“The digital switchover represents an extraordinary opportunity for regulators to rethink spectrum allocation in a way that would be efficient and allow room for everyone.”
Several countries have reached an important point in time that might see a revolution in the way regulators tackle spectrum issues. Two critical events are happening almost simultaneously to trigger this: the end of the first 2G licences and the digital switchover (DSO). Both represent extraordinary opportunities for regulators to adapt spectrum allocation to optimise current services in terms of quality and coverage, and allow the launch of new services.
Traditionally, spectrum has been allocated on a first-come, first-served basis. As a consequence, TV broadcasters have been allocated the lion’s share of spectrum in the UHF band, which allows them to serve very broad areas with a minimum number of transmitters. The spectrum allocated to mobile operators within a particular country has not always been allocated within the same band, with early comers being allocated spectrum in the 900MHz band for 2G services and late entrants being left with higher bands (usually 1800MHz) or bands that do not correspond to international standards. The latter frequencies may not allow new entrants to benefit from lower-cost infrastructure and handsets.
However, the situation may change in the coming years. Europe, for instance, is the centre of an increasingly heated debate over how best to re-allocate spectrum that is currently being used for analogue broadcasting, which will be made available by 2012: the ‘digital dividend’. Additionally, some spectrum licences, such as in Belgium or Austria, are coming to an end by 2010 or 2011.
The DSO and licence renewals will:
- allow regulators to re-think their spectrum allocation processes in order to achieve optimal spectrum planning
- enable existing licence holders or new entrants in the telecoms and audiovisual industries to benefit from both optimal resources and economies of scale if they are able to receive frequencies in the lower part of the spectrum (below 1GHz).
Recent work by Analysys Mason for the French regulator ARCEP showed that the optimal allocation of the digital dividend in France would allow an increase in the number of digital terrestrial TV (DTT) channels from the current 29 standard-definition TV channels to 40 high-definition channels, while still leaving room to launch new services such as mobile broadband, covering 99% of the population. As a result, end users and the economy would benefit from such spectrum optimisation.
Analysys Mason is ideally placed to help both regulators and industry players around the world adapt their spectrum strategy in line with recent industry developments. We have worked extensively for regulators on spectrum issues, including Ofcom in the UK and ARCEP in France.
Our work for Ofcom included an economic and technical analysis of alternative uses of the radio spectrum released by the switchover, as well as recommendations on how Ofcom should allocate the released spectrum. ARCEP commissioned Analysys Mason and law firm Hogan & Hartson to report on the optimum framework for releasing spectrum to the market in a way that maximises benefits for the economy and society. More about the report for ARCEP can be found here.
Analysys Mason has also provided consulting services to industry players including preparing licence bids, optimisation of spectrum use and providing responses to spectrum consultations for national regulators.
For more information please contact Olivier Pascal, Consultant, Analysys Mason at olivier.pascal@analysysmason.com
