Netherlands Radio Spectrum 2016
Netherlands Radio Spectrum 2016
Netherlands Radio Spectrum 2016
Memorandum
2016
Radio Spectrum Policy
Memorandum 2016
Developments
Policy aims
IoT
Actions
1 Introduction7
1.1 The process 8
1.2 The government’s role in the radio spectrum policy 9
1.3 Objectives of the new radio spectrum policy 10
1.4 Consultation10
1.5 Reading guide 11
2 Context13
2.1 Dialogue with stakeholders 13
2.2 Social developments 14
2.3 Developments in technology 14
2.4 International context 16
4 Policy challenges 21
4.1 Allocating spectrum 21
4.2 Scarce licences and market regulation 22
4.3 Spectrum for performing public-interest tasks 26
4.4 Business-specific applications 27
4.5 Licence-exempt use of spectrum 29
4.6 Televulnerability31
4.7 Implementation and surveillance 32
5 In conclusion 37
7 Introduction
13
19
Objectives
Context
21 37 42
Policy challenges
In conclusion Appendix 1
44
Appendix 2
Wireless communication has become an indispensable the Netherlands. It is clear that the need for such networks
commodity for Dutch society, resulting in increased will continue to increase on account of developments such
societal dependence on wireless communications. as cloud computing and the Internet of Things.
It has become a precondition for economic growth in the The exploration will also indicate whether and which role
Netherlands, with strong positive external effects on the the government foresees for strengthening of the wired
economy. It enables the innovation of products and and wireless digital infrastructure in the Netherlands.
services.
With good connectivity, that is a reliable wired and A precondition for a strong digital infrastructure is the
wireless telecommunications infrastructure and availability of spectrum. As a result of developments such
associated services, companies can strengthen their as cloud computing and the Internet of Things, there is
competitive position through costs savings, increased increasing demand for spectrum, and society in general is
productivity, development of new applications and/or imposing ever greater requirements on the availability and
creating logistical advantages. In essence, it allows reliability of (wireless) telecommunications infrastructure.
organisations to perform at a higher level, in terms of These, together with other developments, including the
their competitive position in the Netherlands and in introduction of new wireless applications and services and
competition with other countries. Examples include the demand for higher data speeds and increasing data
international airports, municipalities aiming to make volumes, necessitate more efficient and more effective use
themselves more attractive to international companies of the radio spectrum. As such, the radio spectrum policy
thanks to outstanding facilities, and container terminals plays a prominent role in facilitating the aforementioned
looking to preserve their attractiveness as Europe’s developments. In specific terms, the radio spectrum policy
mainport. Consumers benefit from a diverse and must address issues such as the availability of broadband
affordable range of services. The government benefits from services in rural areas, provide options for innovative
good connectivity and technological developments in forms of service provision, and the use of new
performing its vital tasks. technologies to allow for more efficient (third-party) use of
Like the House of Representatives1, the Cabinet recognises the radio spectrum.
the importance of a strong digital infrastructure.
The Netherlands has an outstanding starting position, In this respect, the radio spectrum policy not only has a
in part thanks to the rapid roll-out of new wired and traditional planning function, to help prevent
wireless telecommunications infrastructure and interference, but also a market regulatory function to help
associated service provision. ensure the proper functioning of the market for
To maintain a strong position in this field in the future, telecommunications services. This includes the allocation
and to ensure that the Netherlands remains an attractive of spectrum for licence-exempt applications, whereby end
location for IT organisations, the future demand for and users and a broad range of market parties have easier
the supply of digital connectivity in the Netherlands and access to frequencies, but also the licensing of scarce,
how these correspond to one another will be explored, commercially attractive radio spectrum for mobile
as was announced in the Digital Agenda2. As indicated, telecommunications and broadcasting.
reliable and fast networks with sufficient availability are
of ever increasing importance for economic growth in
1
Verhoeven motion, House of Representatives, session 2015-2016,
34300 XIII, No. 45.
2
House of Representatives, session 2015-2016, 29515, No. 390.
7
Consider air traffic, shipping, rail transport and road transport.
This section addresses developments that are determinant included harnessing the technology used in mobile
for further development of the radio spectrum policy for networks, such as 4G and 5G and network virtualisation,
the years ahead. First and foremost, this section looks at to play a crucial role. However, in this context supply and
the demands of the market itself using a brief summary of demand appear too far apart. The Ministry of Economic
the dialogue held with stakeholders. This is followed by an Affairs could play a facilitating role here. To increase
examination of the relevant social and technological efficient spectrum use for public-interest tasks, three points
developments. The section concludes with an outline of were mentioned: (1) Cooperation between governments,
the international framework within which the national (2) Consideration of whether or not the government can
radio spectrum policy is shaped. purchase the service on a commercial basis, and (3) More
third-party use of spectrum (by other parties). As far as
third-party use is concerned, the Ministry of Economic
Dialogue with
2.1 stakeholders
Affairs could play a facilitating role by bringing supply and
demand closer together.
Before drawing up the Radio Spectrum Policy For ‘licence-exempt’ use of spectrum, attention was
Memorandum 2016, the Ministry of Economic Affairs gave requested for the fair sharing of spectrum (‘fair use’).
stakeholders the opportunity to indicate the topics and Further growth of licence-exempt use, such as for the
issues that they wanted to see included in the Internet of Things, requires a focus on international
memorandum. To this end, a number of round-table harmonisation, the co-existence of equipment (with fair
sessions were organised between October 2015 and April use) and sufficient spectrum. An appeal was made for
2016. This paragraph outlines the key findings from the enabling innovation in licence-exempt use by simplifying
round-table sessions. Annex 1 contains a more detailed legislation.
summary of the round-table sessions. On televulnerability, it was stressed that organisations/
companies have a private responsibility, but that sufficient
For scarce licences (for broadcasting and mobile attention is not always given to risks. The government can
communication), parties emphasised the importance of play a role in raising awareness of vulnerability.
predictable policy in the form of timely and stable decision
making by the government in policy preparation for When it comes to the role of technology in the radio
awarding of licences. The broadcasting sector cited the spectrum policy, the round-table sessions discussed a pilot
unique nature of broadcasting and made a plea for the by Radiocommunications Agency Netherlands aimed at
allocation of specific spectrum to accommodate this. granting multiple users a certain level of Quality of Service
Parties expressed their desire for a single policy framework (QoS) in the same part of the spectrum. This form of
to be established for licences for both broadcasting and sharing can help to alleviate pressure on the spectrum.
mobile. Technological developments relating to 5G were also
discussed. 5G is seen as the realisation of a new generation
With respect to ‘spectrum for market and government’, of network architecture based on network virtualisation
the parties held the common view that a shift is underway in – a development that allows software to create different
the direction of more business-critical and mission-critical virtual networks on a physical foundation, and offering
wireless and mobile applications, in other words, a shift (new) providers the opportunity to supply specialised
from nice-to-have to need-to-have. In addition to public services, particularly for mission-critical and business-
order, security and disaster management, examples such as critical applications.
airports, seaports, the railways, hospitals and (large) cities
were named. For these applications, approaches proposed
Some of the outcomes and conclusions of a WRC are The European Commission recently published a proposal19
directly incorporated into the National Frequency Plan. to revise the legislative framework. As far as spectrum is
This applies in particular to global services, such as concerned, the proposal contains regulations for greater
satellite, aeronautical and maritime services. Other coordination of radio spectrum policy within the EU,
outcomes are first elaborated in a European context before aiming for greater consistency in decision making across
concrete decisions are taken. This takes place in the CEPT14, Member States. Furthermore, the proposal intends to
a collaboration between 48 European countries, adapt the legislative framework for spectrum to the
but increasingly in the European Union (EU) as well. development of ubiquitous connectivity (available
CEPT decisions are not legally binding, EU decisions are anywhere and at any time) and the introduction of 5G.
legally binding. The objective and principles defined in this memorandum
are a starting point for discussions on this topic with the
EU decision making is generally based on the Radio Commission and other Member States.
Spectrum Decision concerning a legislative framework for National circumstances can vary widely, meaning that it
the radio spectrum policy in the European Community15 should be possible to adapt the method of awarding
and/or on the multi-annual Radio Spectrum Policy spectrum to the national situation. As such, a degree of
Programme.16 national freedom or flexibility is needed when it comes to
The Radio Spectrum Decision gives the European realising collective political objectives. In addition,
Commission (EC) the authority to achieve a coordinated flexibility is required in the allocation of harmonised
approach to spectrum policy and, where appropriate, frequency bands for wireless and/or mobile broadband
(technical) harmonisation of the conditions for availability applications if the demand for that spectrum lags behind
and efficient use of the radio spectrum. This strengthens that of other Member States, so that this spectrum may be
used for other purposes, such as private use or
14
CEPT: European Conference of Postal and Telecommunications
Administrations (http://www.cept.org). 17
Directive No. 2002/21/EC dated 7 March 2002, amended on
15
Decision No. 676/2002/EU of the European Parliament and of the 25 November 2009 in accordance with Directive No. 2009/140/EC.
Council dated 7 March 2002. 18
Directive No. 2002/20/EC dated 7 March 2002 (also amended
16
Decision No. 243/2012/EU of the European Parliament and of the in 2009).
Council dated 14 March 2012. 19
http://europa.eu/rapid/press-release_MEMO-16-3009_en.htm.
20
DIRECTIVE 2004/53/EU OF THE EUROPEAN PARLIAMENT AND OF
THE COUNCIL dated 16 April 2014 on the harmonisation of laws of
the Member States relating to the making available on the market of
radio equipment and repealing Directive 1999/5/EC. Frequently
known simply as the Radio Equipment Directive (RED).
The Ministry of Economic Affairs is of the view that the Creating a market that operates efficiently is primarily
radio spectrum policy requires a shift in focus in order to achieved through the awarding of (scarce) licences.
be able to support and continue to assist the social and A competitive market supplies high quality, affordable
technological developments referred to in Section 2. services and opportunities for operators (static efficiency)
This shift in focus can take place within the frameworks of and incentives for innovation and technological progress
the central objective of effective frequency use. The central (dynamic efficiency). The (scarce) licence should be granted
objective remains determinant for the radio spectrum to the party able to generate the most value with the
policy, meaning that frequencies are allocated, assigned licence, which means that, in the event of an auction,
and used effectively. This involves both efficiency, i.e. not a realistic revenue is an important objective and that,
using more frequencies than is necessary for a specific in the event of an extension of a licence, a realistic price
application, and effectiveness, i.e. having sufficient must be paid. In addition, a competitive market also
spectrum to achieve the intended economic and social requires licence-exempt access to the spectrum.
objectives. However, the central objective will see a shift in This enables new innovative applications.
focus. Where the Radio Spectrum Policy Memorandum
2005 primarily focussed on the economic interest, a shift Social developments, such as changes to the demand for or
in focus takes place that is aimed at the growing societal adaptation to new technology, are served primarily by
dependence on wireless communication and safeguarding effective competition. The set of instruments is therefore
the public interest. primarily market-oriented, where auctioning remains the
This shift in focus of the central objective of effective general rule for scarce licences and an extension is granted
frequency use is aimed at: only if, in the opinion of the Minister, it is underpinned by
sound social reasons. Given the increasing dependence on
• A market that operates efficiently frequencies and with a view to continuity (of business case
• Meeting social developments and service provision) and investment security, market
• Safeguarding public interests parties have, now more than ever, a need for predictable
policy and early clarity on the allocation of frequencies,
Recent years have shown that a market that operates availability and the means and time of award. As such,
efficiently produces high-quality mobile networks and a predictable and transparent policy is a precondition
a wide selection of services. As such, the underlying for ensuring investment security. It may, however,
principle of the radio spectrum policy remains a market be necessary to impose additional regulations to allow
that operates efficiently, whilst safeguarding public- the market to operate efficiently. The availability of
interest tasks. In this context, it is essential to shape the information (e.g. on speeds and coverage) also plays an
market in such a way that social developments can be important role here.
absorbed and safeguarded by the market itself to the
fullest extent possible. Where necessary, additional If necessary, mandatory regulations may be imposed in
regulations may be imposed to support these order to safeguard interests that cannot be realised by the
developments and safeguard public interests. market or that are considered politically desirable. In this
Increasing use also adds to pressure on the frequency context, such regulations might include requirements
spectrum, necessitating an increase in efficient use of attached to the licence with respect to availability and
spectrum. To accomplish this, greater focus is being placed coverage or stipulations on the (broadcast) programme
on sharing and third-party use of spectrum. being offered.
20
4
Policy challenges
When it comes to scarce licences, use of a market-oriented These requirements and provisions can only be deployed
instrument remains chiefly a necessity. These licences are with great caution and well-argued, by way of a tailored
auctioned, and extended only in exceptional cases, where approach. It must be made explicitly clear that without
doing so is in the public interest, for example if an these provisions, public interests can no longer be
extension is critical to supporting the transition from safeguarded.
analogue to digital technology. These interests must be
explicitly clear; a price must be determined for the licence In this context, the government must seek the right
extension that is market based, a price that accurately balance between the different interests and objectives.
reflects the value of the market opportunities for other In some cases, these may be contradictory. As such, the
potential users of the licence in question. policy generally strives to create opportunities for access
to the market for all parties, both existing parties and
Safeguarding the public interest of adequate telecom newcomers. This may also support innovation. At the same
munications and/or broadcast services requires a solid time, there may also be a social interest in the continuity
combination of early clarity and predictability of policy of the existing service provision. This dilemma is
and an adequate licence period. This is necessary given the particularly visible when considering whether or not
(in some cases) large investments and timely investment existing licences due to expire should be auctioned or
decisions that are sometimes associated with setting up extended. The preferred choice remains to auction
and continuing to operate networks and service provision. licences. An extension purely for the purpose of preserving
When determining adequate licence periods, the timing of the continuity of service provision is undesirable and is
licence (re)awarding in different frequency bands is also can be conducted solely in highly exceptional cases.
important, owing to the increased opportunity for An extension may be granted, also in exceptional cases,
different frequencies to be used flexibly alongside (or even if the Minister for Economic Affairs considers it to be of
instead of ) one another. particular social, economic or cultural interest.
A number of public interest areas are linked to scarce Within the context of preparing an auction, the question
licences: of whether or not specific provisions need to be put in
• It is essential to prevent economic market positions place to safeguard the objective of effective competition
from being established that could put pressure on the may also pose a dilemma. Is it possible to rely on a
affordability and availability of the services being competitive market situation continuing as it is, or should
provided. frequencies be reserved for newcomers or restrictions be
• For the Netherlands, it is important to remain proactive placed on existing licensees attempting to acquire
in terms of the availability of up-to-date networks; additional spectrum? These questions are not to be
incentives must be provided to stimulate innovation. answered a priori and require careful consideration of all
• Availability and coverage are increasingly public interests – those of existing market parties and potential
interests. newcomers, as well as the (end) users of the spectrum.
22
In the AO Telecom of 24 May 2016, the House of Representatives
requested a vision for broadcasting distribution with a focus on
(inter alia) the transition from analogue to digital, the identity of
public broadcasters, the balance between public and commercial
broadcasting, regionality and the role of Radiocommunications
Agency Netherlands.
27
From a technical perspective, providing business-specific services
over 2G and 3G networks is an unsuitable solution.
To stimulate the interplay between supply and demand, Shift in focus: difference with 2005
it may be necessary to make spectrum available for The principles as formulated in the Radio Spectrum Policy
business-specific applications if the government’s Memorandum 2005 with respect to non-scarce licences
facilitating role does not yield an outcome. In this respect, have been maintained. In principle, non-scarce licences
the set of instruments is focused on sharing of the are extended automatically and preferably for short
spectrum. Whenever possible, spectrum will be made periods. This aids flexibility. Non-scarce licences are
available in a way that is consistent with existing awarded on a first come first served basis.29 Actual scarcity
ecosystems for mobile communication (e.g. LTE). is not a factor and cannot therefore be included in any
European harmonisation of technical conditions also price. If scarcity does arise, it is desirable to adjust the
remains important; however, national space is required for policy; the licences will not be extended in that case.
assigning a specific form of service provision. This may involve a transfer to the scarce licences domain or
making additional spectrum available. In addition, more
‘The quality of business-critical mobile space may be created by forcing use of more efficient
technology by, for example, reducing the available
data can only be guaranteed with access spectrum per licence.
to spectrum – the same way we have In the case of non-scarce licences, tradability is not a factor
done for decades with voice over PMR as a general rule. As long as they are not scarce, licences
may simply be ‘collected’ from the licensing authority.
systems.’ This does not alter the fact that licensees are in a position
to transfer the licence.
Koen Mioulet, As a general rule, non-scarce spectrum is virtually always
shared. Non-scarce licences do not include the option of
Interim Wireless Consultant third-party use as they make use of frequencies that must
at Schiphol Telematics be shared.
As far as the supply side is concerned, the interplay In principle, spectrum that is allocated to business-specific
between supply and demand covers not only traditional applications is assigned on a first come first served basis.
telecoms operators, but also other parties operating on In this context, a licence is required as business-specific
the supplier side, what are referred to as niche players. It is applications frequently involve business-critical
precisely these parties who may be able to offer specific communication in which interference is undesirable and
solutions for business-specific applications, leading to a guarantees are needed for aspects including network
broadening of the market and increased competition. reliability. This means that coordination (by the
Making spectrum available for business-specific government) is required to prevent mutual interference.
applications may also be beneficial in this regard. It gives Scarcity can also occur for spectrum allocated to business-
niche players the opportunity to offer specific services, specific applications, and for this reason, it is important to
ensure that the preconditions under which the spectrum is
assigned are properly and clearly formulated.
28
The CRPlatform.NL is an independent platform that may be used by
a wide range of stakeholders, including the government, to discuss
the use of (new) radio technology for wireless communications
solutions. 29
Annual costs are charged for implementation and surveillance.
Licence-exempt use of
To date, Award on Request has not been used.
Development and implementation of Award on Request 4.5 spectrum
has been a time-consuming task, while at the same time,
the allocation of specific bands that are actually suitable The licence-exempt domain safeguards easier access to the
for assignment via Award on Request appears difficult. spectrum. As such, licence-exempt frequency use is an
Nevertheless, Award on Request remains the instrument important breeding ground for innovation and contributes
that can be quickly put into practice whenever there is towards dynamism in the market. Easier access to the
uncertainty as to whether or not spectrum is scarce, and spectrum provides opportunities both for news users and
that offers maximum flexibility for the assignment of for new applications. All companies, consumers and
spectrum. It is anticipated that increased pressure on the organisations have the opportunity to create a wireless
spectrum, in part due to a higher number of business- network or to use wireless equipment without having to
specific applications, will lead to Award on Request being apply for a licence or having to purchase paid-for services.
used more frequently. This includes in particular higher This helps the market for innovative products and services
frequency bands, which will be used more and more and to flourish, including ‘smart devices’ (devices connected to
the internet) and telecoms services in buildings. By way of
example, WiFi is a viable alternative to mobile networks for
communication over short distances.The licence-exempt
30
Stratix, investigation into LTE coverage in the Netherlands,
February 2015.
use of spectrum varies widely – from wireless broadband
31
These solutions are also known as Wireless Local Loop (WLL). (e.g. WiFi) to wireless microphones, communication
32
In addition, satellite communication may offer a solution. between vehicles, social alert systems, etc. Licence-exempt
The registration requirement was introduced in the Radio The sharp increase in licence-exempt use creates pressure
Spectrum Policy Memorandum 2005 to be able to monitor on the available spectrum. There appears to be adequate
users in the event that no individual licence requirements spectrum available for now, but it may become insufficient
are imposed, such as for marine radios, owing to water in the medium term due to developments such as the
safety. As such, the marine radio and amateur radio licence ‘Internet of Things’ (IoT). The policy is oriented towards
categories could be converted to the (lighter) licence- this spectrum demand, and the Netherlands will promote
exempt use. In this context, registration allows the this at the European level. International harmonisation of
possibility of transferring the use to the licensed spectrum frequency bands is crucial to exploiting economic
domain where frequencies become scarce, where abuse advantages of scale. Monitoring will focus more on trends
has been proved or where there is a need to reallocate the in growth, including the emergence of IoT and on
relevant spectrum. monitoring the actual use of common frequency bands in
order to be able to identify bottlenecks in a timely manner.
Actions
Actions that will be taken are: Developments in implementation
• Radiocommunications Agency Netherlands commenced The increase in use of frequency is also visible in
the Televulnerability Programme at the end of 2015. implementation. There is increased need for local and
This programme aims to a) raise awareness of sometimes only temporary spectrum, for example during
telecommunications use and dependence on major events. ‘Hotspots’ are also appearing in urban,
telecommunication amongst parties and b) by sharing industrial areas that have a need for very different types of
best practice, research results and a helping hand, help telecommunication at the same location. The emergence
parties to reduce their televulnerability and in so doing, of new applications is also on the rise, including increasing
increase their resilience. The Ministry of Economic automation and use of robots, drones, the Internet of
Affairs shall assess how this social interest task can be Things and local broadband data communication for
perpetuated following the end of the programme. which additional spectrum is needed. All of this means
that the existing set of instruments for assigning licences
and licence-exempt use needs to be in a position to
Implementation and
4.7 surveillance
facilitate the dynamic, frequently complex and increasing
demand. In view of this, more sharing of spectrum is
needed between different applications so as to create
The increasing importance of wireless communication and adequate room for growth in the future.
pressure on spectrum necessitate changes and some
expansion to the set of instruments for implementation The set of instruments referred to in the previous
and surveillance. Telecommunication is a basic need, and paragraphs remains suitable for Radiocommunications
as such the role and position of implementation and Agency Netherlands in pushing through the shifts in focus
surveillance is changing. Society needs a government of the radio spectrum policy. However, more dynamic use
agency that it can rely on, that can anticipate social of spectrum does need to be created, for example through
developments, that is available to play a facilitating role in digital service provision based on Licensed Shared Access.
the event of bottlenecks and that can alert and implement This requires suitable prerequisites for spectrum sharing.
adjustments when society needs them. More spectrum sharing raises new questions about
interference. Radiocommunications Agency Netherlands
As pressure on the frequency spectrum increases, it is vital shall work to stimulate sharing, perform interference
that opportunities are maximised and that a smart mix of analyses and formulate requirements for use.
instruments is used to give society, business and the
government adequate spectrum combined with adequate Radiocommunications Agency Netherlands shall play an
surveillance to the fullest extent possible. This means that important role in advising on the allocation of spectrum
implementation must incorporate frequency sharing, for public-interest tasks on the basis of needs justification
stimulate efficient use of spectrum and provide for plans. This might include facilitating spectrum sharing
surveillance. Having and maintaining a frequency register amongst governmental users, but also between the
that provides insight into opportunities for use of government and the market. In addition, as demand from
spectrum can also play an important role. governmental users grows, a critical assessment will be
needed of technological developments, opportunities for
Radiocommunications Agency Netherlands is responsible more efficient use and alternatives such as making use of
for both implementation and surveillance of legislation commercial telecommunications services.
and regulations relating to telecommunication, but also of Radiocommunications Agency Netherlands shall
the law on mandatory exchange of information concerning investigate how these new components can be
underground networks and aerospace legislation, for incorporated into the process for evaluating the needs
example. The Agency is an important link in the justification plans.
implementation and monitoring of the new radio
The Netherlands needs good telecommunications This shift in focus of the central objective of effective
facilities. In a certain sense, they are the basis for a frequency use is aimed at:
(potentially) flourishing economy. Research shows that
telecommunication plays an important role in economic • A market that operates efficiently
growth.33 Within the array of telecommunications options, • Meeting social developments
the tremendous increase in the use of wireless applications • Safeguarding public interests
is striking. Telecommunication (including wireless
communication) has become an important driving force Recent years have shown that a market that operates
for the economy. efficiently produces high quality mobile networks and a
In recent years, frequency use (wireless communication) wide selection of services. The key principle of the radio
has developed from ‘nice to have’ into ‘need to have’. spectrum policy remains a market that operates efficiently,
The strong societal dependence on connectivity and the whilst safeguarding public-interest tasks. In the first
opportunities presented by modern technologies such as instance, this is achieved by awarding (scarce) licences.
LTE (and, in the near future, 5G) will see sector-specific and These continue to be awarded principally through
business-specific demands on telecommunication increase auctions, with extensions granted where social reasons
significantly in the years ahead. necessitate them. In addition, a competitive market also
requires licence-exempt access to spectrum. This offers
The Ministry of Economic Affairs holds the view that, with scope for new innovative applications.
respect to the Radio Spectrum Policy Memorandum 2005, It is essential to shape the market in such a way that social
a shift in focus is required in the new radio spectrum developments can be absorbed and safeguarded by the
policy in order to support and provide further assistance to market itself to the fullest extent possible. Where
social and technological developments. This shift in focus necessary, additional regulations may be imposed to
can take place within the framework of the central support these developments and safeguard public
objective of effective frequency use. This central objective interests.
remains determinant for the radio spectrum policy, in In this context, increasing use adds to pressure on the
other words that frequencies are allocated, assigned and frequency spectrum, necessitating more efficient use of
used effectively. This involves both efficiency, i.e. not using spectrum. To accomplish this, more focus is being placed
more spectrum than is necessary for a specific application, on sharing and third-party use of spectrum.
and effectiveness, i.e. having sufficient spectrum to
achieve the intended economic and social objectives. Specifically, the following actions are proposed.
33
Research by Dialogic (2004) carried out on behalf of the Ministry of
Economic Affairs shows that telecommunication accounts for 36%
of the growth in GNP.
The Ministry of Economic Affairs gave a diverse group of opening for business-critical and mission-critical
stakeholders the opportunity to indicate the topics and applications. The issue of doing it yourself (with own
issues that they wanted to see included in the frequencies) or purchasing services is a very current one
memorandum. To this end, a number of round-table with governments that deal with mission-critical systems,
sessions were organised between October 2015 and especially given the increase in technological possibilities.
April 2016. However, the sessions concluded that, at present, supply
and demand are too far apart and that the Ministry of
The first topic, ‘scarce licences’, endorsed the principle that Economic Affairs could play a facilitating role to help bring
scarce licences are finite and that, at the end of the licence these two processes closer together.
period, they are redistributed. However, participants Given the increasing demand for spectrum, participants
requested that attention be paid to ensuring timely award considered the exclusive use of spectrum as something
or extension of licences and that the question of whether that should only be done very occasionally and saw
or not there is scarcity be adopted as a principle in the sharing, and third-party use, of spectrum as a standard to
corresponding policy assessment. In addition, the be aimed for. For broadband in rural and outlying areas,
importance of predictable policy was also emphasised. there appears to be a tendency towards fixed connections
The government was requested to make timely and stable and in the transition period, spectrum is required for
decisions and to provide clarity regarding the policy specific solutions.
objectives it intends to achieve. The latter also relates to Furthermore, discussions at these round-table sessions
any auction model that may be selected. also dealt with the question of whether or not the
The broadcasting sector cited the unique nature of government might consider cooperation with other
broadcasting and made a plea for the allocation of specific governments (sharing) with regard to spectrum
spectrum to accommodate this. Parties expressed their requirements for public-interest tasks, and whether or not,
desire for a single policy framework to be established for and to what extent, a service may be purchased on a
licences for both broadcasting and mobile, and cited commercial basis. In relation to this topic, the sessions
primarily the duration of licences as an issue. also dealt with increasing third-party use of spectrum, but
The tradability of licences was seen as a positive that would require a case-by-case approach, classifications
instrument for allowing the market to work efficiently, of third-party use, adequate surveillance and sound
with the avoidance of speculation seen as the most agreements for emergency situations. For government use
important point for attention. of spectrum, participants considered the needs
justification plan (NJP) the most adequate instrument for
In the second topic, ‘spectrum for market and ensuring more efficient spectrum use. By giving more
government’, the common view was that a shift is attention to the opportunities for sharing and third-party
underway in the direction of more business-critical use in the assessment of an NJP, this instrument can be
applications – in other words, a shift from nice-to-have to moved upwards to a higher level. In this context, the
need-to-have. Examples included airports, seaports, government could help to move demand for spectrum
the railways, hospitals and (large) cities. Two possible (e.g. from operators) and supply (by government users)
solutions were specified for this social trend: private closer together.
frequencies for these companies and institutions, and the
purchase of the service from mobile operators. Technology The third topic considered ‘licence-exempt use of
in mobile networks (4G/5G) increasingly makes it possible spectrum and televulnerability’. It ought to be possible to
to differentiate supply and to provide various guarantees use ‘licence-exempt where possible’ as a guiding principle.
and Service Level Agreements with the aid of ‘network For licence-exempt use in particular, the principles
slicing’ (network virtualisation). This could offer an concerning use are important, as such they must be
In the consultation, a number of parties referred to the competition policy. Imposing requirements on the
importance of a coherent and efficient approach at awarding of licences (e.g. stricter coverage requirements) is
European level as a key principle. Only in exceptional cases not a problem, but respondents do not wish to see
may deviations from this be possible. The desire for (wholesale) access obligations imposed. This is addressed
harmonisation is justified, as scaling and international in the general regulatory framework of ACM. In the event
standardisation of equipment do have a positive effect. of demonstrable considerable market power, access
However, certain possibilities for exceptions remain obligations can be imposed on the basis of this framework.
desirable, such as the allocation of harmonised frequency Another element concerns the forced sale or leasing of
bands for wireless broadband communication if the licences. Respondents rightly report that decisions on sale
demand for that spectrum lags behind that of other and leasing generally rest with the market parties
Member States. The text in paragraph 2.4 has been refined themselves. An active government role would only be
for this point. appropriate if the licence requirements are not properly
satisfied. The text for this point has been refined and
In general, a longer licence period is advocated for licences clarified. Moreover, the set of instruments includes,
for mobile communication. Respondents in the mobile alongside (forced) sale or leasing, the option of withdrawal
sector endorse the use of auctions as means of awarding of licences if the licence conditions are not satisfied.
licences, but advocate maintaining the current option of
extending licences in exceptional cases where this is Mobile licensees continue to endorse the developments in
generally required or in the public interest. In the convergence towards fixed and mobile networks as
broadcasting sector, various respondents cite the social described in the memorandum. In this context there is a
interest and character of the business case to indicate that difference of opinion amongst licensees as to the extent of
‘extend unless’ should be the general rule when assigning the consequences that this could have for radio spectrum
frequencies for (commercial) radio broadcasting. policy and, more specifically, awarding policy. This is an
The principle of awarding scarce licences and not aspect that has primary importance when it comes to
extending them contributes to the government making a implementation of the policy in the award of licences for
careful assessment of economic and social interests when mobile communication, given that convergence could play
deciding whether to auction or extend. The thinking a role in determining the extent of effective competition
behind this principle is that important objectives such as on the market. The text of the memorandum has been
allocative efficiency and competition can best be amended for this point.
safeguarded if the rights to use of scarce licences are not
perpetual and if new parties regularly have the chance to Within the context of licence-exempt use of spectrum, it is
gain access to the spectrum. This is and remains relevant noted that there needs to be a proper balance between the
both within the context of (scarce) frequencies for mobile licensed spectrum and the licence-exempt spectrum,
communication and for the distribution of (commercial) as licence-exempt spectrum cannot be used for all
analogue and digital radio broadcasting. This does not applications. In addition, it is also important to stress the
imply that extension is out of the question entirely, importance of international harmonisation, both in the
although this option is used only in exceptional cases allocation of frequency bands for licence-exempt use and
where it clearly serves the public interest. The text in for the conditions under which the licence-exempt
paragraph 4.2 has been clarified for this point. spectrum may be used. In view of the fact that this point is
already largely represented in the text, this has led to only
Where there is generally support for the use of a market- a minor amendment to the text.
compliant set of instruments, respondents remark that There was broad support for the continuation of the
radio spectrum policy must not be confused with (general) instrument of needs justification for spectrum for the