Business Radio Reform FCS Regional Conference – Perth _Scotland_

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					Business Radio




Business Radio Reform

FCS Regional Conference – Perth (Scotland)
25 June 2008

Mostafa Relmy and Nigel Gunn
Agenda – FCS Regional Conference

• Section 1 – Background on BR Trading and Liberalisation

• Section 2: New Licensing approach for Business Radio categories

• Section 3 – Pricing for the New Products

• Section 4 – Next step – Timescales

• Section 5 – The Spectrum Management System – MASTS

• Section 6 – Gaining Access to Spectrum

• Section 7 – Q & A

                                                                    1
Where we are
So far…                                           Coming up…
 Trading                                          Trading
                                                   Extension of trading to other licence
  Introduced at end of 2004 to c900
                                                     classes (including licences in UHF1)
    licences
       BR: National and Regional PMR, Analogue     Over 50,000 licences to be fully tradable
       PAMR, National Paging, Data Networks and
       CBS                                         Introduction of geographical and spectrum
  Around 20-30 trades per annum – 12
                                                     partitioning to national licence types
    larger licences have changed hands
    through trading                               Simplification and Liberalisation
                                                   Introduction of 3 new and flexible licence
 Liberalisation                                      types (Area Defined, Technically Assigned
                                                     and Light Licence)
  Progressive removal of restrictions on
    technology and usage                           Minimum technical conditions to prevent
       BR: Ability to change between classes         harmful interference

                                                   New transparent fee structures




                                                                                                 2
Business Radio trading and liberalisation policy


• Consulted on July 06 on BR trading & liberalisation measures and pricing

• Issued the statement on 10th January 07 – BR T&L and pricing

• Statutory Notice (Trading, Register and Charging regulation) published on the 9th June
  2008 (will be closed on the 10th July 2008)




                                                                                      3
Liberalisation Phase 2 - BRR

Key benefits to end users

• Replacing 21 different types of licence with three simple licence categories – Removing
  current restriction on the type of business use and technology – Minimum technical
  restriction will remain to protect against harmful interference;

• Moving 15,000 licences to 5 year licence term, low flat fee, simple process and e-
  application;

• About 50,000 licences to be tradable and flexible;

• Improved assignment process to over 40,000 assignments;

• Moving from a complex structure to a simplified transparent structure for fee scales –
  over 95 % of licences fees will reduce or stay the same.




                                                                                            4
 Business Radio – Simplification, Trading, Liberalisation and pricing proposals

                                                             21 Licence classes

   •6 licence classes                                  •10 licence classes with over 50 business types      •5 licence products which are either pre-
   •Large exclusive area – UK/nations – not            •Assignment process relies on local knowledge        packaged or lightly managed
   explicitly defied                                   •Inconsistencies and uncertainties in assignment     •Different type of use
   •Different incentive pricing methods                quality                                              •Different incentive pricing
   •Some tradable                                      •Not tradable



            Area defined
                                                               Technically assigned                                    Light licence


•One single flexible licence                           •One single flexible licence
•Geographical boundaries well defined                  •Assignment and changes to licence characteristics           •Single set of equipment
•Clear definition of emissions rights                  validated by MASTS                                           requirements
•Geographical segmentation to a minimum of 50 km       •Changes of business use, type of use (ie paging/data)       •Single application process
grid squares enabling partial trades                   number of mobiles without Ofcom consent (no change to        •Larger pool of available
•Greater licence flexibility                           the licence conditions)                                      frequencies
•Single, simple and transparent fees – based on        •Single, simple and transparent fees – based on national     •5 years payment period
national rate (£ 1.65/MHz/km2 ) and using population   rate (£ 1.65/MHz/Km2), use population to apportion the       •Tradable
to apportion the national rate.                        national rate and sterilised area (use of ERP power and      •On line application
•Single business process                               antenna height as a proxy foe base station deployment and
•Improve spectrum efficiency                           radius for operational area)
•On line application.                                  •Tradable
                                                       •On line application

                                                                                                                                                  5
Agenda – FCS Regional Conference

• Section 1 – Background on BR Trading and Liberalisation

• Section 2: New Licensing approach for Business Radio categories

• Section 3 – Pricing for the New Products

• Section 4 – Next step – Timescales

• Section 5 – The Spectrum Management System – MASTS

• Section 6 – Gaining Access to Spectrum

• Section 7 – Q & A

                                                                    6
                                                 Area Defined Licence


    BR Area Defined Licence Design
                                                  BR Area Defined Licence


    Spectral boundaries                                                                                                        Fees
                                                           Geographical boundaries




•Operating frequency                       •National borders and/or                    •Spectral power density
                                                                                       Field                       •National fee rate to remain at
                                           grid reference squares to
                                                                                       strength of – 116           £9 900 for 2x12.5kHz channel
•Channel spacing                           capture the geographical
                                           operating area.                             dBm/12.5 kHz
                                                                                       at and beyond               •Fees for trading units based
•Maximum power (ERP)
                                                                                       geographical boundary.      on population
                                           •Pre-defined “Trading
•Emissions limits – IR 2044*               units” with associated fee.
                                                                                       •Compliance with relevant   • Three bands categorisations
                                                                                       national & international
                                                                                       co-ordination/MoUs          •Fee adjustment to reflect
                                                                                                                   spectrum use (minimum
                                                                                                                   licence fee will apply)




* IR 2044 to be updated to include 6.25 kHz (reference to ETSI standard) and IR 2008
(Will be a 3 months public consultation through the EC)

                                                                                                                                                7
                                      Area Defined licence


    “Trading units”
    We proposed dividing national licences into
    pre-defined “trading units” based
    on National Grid Reference Squares
•    Licensee can partially trade this;

•    These pre-defined area can be easily communicated to Ofcom
     and remove the complexity, ambiguity, and confusion that
     arises from complex geographical boundaries;

•    Each unit has a pre-defined licence fee (based on population);

•    3 Population categories
     – High population (Red) – above 3 M
     – Medium population (Dark blue) – between 300,000 and 3
        M
     – Low population (Light blue) – up to 300,000




                                                                      8
                         Technically Assigned Licence - MASTS


    BR Technically Assigned Licence Design
                                               Technically Assigned Licence


    Spectral boundaries                                    Geographical boundaries                                          Fees


                                                                                                              •National fee rate to remain at £
                                                                                                              9 900
•Operating frequency                       •Designated Service Area               •Designated Service Area
                                           calculated by MASTS                    - Predicted coverage area
                                                                                                              •Proxies (devised from typical
•Channel spacing                                                                  calculated using ITU-R
                                                                                                              ERP and antenna heights AGL)
                                           •Assignment Type: Shared               P.1546-3 of
                                                                                                              used for fee categories
•Emissions limits – IR 2044*               or Exclusive                            – 104dBm/12.5 kHz
                                                                                                              (6,30,60km sterilised area)
                                                                                  (sterilised area of -
                                           •Trading Right –                       116dBm/12.5 kHz)
                                                                                                              •Band modifiers for less usage
•Transmission parameters (inc.             Assignment Parameters.
                                                                                                              bands (MUB – 0.833 and LUB –
ERP and Antenna Height)                                                           •Comply with relevant
                                                                                                              0.333)
                                                                                  national & international
                                                                                  co-ordination/MoUs
                                                                                                              •Reduction of 50% if a shared
                                                                                                              assignment

                                                                                                              •Fee adjustment to reflect
                                                                                                              spectrum use (minimum licence
* IR 2044 to be updated to include 6.25 kHz (reference to ETSI standard) and IR 2008                          fee will apply)
(Will be a 3 months public consultation through the EC)

                                                                                                                                            9
                                Light Licence category


Proposals for collapsing on site and pre-packaged licence classes

          Current                                                           New

 On site local communications

                                                                   Light category

   On site one way paging



         Self Select                           Suppliers             Simple UK                Simple site
                                             light Licence            licence                  Licence
                                                                  (No Base Station)          (Base Station)
        UK General

                                                 Generic licence conditions
                                                 Maximum 15 m antenna height AGL
                                                 Maximum base ERP 2 Watts, mobile ERP 5 Watts (25 Watts for
         Suppliers                               suppliers)
                                                 Licence schedule specifies the channels available
                                                 One fee
                                                 No interference / non protection basis




                                                                                                           10
Agenda – FCS Regional Conference

• Section 1 – Background on BR Trading and Liberalisation

• Section 2: New Licensing approach for Business Radio categories

• Section 3 – Pricing for the New Products

• Section 4 – Next step – Timescales

• Section 5 – The Spectrum Management System – MASTS

• Section 6 – Gaining Access to Spectrum

• Section 7 – Q & A

                                                                    11
  Licence Fee Approach
Area Defined Licence:
    Keeping AIP at £ 9,900 per 2 x 12.5 kHz national channel
    Apportion the national channel rate in proportion to the population within the nations (Wales,
      England, Scotland and Northern Ireland)
    UK to be divided into pre-defined “trading units” of 50 km × 50 km - Population within trading unit
      measured and categorised into three categories (High, medium and low population) with a fee for
      each category of trading unit applied based on an apportionment of national rate.
    The bands types (HUB, MUB and LUB) - 0.83333 band factor for MUB and 0.333 for LUB

Technically Assigned Licence
    Specified three categories of population – High, Medium and Low – Same as area licence
    Used technical proxies (power and antenna height – for base station and radius for operational
     area) for coverage (6,30 and 60 km Radius).
          Power (high power generally deny service to other over a greater area).
          Antenna height (higher antenna usually sterilised a large area.)
    Shared use – shared assignment will attract a 0.5 of the exclusive assignment full rate.

Light Licence
    Fees will be charged at a much simpler rate to reflect new on-demand regime. Our fee proposal is
       £ 75 per 5 years - per site or per licence (for non base station deployment).

    Please note that the Charging/Fee Regulations for Business Radio will be for 1 x 6.25 kHz spectrum
                                    – This is to support greater flexibilities
                                                                                                           12
                                       Categorisations for BR fee charging

1. Bands categorisation for Area Defined and
Technically Assigned licences                                            2. Coverage categorisation for Technically Assigned licences

                                                                     Coverage categorisation     Radius in Km – Power (ERP - Watts) and
 Band categorisations              Bands
                                                                                                 operational area Antenna (m)
 High usage bands – category A     High band; UHF1 and UHF2
                                                                     Category 1 – Including      0<R≤3           P ≤ 5 and Ah ≤ 10
 Medium usage bands -Category B    Mid Band and Band III             indoor/underground
                                                                     antenna use - Dowfire or
 Least usage bands – Category C    Band 1, Low Band and Paging
                                                                     leaky feeder antenna type

3. Assignments type categorisation for Technically Assigned licences Category 2                  3 < R ≤ 15      P ≤ 5 and 10< Ah ≤ 30
                                                                                                                 P> 5 and Ah ≤ 10m
Current product                                  Exclusive or        Category 3                  15 < R ≤ 30     P> 5 and Ah > 10
                                                 shared                                                          P ≤ 5 and Ah > 30
Analogue PAMR                                                                  4. Population categorisation for Area Defined and
                                                                               Technically Assigned licences
Common Base Stations
                                                 Exclusive                            •Red colour – High population
Band 1 and Band III CBS                                                               •Blue – Medium population
                                                                                      •Light blue – Low population
IR2008 Data
Wide Area One-Way Paging and Speech              Shared
Systems
Remote Meter Reading Operator-Shared
channels
Wide Area Distress Alarms
On Site Hospital Paging / Emergency Speech
Systems
Wide Area Speech and Data Systems                Shared*
On-Site Speech and Data Systems




                                                                                                                                         13
    Licence Fee for Area Defined Licence for a 2 x 12.5 kHz channel
   Area                         Fee (£) for high usage Fee (£) for medium   Fee (£) for less
                                bands (HUB)            usage bands (MUB)    Usage Bands (LUB)
   UK                           9900                  8250                  3300
   England                      8275                  6895                  2758
   Wales                        490                   410                   163
   Scotland                     855                   710                   285
   Northern Ireland             280                   235                   93
   Trading unit within high     1185                  990                   395
   population category
   Trading unit within medium   150                   125                   50*
   population category
   Trading unit within low      14*                   12*                   5*
   population category




* minimum £ 75 licence fee


                                                                                          14
  Technically Assigned Licence Class Fee (£) for a
  2x12.5kHz channel

    Band       Population    Coverage Category 1     Coverage Category 2       Coverage Category 3
categorisation category
                             Exclusive    Shared     Exclusive        Shared   Exclusive   Shared
 High Usage      A (High)      200          100         740            370       1480       740
   Bands        B (Medium)     100          75          200            100       300        150
                  C (Low)       75          75           95             75       110         75
Medium Usage     A (High)      100          75          370            185       740        370
   Bands        B (Medium)      85          75          170             85       250        125
                  C (Low)       75          75           80             75        90         75
 Less Usage      A (High)
   Bands        B (Medium)                                       75

                  C (Low)

For TDMA – IR 2008 the fee will be 1/8 of the technically assigned
licence fee for each timeslot – minimum licence fee £ 75 applies

                                                                                                     15
  Example of a fee calculation for a Technically Assigned
  Licence - 1
   Current licence technical        Categorisation type   Category – New fee calculation
         parameters
Bandwidth: 2 x 12.5 kHz channel      Spectrum quantity                  1
Base frequency: 164 MHz                    Band           Medium usage band (Mid band)
ERP power: 25 Watts
Antenna height (above ground             Coverage                   Category 2
level): 4 metres
Base station location: TQ 300 800       Population              High population (A)

CBS licence class                    Assignment type                Exclusive




                                                                                         16
  Example of a fee calculation for a Technically Assigned
  Licence - 2

    Band       Population    Coverage Category 1     Coverage Category 2       Coverage Category 3
categorisation category
                             Exclusive    Shared     Exclusive        Shared   Exclusive   Shared
 High Usage      A (High)      200          100         740            370       1480       740
   Bands        B (Medium)     100          75          200            100       300        150
                  C (Low)       75          75           95             75       110         75
Medium Usage     A (High)      100          75          370            185       740        370
   Bands        B (Medium)      85          75          170             85       250        125
                  C (Low)       75          75           80             75        90         75
 Less Usage      A (High)
   Bands        B (Medium)                                       75

                  C (Low)


For TDMA – IR 2008 the fee will be 1/8 of the technically assigned
licence fee for each time slot – minimum licence fee £ 75 applies

                                                                                                     17
Licence fee - Mitigations
• Change licence product

  – Light licence - £ 75 / 5 years
  – Area Defined – Multi sites / share spectrum
  – Licence exempt PMR/DMR 446

• ERP power

• Antenna Height (AGL)

• Base station location – Outside the high population/medium population

• Size of area – Operational area

• Frequency band – 0.8333 (Medium usage band) – 0.33 (Less usage band)

• Antenna
  – use – Indoor
  – Type – Downfire / leaky feeder

• Assignment type
  – Shared (50 % reduction)

                                                                          18
Agenda – FCS Regional Conference

• Section 1 – Background on BR Trading and Liberalisation

• Section 2: New Licensing approach for Business Radio categories

• Section 3 – Pricing for the New Products

• Section 4 – Next step – Timescales

• Section 5 – The Spectrum Management System – MASTS

• Section 6 – Gaining Access to Spectrum

• Section 7 – Q & A

                                                                    19
Getting there – key work items

 IT System        Major development of a new IT platform (Unify) including
                  development of an advanced new licensing and spectrum
                  management system. BRR highly dependent on the delivery of
                  the new system
 Regulations      Consultation and statement on the Trading, Register and Fee
                  Regulations to give legal effect of the policy changes

 Variation        Process to move over 50,000 licences to the new licence
                  classes

 Data cleansing   Update technical data following customers interaction


 Documentation    Revision and development of documents to support the changes

 Communication    Keeping our stakeholders updated on the progress and time
                  scale

                                                                                20
Next Steps
1. Currently we are consulting on the Statutory Notice – Published on the 9th June 2008 and will be
   closed on the 10th July 2008 – We are consulting on making the following regulations in order to
   introduce the BRR changes:

   –   WT trading regulations - to extend trading, specify the permitted modes of trading and the
       procedure to be followed;
   –   WT register regulations - to extend the coverage of the WT register so as to the publication of
       information on all tradable licences;
   –    WT licence charges regulations - to give effect to the new fee rates for the new licence
       products. Also include transitional arrangements for existing licensees to move to the revised
       fees.

   We expect the regulations to be in place by the end of August 08

2. Ofcom variation – BRR – vary new licences into the new licence products

3. Also Ofcom will

       •   Publish all supporting documents (IR,TFAC, licensing documents (new application form and
           WT Act licence documents, Licensing policy manual, trading and liberalisation guidance
           notes,….)
       •   We are in the progress of finalising the IS Unify/SMS Business Radio phase (incorporating
           MASTS algorithm).

                                                                                                      21
  Indicative approach for BRR
                                                                                                            Late 2008


    IS                                   Design / testing / UAT                                              Go Live




                                               Statement           Regulations
              Consultation
                                               with final
Regulations      on draft
               regulations
                                              regulations
                                                                    come into
                                                                      force


                                4 weeks
                               Consultation                  21
                                                            days
                                 NOW


                                                                                 Issue variation notices
                             Finalising the detailed approach                     (minimum 1 month to         Issue
 Variation                                                                              make any
                                                                                                           New Licences
                                                                                    representations)



                                                                                                                   22
Agenda – FCS Regional Conference

• Section 1 – Background on BR Trading and Liberalisation

• Section 2: New Licensing approach for Business Radio categories

• Section 3 – Pricing for the New Products

• Section 4 – Next step – Timescales

• Section 5 – The Spectrum Management System – MASTS

• Section 6 – Gaining Access to Spectrum

• Section 7 – Q & A

                                                                    23
Project UNIFY
• Ofcom inherited around 70 systems from the legacy regulators from which it was
  formed;

• Project Unify was launched in 2005 to integrate these disparate systems;

• Project encompasses all of Ofcom’s activities – so not only WT Act Licensing but field
  operations, finance, human resources, project management and the Ofcom licensing
  centre;

• Unify has already delivered improved efficiency and reduced costs across Ofcom;

• Fixed Links phase was delivered / go live on 28th April 2008;

• Business Radio is expected to go live in November 2008.




                                                                                           24
Unify/SMS (MASTS) update
SMS / Business Radio technical tool to be delivered w/c 14 July 08
  – Looking at: Propagation Models (P 1546 – 3 and P 370 – 7), MASTS, International
     Co-ordination, Geolimits, Data Migration and Transformation, UHF-1 Co-ordination
     (Fylingdales), Channel Plans, Frequency Assignment and Application Form;
  – Aim to complete testing by mid September 2008.

Licensing Admin. Project
   – Detail Design is underway.

Next Steps
  – Detailed Design and Business Processes for Licensing System;
  – Incorporation of SMS Technical Tools into overall Licensing System;
  – Data Migration;
  – Testing;
  – Training.

Timescales as currently planned:
   – Target Go-Live for Unify/SMS Release 2c/d (including Business Radio): November
     2008.
                                                                                        25
              BR new licensing system


SPECTRA web           SPECTRA plus      SPECTRA plan




SPECTRA emc                          CHIRplus_LM




                                                       26
Agenda – FCS Regional Conference

• Section 1 – Background on BR Trading and Liberalisation

• Section 2: New Licensing approach for Business radio categories

• Section 3 – Pricing for the New Products

• Section 4 – Next step – Timescales

• Section 5 – The Spectrum Management System – MASTS

• Section 6 – Gaining Access to Spectrum

• Section 7 – Q & A

                                                                    27
Acquiring access to spectrum
• Apply to Ofcom

  – Paper application or e-application

  – Moving towards on line application and payment for all products - at a later stage

• Use the Trading Register to identify tradable licences

  – Open negotiations and establish if a trade can be agreed

     • Apply to Ofcom for approval and issue of new licence(s)




                                                                                         28
                                                                       UK simple Licence
    BR licence process                                                      - no site
                                                                                                           Ofcom issues a Licence
                                                                                                           with a set of frequencies
                                                                         (UK General)

                                                                              UK site licence              Ofcom issues a Licence
  Applicant can seek advice                             BR Light       (On site Local communication,
  from Ofcom on which type                                             Onsite one paging & self select)
                                                                                                           with a set of frequencies
                                                        Licence
    of licence will meet his
          requirements
                                                                                                           Ofcom issues a Licence
                                                                        Suppliers Licence
                                                                                                           with a set of frequencies


                                                    BR Technically     Ofcom evaluates the
Licensee requires          Applies to Ofcom
                                                      assigned          request – MASTS                     Ofcom issues a licence
   a BR licence
                                                       licence         assignment process


                                                                             Ofcom checks
                                                                        availability (frequency
                                                         BR Area
                                                                        within the geographical
                                                         defined                                           Ofcom issues a licence
                                                                        area: Nations, trading
                                                         licence
                    Ofcom will assist to check                          units or combinations)
                       if deployment meets
                     the boundary conditions
                                                                              Licensee flexibility granted but licensee
        Licensee requires                                                     must comply with licence conditions
                                             UHF1, Band III, and
     Ofcom approval through                                                   and national and international
                                          International coordination
       post issue support                                                     Coordination


                                                                                                                                  29
Type of trade

       A             B         Full and Outright



       A        A         B    Partial and Outright



       A            A+B        Full and Concurrent


       A        A        A+B   Partial and Concurrent




                                                   30
• How will it work – the procedures ?
  •     Trading

                                       Parties        Parties apply to
   Buyer wants     Buyer looks at   negotiate and       Ofcom for        Ofcom assess      Ofcom issues
    spectrum         Register         make own          approval to       and approve       new licence
                                    investigations         trade


  •     Liberalisation

        Licensee
        wants to                         Licensee
                        Consults                          Ofcom assess      Ofcom varies
        change                           applies to
                       guidelines                          and approve         licence
         licence                          Ofcom



  •     Initially cautious and controlled but with experience
        we may look to ease restriction.
        Web Link to the Trading Register http://146.101.202.225/public-tnr/wtrSearch.do


                                                                                                          31
Example of trade and liberalisation flexibility

• 25 kHz channel currently is used for national paging - This will be migrated to Area
  Defined licence class
  – So licensee can then split the 25 KHz channel to 2 X 12.5 kHz through partial trade -
     change the use for example analogue PMR (12.5 kHz) and trade the other 12.5 kHz;

   – Can be concurrently traded + Commercial agreement between the two holder on the
     usage of the licence;

   – Any other changes to the licence term and conditions including the technical licence
     conditions has to be approved by Ofcom.

• 12.5 KHz wide area – Business class: Taxi
  – This licence will be migrated to Technically Assigned licence class with no Business
     restriction – So it can be used for Taxi/courier or others as long as the technical
     licence conditions are met;

   – Any changes the licence technical parameters (for example increase/decrease power
     or antenna height) has to be approved by Ofcom.
                                                                                            32
Further Information


 If there any questions regarding these changes, please contact:

    Businessradio@Ofcom.org.uk

 Further information is available on the Ofcom website at:

    www.ofcom.org.uk/radiocomms/ifi/licensing/classes/business_radio/

 Any other enquiries regarding existing licences should be addressed to

    licensingcentre@ofcom.org.uk




                                                                          33
Agenda – FCS Regional Conference

• Section 1 – Background on BR Trading and Liberalisation

• Section 2: New Licensing approach for Business Radio categories

• Section 3 – Pricing for the New Products

• Section 4 – Next step – Timescales

• Section 5 – The Spectrum Management System – MASTS

• Section 6 – Gaining Access to Spectrum

• Section 7 – Q & A

                                                                    34
Any Questions?


Thank You

				
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