Radio Policy Vision & Strategy for Frequency Liberalization
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1 Radio Policy Vision & Strategy for Frequency Liberalization December 2003 Radio Department, Telecommunications Bureau Ministry Public Management, Home Affairs, Posts and Telecommunications
2 Process Spectrum Reform Information and Study Group on on Effective Communication Council Spectrum Policy Aug. Aug. '02 '02 Consultation Radio Policy Jun. Jun. '03 '03Public Comment to to Report Jul. Jul. '03 '03 Report Jan. Jan. '02 '02 Start Dec. Dec. '02 '02 1st 1st Report Introduction Introduction Compensation Compensation Scheme Scheme Sep. Sep. '03 '03 2nd 2nd Report Introduction Introduction Registration Registration Dec. Dec. '03(plan) 3rd 3rd Report Assignment Assignment Spectrum Spectrum Reallocation Reallocation
3 Basic roles use Overview the report Radio Policy Vision Mid- and long-term outlook use Desirable policy Realization Realization comfort comfort and and high high quality quality life life Revitalization Revitalization industrial/economic industrial/economic activities activities Formation Formation a a safe safe and and disaster-tolerant disaster-tolerant society/country society/country Invigoration Invigoration local local economy economy Expectations for realization a wireless broadband environment It is expected that various uses have been drastically expanding in such areas as the home, business, medicine/welfare, security Japanese nationals, so that the uses contribute to realization convenient/ safe/secure daily lives and society. Expansion -related market sizes Mid- and long-term outlook policy Mid- to long-term goals (in 5 to 10 years) Contribution to realization a ubiquitous network society through construction the world s most advanced wireless broadband environment Ensuring national security through use diversified networks Fostering internationally competitive wireless ICT industry I. I. Drastic Drastic review review allocation allocation II. II. Policies Policies for for reallocation reallocation and and use use III. III. Reform Reform Spectrum Spectrum User User Fee Fee IV. IV. Promotion Promotion R&D R&D V. V. Facilitating Facilitating smooth smooth prevalence prevalence equipment equipment VI. VI. Enhancing Enhancing international international strategy strategy VII. VII. Building Building a a safer safer and and securer securer environment environment for for use use Realization a ubiquitous network society through construction wireless broadband environment
4 Examples Wireless Broadband Environment Trains Public facilities Ticket gate Education You can check information on anything you cannot understand right here. Public transportation Change lanes Accident 500m ahead Data exchanges via vehicle-tovehicle communications You are too close. Boarding procedures by wireless terminals Notification reserved seats Message delivery, such as Obtaining vacancy and destination information easily Daily lives Comprehensive learning utilizing cameras, GPS, etc. Use mobile terminals in education Outdoor learning through use mobile terminals with virtual reality Wireless vehicle-to-vehicle communications Accident prevention through exchange data such as information on speed, braking, road surface, etc. Business New products this year! Keyless door locks Microwave oven TV (in aircraft) It s realistic and easy to understand! Cfee maker Table lamp Wireless-controlled home security Controlling home electronics through use favorite remote controllers, voice and gestures Home security using watchdog robots connected to wireless network Let s confirm the schedule using my cellular telephone via VPN. Umm, finish the rest today s work at the Hot Spot (service area public wireless access). Well I ll check s before arrival. Wireless fice Any staff can access intra-company networks in any situation. Anyone can participate in meetings at any place (wireless meeting) Sales activities supported by wireless terminals
5 Expansion Market Sizes Radio-related Industries (Unit: trillion yen) Industries Potentially Using Radio (-related amounts) Industries Using Radio (related amounts) Core Radio-based Industries 19 trillion yen trillion yen trillion yen [Definition market sizes -related industries] Core Radio-based Industries: Sales amounts industries in which the usage plays the central role businesses (e.g., communications carriers/broadcasters, manufacturers communications/broadcasting equipment, etc.) Industries Using Radio (-related amounts)*: Radio-related partial amounts the total sales industries in which the usage does not play the central role in business, but cannot operate business activities without using (energy suppliers, such as power and gas utilities, airline, maritime, railway and automobile transportation services, etc.) Industries Potentially Using Radio (-related amounts) *: Radio-related partial amounts the total sales industries whose businesses are not using at present, but whose products and services will be highly improved and become effective through use in the future (distributors, education, medical/nursing care/welfare services, games, etc.) * Note: Upon estimate, market sizes are calculated by multiplying annual sales amounts (annual growth rates are considered) by degree dependence on use.
6 I Drastic Review Radio Spectrum Allocation It (1)Drastic review allocation in all frequency bands including is necessary to drastically review those assigned to the national government and public corporations. allocation in order to facilitate the (2)Encourage licensees to return redundant not being used efficiently. introduction systems required for the (3)Reallocation, which are used for systems actually world s most advanced Wireless Broadband replaceable with fiber-optic cables etc., to other systems such as mobile Environment communications, for which use is indispensable. (4)Swift reallocation to new systems with higher demand. Expansion usage in the future * 1 Concepts for addressing demands Measures to be taken for promotion Mobile Communication Systems (below 5-6GHz) Wireless LAN (mainly in 5GHz band) Large increase in demands for (based on forecast methods developed by ITU) MHz bandwidth (current status) MHz bandwidth (5 years later) - 1,060-1,380 MHz bandwidth (10 years later) Large increase in demands for (based on forecast methods developed by ITU) MHz bandwidth (current status) - Max. 480 MHz bandwidth (5 years later) - Max. 740 MHz bandwidth (10 years later) Based upon results survey on actual usage including those in the public sector, (1) Create for new use, through efficient use and transition to fiber-optic cables (2) Swift reallocation (3) Shared-use with other systems Examples major candidates for additional frequency bands for mobile communication systems - 800MHz band, 1.5 GHz band (currently in use for MCA)* GHz band (currently in use for fixed communications) - 4 GHz / 5 GHz bands (currently in use for fixed communications) Examples major candidates for additional frequency bands for Wireless LANs GHz band (currently in use for fixed communications) GHz band (currently in use for radars) GHz band (currently in use for radars) Terrestrial Digital Television Smooth penetration and development digitalization - Smooth implementation measures for conversions current TV frequencies for digitalization. - Radio vacated by the termination conversion process (analog/digital simulcasting) will be used for mobile communications, etc. - Frequency assignment for facilitating nationwide deployment digital broadcasting - The UHF band except those used for digital TV will be used for mobile communications after 2012; the VHF band will be used for systems with high demand after RFID (Electronic Tag) Advanced utilization electronic tags will evolve in diversified fields such as physical distribution. 135 khz, 13.5 MHz, 2.4 GHz bands are currently in use. Consideration available frequency bands, based on concrete images applications using RFID. ITS, HEO system * 3, UWB Development these systems will progress. Clarification available frequency bands, necessary bandwidths, etc. based on considerations concerning trends in R&D, sharing conditions. *1 The figures the bandwidths Mobile Communication Systems and Wireless LAN are round numbers. *2 MCA: Multi-Channel Access (a trunked system.) *3 HEO system: Highly Elliptical Orbit satellite system used for satellite communication, determination etc. Implementation domestic frequency assignment, considering international allocation and international harmonization.
7 II Policies for Radio Spectrum Reallocation and Radio Spectrum Use Facilitating swift reallocation The amendment to the Radio Law in 2002 institutionalized the scheme for conducting surveys etc. on actual usage and publicizing the results. The survey conducted by MPHPT every year is to cover one three sections the, such that in threeyears time, the surveys will have covered all the. MPHPT evaluates the extent efficiency in usage based on the survey results through seeking public comments, and publicizes the results. The Council recommends that MPHPT formulate reallocation plans, as appropriate, taking into consideration such evaluations, in order to meet demands for other systems such as mobile communication systems and wireless LANs. Should reallocation need to be completed in a short term, e.g. three years from the formulation a reallocation plan, incumbent licensees will be forced to dismantle facilities that the licensees purchased and constructed in the past and to purchase and construct alternative facilities. The Council recommends that MPHPT conduct studies on establishment a scheme to compensate incumbent licensees for reallocation costs such as a portion the remaining book value and the dismantling cost the facilities, etc. Ensuring transparency use In the introduction auction systems into licensing procedures, there could be a risk that the introduction hinders effective use, in such a way as the delay/withdrawal services due to extremely high bidding prices as seen in some European countries. Accordingly, from the viewpoint promoting effective use by incorporating advantages market principles, it is necessary to consider other appropriate measures by which such kind demerits can be avoided. The Council recommends that MPHPT conduct studies on introduction a licensing system incorporating the following assessment items in the process comparative examination in addition to appropriateness business plans: - A portion within the amount the reallocation costs to be shared by new licensees. - Expansion plans service areas (i.e., facilities investment amount, etc.) etc. It is also appropriate to ensure transparency and fairness in licensing procedures through publication figures concerning assessment items prior to the assessment.
8 Scheme for Conducting Surveys on Actual Radio Spectrum Usage Revised Radio Low in 2002 Survey Items 〇 Number stations 〇 Traffic 〇 Years in use facilities 〇 Replaceability with other means telecommunications such as fiber-optic cables etc. Surveys on on Actual Radio Spectrum Usage Evaluation the the extent extent efficiency in in usage usage on on each each frequency band band All the is divided into the following three sections. Surveys are made every year on one the sections. 1Below 770MHz 2Above 770MHz/below 3.4GHz 3Above 3.4GHz Surveys on on economic impacts on on licensees caused by by modification Frequency Assignment Plan Plan Reflection Modification Frequency Assignment Plan
9 Internet Swift Reallocation Radio Frequencies - Compensation Scheme for Spectrum Reallocation - New Licensees RLAN, etc. Restaurant s <A new entry is possible on vacated frequencies> New entry Incumbent Licensees <Station for fixed microwave links> Base stations Telecommunications Carriers Hotel Intelligent Home Appliances Withdrawal - No alternative frequencies - Shorter transition period within 3 years (10 years for the existing scheme) Economic Costs to Incumbent Licensees (Salvage Value, Removal Cost and so on) Need for Compensation Provision Compensation Provision Compensation Economic benefits to new licensees New Licensees Bear a Certain Amount the Economic Costs
10 Enhancing flexibility use The Council recommends that MPHPT: Identify more spectra as Commons to allow unlimited numbers unlicensed wireless systems operated at low power to share frequencies under certain conditions; Introduce a regulatory scheme such as the registration stations, requiring no licensing process, to allow unlimited numbers wireless systems such as base stations wireless LAN systems operated outdoors at relatively high power to share frequencies under certain conditions in order to respond to such expanding installation needs; Assign frequencies to wireless systems that will satisfy needs a specific region, while ensuring the possibility future nationwide reallocation in the band; and Improve efficiency through reallocation in bands assigned to mobile systems operated by government institutions and other entities (including Radio System for Disaster Prevention/Relief).
11 III Reform Spectrum User Fee IV Promotion R&D V Facilitating smooth prevalence equipment VI Enhancing international strategy VII Building a safer and securer environment for wave use Review the present Spectrum User Fee system in terms the character the system and the appropriate calculation policy the fee in each category users, etc. to facilitate a more efficient and comfortable use environment; Focus on R&D wireless systems such as systems beyond IMT-2000, Wireless LANs, ITS and HEO (Highly Elliptical Orbit) systems; Promote R&D technologies for efficient use (e.g. stware-defined technologies and cognitive system to search the and operate in a band not in use by others); Promote collaboration among the industry, academics and government and foster researchers in the field engineering etc.; Introduce an immediate licensing scheme for specified experimental stations used for R&D purposes; Facilitate distribution equipment through smooth introduction a scheme concerning Supplier s Declaration Conformity to Technical Regulations; Conduct studies on the method for the Technical Regulations Conformity Certification System concerning Stware Defined Radio equipment; Promote standardization activities with a view to fostering growth wireless IT industry; Promote cooperation with Asian countries, etc.; Take leadership in discussions on at ITU; Promote the measures such as research regarding effects waves on the human body; Promote preventive measures to tackle problems illegal stations. Ensure security wireless LANs.
12 Enhancing Flexibilities in Spectrum Allocation -Outline Registration System- <Current System> License System No No license license required required for for Small Small Power Power or or Limited Limited Bandwidth Bandwidth Bandwidth Guaranteed Type; Broadcasting stations, Cellular Phones, etc. Background:Technological Development, etc. <Shared Use Type Wireless Service> Introduction (under consideration) Best Effort Type such as High Power Out-door Radio LAN Ex-ante Checking (License System) High High Power Power Exclusive Use Use Ex-post Checking (Registration System) Free Free Use Use Orderly Orderly Use Use Radio Radio Frequencies (Coping (Coping with with Interference, Interference, etc.) etc.) To Promote Multiple Use Radio Spectrum Realization Realization wireless wireless broadband broadband environment environment correspond correspond to to internet internet era era
13 Reform Spectrum User Fee Basic Character Commission Fee collecting from license for administrative cost to construct and to maintain favorable environment Example usage Radio Monitoring. Operation Database Radio Stations. Counter Measure for Analog Frequency Change. Technical Testing on Survey Drafting Policy 1 2 From Commission Fee for Administrative Cost To Usage Fee Radio Spectrum. a) Expansion use (Present; not to R & D) taking into account economic value. b) Reform Calculation Method (Present; Regardless bandwidth, it is proportional to a station.) Schedule Report from Study Group in 2003 Revision Radio Low in 2004
14 MHz MHz GHz Spectrum Expansion the Commons 9600MHz bandwidth in 18 bandwidth is allocated to the Commons for RLAN and cordless telephone, etc. (the world most levels) (4MHz) (14kHz) (835kHz) (1.1MHz) (335kHz) (1.1MHz) (8.2MHz) (35.1MHz) (97MHz) (161MHz) (100MHz) (80MHz) (2MHz) (30MHz) (200MHz) (900MHz) (7000MHz) (1000MHz)
15 2. Review the Allocations to Mobile, Fixed, and Other Services in the 5 GHz Band (Agenda Item 1.5) 2.4 GHz band 5 GHz band 97 MHz bandwidth MHz bandwidth Radio LAN (for indoor and outdoor use) Industry, science, and medical equipments (e.g. microwave ovens) Radio LAN (for indoor use) Satellite communications Radar Radar, レーダ etc. 等 [MHz] [MHz] New allocations for Radio LAN on a worldwide basis 97 MHz bandwidth MHz bandwidth 355 MHz bandwidth Radio LAN (for indoor and outdoor use) Industry, science, and medical equipment (e.g. microwave ovens) [MHz] Radio LAN (for indoor use) Radio LAN (for indoor use)* Satellite communications Radar Radar, etc. Radio LAN (for indoor and outdoor use) * Limited outdoor applications are possible. [MHz] Major frequency bands being used now - The frequency band that can be used for outdoor applications has been greatly expanded. More users are able to use faster communications. -Common frequency bands that can be used on a worldwide basis have been expanded. Users can benefit from improved convenience and less expensive equipment.
16 Promotion establishment experimental stations 1 Background & Assignment <Background> (1) Serious tightness frequency resources (2) Developing New System as well as effective use technology industrial revitalization <Assignment> Acceleration & Simplification establishment experimental stations experimental stations : stations used exclusively for experimentation aimed at scientific or technological development. (Valid term licenses: 5 years) 2 View View point point consideration <Assumption> no interference to existing staions to specify area and frequency in advance short-term limitation (1 year in principle) license period) (Simplification procedure, revitalization activation experimentation) Ensuring frequency for for experimental stations & Simplification licensing procedure
17 Towards Realization Ubiquitous Network Society Telephone line (ADSL, CATV) Usable No. line: 35 mil actual use: 11.6 mil <Wire> Optical fiber Usable No. line: 16.8 mil actual use: 0.7 mil mil mil Broadband Broadband users users <Wireless> Wireless Broadband Strategy for Frequency Liberalization guidelines for reallocation expansion wideband frequency flexible use environment Broadband Convergence Wire Wire & Wireless Advent Ubiquitous Society Creation New Industry (Infrastructure & Users industry) Creation Applications the world s most advanced wireless Network Rebirth Economy Hopeful, affluent society Visible existence Japan
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