few city blocks, or even a single location such as a train station or home (see heterogeneous network). Beauty contest The process whereby a regulator issues a spectrum licence after listening to all proposals and choosing the one which offers the greatest benefit. Benchmarking Benchmarking uses the results of similar auctions in other markets to estimate the expected value of a spectrum band. The main criticism of benchmarking is that it is difficult to obtain like-for-like comparisons as market conditions are seldom identical. It is one of the three methods of valuing spectrum – the others are ‘modelling’ and ‘opportunity cost’. The spectrum policy dictionary 1313 CC CDMA development Channel group (CDG) The amount of spectrum used for the transmission of a radio signal. For An international consortium of example, a 2G (GSM) channel is 200 kHz companies — service providers, wide, a 3G (WCDMA) channel is 5 MHz infrastructure manufacturers, device wide and a 4G (LTE) channel can be up to suppliers, test equipment vendors, 20 MHz wide. application