Spectrum Auctions (1)

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2nd INDUSTRY CONSULATION ON PROPOSED UNIFIED LICENSING

FRAMEWORK IN KENYA: KCCT 19th March 2008

Frequency Issues

Communications Commission of Kenya

Unified Licensing Stakeholders Forum, 19 Mar '08

Spectrum Auctions (1)

1. Spectrum auctions should not be considered as it has failed in various jurisdictions and is likely to increase the cost to the end user.– First come first served and comparative methods not a

viable propositions where there are competing demands– Lotteries are competitively neutral and non

discriminatory method of granting licenses.– The auction process is the only viable, transparent and

fair allocation method where there is great scarcity of spectrum

2Unified Licensing Stakeholders Forum, 19 Mar '08

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2. How often will spectrum auctions be held if this is the way the commission intends to go? – Technological trends, availability of Spectrum and industry

demands will dictate the frequency of the exercises – Auctions will not be a way to artificially restrict supply since this

will be done with full consultation with the industry

3. Auctions should be done with transparency, efficiency, independence and non discrimination in mind.– Spectrum Auctions will be done on a specific spectrum bands

that have been identified as suitable for a service or services in demand.


Need for transparency

1. There is need for transparency on the subject of current spectrum utilization particularly in regard to availability of clean spectrum as well as rules for spectrum auctioning

• Processes of enabling Spectrum access will be transparent

• Auction rules will be published and reasonable suggestions will be taken on board


Need for transparency (2)

2. Fair allocation of frequency resources is needed • Commission has always ensured fairness.

There are avenues for redress


Spectrum Charging

1. Matrix used for charging operators should be looked into and a more appropriate charging system created.

2. Issue of spectrum fees dependent on coverage as well as locality.

• With regard to 1 & 2 above, Commission agrees and is in the process of reviewing the methodologies of spectrum pricing


Spectrum Charging (2)

3. Tx/Rx per MHz per location charging model should be abolished and replaced with a flat rate within a geographical area.

• New pricing mechanism to be all inclusive– Transmitted power and bandwidth occupancy– Geographical zoning– Band congestion index– Exclusivity


Existing operators vs new players

1. Spectrum that is available should be split between existing and new players

2. There is need for equitable allocation of spectrum among all Tiers of NFP going forward

• With regard to 1 & 2 above, market forces will prevail, taking into account competition issues


Transitional issues• Spectrum allocation should be guaranteed

for full duration of licence period. Any variations to allocation be made only after consultation and agreement by affected licensee. Rights & benefits attached to spectrum allocations should be protected irrespective of whether or not a licensee migrates to the new licensing framework– Service continuity of existing customers, to be

fully addressed by the auction rules


Access fees

1. Care need to be taken not to resort to spectrum fee charging modalities that increase the operator costs of operation

• Spectrum access fees shall be dependent on: • the amount of spectrum, • locality• the coverage (regional, localized or national) and • the offers made in the bidding/evaluation process.


3G services• Under the unified licensing framework and

pursuant to the inherent technology neutrality principle, we expect to be able to provide such services as 3G subject to acquisition of requisite frequency spectrum

• There are such possibilities subject to the outcome of the consultation process currently going on


Need for transparencyA clear view of the current spectrum allocation and how it is used.

• Spectrum a finite resource, there is more demand than supply. • The ever increasing demands is brought about by:

– ever increasing number of new services. – ever increasing number of users & providers of existing services

• Planning done globally, International treaty, ITU Radio Regulations Article 5

• Downloadable National Table of Frequency Allocations

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SPECIFIC QUESTIONS BY TNOA

1. Spectrum allocation table and how it is used The table is revised after 4 yrs and is available on the CCK website

1. Current assignment of following bands: 450 MHz (452.5 - 457.475 MHz & 462.5 to 467.475

MHz) 700 MHz 800 MHz (824 - 849 MHz & 869 - 894 MHz) P-GSM (890-915 MHz and 935 – 960 MHz) 2.3GHz – 2.6GHz


Spectrum allocation• Frequency planning starts at global level• Article 5 of ITU Radio Regulations• Kenya National Table of Frequency AllocationsCurrent assignment are in the following bands450 MHz (452.5 - 457.475 MHz & 462.5 to 467.475 MHz)700 MHz800 MHz (824 - 849 MHz & 869 - 894 MHz)P-GSM (890-915 MHz and 935 – 960 MHz)2.3GHz – 2.6GHz


Insufficient bandwidth

Assignment of insufficient bandwidthSpectrum is finite resource an there is more demand than supply and it will never enough at any given time

The problem is being addressed in many ways but operators should continually use spectrum efficient technologies


Allocations in 450 MHz band (452.5- 457.475 MHz & 462.5-

467.475 MHz)

Band 450-470 MHz :• Government services• Fixed wireless access systems• Private radio networks• Radio alarm networks


Allocations in 700 MHz band

1. Band 470 – 790 allocated to terrestrial television broadcasting

2. Not available to TNOA


Allocations in 800 MHz Band824- 849 MHz band 869 – 894 MHz band

•790 – 862 MHz currently assigned to TV Broadcasting/Fixed/footnote allocation to Mobile in Kenya

•TKL and Govt

•Band 806-862 MHz to be relinquished by broadcasting service after transition, year 2012

869 - 870 MHz : Guardband870 – 875 MHz : TKL875 – 890 MHz : Govt880 – 882.5 MHz : TKL890 – 900 MHz : Safaricom892.5 – 890 MHz : Econet


Allocations in P-GSM Band

890-915 MHz 935 – 960 MHz880 - 882.5 MHz : TKL 925 - 927.6 MHz : TKL882.5 -890 MHz : Econet 927.5- 935 MHz : Econet890 -900 MHz : Safaricom 935 -945 MHz: Safaricom900 – 905 MHz : TKL 945 – 950 MHz : TKL905 – 915 MHz : Celtel 950 – 960 MHz : Celtel


Allocations in 2.3 – 2.6 GHz band

1. Currently in use government radio networks.

2. Band 2.4-2.483 GHz band currently utilized on shared non protected basis as per CCK guidelines

– Maximum eirp 100 mW– Secondary basis– Approval prior to installation


TNOA request for DoD & KBC frequencies

• What are the plans to release the frequencies currently being held by DoD and Broadcasters ( specifically KBC)? What is the road map?

– The frequencies assigned for use by DoD : NO COMMENT

– For KBC matters relevant to a broadcasters forum.


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Thank you

www.cck.go.ke

Unified Licensing Stakeholders Forum, 19 Mar '08

Documents

Spectrum Auctions (1)