2nd December 2002 (Version A) Mike Short

Mike Short Vice President, Industry Relations & Standards

Chairman Mobile Data Association

Mike.Short@02.com www.mda-mobiledata.org www.text.it

2nd December 2002 (Version A) Mike Short

2nd December 2002 (Version A) Mike Short

Towards a Wireless Commons

“small groups of engineers who dared to think differently about collaboration and the concepts of free, open standards in networking technology built the internet. Now those same

minds are looking to the freedom of the airwaves to complete their project of bringing access to the world”.

Niall Murphy Wireless Revolution @ Limehouse

www.earth-project.com/writing

2nd December 2002 (Version A) Mike Short

Spectrum Trading - SMAG Input

• Spectrum market

• Trading options

• Trading processes

• A “wireless commons” - Demos November 2002

• Way forward

2nd December 2002 (Version A) Mike Short

Genesis of Spectrum Allocation

Ø1- First come first served

Ø2- Government allocate

Ø3- Market decides

OR

Ø4- All users access the common resource when they need it … a “wireless commons”.

Ø1 - 3 credited to Eli Noam

2nd December 2002 (Version A) Mike Short

Spectrum Market - balancing Demand and Supply

GD

S

M

D S

2nd December 2002 (Version A) Mike Short

Why Spectrum Trading (ST)?

• Spectrum ‘innovation web’.• Part of the spectrum pricing / allocation trend

- no obvious “Treasury push”.• Technology options increasing.• Market is the best determinant of spectrum demand.• Investment assessment can be more open / flexible / speedy.• Environmental benefits in sharing rather than ‘ownership’.• Removes structural rigidity.• Opportunity for UK competitiveness.

but noting Quasi Trading exists already; and we need a ‘roadmap’ to get there!

2nd December 2002 (Version A) Mike Short

ST - SMAG new options

• Dynamic Trading e.g. short term (months) or time of day

• Border Trading e.g. N Ireland / Ireland

• Geographic Trading e.g. local or regional

• Adjacent bloc trading

2nd December 2002 (Version A) Mike Short

ST Processes - RA Consultation / SMAG Response

• Modes - too complex, inflexible and costly.

• Duration - too inflexible.

• Phases - largely supportive, but long and exemptions challenged

• Future supply - future availability / releases need to be clearer.

• Notification - simplify processes.

• Brokers - role of Agents, Brokers, and Administrators understated.

• Pricing - level playing field first (except ISM).

• RIA Annex 1 - incomplete, but sufficient to start ST.

• Taxation - not clear enough.

• Pre-emptive rights - needs more attention.

• Interference management - clear responsibility for OFCOM.

• Wholesale / retail - important distinctions to be recognised.

2nd December 2002 (Version A) Mike Short

ST Simplicity Requested

• Bronze * - Dynamic ST, under 2 years

• Silver * - Static ST, generally over 2 years with ‘rights’ held.

• Gold - Structural ST, with full consultation, and ITU table review.

* remain within ITU tables; include formal OFCOM notification.

2nd December 2002 (Version A) Mike Short

Demos - Conclusions on Spectrum

“Alongside the spectrum trading scheme that is now being developed, it is vital that OFCOM reserves a modest share of spectrum as a common resource”

“When the switch-off of analogue TV services takes place, it would be particularly appropriate to allocate a share of the spectrum that is currently used for public service broadcasting - BBC1, BBC2 and Channel 4 - to a

public interest commons: a form of ‘citizen’s band’ for the digital age”

“OFCOM will need to build a culture that is flexible, adaptive and grounded in a cycle of continual learning”

Source: politics of bandwidth - November 2003

Wilsdon / Stedman Jones, DEMOS

2nd December 2002 (Version A) Mike Short

Way Forward

• RA review of the ST range of inputs.

• Government ‘Cave’ response.

• International review - benchmarking / EU competitiveness.

• Further RA consultation.

• ST “Change management” programme designed in H2 2003.

• Phased ST introduction from early 2004, with trials first then first wave in 2005.