Table Of ContentUnderstanding
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Liberalisation
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Understanding
Spectrum
Liberalisation
Martin Sims
Toby Youell
Richard Womersley
CRC Press
Taylor & Francis Group
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Boca Raton, FL 33487-2742
© 2016 by Taylor & Francis Group, LLC
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Version Date: 20150701
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Contents
Preface xi
acknowledgements xiii
authors xv
Part I setting the scene
chaPter 1 introduction 3
Putting Theory into Practice 5
The Structure of This Book 7
chaPter 2 the Promise of liberalisation 9
A History of Spectrum Policy 9
1926: The Era of Broadcasting Chaos 11
What Went Wrong? 13
Watching from across the Water 13
Coase’s Legacy 14
What Is Command and Control? 15
Regulators Picking Winners 15
Commercial Drivers for Liberalisation 18
The Liberalisation Agenda 20
chaPter 3 a sPectrum engineering Primer 23
Introduction 23
Coverage 24
Hitting a Brick Wall 27
Transmitting Signals 28
v
vi Contents
Receiving a Signal 29
Interference 31
Spectrum Efficiency 33
Part II liberalisation in action
chaPter 4 sPectrum auctions become the default
assignment mechanism 39
Problems with Beauty Contests 39
A Slow Process 40
Legal Challenges 42
An Incentive to Overpromise 43
The Market Does the Regulators’ Work 44
Auctions Dominate 45
chaPter 5 the liberalised licensing debate 47
Introduction 47
Defining Spectrum Use 47
Traditional Licensing 48
Technology-Neutral Licences 50
Licensing Based on Reception Not Transmission 53
chaPter 6 Public sector sPectrum 55
Uses of Public Sector Spectrum 56
Theory of Administered Incentive Pricing 57
Intricacies of Setting Prices 58
Countries That Have Implemented AIP 60
Australia 60
United Kingdom 61
Military 63
Maritime sector 65
Aeronautical spectrum 67
Conclusion 69
The European Approach 69
The US View 70
chaPter 7 broadcasting 73
Liberalisation and the Development of the TV Market 73
‘Technical Restrictions’: An Oversimplification 74
The Rise of Platform Competition 76
Spectrum Efficiency 77
Why Is DTT Thriving? 78
Varying penetration of DTT 78
Universal service 80
DTT’s product life cycle 83
UK Attempts to Liberalise TV Spectrum 84
Contents vii
The Need for International Coordination 86
Complexities of the TV Market 87
Funding PSBs 87
Competition 88
The Long-Term Future of Terrestrial TV 89
Conclusion 91
chaPter 8 satellite 93
How the Satellite Industry Uses Spectrum 94
The S-Band 96
Unused Spectrum 99
Unfilled Satellite Slots 100
The United Kingdom Attempts to Liberalise
Satellite Spectrum 101
Operator-Driven Proposals 104
Conclusion 107
chaPter 9 ultra wide band 109
Principles of an Underlay Network 109
Technological Hurdles 111
Uses of the Technology 112
Regulating UWB 113
What Have We Learnt? 115
chaPter 10 wi-fi and the sPectrum commons 117
An Incredible Success Story 118
The Triumph of the Commons 120
The Economics of Unlicensed 122
A Danger of Congestion? 123
Could a Mobile Carrier Rely on Wi-Fi? 125
Conclusions 126
chaPter 11 the whitesPace concePt 129
What Are Whitespaces? 129
Radiomicrophones 131
New Receivers 133
Conclusion 135
Part III the limits of liberalisation
chaPter 12 introduction to Part iii 139
chaPter 13 the caPacity crunch 141
Predicting the Need for More Mobile Spectrum 142
Regulators’ Responses 143
The ITU’s Role 145
An Overestimate? 146
Why Is It Not Hurting? 148
viii Contents
chaPter 14 why is liberalisation limited in its
aPPlication? 151
No Faith in Our Creation 152
Obstacles for the Development of Spectrum Markets 152
Time Lags 152
At One Remove 153
The Global Nature of the Spectrum Market 154
The Political Power of Broadcasters 156
A Wider View 157
chaPter 15 why does trading have such Patchy
success? 161
Poor Uptake 162
Concentration and National Licences 163
Technologies in Decline 164
Achievements of Spectrum Trading 164
chaPter 16 mobile networks: from sharing to
wholesale 167
Why Share Mobile Infrastructure? 168
Potential Savings 169
LTE: A Boost for Network Sharing 170
Wholesale Networks 171
Pros and Cons 173
Industry Views 174
Impact on Spectrum Liberalisation 174
chaPter 17 the role of Politics in sPectrum
liberalisation 177
Nation States 177
Sovereignty Can Be Complex 180
The Work of the International Telecommunication Union 181
How Radio Regulations Work 182
Spectrum as an International Bargaining Chip
at the ITU-R Level 184
Spectrum and National Politics 185
Spectrum Auctions as a Tool for Plugging
Budget Deficits 185
How National Political Structures Influence
Spectrum Policy 186
Thailand 187
Poland 188
Iran 188
Spectrum and Regional Politics 190
The EU Radio Spectrum Policy Programme 190
Conclusions 193
Contents ix
chaPter 18 criticisms of auctions 195
Do Spectrum Auctions Discourage Investment? 196
Concerns of the European Commission 196
Do Auctions Cause Overpayment? 197
Does the Regulator Know Best? 200
Do Auctions Hinder Competition? 202
Goodbye to Auctions? 203
Licensed Shared Access to the Rescue? 204
The Problems with Complex Auctions 204
First- and Second-Price Auctions 205
Package Bidding 206
Enormous Numbers of Combinations 207
Confusion about Second Prices 207
Drawing Together the Strands 210
Part IV the new agenda
chaPter 19 introduction to Part iv finding
the right metaPhor 215
A Mixture of Tools 216
chaPter 20 licensed shared access 219
Introduction 219
Availability of IMT Spectrum 219
How Does Licensed Shared Access Work? 221
The Appeal of LSA 223
LSA in Practice 224
chaPter 21 cognitive radio and database-driven
sPectrum management 227
Cognitive Radio 227
Difficulties in Avoiding Interference 228
First Trials 229
Cognitive Techniques Already in Use 230
Cognitive Devices in Public Sector Spectrum 231
Databases 233
Ending Before It Has Begun? 234
chaPter 22 future technologies 235
5G 236
What Will 5G Networks Look Like? 237
How Will 5G Use Spectrum? 239
Policy 240
Transmitting Beyond the Radio Spectrum 242
Li-Fi 243
Tremendously High Frequencies 243
Conclusions 244
x Contents
chaPter 23 conclusions 245
Future Prospects 246
Trends in the Broadcasting Market 246
The End Game 249
aPPendix a: what does the itu do and
how does it work? 251
glossary 255
index 265
