Final Report (Part 3) Radio Frequency Spectrum Report by byrnetown72

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									Technical Assistance Consultant’s Report




Project Number: 39125
December 2007




Kingdom of Cambodia: Implementation of
Telecommunications Sector Policy Reforms and
Capacity Building
(Financed by the Japan Special Fund)




Prepared by: Guinness Gallagher and David Butcher and Associates
             New Zealand


For:   Ministry of Posts and Telecommunications of Cambodia (MPTC)




This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design.
                                         Final Report
                                         December 2007




Asian Development Bank


TA No. 4830-CAM
Implementation of Telecommunications Sector Policy Reforms
and Capacity Building
Final Report (Part 3) RADIO FREQUENCY
SPECTRUM REPORT




by




and
Summary of Recommendations

                  RECOMMENDATIONS 1.                                        REASONING

         Spectrum Policy Objectives

         Cambodia's spectrum policy should                 As a scarce resource spectrum should be
         recognise that good spectrum                      managed to ensure the maximum
         management allows more use of the                 economic benefit to the nation. It should
         spectrum to support economic                      also be recognised that it is necessary to
         development and it should be recognised           protect navigation and communications to
         as an increasingly valuable resource.             safeguard sea and air travellers.

        Paragraph 1.3

                  RECOMMENDATIONS 2.                                        REASONING

         Allocation and Licensing

         Cambodia should consolidate current spectrum      The current lack of transparency is holding back
         allocation and licensing into a transparent and   the development of radio communications in
         objective set of criteria.                        Cambodia.


         Sole Authority to Issue Licences

         1. MPTC (currently) and, when formed, the         The reason for these three recommendations is
         Frequency Management Office of the new            that the national frequency register cannot
         Telecommunications Regulator of Cambodia,         function unless it contains all the available data.
         should have the sole mandate to issue
         radio-communications licences.                    Some other specialist agencies have the right to
         2. This office should authorise the               issue licences, but the new law gives this right
         specialist agencies to issue licences within      to the regulator. However, unless a system of
         the area of their mandate,                        coordination can be organised this provision will
         3. Agencies should then provide the details       not operate
         for capture in the national frequency register.
         4. Operators issued with a band licence
         should be responsible for RFSM in that band,
         but accountable for that to the TRC.


         High Level Spectrum Council

         1. A High Level Council or committee to           Excellent spectrum management will under-
         advice the TRC, should be formed,                 pin the growth in radio-communications by
         2. It should comprise all the specialist          minimising interference and maximizing the
         government agencies with spectrum                 available frequencies. Excellence must be
         interests,                                        achieved with the active support of those
         3. It should be tasked with the achieving         agencies currently responsible. Their
         excellence in spectrum management in              position will be assured if they continue under
         Cambodia.                                         a delegated authority from the regulator.


         Industry Advisory Group

         MPTC should encourage the formation of an         The industry advisory committee will serve to
         industry advisory group to offer practical        bring a practical focus to policy development on
         perspectives and advice on spectrum               spectrum matters. All the private companies
         matters.                                          operating in Cambodia are accustomed to
                                                           similar committees in other countries.

        Paragraph 2.5

Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                                I
                  RECOMMENDATIONS 3.                                        REASONING

         Plan Should Accommodate Change

         1. The Cambodian spectrum plan should              As technology changes administration of the
         include procedures and processes for how           spectrum needs to change to accommodate it
         changes in allocations will take place.            and investors need certainty with respect to
         2. The procedures for change need to be            possible changes that may affect their
         transparent and fair in accordance with WTO-       investments
         RPT so that all investors can anticipate that
         they will be fairly treated.
         3. If changes in allocations cause ongoing and
         material damage to the business of a spectrum
         holder fair treatment should include
         compensation to the allocation holder.


         Changes to Allocation Tables

         The 2004 Table of Frequency Allocations            The rationale for these changes is included in
         should be changed in accordance with the           paragraph 3.4.12.
         proposals in Table 3-1.

        Paragraph 3.5

                  RECOMMENDATIONS 4.                                        REASONING

         Fee Structure

         1. Fees should take into account power and         Charging for bandwidth will create greater
         bandwidth, but should not discriminate on          incentives for efficient use of the spectrum. The
         frequency as the changes in performance are        cellular operator must have certainty of
         not great and discrimination creates no            spectrum access. The use of spectrum
         encouragement to efficient use.                    property rights is a good tool for encouraging
         2. An inspection fee, is not necessary for every   the spectrum user to maximize their return on
         licence and should be included in policing and     allocated bandwidth. A fixed bandwidth leads
         compliance as part of ongoing costs,               to cell splitting and high frequency reuse as the
         3. Fees should include an application fee and      companies themselves seek the solutions for
         an annual fee.                                     improved service and coverage within their
                                                            allocation.


         Allocation Mechanism

         1. There needs to be an appropriate allocation     For the benefit of the whole nation there needs
         mechanism and fee for spectrum in high             to be an appropriate allocative mechanism that
         demand.                                            maximises the efficiency of use of the scarce
         2. Market based systems such as auctions           resource. Market based systems by requiring
         should be used for spectrum in high demand as      users to pay up front automatically select the
         they work well and their results are efficient.    users who will make best use of the spectrum.


         Resource Rental

         Should a policy of charging resource rentals on    Opinions vary on the need for and efficiency of
         spectrum allocations be introduced, the            resource rentals charged for the use of
         resource rental charge should be identified        spectrum. Currently, fees charged in Cambodia
         separately as an explicit charge, rather than      are in excess of the costs incurred. Should the
         being simply an implicit element of a single       RGC want to raise revenue from spectrum
         charge that covers a range of services and         users this should be identified explicitly as a
         functions.                                         special charge.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                             II
                  RECOMMENDATIONS 4.                                      REASONING

         Type Approval

         Cambodia should recognise type approvals of      Cambodia can avoid the costs of type approval
         neighbouring competent jurisdictions, thereby    by simply recognising and registering approvals
         saving the cost of and approval system, while    granted by neighbouring countries such as
         gaining all the associated benefits. It should   Thailand, Australia and Malaysia. In many
         also accept reports from accredited              countries, international laboratories can apply
         laboratories.                                    for accreditation and then their reports are
                                                          accepted.


         Structure of Fees

         Cambodia should redesign its fee structure       The proposed structure of fees will address the
         along the lines of the recommended scale of      criticisms of the current structure.
         fees attached as Appendix 7.

        Paragraph 4.6




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                           III
Table of Contents

Summary of Recommendations                                                            I

Table of Contents                                                                    IV

List of Tables                                                                       V

List of Appendixes                                                                   V

Glossary of Terminology                                                              VI

1.   Radio Frequency Spectrum Management                                            1-1
     1.1    Assignment Definition                                                   1-1
     1.2    Radio Frequency Spectrum                                                1-1
     1.3    Recommendation                                                          1-2

2.   Existing RFS Plan and Allocations                                              2-1
     2.1    Status of RFS Arrangements                                              2-1
     2.2    The Need for National Frequency Register                                2-3
     2.3    Principles                                                              2-7
     2.4    Radio Spectrum Policy Framework                                         2-7
     2.5    Recommendations – RFS Plan and Allocation                               2-8

3.   Changes in Spectrum Use                                                        3-1
     3.1    Planning Ahead                                                          3-1
     3.2    Re-farming of Spectrum                                                  3-1
     3.3    Appropriate Mechanisms                                                  3-2
     3.4    New Generation Services                                                 3-2
     3.5    Recommendation – Changes in Spectrum Use                                3-9

4.   Cambodian RFS Fees                                                             4-1
     4.1    Current Fees                                                            4-1
     4.2    Problems with the Cambodian System                                      4-2
     4.3    Current Fee Collections                                                 4-2
     4.4    Appropriate Structure and Use of Spectrum Fees                          4-3
     4.5    Type Approval Charges                                                   4-4
     4.6    Recommendations – Fees - Allocation and Type Approval                   4-5

5.   Looking Ahead                                                                  5-1
     5.1    Problems in Cambodia                                                    5-1
     5.2    Addressing the Problems                                                 5-1
     5.3    Draft Regulation                                                        5-3
     5.4    Conclusion                                                              5-3


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates    IV
6.    Appendixes                                                                                                                          6-1


List of Tables
Table 3-1: Changes Proposed to Cambodian Allocation Table ...................................................... 3-7
Table 4-1: Current Spectrum Fee Collections ................................................................................. 4-3
Table 6-1: Radio Frequency Spectrum and Its Uses ...................................................................... 6-3
Table 6-2: Broadcast Frequencies: ................................................................................................. 6-4
Table 6-3: Amateur Radio Frequencies .......................................................................................... 6-5
Table 6-4: IEEE US ......................................................................................................................... 6-6
Table 6-5: Radio Spectrum.............................................................................................................. 6-6

List of Appendixes
Appendix 1: Definition of Frequency - Wavelength ......................................................................... 6-1
Appendix 2: Uses of Radio Frequency............................................................................................ 6-3
Appendix 3: WTO Telecommunications Services: Reference Paper 24 April 1996 ...................... 6-7
Appendix 4: Current Frequency Spectrum Regulation.................................................................... 6-9
Appendix 5: RFS Fresnel Clearance Zone...................................................................................... 6-7
Appendix 6: RFS Charges in Cambodia and Neighbouring Countries ........................................... 6-8
Appendix 7: Proposed Scale of Fees ............................................................................................ 6-10
Appendix 8: Proposed Frequency Spectrum Regulation .............................................................. 6-16
Appendix 9: Proposed TOR for additional Technical Assistance.................................................. 6-30

List of Abbreviations

CDMA                       Code Division Multiple Access is a digital format that embraces many
                           users within the same digital stream.
DAB                        Digital Audio Broadcasting
DRM                        Digital Radio Mondial
DVB                        Digital Video Broadcasting
GPS                        Global Positioning Satellites
GSM                        Global System of Mobile Communications
ICT                        Information Communications Technology
IMT-2000                   International Mobile Telecommunications-2000
ITU                        International Telecommunications Union
LORAN                      LOng RAnge Navigation
LRIC                       Long-term incremental costs
MEF                        Ministry of Economy and Finance
MOI                        Ministry of Information
MPTC                       Ministry of Posts and Telecommunications of Cambodia
MPWT                       Ministry of Public Works and Transport, Kingdom of Cambodia
OF                         Optical Fibre
OFCOM                      Office of Communications Regulator (United Kingdom) – current regulator
                           Office of Telecommunications Regulator (United Kingdom) – former
OFTEL
                           regulator
RFS                        Radio Frequency Spectrum
RGC                        Royal Government of Cambodia
SOLAS                      Safety of Life at Sea Convention
Spread                     Spread spectrum technologies are systems where signals use the most


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                                                            V
Spectrum           readily available frequency and data packages are reassembled at the
                   destination.
SSB                Single-sideband modulation
TA                 Technical Assistance
TC                 Telecom Cambodia a State Owned Enterprise
TRC                Telecommunications Regulator of Cambodia
USO                Universal Service Obligation
WLL                Wireless Local Loop
WTO                World Trade Organisation
WTO-RPT            WTO Reference Paper on Telecommunications




Glossary of Terminology
CDMA               Code Division Multiple Access is a digital format that embraces many
                   users within the same digital stream.
DAB                Digital Audio Broadcasting, also known as Eureka 147, is a technology
                   for broadcasting of audio using digital radio transmission. Originally, to
                   enable higher fidelity, more stations and more resistance to noise, co-
                   channel interference and multipath than in analogue FM radio. There are
                   now two different versions of the DAB system: the current one, developed
                   in the late 1980s, and an upgraded version, which has been named
                   "DAB+.”
DRM                Digital Radio Mondial is the digital replacement for the current analogue
                   MF and short wave services..
                   DVB, short for Digital Video Broadcasting, is a suite of internationally
DVB
                   accepted open standards for digital television.
Fresnel            FRESNEL ZONE (sometimes freznel) is an area around the signal path that
                   should be kept clear of all reflective surfaces so that out of phase/delayed
                   phase signals are not received that have been reflected off such surfaces.
                   Named after a French Optical Scientist Augustin-Jean Fresnel (May 10,
                   1788 – July 14, 1827) who contributed significantly to the establishment of
                   the theory of wave optics by studies of the behaviour of light.
IMT-2000           International Mobile Telecommunications-2000 (IMT-2000) is the global
                   standard for third generation (3G) wireless communications, defined by a
                   set of interdependent ITU Recommendations. It links diverse systems of
                   terrestrial and/or satellite-based networks and exploit synergies between
                   digital mobile technologies and fixed and mobile wireless access
                   systems.
                   LOng RAnge Navigation - a terrestrial navigation system using low
                   frequency radio transmitters that use the time interval between radio signals
LORAN
                   received from three or more stations to determine the position of a ship or
                   aircraft.
                   Long-term incremental costs (LRIC) methodology (which analyses the
LRIC
                   costs not incurred if the service is not provided and uses this to assess.
TETRA              Terrestrial Trunked Radio (TETRA) (formerly known as Trans European
                   Trunked Radio) is a specialist Professional Mobile Radio and two-way
                   transceiver (colloquially known as a walkie talkie), designed for use by
                   government agencies, and specifically emergency services
                   (Proposed) Telecommunications Regulator of Cambodia, to take over
TRC
                   regulatory functions of MPTC


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                  VI
                   1
Radio Frequency Spectrum
             Management
 1.      Radio Frequency Spectrum Management
 1.1     Assignment Definition

         According to the Terms of Reference1 (TOR) the consultant is required to do the
         following:

         (i)     Develop a formal national radio frequency plan taking into account current
                 allocations.

         (ii)    It should consolidate current spectrum allocation and                    licensing
                 arrangements into a transparent and objective set of criteria.

         (iii)   Further, the consultant will prepare a radio frequency spectrum license fee
                 regulation by considering other countries' practices and Cambodia's
                 telecommunications market.

         (iv)    The consultant will also make recommendations on how to utilize the
                 license fees collected by considering other countries' practices and the
                 development of Cambodia's telecommunications sector.

         (v)     The consultant will evaluate at least three leading countries' practices,
                 highlighting advantages and disadvantages in each, and make appropriate
                 recommendations for adoption.

         The task definition assumes that there is no plan currently in operation. However,
         spectrum has been allocated to at least three mobile companies and others are
         making use of non-mobile spectrum for services such as Wireless Local Loop. It
         also assumes that there are currently no transparent criteria in place making
         Cambodia non-compliant with the World Trade Organisation WTO Reference paper
         on Telecommunications (RPT). In paragraph 6, the RPT states that the allocation
         procedures for use of scarce resources, including frequencies, numbers and rights
         of way, shall be objective, timely, transparent and non-discriminatory.. It also
         requires that the state of allocated frequency bands will be public information 2.

 1.2     Radio Frequency Spectrum

         Radio waves are an extremely useful part of the electromagnetic spectrum3 that
         includes all waves from X rays to visible light and beyond. Radio waves exist in
         nature but it is the wavelengths that generated by transmitters and received by
         receivers creating a communications path that are the focus of this report. Marconi
         discovered in 1895 that when an alternating electrical current travels through wire it
         creates an electromagnetic field sending out radio waves in all directions4.which can
         be received at large distances. Today functions as diverse as radar and microwave
         ovens use manmade waves.

         Radio devices are now a basic part of everyday life (cell phones radio television
         etc.) and play a vital role in the national economy of all countries.... Radio waves
         travel in three ways. Low frequencies travel along the surface of the earth like AM
         Radio... Higher in frequency, the waves bounce of the ionosphere back to Earth
         and these can travel huge distances like Shortwave Radio. Even higher in
         frequency the waves travel directly from the transmitter to the receiver like TV and
         FM Radio signals that use the VHF, UHF and SHF frequency bands. Every range
         of frequencies has applications using waves propagated between the transmitter

 1
   TOR TA No. 4830-CAM Implementation of Telecommunications Sector Policy Reforms and
 Capacity Building, Asian Development Bank 2006.
 2
   WTO Reference Paper: Telecommunication Services, (See Appendix 3 for the full text).
 3
   The collection of all electromagnetic waves is called the electromagnetic spectrum.
 4
   Light waves behave in a similar way but at a much higher frequency.

Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                     1-1
         and the receiver. Ships at sea use short waves when they are a long way from
         land, but in harbours, they use VHF radios, as the path is line of sight. They can
         also use microwaves to talk through satellites hovering 35,000 km above the
         equator, like the Inmarsat service

         As receivers can pick up all signals on the frequency that they tune to, the spectrum
         manager has to identify and address potential interference from unwanted
         transmissions. The management, engineering and regulation of the radio spectrum
         to ensure that the reception of wanted signals is protected is what spectrum
         management is about.

         Good spectrum management allows the use of more of the spectrum to support the
         activities of the nations from the safe passage of aircraft to essential information
         services. Efficient management of the spectrum and the recognition that this is a
         valuable natural resource that belongs to the whole nation are the reasons why
         licenses to used as the major control mechanism.

         Not only does Spectrum have economic benefits it is also a tool to manage
         airwaves so that essential services can function and accidents at sea and in the air
         can be prevented. .

 1.3     Recommendation

                   RECOMMENDATIONS 1.                                   REASONING

          Spectrum Policy Objectives

          1. Cambodia's spectrum policy should           As a scarce resource spectrum should be
          recognise that good spectrum                   managed to ensure the maximum
          management allows more use of the              economic benefit to the nation. It should
          spectrum to support economic                   also be recognised that it is necessary to
          development and it should be recognised        protect vital navigation and
          as an increasingly valuable resource.          communications to safeguard sea and air
                                                         travellers.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                     1-2
                            2
Existing Practices and Allocations
 2.      Existing RFS Plan and Allocations
 2.1     Status of RFS Arrangements

 2.1.1   TOR Assumptions

         The TOR assumes that there is no plan currently in operation in Cambodia. This is
         not strictly correct. While there may be no over arching framework there are
         thousands of stations licensed in accordance with the International Radio
         Regulations.     Furthermore, spectrum at least three mobile companies have
         spectrum allocated to them and others are making use of non-mobile spectrum for
         services such as Wireless Local Loop.

         The TOR also assumes that there are currently no transparent criteria in place
         making Cambodia non-compliant with the WTO-RPT. It is necessary to examine
         the current allocation system in order to ascertain what is required to make
         Cambodia fully compliant

         Currently the country has a large number of licensed spectrum users. The
         investment in all types of radio-communications systems is high, more that US$ 70
         million a year. Apart from the existing systems, new technologies are coming on
         line and making provision for these is necessary as they underpin the development
         of the nation.

         Cambodia as a member of the ITU is required to be consistent with the International
         Radio Regulations. The international allocations give choices to nations about how
         it uses each frequency band.

 2.1.2   The Status of Spectrum Management

         A number of technical jargon terms commonly used in RFS Planning are easily
         confused. These are now distinguished:

              •   Frequency Allocation means a band of frequencies allocated to a
                  particular service or a band of frequencies allocated to a company. For
                  example, the UHF television bands are a frequency allocation to
                  broadcasting.

              •   Frequency Allotment is where a particular frequency or band of
                  frequencies is allotted to a particular country or countries under
                  international agreement.

              •   Frequency Assignment is where the authorities choose a particular
                  frequency for a license.

         The project task allocation assumed that there was no allocation plan in operation in
         Cambodia. However, MPTC has assigned spectrum to at least three mobile
         companies and others are making use of non-mobile spectrum for services such as
         Wireless Local Loop (WLL). Cambodia also has a large number of existing
         allocations that will not change over the next decade or so. These are the
         allocations to services like the broadcasting service, the aeronautical navigation
         service, the maritime mobile service etc. While the technologies using these
         allocations will become more sophisticated, the basic allocations will not change.

 2.1.3   Complicating Factors

         The presence of a number of specialist agencies that carry out spectrum regulation
         without coordination with the MPTC complicates the situation in Cambodia. The


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates          2-1
         Ministry of Public Works and Transport (MPWT) for example, issues ships
         registrations but currently does not coordinate with the MPTC. Likewise, the Civil
         Aviation Authority issues all documentation for aircraft but these are not coordinated
         with the MPTC. The Ministry of Information (MOI) is responsible for broadcasting
         which is also outside of the MPTC licensing arrangements as is the military and the
         police.

         There is no evidence that the respective authorities have in fact issued licences
         covering the operations of transmitting apparatus. If this is the case, Cambodia is in
         breach of a number of international requirements under from their membership of
         ICAO, IMO and the ITU.

         As an example there are 8 entries in the ITU data base for MF broadcasting, seven
         1 kW and 1 20 kW transmitter, but the one transmitter that could cause large scale
         interference to neighbouring countries being 120 kW is not registered. A tune
         around the radio dial indicated that none of the registered were operating but the
         one not coordinated with the ITU is.

         A look at Appendix 25 of the International Radio Regulations reveals that
         Cambodia’s needs have not been provided for so its high frequency coast station
         transmitters must be outside of that agreement. Article 29 of the Chicago
         Convention of the ICAO requires all aircraft to carry licenses from their country of
         registration but it appears as though none have been issued in Cambodia.

         MPTC staff assured the Consultant that they use the ITU-R Recommendations for
         planning but there was no evidence of publicly available band plans.

 2.1.4   Summary

         In summary, most of the spectrum management documentation that is needed for
         excellence in spectrum management has yet to be developed. There is:

              •   an allocations plan based on Article 5 of the International Radio
                  Regulations but it is not a public document5,

              •   is no evidence of any systematic band planning process,

              •   no national frequency register covering most usage,

              •   no defined relationship between MPTC and the specialized agencies
                  involved in spectrum management,

              •   no agreed government wide mechanisms for addressing adjacent band
                  interference,

              •   no commitment to fully meeting Cambodia’s obligations to a number of UN
                  Agencies that it is a member of including the ITU, ICAO and the WTO.

         For the radio-communications industry to grow in Cambodia, to underpin
         development and wealth creation, the above need to be addressed.




         5
          This document was prepared in 2004. Officials prepared the document based on the
         best available advice, but it was not widely circulated. Due to a computer virus only
         hard copies existed until the commencement of the Project.



Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                2-2
 2.2     The Need for National Frequency Register

 2.2.1   Creation of a Common Register

         To be successful in spectrum management MPTC will need to be given the tools
         manage the spectrum.        This does not mean that they must do everything
         themselves, but rather they have a framework, which will provide an incentive for
         the specialist agencies to cooperate with them..

         One of the major barriers to good spectrum management in Cambodia is that the
         MPTC records are very poor. In a country the size of Cambodia, professional
         advisers would expect there would be something in excess of 50,000 radio-
         communications licences. The consultant understands that there are only 2,500
         records. This means that most frequency usage is outside of the licensing regime.

         For Cambodia to achieve excellence in spectrum management, the creation of a
         Cambodian National Frequency Register is vital.            The MPTC has recently
         purchased the ITU SMS4DC spectrum management software. It has yet to acquire
         software it may need for handling the licensing and billing functions.

         Commercial billing software exists to complement the ITU SMS4DC and it is
         important that the commercial and technical software operate off the same basic
         database. The MPTC may need to acquire suitable billing software to operate from
         a common database with the ITU software. The Consultant’s experience is that the
         billing arrangements can be critical to good ongoing spectrum management and
         must share the same database as the engineering (ITU) software to minimize
         human data entry problems.

         It is also timely for authorities to obtain billing software, as very shortly, work will
         begin on the creation of the license database needed for the ITU software so any
         adjustment to the way the data is stored needs a decision now, as it will be harder
         to implement when there are many existing records.

 2.2.2   Incorporating the Specialised Agencies

         The most difficult aspect of moving forward is how to bring the specialist agencies
         into a unified the Cambodian National spectrum management regime.

         Many countries have benefited from splitting of the high-level telecommunications
         policy work from the operational work. Spectrum Management is no different. It will
         benefit from policies addressed at policy agency level that address a broad range of
         policies from similar sectors and has an appropriate pool of expertise

         The operational side of spectrum management ideally would be carried out by
         separate independent regulator, which of course requires a different pool of
         expertise to the policy areas.

         This is done in New Zealand and Australia by separating the work areas within the
         same Authority. While this is convenient, the policy area always impinges on the
         operational work and visa versa. A better solution is for Telecommunications
         Regulation and Spectrum Management to be in the same agency and the major
         public policy issues be addressed in the Ministry.

         In Indonesia, the specialist agencies determine the policy for aviation, maritime and
         broadcasting, but there is only one licensing authority (DGPOSTEL).               The
         advantage of this model is that the expertise that currently resides in the specialist
         agencies can effectively enhance the capacity of the Regulator. It also allows for
         interference between the various services to be properly addressed.               The
         disadvantage is that it limits the scope of the regulator to make technical decisions
         to overcome interference as these may impinge on the policy determination.


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates             2-3
 2.2.3   Appropriate Approach

         Taking the above into account it is recommended that Cambodia ensure that the
         Frequency Management Office of the new Telecommunications Regulatory Office,
         have the sole mandate to issue radio-communications licences. This office can
         in turn authorize the specialist agencies to issue licences within the area of their
         mandate, but they should then provide the details .for capture in the national
         frequency register.

         In the case of applications supporting national security, there should be a formal
         understanding between the MPTC and the specialized agency. For example, the
         band 230-400 MHz is used virtually everywhere in the world by the military. This
         band in Cambodia would be set aside for the exclusive use by the military and no
         records of this would appear in the national frequency register but in the national
         frequency allocation table, allocation would show a primary allocation for the fixed
         and mobile services.

         As part of the agreement between the military and MPTC a procedure should be
         developed that would allow interference issues to be resolved should they occur.
         Other bands could be identified for exclusive use by the police and other security
         agencies. Again, licences, which require secrecy, would be outside of the national
         frequency register, but the general allocation for that service would appear in the
         National frequency Allocation table. All the rest of the frequency usage should be
         recorded including the shipping, aircraft and broadcasting including where security
         agencies are operating in bands shared with other users.

         In order to make progress on the above, it is recommended that a High Level
         Council or committee be formed of all the specialist government agencies with
         spectrum interests with the objective of achieving excellence in spectrum
         management in Cambodia. This will under-pin the growth in radio-communications
         by minimising interference and maximizing the number of available frequencies.

 2.2.4   Channelling Plans

         Cambodia as a member of the ITU is required to follow the ITU Radio Regulations.
         Article 5 (Table of Frequency Allocations) of the ITU Radio Regulations is the base
         for 2004 document. This specifies where Cambodian allocations will differ from the
         ITU recommendations. In most instances, the Cambodian table is in effect a
         simplification of the ITU document. In some cases, bands that are unlikely to be
         used in Cambodia in the near future are not specified.

         The Allocation Table is a good start and the work done by MPTC appears to be in
         line with international practice. What Cambodia needs now are band plans for each
         individual band especially in the fixed and mobile services. These band plans
         should be public documents (with the national security exception mentioned above).
         A process of consultation with industry will ensure the private sector has confidence
         in the national regulator. The private sector also has a major contribution to make
         in determining which channelling options Cambodia should choose.

         In summary the         internationally   accepted    sequence     for   good   Spectrum
         Administration is:

         ITU Radio Regulations    →     Cambodian National Frequency Allocation Table     →
          Channelling plans where possible for each band      →
          Licences issued in conformity with the plans.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates            2-4
           To facilitate this process the creation of an Industry Advisory Group is
           recommended. The group can be as formal or informal as MPTC and later the
           Regulator wishes. The idea is to discuss all Spectrum matters with representatives
           of the private sector before they are made official decisions. In this way, the
           combined wisdom of the private sector partners can supplement official advice to
           assist with policy development on spectrum matters.

 2.2.5     Allocation processes

           Cambodia has embraced the use of radio to provide telecommunications services.
           The success of the cell phone industry is an excellent example. Growth in this
           sector has far outstripped the growth in conventional fixed line services.

           The current administrative processes require two licences for a company to offer
           mobile services. First, it requires an operators’ licence. This is issued by MPTC.
           MPTC will also issue a frequency licence to companies that already have an
           operators licence. The frequency licence has to be renewed each year until the end
           of the operators’ licence. The three operating cell phone (GSM) operators have
           been authorised in this way.

 2.2.6     Scarcity of Spectrum

           The reason for objectivity, transparency non-discrimination and openness is that
           spectrum is a scarce resource. To maximise the benefits of its use, requires efficient
           use of the scarce resource. Efficiency requires objective consideration of the merits of
           alternative uses. Objectivity may be tested by means of an auction or pricing.

 2.2.7      Wealth Transfer

           The awarding of spectrum to one party and not to another has the effect of transferring
           wealth in the community. It is only fair that where a community asset is transferred to a
           private party fair value is paid for it and the revenues are returned to the whole
           community, Robust processes are needed to ensure that the people of Cambodia
           receive a fair return on the sale of the Spectrum asset.

           WTO Basic Agreement on Telecommunications states6:

           •    allocation and use of scarce resources, including frequencies, will be carried out in
                an objective, timely, transparent and non-discriminatory manner,

           •    It also requires that the current state of allocated frequency bands will be made
                publicly available

           These agreements are designed on a worldwide basis to promote efficient allocation of
           spectrum to the best economic use. The chances of this happening are enhanced
           when the process is transparent and the method is non-discriminatory. Non-
           discrimination is often achieved by market mechanisms such as auctions.

           In some countries, the emphasis is on the spectrum allocation rather than the
           operators licence. Many countries have used the creation of spectrum property
           rights to ensure the long-term certainty of access that is required to encourage the
           high levels of expenditure required to establish cell phone and other networks.

           Experience has shown that in many countries there are more companies wanting
           access to the spectrum than the spectrum can support. In these cases market
           driven allocations like auction or tender have been used in Europe and elsewhere.



 6
     See Appendix 3: WTO Telecommunications Services: Reference Paper 24 April 1996


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                 2-5
         However, because of violence in Cambodia there were very few companies
         interested at first. Allocation of spectrum followed naturally from the allocation of an
         operation licence. In the future, that is likely to change and Cambodia may need to
         use transparent market driven allocation processes to ensure that maximum value
         for the spectrum is realised.

         It is understood that frequency allocations for broadband systems like Wimax has
         been requested by several ISP companies. The allocation of these bands would
         benefit from a transparent market driven approach.

 2.2.8   Practices

         It is clear from paragraph 2.1.3 above that current allocation practices are not compliant
         with the WTO-RPT. Should there be a need to reallocate spectrum, for reasons
         including technological advancement and change as well as the national interest, the
         current lack of transparency in the processes will cause uncertainty among existing
         spectrum holders. This is bound to lead to disinvestment and loss of interest in new
         investment in Cambodia. It also does not provide an environment for the introduction of
         new and innovative services.

         There are two basic approaches: Administrative Regulation or market driven
         allocations

             •   Administrative Regulation systems have the advantage that it is possible to
                 make allocations in accordance with a preconceived plan. While this may
                 be aimed at the technical optimisation of the use of the resource, planning
                 seldom keeps pace with technology or the needs of the market. In addition,
                 administrative regulatory systems are open to manipulation and potentially
                 rent seeking. Despite this, normal and administrative processes, it will
                 continue to be used for much of the spectrum where there is no competitive
                 demand or where Cambodia/s international obligations to the ITU, ICAO,
                 IMO etc require an administrative approach. For example, the frequency
                 bands supporting the aviation and shipping services.

             •   Market led systems. These may result in allocations that are not technically
                 optimised, but in general, policy should recognise that the decision maker
                 looking at choices of technology etc has also a substantial investment in the
                 spectrum acquisition and infrastructure for using the frequency band so is
                 best placed to maximise the value both for themselves and for their clients.
                 Market allocations may seem untidy to the observer, however, they are
                 much more flexible, particularly if they are associated with measures
                 designed to prevent non-competitive behaviour like squatting (i.e. gaining an
                 allocation and not using it in order to protect a party with an allocation in an
                 associated band. Some countries allow full trading of allocations so that
                 spectrum can gravitate over time to the most profitable and economically
                 efficient uses.

         As Cambodia’s approach to telecommunications in general has been characterised
         by a market led approach, this seems to be the most appropriate path forward.

 2.2.9   Spectrum Changes

         With the advance of technology, the best possible usage of spectrum will need to
         change. When Marconi conducted his first experiments, only a single Morse code
         message was possible across the whole spectrum. As technology has developed, less
         and less spectrum is required to support a single signal

         The implication of the above is that from time to time there will need to be a reallocation
         of spectrum. For example, the spectrum previously used by analogue providers may
         well be available now for other uses. So-called spread spectrum technologies (where


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                2-6
         signals use the most readily available frequency and data packages are reassembled at
         the destination) will soon bring on a further revolution in the use of spectrum

         The essential lesson from the consideration of these points is that technology in relation
         to spectrum is advancing faster than the institutions that govern its use. Re-farming
         Spectrum is discussed in the next section

 2.3     Principles

 2.3.1   Background

         Cambodia is non-compliant with its WTO obligations so it important to restate the
         case for compliance and to set a path to achieve compliance. When compliance as
         a goal is firmly established, it is possible to reassess current practices so that
         MPTC may modify them progressively, to achieve full compliance. MPTC should
         review all policies and practices to ensure that that within a reasonable timeframe,
         say 5 years, that compliance is achieved.

 2.3.2   Scarcity

         The reason for objectivity, transparency non-discrimination and openness is that
         spectrum is a scarce national resource:

         To maximise the benefits of its use to the whole nation requires efficient use of the
         resource. Efficiency requires objective consideration of the merits of alternative uses.
         In practice, government bureaucracies are not generally in as position to make
         decisions that will lead to the highest value use of the spectrum for the nation. In many
         countries, this has been a driver for allocation by (1) auction, (2) spectrum pricing or (3)
         a beauty contest.

         Of the three, the first two are the most objective because they test the monetary value
         that people are prepared to put on their favoured use. If there are non-economic,
         criteria to be applied (such as Cambodian ownership rules, national security etc), the
         government should announce these in advance so that within these policy limits
         (determined by the government) the best use of the resource can be achieved (by
         allocations by the regulator). Many of the new technologies require large capital
         expenditure and companies need to have confidence in the processes leading up to an
         allocation.

         Non-discrimination also means selecting the best use, no matter whether the proposing
         user is local, international, a powerful incumbent or a new start-up. Transparency is
         helpful in the allocation of scarce resources because if the process is transparent both
         the successful and unsuccessful bidders will be assured that they have been fairly
         treated.

 2.4     Radio Spectrum Policy Framework

         The following set of policy objectives summarises a market led approach to Spectrum
         Policy, which is consistent with the WTO-RPT and the Cambodian Draft Law on
         Telecommunications:

 2.4.1   Spectrum Policy Objectives

         Cambodia's spectrum policy and management should aim to:

         •   facilitate the most economically and socially efficient use of spectrum with a view to
             attaining maximum benefit for the community,



Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                 2-7
         •      achieve technically efficient use of spectrum to facilitate the introduction of
                advanced and innovative communications services and strengthen Cambodia's
                position as a telecommunications and broadcasting location,

         •      fulfil Cambodia's regional and international obligations relating to the use of
                spectrum,

         •      strengthen Cambodia’s strategic position as a gateway between the Mekong Sub-
                Region and the world by facilitating telecommunications services in Cambodia
                which can be deployed, or will be deployed, globally or in the whole region, and

         •      reserve necessary spectrum for services provided by or on behalf of the RGC ("for
                Government services").

 2.4.2   Guiding Principle in Spectrum Management

         A set of guiding principles in Spectrum Management, similar to the paragraphs that
         follow should guide the objectives:

         •      the policy inclination is that a market-based approach in spectrum management will
                be used for spectrum wherever RGC considers that there are likely to be competing
                demands from providers of non-Government services, unless there are overriding
                public policy reasons to do otherwise,

         •      if authorities reject the market-based approach for managing competing demands
                for spectrum from providers of non-Government services, they should publish the
                relevant public policy reasons.



 2.5     Recommendations – RFS Plan and Allocation

                      RECOMMENDATIONS 2.                                        REASONING

             Allocation and Licensing

             Cambodia should consolidate current spectrum      The current lack of transparency is holding back
             allocation and licensing into a transparent and   the development of radio communications in
             objective set of criteria.                        Cambodia.


             Sole Authority to Issue Licences

             1. MPTC (currently) and, when formed, the         The reason for these three recommendations is
             Frequency Management Office of the new            that the national frequency register cannot
             Telecommunications Regulator of Cambodia,         function unless it contains all the available data.
             should have the sole mandate to issue
             radio-communications licences.                    Some other specialist agencies have the right to
             2. This office should authorise the               issue licences, but the new law gives this right
             specialist agencies to issue licences within      to the regulator. However, unless a system of
             the area of their mandate,                        coordination can be organised this provision will
             3. Agencies should then provide the details       not operate
             for capture in the national frequency register.
             4. Operators issued with a band licence
             should be responsible for RFSM in that band,
             but accountable for that to the TRC.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                           2-8
                   RECOMMENDATIONS 2.                                    REASONING

          High Level Spectrum Council

          1. A High Level Council or committee to        Excellent spectrum management will under-
          advice the TRC, should be formed,              pin the growth in radio-communications by
          2. It should comprise all the specialist       minimising interference and maximizing the
          government agencies with spectrum              available frequencies. Excellence must be
          interests,                                     achieved with the active support of those
          3. It should be tasked with the achieving      agencies currently responsible. Their
          excellence in spectrum management in           position will be assured if they continue under
          Cambodia.                                      a delegated authority from the regulator.


          Industry Advisory Group

          MPTC should encourage the formation of an      The industry advisory committee will serve to
          industry advisory group to offer practical     bring a practical focus to policy development on
          perspectives and advice on spectrum            spectrum matters. All the private companies
          matters.                                       operating in Cambodia are accustomed to
                                                         similar committees in other countries.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                  2-9
                  3
Changes in Spectrum Use
 3.      Changes in Spectrum Use
 3.1     Planning Ahead

 3.1.1   Changes in Tables

         In many countries, the free flow of information is a driver for economic prosperity.
         Radio systems have been shown to have a significant role in the provision of
         information services world wide, from the Internet to Radio Broadcasting. This is
         unlikely to change in the next decade. The direction of change will be to provide
         platforms that service higher data rates in both the fixed and mobile environment along
         with harnessing the synergies between the classical fixed, mobile and broadcasting
         services.

         Cambodia as most countries, has an extensive investment in existing radio
         communications apparatus There is over $500 million in cellular radio alone. The
         overall national investment in all systems will be many times higher. To maximise the
         return on investment, managing change will allow the introduction of new technologies
         while minimising the disruption to existing users.

 3.1.2   Plan for Change

         For this reason, in any spectrum plan it is also desirable to associate it with some
         indication on how change will take place. For example, when New Zealand cleared the
         bands for the spectrum auctions for GSM 1800 and 3G spectrum many fixed services
         that were displaced. These needed to have a satisfactory re-allocation to move to, as
         the radio-linking was still needed.

         Authorities in many countries have employed different approaches. In Australia for
         example, existing users were simply given notice of intent to clear the bands. As
         organisations invest substantially in the costs of establishing radio systems to meet real
         needs, alternative ways of fulfilling these needs must be considered as part of the
         planning process.

         The Cambodian spectrum plan should include procedures and processes for how
         changes in allocations will take place. In accordance with the WTO-RPT, the
         procedures for change need to be transparent and fair so that all investors can
         anticipate fair treatment.


 3.2     Re-farming of Spectrum

         Not all change in use requires band clearance. For example in many countries cellular
         radio operators have moved from the first generation analogue systems like AMPS and
         TACS to a second generation digital platforms like CDMA and GSM, only using their
         existing allocations.

         This re-farming of spectrum is a good approach where possible. To encourage it
         happen, the cellular operator must have some certainty of spectrum access.
         Experience in a number of countries has shown that the use of spectrum property rights
         is a good tool for encouraging the spectrum user to maximize their return on allocated
         bandwidth.

         This favours a band allocation approach where a cellular radio operator is allocated part
         of a cellular band like GSM and they manage all their services within that band without
         the need for the spectrum management authority to issue individual licences for each
         cell site.

         Such arrangements though require a registry where the band manager can register
         their individual frequency uses so that interference can be avoided.


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates               3-1
 3.3     Appropriate Mechanisms

         Unfortunately, however with some new technologies, new bands have to be made
         available to support the wider bandwidth emissions like those required for IMT-2000
         (3G). Countries without a large electronics industry cannot afford a special spectrum
         arrangement for the new technologies and use the normally agreed international
         spectrum arrangements created for the new services by the ITU to get the economic
         benefits of mass manufacture.

         In some cases, the transition to the new generation of service has been well studied
         and the techniques well developed. The transition to digital terrestrial television is an
         example of this where studies and now the experience in other countries give a secure
         way forward to manage the transition. In other cases, historical usage means that
         difficulties may be encountered needing mechanisms that encourage change and the
         associated government policies.

         Experience in many counties has shown the value of market driven change
         mechanisms, particularly where there is an excess of demand for spectrum over
         available supply. This is not the only approach that can be taken. Spectrum auctions
         have their place, but are only a tool of change. The change mechanisms selected by
         Cambodia will affect what and when changes can take place.

         Cambodia is at a considerable disadvantage to foster change as it does not have a
         unified basis for spectrum planning, it does not have the necessary records of existing
         services and some six different specialist agencies, that do not coordinate, control
         policy functions. Unless the above issues are addressed in accordance with the
         recommendations in paragraph 2.4, the new generation technologies will not be able to
         be fully harnessed and will hold back development.

 3.4     New Generation Services

         Information and communications services are the location from which change is driven.
         Other services though are equally important. To keep within the reality a time scale is
         useful so this analysis looks at where new services might be heading within a 10-year
         period. 10 years ago, the Internet had not reached universal awareness and many
         analogue services were in place.

         The growth of the internet illustrates the perils of forward planning. The conversion to
         digital services has taken place in satellite delivered services like television, many fixed
         point to point and point to multi point services and many mobile services including
         cellular radio. Many domestic applications like the cordless telephone now employ
         digital formats.

         In the next ten years there will be new digital services brought on line. The following
         paragraphs look at probable developments in each of these.

 3.4.1   Aeronautical Services

         While there has been little movement on the changes to aeronautical services in the
         last few years, there are changes envisaged in the information for aircraft while landing.
         The GPS data available today helps the aircraft to locate accurately where it is, but
         further assistance is required during the landing phase. This is currently provided by
         ILS and other associated systems.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                 3-2
         New and more efficient landing guidance systems are under development but they will
         not require new spectrum allocations. Cambodia will be able to embrace these new
         improvements without further frequency allocations but will have to address inter
         service interference which it is not doing now. The absence of mechanisms designed
         to prevent interference has major safety implications.

 3.4.2   Broadband services

         The wireless reticulation of broadband services is likely to be a national priority within
         the 10-year period. Malaysia is about to roll out broadband services in the band 3.5-3.7
         GHz. Other countries will use different approaches. In Australia, some of the
         bandwidth sold for 3G cellular radio carries Wi Max type services while in New Zealand
         the bandwidth cleared at 2 GHz for the GSM 1800/3G auction delivers wireless
         broadband. New Zealand plans to auction spectrum in December this year that is
         suitable for wireless broadband.

         Many developing countries are using wireless broadband as a relatively cheap method
         to bring new services to remote populations. Rwanda in Africa, for example expects to
         have two nationwide wireless broadband services (one using the GSM cell phone
         network and the other CDMA cell phone network) in operation by August 2007.

         Cambodia will need to address this issue sooner rather than later and decide which
         frequency allocation can be used for services such as Wi Max. One good aspect is that
         the equipment for Wi Max reticulation is often frequency agile and is not constrained by
         an ITU standard so there is some flexibility in allocations employed.

         While the condition of the fixed line network is good enough to support ADSL, new
         connections can often be rolled out quicker using radio. It is likely that large-scale
         wireless solutions will be required in Cambodia in the near future. The allocations for
         these services and the allocating mechanisms need study.

 3.4.3   Broadcasting - Radio

         Digital Audio Broadcasting (DAB) also known as Eureka 147, is a technology for
         broadcasting of audio using digital radio transmission. It enables higher fidelity,
         more stations and more resistance to noise, co-channel interference and multipath
         than in analogue FM radio.

         There are now two different versions of the DAB system: the current one, developed
         in the late 1980s, and an upgraded version, which has been named "DAB+." DAB
         has been available for more than a decade but has very limited penetration. It serves
         as a format of radio broadcasting where there is a common transmission authority as it
         supports multiple programming on the one channel.

         DAB is in use in some European countries and trials have been undertaken elsewhere.
         Satellite DAB has been brought into service in Canada. A different format digital
         satellite sound broadcasting is in service in the USA.

         The problems with DAB are that a special receiver is required and the coverage is line
         of sight, thus it is limited compared to MF and HF AM radio and it does not provide well
         for local radio.

         Cheap AM and FM radios abound and the DAB receiver market will not be able to
         compete in the near future. In Cambodia, there are many remote population centres
         that would be difficult to reach using DAB technology. These communities are currently
         served by high power AM transmissions and local FM services.

         The Consultant considers that DAB is going to come into general operation, but is
         unlikely to be a technology that needs to be taken into account and provided for in the
         Spectrum Plan as existing allocations will suffice.


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates               3-3
         Digital Radio Mondial (DRM) broadcasting is the digital replacement for the analogue
         AM signals used on MF and shortwave broadcasting today.. It is readily applicable
         by the conversion of existing MF and HF AM transmitters. It is in use already in a
         number of countries. New Zealand for example uses DRM emissions in its short wave
         service.

         During the next decade, it is likely that the broadcasting authorities in Asia will embrace
         DRM or a similar digital format and that Cambodia will also take advantage of this
         technology. Thailand has already carried out DRM test transmissions.

         The downside is that DRM is not compatible with the existing analogue emissions, but
         is a replacement meaning that simulcasting is needed during the transition, which
         requires more frequencies than are used presently. On the other hand, no major
         spectrum changes are required.

         It is concluded that Cambodia will introduce digital radio broadcasting in the future but
         no new allocations are needed.

 3.4.4   Broadcasting - Television

         Within the decade new analogue TV equipment will become much more expensive as
         manufacturers concentrate on digital systems mainly Digital Video Broadcasting
         (DVB), a suite of internationally accepted open standards for digital television.
         Many countries will convert to a digital format from their existing analogue formats, but
         taking advantage of the increase in quality of transmission and the increase in the
         number of programmes that can be delivered within the existing bands.

         This process is well underway in Europe and in some countries in Asia. The USA has
         its own standard, which it is rolling out now. Transferring television to a digital platform
         does not require new frequency allocations. The Consultant considers that Cambodia
         will manage the transition to digital television without the need for any new frequency
         allocations.

         In fact, Cambodia along with many other countries may decide to re-allocate some of
         the existing VHF and UHF bands used for television for other uses. Canada for
         example is taking advantage of the conversion to digital television, which provides four
         more programmes per channel, to free up frequency bands for other applications. The
         decision is therefore to provide the platform for many new TV channels or to reuse the
         spectrum for other fixed and mobile purposes.

 3.4.5   Cellular Mobile Radio

         This is the fastest growing interpersonal communications platform with the growth far
         out stripping conventional fixed line technology. Observers expect Cambodia to have
         the same growth pressures as every other country. The existing frequency allocations
         will have to be augmented as the service grows and in particular if authorities
         implement IMT2000 (3G).

         A number of countries are following different paths of development. For example while
         New Zealand has some limited 3G networks in the main centres provided by the
         national GSM Operator, the bulk of the new generation services are being provided in
         the CDMA 800 format. Many countries have adopted the, so-called, 2.5 G format
         where existing CDMA services are providing the platform for improved services.

         The costs are high and investors need to be assured of a market return before meeting
         the high levels of expenditure required. History has shown that the 3G drive has had its
         down sides with British Telecom and France Telecom almost bankrupted following
         excessive payments for licences.



Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                 3-4
           In the long-term, some 3G services will commence in Cambodia but that the coverage
           over the next 10 years will be restricted to the major population centres. Outside of
           these areas, the normal CDMA or GSM services will be available as the 3G handsets
           are expected to be multi-standard. This may require some spectrum changes though
           the Allocation table shows that this has already been foreseen.

           The Consultant concludes that the cellular radio services will be served within the
           existing Cambodian allocations, although better spectrum use may be possible within
           existing allocations.

 3.4.6     Fixed Service other than HF

           In recent years, the fixed service has been the service that has had to give up
           bandwidth to new services. It is still a major requirement in all economies. Even
           though reductions in available bandwidths have been partly compensated for, by the
           early transition to digital emissions, the amount of spectrum available in the lower
           microwave bands for fixed links is low.

           This is especially important in countries like Cambodia where there is a continued
           demand for long-paths with low Fresnel clearances7, which perform better in the lower
           microwave frequency bands.

           Officials responsible for revising the frequency allocation table should keep in mind the
           demand for spectrum with low Fresnel clearances.

 3.4.7     High Frequency Fixed Services.

           For all countries with remote communities where alternative communications are
           difficult, the HF bands will continue to be important for the fixed and mobile services.
           This is one case where the existing analogue format of single side band is quite efficient
           and allows narrow channel spacing to be used.

           It is likely that such fixed services will still be required within the 10-year period though
           some digital emission usage will enter service especially for national security services.
           The ITU is currently reviewing the spectrum allocations below 10 MHz for the fixed
           service and the outcome of these deliberations will be very important to counties like
           Cambodia.

           There are a number of spread spectrum techniques applicable to the HF bands and
           some of these are in use in some countries today. These however do not generally
           respect the frequency allocation arrangements and need no special allocations.
           Instead, they appear as very low noise contributions to many bands.

 3.4.8     Land Mobile Services

           The successful implementation of digital land mobile services like TETRA (Trunked
           Radio) a specialist Professional Mobile Radio and two-way transceiver colloquially
           known as a walkie talkie) designed for use by government agencies, and
           specifically emergency services will drive change. Cambodia may need to embrace
           such services but it will be within the existing allocations. The transition from the
           existing analogue to digital formats will require extensive changes but it will not involve
           basic allocation changes

 3.4.9     Maritime Mobile Services

           Within the international community, there have been a number of moves to bring a
           digital format to the VHF maritime communications. Within the 10-year period, the

 7
     See Appendix Appendix 5


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                    3-5
         industry can anticipate that this process will continue and that the existing VHF
         analogue communications will phase out. The new digital formats should be able to be
         developed within the existing spectrum allocation.

         Because of the high efficiency of Single-Sideband Modulation (SSB8) voice
         communications, we expect little change to the HF maritime arrangements. As there
         will need to be a long transition period between the existing VHF Maritime services and
         new digital services, some extra spectrum may be required but that will be subject to
         international arrangements through an ITU WRC.

         In respect of Maritime mobile services, therefore, Cambodia does not need to take any
         specific action at this stage.

 3.4.10 Satellite Services

         While major developments in satellite technology and applications are expected to
         happen over the next decade, it is expected that there will be few new frequency
         allocations required. One of the decisions that Cambodia will have to take is whether to
         use the bands 3.5-3.7 GHz for its broadband services or for the Extended C Band
         Satellite services. From the Allocation Table it appears as though this decision may
         have already been taken

 3.4.11 .LF/MF Bands 9 kHz to 3 MHz

         Over the last 20 years, the importance of this frequency order has changed in many
         respects. The Maritime Mobile LF services which were based on Morse Code have
         been discontinued and replaced by HF and VHF ship to shore and satellite services.

         There are a number of beacons in this frequency order for both the Maritime and
         Aeronautical Services but these allocations exist today and do not need to be changed.
         There are virtually no new applications in the very low frequency ranges. There are still
         some critical applications like underwater messaging and radio systems in underground
         mines.

 3.4.12 AM Broadcasting Band

         The AM Broadcasting Band 526.5-1606.5 is governed under an ITU Regional
         Agreement Geneva 1975 and to make changes would require a special ITU Radio
         Conference, which is not foreseen in the immediate future.

         While the way in which the band is used may change with the introduction of DRM type
         services the allocations will not. The challenge will be to free enough spectrum up to
         allow for simulcasting at night time interference for transmissions in this band extends
         over thousands of kilometres and therefore have to be coordinated with neighbouring
         countries.

         One possible approach would be for Cambodia to introduce some Tropical Zone
         Broadcasting as defined in Article 23 of the International Radio regulations, to provide a


 8
   Single-sideband modulation (SSB) is a refinement of amplitude modulation that more efficiently uses
 electrical power and bandwidth. Amplitude modulation produces a modulated output signal that has twice
 the bandwidth of the original baseband signal. Single-sideband modulation avoids this bandwidth doubling
 and the power wasted on a carrier, at the cost of somewhat increased device complexity. SSB first
 entered commercial service in January 7, 1927 on the longwave transatlantic public radiotelephone circuit
 between New York and London. SSB was also used over long-distance telephone lines, as part of a
 technique known as frequency-division multiplexing (FDM) pioneered by telephone companies in the
 1930s. This enabled many voice channels to be sent down a single physical circuit. It has become a de
 facto standard for long-distance voice radio transmissions since then.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                      3-6
         simulcast transmission. The Regulator should consider these issues when the
         allocations for Tropical Zone Broadcasting are decided. Tropical zones are:

             •   2 300-2 495 kHz, 3 200-3 400 kHz,

             •   4 750-4 995 kHz and 5 005-5 060 kHz

         As HF fixed service is highly dependent on frequencies in the 3-5 MHz frequency order
         for night time services and the congestion is very high the Consultant suggests that the
         new TRC considers only the band 2300-2495 kHz for this application, if it is needed.

         In the bands above, the MF Broadcasting band, it is likely that a number of applications
         have ceased operating. For example, there has been no manufacturing of analogue
         cordless phones at 1600-1800 kHz for a long time and probably their frequency
         assignments not needed. In addition, the major Radio-navigation services that used to
         be in this frequency order like the LOng RAnge Navigation (LORAN) terrestrial
         navigation system services that have been replaced by GPS and the allocations are no
         longer needed.

         Radio-navigation may still be required for some aeronautical beacons in the band
         1606.5-1800 kHz. While many jurisdictions used the band 1606.5-2000 kHz for fixed
         and mobile services then frequencies tend to be very noisy and do not perform as well
         as frequencies in the 3-5 MHz range, however, there will be existing services that need
         continued frequency access.

         It should be noted that the frequency band allocated to the Aeronautical R and OR
         services are governed by Appendices 26 and 27 of the International Radio regulation so
         no change is expected in these bands.

         It is concluded that the only changes need to be considered to the existing Cambodian
         allocation table are as follows.

                 Table 3-1: Changes Proposed to Cambodian Allocation Table
                 ITU Allocation            Cambodian Allocation                     Comment
          1606.5-1800

          FIXED
                                         1606.5-1800                    Delete Cordless Phone
          MOBILE
                                                                        provisions
          RADIOLOCATION
                                         RADIONAVIGATION
          RADIONAVIGATION
                                                                        Aeronautical NDBs?


                                         1800-1850
          1800-2000
                                                                        This is the usual 160 Metre
                                         AMATEUR
          AMATEUR                                                       Amateur band
          FIXED
          MOBILE except Aeronautical     1800-2000
          Mobile
          RADIONAVIGATION                FIXED
          Radiolocation


          2300-2495                      2300-2495
                                                                        Tropical Zone Broadcasting if
          FIXED                          FIXED
                                                                        needed to simulcast with DRM
          MOBILE                         MOBILE
                                                                        type AM transmissions
          BROADCASTING                   BROADCASTING




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                3-7
 3.4.13 The High Frequency Band 3,000-30,000 kHz

         Like the LF/MF Bands, the Consultant expects very little change over the next decade.
         The allocations that are the mainstay of communications for aircraft ships and remote
         out stations will continue to need access to HF frequencies.

         The allocation conference agenda Item at the next ITU WRC will concentrate on the
         bands between 4 and 10 MHz so it in not useful at this time to consider this frequency
         area in detail. It is sufficient to note that the two services seeking new allocations are
         likely to come to a compromise that will mean little change.

         In the band between 10 MHz and 30 MHz the Consultant is not aware of any pressure
         for change. The HF allocations as they stand today, therefore, should not need
         updating at this stage.

 3.4.14 VHF Bands 30-300 MHz

         The big change likely in the VHF band will be the conversion to digital television.
         Cambodia has not employed a low TV channel in the 45-50 MHz frequency range but
         has two channels in the band 54-68 MHz (known as Band 1 TV). The low VHF
         frequencies are valuable as fixed and mobile applications as they penetrate dense
         forests better than the higher frequencies.

         MPTC should give some consideration during the digital conversion to abandoning the
         54-68 MHz band for television and returning it to fixed and mobile applications. During
         the next decade, there will be continued development in the FM band but this is likely to
         be within the existing allocations.

         Toward the end of the 10-year period, the ITU and ICAO may update existing ILS
         arrangements and the need for the vertical markers at 75 MHz may no longer be
         needed but for this exercise the allocations should stay

 3.4.15 UHF Band 300-3000 MHz

         This is the first band where major changes can be expected over the next decade. Like
         the VHF band, one of the big changes may be the introduction of digital television.
         While this will involve no allocation changes, the authorities may decide to reallocate
         part of spectrum used for analogue television, as the digital format will allow
         transmission of 4-5 programmes per channel. There will also be the changes needed
         for IMT2000. However, overall, it is concluded that the UHF allocations should mainly
         stay as they are for now as they allow for any future development.

 3.4.16 Summary

         The major changes in spectrum use are likely to be in the field of broadcast services.
         However, although there will be significant technological changes, in most cases they
         are unlikely to require significant changes in spectrum ownership or allocations.
         Wireless broadband will need further study, but GSM and CDMA services should fit
         within existing allocations. In Cambodia, there will be a continued demand for long
         signal paths with low Fresnel clearances as these perform better in the lower
         microwave frequency bands. Suggested alterations to the Allocation table are set out in
         Table 3-1.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates               3-8
 3.5     Recommendation – Changes in Spectrum Use

                   RECOMMENDATIONS 3.                                      REASONING

          Plan Should Accommodate Change

          1. The Cambodian spectrum plan should            As technology changes administration of the
          include procedures and processes for how         spectrum needs to change to accommodate it
          changes in allocations will take place.          and investors need certainty with respect to
          2. The procedures for change need to be          possible changes that may affect their
          transparent and fair in accordance with WTO-     investments
          RPT so that all investors can anticipate that
          they will be fairly treated.
          3. If changes in allocations cause ongoing and
          material damage to the business of a spectrum
          holder fair treatment should include
          compensation to the allocation holder.


          Changes to Allocation Tables

          The 2004 Table of Frequency Allocations          The rationale for these changes is included in
          should be changed in accordance with the         paragraph 3.4.12.
          proposals in Table 3-1.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                     3-9
             4
Cambodian RFS Fees
 4.       Cambodian RFS Fees
 4.1      Current Fees

 4.1.1    Contribution of Spectrum Management

          Spectrum management contributes to the national economy as it provides many
          essential communications platforms from simple land mobile systems to broadcasting
          and aeronautical radio-navigation. Good spectrum management is necessary for a
          growing economy. It affects all sectors of the economy. Excellence in Spectrum
          Management is necessary to underpin many governments’ economic and social
          objectives.

          There are many ways of funding and setting fees. The most transparent system is in
          use in Australia and New Zealand. In both countries, the government expects its
          spectrum management role to be self funding. In other words, the revenue collected in
          license fees should be sufficient to cover the costs of managing the spectrum.
          Indonesia for example use a different approach with the activity being government
          funded but there is no relationship between fees and cost.

          The Australian and New Zealand system is transparent because the method of setting
          fees is based on the cost of the spectrum management activity and this is the
          recommended approach for Cambodia. The down side is the attributing of the amount
          of work to a particular activity so the fee can be struck.

 4.1.2    Approach to Charging

          There are a number of ways charging can be approached. There is little ongoing
          administrative or technical activity to justify a high annual fee for an issued licence. The
          advantages of a licensed activity over an un-licensed activity is that the existing
          licences are taken into account whenever a new licence is being processed thus
          avoiding interference and ensuring the licensee of long term protection through
          interference resolution.

          This in practice does not happen very often to individual; licences. This suggests that
          the best approach is an application fee that covers the cost of processing the
          application and issuing the licence along with an annual fee..

 4.1.3    Other Activities

          The annual licence fee covers the other activities, which include:

              •    interference resolution and other field work,

              •    spectrum policing,

              •    spectrum engineering and planning, and

              •    international coordination and ITU activities.

          Licensing also brings a discipline to other activities, for example type approval9. The
          overall direction should be to minimize annual fees while providing sufficient resources
          to ensure excellence in spectrum management.




 9
   “Type Approval” is the system whereby authorities require manufacturers to gain certification for new
 products before they may be released on the market.


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                          4-1
 4.2     Problems with the Cambodian System

         The Cambodian fees are quite complicated to apply, with a number of inconsistencies,
         and the logic behind them is not clear. The formulae used for the annual fee, has a
         fixed component, a component related to power and a component related to frequency.
         The frequency component would appear to be the wrong way around as in general the
         higher the frequency the less distance the signal travels.

         The Cambodian balance between application fees and ongoing fees appear to be
         incorrect. The application fee should cover all the costs of processing an application.
         This is averaged over many different applications, as the complex engineering for some
         of the licences cannot be met within that application fee. A high application fee also
         acts as a reality check on the activity.

         On the other hand, a high ongoing annual fee does not encourage development like the
         existing broadband and fixed microwave link fees. High licence fees also lead to
         unlicensed operations, which can cost the country a lot to eliminate.

         MPTC needs to reconsider its approach to cellular radio fees. It would be more efficient
         if companies can obtain an allocation of a fixed bandwidth to develop all their systems
         in rather than a per station approach.

         A fixed bandwidth leads to cell splitting and high frequency reuse as the companies
         themselves seek the solutions for improved service and coverage within their allocation.
         There needs to be an appropriate allocative mechanism and fee. Market based
         systems such as auctions may be a radical departure, but they work well and their
         results are efficient.

         The microwave fixed services charges are very high and this will have an impact on
         telecommunications development. It is also somewhat unfair as they use very narrow
         beams and the frequency can be used hundreds of times across the country. With
         these problems with the current system, MPTC should consider some other options.

 4.3     Current Fee Collections

 4.3.1   Fee Regulation

         Currently Cambodia charges for the use of the spectrum with three fees: an
         application fee, an inspection fee and the annual fee. It issued regulation No³ 272:
         On the management of the Radio Telecommunication Equipment and the Cost on
         Radio Frequency, on 15 August 2003.            A summary of these charges and
         comparisons with other jurisdictions is included in Appendix 6.

         Today most radio equipment does not need inspection unless it is causing
         interference. It is recommended that there be an application fee, which should meet
         the cost of processing the application, and an annual fee, which should meet the
         cost of all the rest of the operations. As most of the existing radio-communications
         stations are currently outside of the licensing regime (the Consultant estimates that
         some 95 percent of radio systems in use in Cambodia are unrecorded) the number
         of transmitters (needed to set the fees) to recover all costs, are not available.

         An alternative approach to fees and a suggested table is in Appendix 7. As the
         central regulatory authority, MPTC should issue all licences and collect all fees
         though the specialist agencies may wish to levy an application fee to meet their
         costs.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates             4-2
 4.3.2   Current Collections

         Notwithstanding the problems discussed above, the current collections remain a
         worthwhile contribution to the funding of the RGC. Table 4-1 illustrates the current
         position. Notable is the huge proportion of uncollected fees. Arrears collection was
         more than usually active in the 2005 year, but fell off again in 2006. The reported
         surplus of net income in 2006 is only achieved by ignoring the debt outstanding. In
         previous years, MPTC netted this figure against actual income. There is obvious scope
         for substantial revenue enhancement by increased collections alone. When added to
         the scope for licensing unlicensed transmitters, the potential gain in revenue could be
         as much as 10-20 times.

                          Table 4-1: Current Spectrum Fee Collections
                                              2004                   2005                  2006

          Cash collected from
                                               884,568.00             823,667.00             450,688.00
          licensing

          Debt outstanding                     -442,064.00            -262,934.00          -550,132.26**

          Arrears collected from
                                               110,014.00             175,416.00             102,437.00
          previous years
          Net Income in total
                                               552,518.00             736,149.00             553,125.00
          (MPTC)

          Consultant Calculations              552,518.00              736149.00                2,992.74

         ** The net total Income figure can only be arrived at by excluding this figure from the table
         although it has been offset against collections in previous years,
         Data provided by MPTC


 4.4     Appropriate Structure and Use of Spectrum Fees

 4.4.1   Administration of the System

         Given the problems outlined in paragraph 4.2 the Consultant recommends a different
         approach. Based on the experience of many countries, including Indonesia, Sri Lanka,
         Kiribati and many others a revised structure would be more appropriate:

             •   fees should take into account power and bandwidth, but within a frequency
                 range like VHF, there is very little point in discriminating on frequency as the
                 changes in performance are not that great and discrimination creates no
                 encouragement to use narrow band in mobiles or to use data compression.

             •   the application fee also appears to include an inspection fee, an unusual
                 approach as this is not necessary for every licence and it should come under
                 the budget for policing and compliance as part of the ongoing costs,

             •   a better approach would be to restructure fees to include an application fee and
                 an annual fee.

         A complete set of suggested fees is included in Appendix 7

 4.4.2   Resource Rental

         In addition, there is an economic rationale for charging a resource rental for use of the
         spectrum. This is particularly the case when the demand for the use of the band is
         greatly in excess of the availability and substantial resource transfers occur, as
         described in paragraph 2.2.7 above.



Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                  4-3
         In some instances, Cambodian fees are substantially in excess of the cost that can be
         justified for the registration service provided, particularly in view of the total absence of
         mechanisms designed to ensure. This is not justified by policy statements but is
         understood by many in the sector as a contribution for the use of the spectrum (as
         opposed to paying for rational management of the system, which is the justification for
         cost recovery). .

         Virtually no governments collect resource rentals in the name of encouraging
         investment in the sector. Should such a policy be considered, the resource rental
         charge should be identified separately as an explicit charge, rather than being simply an
         implicit element of a single charge that covers a range of services and functions.

         Should the RGC consider implementing a resource rental it would be opposed on the
         grounds that the revenue shares also paid by some spectrum users amounts to a
         special tax on telecommunications. There is a limit to the number of charges
         governments can impose, whether cost recovery, revenue sharing, income taxes and
         resource rentals. As noted above, the most common approach is to charge principally
         for the system that aims to manage the spectrum efficiently and safely.

 4.4.3   Possible Fee Collections

         The estimate in paragraph 2.2.1 above, put the correct number of licences in operation
         in Cambodia at 50,000 or more. Currently MPTC collects approximately US$ .5 million
         a year from only 2,500. A simple extrapolation would put the potential of spectrum
         revenue at close to US$ 25 million. Assuming that most of the unregistered equipment
         would attract a below average charge (not necessarily a correct assumption) as
         illustrated above, collections on the current basis should easily top US$ 12 million a
         year. Should the total number of licences in Cambodia ever exceed 100,000, the costs
         of administration of spectrum management should be below $10 million. The more
         equipment licensed the lower the average licence fee needs to be in order to raise the
         same revenue.

         Based on these simple figures, there would appear to be no reason why the system
         cannot be completely self-funding. If this is not possible, any shortfall needs to be
         made up on a transparent basis. If Cambodia is similar to other countries there is no
         reason why the system cannot be completely self funding.


 4.5     Type Approval Charges

         Type approval charges are imposed when a manufacturer seeks the approval of a
         telecommunications regulatory authority (such as MPTC) to operate its equipment in
         their jurisdiction.

         The current charges appear to be high with $1500 for a plain telephone! Technologies
         are now highly standardised and the damage that can be done to a fibre based system
         by connecting even the most inappropriate equipment are minimal. The whole activity
         needs to be looked at to ensure that it is not a barrier to development.

         In 2002, an ITU consultant recommended that Cambodia avoid the costs of type
         approval by simply recognising and registering approvals granted by neighbouring
         countries such as Thailand, Australia and Malaysia. The Consultant commends this
         approach. Cambodia can also accredit international laboratories so that it accepts their
         test results.

         Cambodia has no need to go to the enormous expense involved in setting up testing
         laboratories and tying up highly qualified technicians when prosperous neighbouring
         countries have done the work already. Further, as it does not have a local
         manufacturing industry acceptance of test reports from major suppliers will reduce costs




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                  4-4
         to the end user. New Zealand for example, has closed its type approval laboratory and
         uses the accredited laboratory approach.

         In addition, many of the dangers that type approval was introduced to address have
         long since been overtaken by technological change. For example, the danger of poorly
         wired circuits damaging equipment has little relevance when for signals transmitted
         over fibre optic cables.


 4.6     Recommendations – Fees - Allocation and Type Approval

                   RECOMMENDATIONS 4.                                          REASONING

          Fee Structure

          1. Fees should take into account power and           Charging for bandwidth will create greater
          bandwidth, but should not discriminate on            incentives for efficient use of the spectrum.
          frequency bands as the changes in                    The cellular operator must have certainty of
          performance are not great and discrimination         spectrum access. The use of spectrum
          creates no encouragement to efficient use..          property rights is a good tool for encouraging
          2. An inspection fee, is not necessary for           the spectrum user to maximize their return on
          every licence and should be included in              allocated bandwidth. A fixed bandwidth leads
          policing and compliance as part of ongoing           to cell splitting and high frequency reuse as
          costs,                                               the companies themselves seek the solutions
          3. Fees should include an application fee and        for improved service and coverage within their
          an annual fee.                                       allocation.


          Allocation Mechanism

          1. There needs to be an appropriate allocation       For the benefit of the whole nation there needs
          mechanism and fee for spectrum in high               to be an appropriate allocative mechanism that
          demand.                                              maximises the efficiency of use of the scarce
          2. Market based systems such as auctions             resource. Market based systems by requiring
          should be used for spectrum in high demand           users to pay up front automatically select the
          as they work well and their results are efficient.   users who will make best use of the spectrum.


          Resource Rental

          Should a policy of charging resource rentals         Opinions vary on the need for and efficiency of
          on spectrum allocations be introduced, the           resource rentals charged for the use of
          resource rental charge should be identified          spectrum. Currently, fees charged in
          separately as an explicit charge, rather than        Cambodia are in excess of the costs incurred.
          being simply an implicit element of a single         Should the RGC want to raise revenue from
          charge that covers a range of services and           spectrum users this should be an explicit
          functions.                                           special charge.


          Type Approval

          Cambodia should recognise type approvals of          Cambodia can avoid the costs of type approval
          neighbouring competent jurisdictions, thereby        by simply recognising and registering
          saving the cost of and approval system, while        approvals granted by neighbouring countries
          gaining all the associated benefits. It should       such as Thailand, Australia and Malaysia. In
          also accept reports from accredited                  many countries, international laboratories can
          laboratories.                                        apply for accreditation and then their reports
                                                               are accepted.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                          4-5
                   RECOMMENDATIONS 4.                                  REASONING

          Structure of Fees

          Cambodia should redesign its fee structure    The proposed structure of fees will address the
          along the lines of the recommended scale of   criticisms of the current structure.
          fees attached as Appendix 7.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                  4-6
        5
Looking Ahead
 5.      Looking Ahead
 5.1     Problems in Cambodia

         On the 14 April 1912 the RMS Titanic sank with the loss of nearly 1,500 lives.
         Following this tragedy, there was a comprehensive review of international radio
         communications regulations. It was agreed, among other things, that radios on
         passenger ships would be operated 24 hours a day and would carry a secondary power
         supply, so as to ensure that it is possible to send and receive distress calls and that any
         other ships will not miss them. Many of the spectrum management rules currently in
         operation by the ITU have their origins in the need to ensure that similar disasters do
         not occur again.

         With the growth of civil aviation, the need has grown to ensure efficient management of
         airspace and spectrum. Worldwide airlines would like to move to a system where all
         navigation and surveillance of aircraft is managed by a combination of Global
         Positioning Satellites (GPS) and advanced avionics. More precise positioning of aircraft
         will accommodate more in the same amount of airspace. This in turn would allow an
         increase the number of aircraft in the air at any one time. While there will be substantial
         gains in economics, if spectrum management is inadequate it will create the danger of
         more spectacular and life threatening accidents.

         Paragraph 2.1.3 highlights the situation where the one transmitter that could cause
         large scale interference to neighbouring countries, a 120 kW broadcasting
         transmitter is not registered with MPTC. Similarly, a simple scan of a handheld dial
         on a portable radio indicated that none of the registered transmitters was operating
         but the one not coordinated with the ITU is.

         This is symptomatic of a potentially very serious situation. As air-traffic builds up in
         Cambodia, the possibility of interference from an unknown powerful FM transmitter
         could cause a life threatening situation and result in a disaster of similar proportions
         to that of the Titanic. .

 5.2     Addressing the Problems

         The situation regarding RFS management is potentially embarrassing to the
         government, life threatening and already imposes a large financial cost to Cambodia of
         at least US$ 10 million a year, quite apart from the safety and efficiency penalties
         suffered. Fortunately, the situation is readily addressed by essentially some good
         housekeeping measures and a modest investment in the latest software and
         technology.

         With the passage of the Telecommunications Law, the legal position will be clarified. It
         will give the regulator the leadership role in all matters related to spectrum. Set up as
         an independent government agency the authority will have its own budget and can
         employ staff competent to manage the spectrum in line with its mandate.

         Cambodia's spectrum policy and management should aim to achieve the objectives and
         operating principles set out in paragraph 2.4 above. Independence will enable the
         Regulator to focus on the most economically and socially efficient use of spectrum with
         a view to attaining maximum benefit for Cambodia, The Regulator will be have the
         authority to achieve technically efficient use of spectrum. Efficient use will facilitate the
         introduction of advanced and innovative communications services, The TRC will be
         charged to ensure that Cambodia fulfils its regional and international obligations relating
         to the use of spectrum, strengthen Cambodia’s strategic position as a gateway between
         the Mekong Sub-Region and the world. It will also be able to ensure that necessary
         spectrum is reserved for services to be provided by or on behalf of the RGC.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                  5-1
         An urgent priority for the regulator will be to consolidate current spectrum allocation and
         licensing into a transparent and objective set of criteria. As the sole authority to Issue
         Licences, the Regulator will also be able to authorise the specialist agencies to issue
         licences within the area of their mandate, fostering a climate of ongoing cooperation. It
         is essential that all agencies empowered to issue licences should provide the details for
         capture in the national frequency register.

         If the Minister convenes a High Level Spectrum Council, comprising all the specialist
         government agencies with spectrum interests, a climate of cooperation will be fostered.
         The Minister should task the Council with the achieving excellence in spectrum
         management in Cambodia. To interface with the high level council and the private
         sector the Regulator should encourage the formation of an industry advisory group to
         offer practical perspectives and advice on spectrum matters. While there have been ad
         hoc meetings with the private sector from time to time a mechanism for an ongoing
         engagement will be of advantage to all parties. The advisory committee will bring a
         practical focus to policy development on spectrum matters. All the private companies
         operating in Cambodia are accustomed to similar committees in other countries.

         Fees should include an application fee and an annual fee. As inspection is not
         necessary for every licence and the fee for inspection should be included in policing
         and compliance as part of ongoing costs. This report has shown why the Cambodian
         fee structure should change to into account power and bandwidth, but should not
         discriminate on frequency in order to encourage efficient use.

         Charging for bandwidth will create greater incentives for efficient use of the spectrum.
         The cellular operator must have certainty of spectrum access. Spectrum property rights
         will encourage spectrum users to maximize their return on allocated bandwidth. A fixed
         bandwidth leads to cell splitting and high frequency reuse as the companies themselves
         seek the solutions for improved service and coverage within their allocation.

         There needs to be an appropriate allocation mechanism and fee for spectrum in high
         demand. The Consultant commends market based systems such as auctions for
         spectrum in high demand as they work well and their results are efficient.

         Should a policy of charging resource rentals on spectrum allocations be introduced, the
         resource rental charge should be identified separately as an explicit charge, rather than
         being simply an implicit element of a single charge that covers a range of services and
         functions.

         Cambodia should recognise type approvals of neighbouring competent jurisdictions,
         thereby saving the cost of and approval system, while gaining all the associated
         benefits. This will enable Cambodia to avoid the costs of type approval and the
         associated testing laboratories by simply recognising and registering approvals granted
         by neighbouring countries such as Thailand, Australia and Malaysia. In addition, many
         of the dangers that type approval was designed to address are no longer matters of
         concern.

         The most important recommendation is that planning should accommodate and prepare
         for change. The Cambodian spectrum plan should include procedures and processes
         for how changes in allocations will take place. The procedures for change need to be
         transparent and fair in accordance with WTO-RPT so that all investors can anticipate
         that they will be fairly treated. As technology changes, administration of the spectrum
         needs to change to accommodate it and investors need certainty with respect to
         possible changes that may affect their investments. Although change is ongoing, the
         changes proposed to the existing Allocation Tables are relatively small.

         To focus these needs more clearly, the consultant has prepared a TOR for a further set
         of technical assistance to the RFS section and to MPTC regulation, in anticipation of the
         transfer of these functions to the new Telecommunications Regulator of Cambodia.
         This proposal is set out in Appendix 9


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                5-2
 5.3     Draft Regulation

         To assist MPTC determine its needs the consultant has prepared a draft regulation.
         Part 1 defines the objectives of the regulation- and definitions of terms. Part II deals
         with administration in particular the role of the Regulator in respect of Radio Frequency
         Spectrum. If confirms that the administration of the Regulation shall be by the
         Telecommunications Regulator of Cambodia (hereinafter referred to as the Regulator)
         and in the meantime the Ministry of Posts and Telecommunications of Cambodia
         (hereinafter referred to as MPTC).

         The Regulation Cross references to Article 53 of the Telecommunications Law, and
         notes that while the Regulator shall be the sole Authority to Issue Licences for use of
         the radio frequency spectrum, the Regulator shall authorise the Specialised Agencies
         (for broadcasting, civil aviation and maritime trade) to issue licences within the area of
         their mandate.

         Licensing is dealt with in Part III. It confirms the application of the regulation and the
         Forms and Classes of licences that issued, the period of licences issued, conditions
         attached to licences and how to deal with variations.

         PART IV deals with radio dealers, or parties that buy, sell, let or hire apparatus. Part V
         covers Certificates of Proficiency and Examinations, giving the regulator legal power to
         regulate the qualifications of people using the spectrum commercially.

         MISCELLANEOUS provisions in Part IV include the application of the International
         Telecommunication Convention, Indemnities for officers engaged in administration,
         penalties, offences and how they will be dealt with. While not entirely original, this draft
         covers all the important issues that are vital in the operation of a system.

 5.4     Conclusion

         There are four major problems stopping Cambodia achieve excellence is spectrum
         management.

             •   complete lack of overall policy and objectives,

             •   lack of transparency and accountability,

             •   MPTC only administers about 10% of the spectrum usage, and

             •   MPTC’s people need capacity building in many of the policy and technical
                 areas.

         RFS Regulation and management will fail unless the regulator has a policy framework
         in which to operate. It should be understood, that over time the RFS staffing and work
         commitment will be much bigger than the Telecom Regulatory function and could
         undermine the entire project.

         Capacity Building is needed in the Ministry to address spectrum policy matters.

             •   ITU Radio Regulations,

             •   Spectrum Choices for Cambodia

             •   Use of the spectrum to meet government objectives

             •   Inter-Agency spectrum arrangements


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                 5-3
             •   Spectrum access policies for bands and frequencies

             •   Arrangements for transition to new generation services

             •   International common frequency arrangements.


         When the responsibility for RFS transfers from MPTC to the new Regulatory Authority,
         it will need Capacity Building in the following areas:

             •   Physics of Radio Systems
                    o Radio Wave Propagation
                    o Radio applications and emission types
                    o Interference mechanisms
                    o Radio Communications hardware

             •   Applying the Cambodian Radio Regulations
                    o Band Planning
                    o Frequency engineering and assignment
                    o Measures to avoid interference.
                    o Licence and data base management
                    o Field Measurement and interpretation.
                    o Monitoring theory and practice

         The relatively small number of changes required to the Allocation Tables show that
         Cambodia has made a very good start. However, there are major concerns about the
         small number of licenses issued, the lack of a data-base and virtually non-existent
         planning capacity. Further recommendations to address these deficiencies made in the
         final report and the TOR provided in Appendix 9 will ensure that there is the assistance
         necessary to put them into effect.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates             5-4
     6
Appendixes
6.      Appendixes
Appendix 1: Definition of Frequency - Wavelength

Frequency

Radio frequency10 (abbreviated RF, rf, or r.f.) is a term that refers to alternating current (AC)
having characteristics such that, if the current is input to an antenna, an electromagnetic
(EM) field is generated suitable for wireless broadcasting and/or communications.

These frequencies cover a significant portion of the electromagnetic radiation spectrum,
extending from nine kilohertz (9 kHz), the lowest allocated wireless communications
frequency (it is within the range of human hearing), to thousands of gigahertz (GHz).

When an RF current is supplied to an antenna, it gives rise to an electromagnetic field that
propagates through space. This field is sometimes called an RF field; in less technical
jargon it is a "radio wave."

Wavelength

Any RF field has a wavelength that is inversely proportional to the frequency.                   In the
atmosphere or in outer space, if:

                                f=    the frequency in megahertz and
                                w=    the wavelength in meters, then
                                w=    300/f.
                                      And conversely
                                  F   300/w

The frequency of an RF signal is inversely proportional to the wavelength of the EM field to
which it corresponds. At 9 kHz, the free-space wavelength is approximately 33 kilometres
(km) or 21 miles (mi). At the highest radio frequencies, the EM wavelengths measure
approximately one millimetre (1 mm). As the frequency is increased beyond that of the RF
spectrum, EM energy takes the form of infrared (IR), visible, ultraviolet (UV), X rays and
gamma rays.

                                      Diagram of Wavelength




Many types of wireless devices make use of RF fields. Cordless and cellular telephone,
radio and television broadcast stations, satellite communications systems, and two-way
radio services all operate in the RF spectrum.

10
   Obtained from: http://searchnetworking.techtarget.com/sDefinition/0,,sid7_gci214263,00.html, accessed
26 February 2007
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Some wireless devices operate at IR or visible-light frequencies, whose electromagnetic
wavelengths are shorter than those of RF fields. Examples include most television-set
remote-control boxes, some cordless computer keyboards and mice, and a few wireless hi-fi
stereo headsets.

The RF spectrum is divided into several ranges, or bands. With the exception of the lowest-
frequency segment, each band represents an increase of frequency corresponding to an
order of magnitude (power of 10). The table depicts the eight bands in the RF spectrum,
showing frequency and bandwidth ranges. The SHF and EHF bands are often referred to
as the microwave spectrum.

       Designation             Abbreviation       Frequencies         Free-space Wavelengths

Very Low Frequency             VLF             9 kHz - 30 kHz        33 km - 10 km

Low Frequency                  LF              30 kHz - 300 kHz      10 km - 1 km

Medium Frequency               MF              300 kHz - 3 MHz       1 km - 100 m

High Frequency                 HF              3 MHz - 30 MHz        100 m - 10 m

Very High Frequency            VHF             30 MHz - 300 MHz      10 m - 1 m

Ultra High Frequency           UHF             300 MHz - 3 GHz       1 m - 100 mm

Super High Frequency           SHF             3 GHz - 30 GHz        100 mm - 10 mm

Extremely High Frequency       EHF             30 GHz - 300 GHz      10 mm - 1 mm

The following are the components of the Electromagnetic Spectrum sorted by wavelength,
short to long:

                            The Electromagnetic Spectrum
                        (Sorted by wavelength, short to long)
      Gamma ray • X-ray • Ultraviolet • Visible spectrum • Infrared • Terahertz radiation •
                                  Microwave • Radio waves
       Visible (optical)                Violet • Blue • Green • Yellow • Orange • Red
          spectrum:
    Microwave spectrum:         W band • V band • K band: Ka band, Ku band • X band • C
                                                band • S band • L band
       Radio spectrum:          EHF • SHF • UHF • VHF • HF • MF • LF • VLF • ULF • SLF •
                                                          ELF
         Wavelength                  Microwave • Shortwave • Mediumwave • Longwave




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Appendix 2: Uses of Radio Frequency

Earth’s Atmospheric Transmittance




The above rough plot of Earth's atmospheric transmittance (or opacity) to various
wavelengths of electromagnetic radiation (including radio waves) is obtained from the
Wikipedia free encyclopaedia.

Radio frequency, or RF, refers to that portion of the electromagnetic spectrum11 in which
electromagnetic waves can be generated by alternating current fed to an antenna. Such
frequencies and the belonging wavelength account for the following parts of the frequency
spectrum shown in the table below.

Table 6-1: Radio Frequency Spectrum and Its Uses
   Band                 ITU       Frequency
                Brief                                                Example of Uses
   Name                Band       Wavelength
                                     < 3 Hz
                                     > 100,000 km
Extremely                            3–30 Hz
low                  ELF        1    100,000 km – 10,000     Communication with submarines
frequency                            km
Super low                            30–300 Hz
                     SLF        2                            Communication with submarines
frequency                            10,000 km – 1000 km
Ultra low                            300–3000 Hz
                     ULF        3                            Communication within mines
frequency                            1000 km – 100 km
                                                             Submarine communication,
Very low                             3–30 kHz
                     VLF        4                            avalanche beacons, wireless heart
frequency                            100 km – 10 km
                                                             rate monitors, geophysics
Low                                  30–300 kHz              Navigation, time signals, AM long
                      LF        5
frequency                            10 km – 1 km            wave broadcasting
Medium                               300–3000 kHz
                     MF         6                            AM (Medium-wave) broadcasts
frequency                            1 km – 100 m




11
     http://en.wikipedia.org/wiki/Electromagnetic_spectrum
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                                                                 Shortwave broadcasts, amateur
High                                 3–30 MHz
                      HF        7                                radio and over-the-horizon aviation
frequency                            100 m – 10 m
                                                                 communications
                                                                 FM, television broadcasts and line-
Very high                            30–300 MHz
                     VHF        8                                of-sight ground-to-aircraft and
frequency                            10 m – 1 m
                                                                 aircraft-to-aircraft communications
                                                                 television broadcasts, microwave
                                                                 ovens, mobile phones, wireless
Ultra high                           300–3000 MHz
                     UHF        9                                LAN, Bluetooth, and Two-Way
frequency                            1 m – 100 mm
                                                                 Radios such as FRS and GMRS
                                                                 Radios
Super high                           3–30 GHz                    microwave devices, wireless LAN,
                     SHF        10
frequency                            100 mm – 10 mm              most modern Radars
Extremely
                                     30–300 GHz                  Radio astronomy, high-speed
high                 EHF        11
                                     10 mm – 1 mm                microwave radio relay
frequency
                                     Above 300 GHz
                                     < 1 mm

Above 300 GHz, the absorption of electromagnetic radiation by Earth's atmosphere is so
great that the atmosphere is effectively opaque to higher frequencies of electromagnetic
radiation, until the atmosphere becomes transparent again in the so-called infrared and
optical window frequency ranges.

The ELF, SLF, ULF and VLF bands overlap the AF (audio frequency) spectrum, which is
approximately 20–20,000 Hz.      However, sounds are transmitted by atmospheric
compression and expansion, and not by electromagnetic energy.

The SHF and EHF bands are often considered to be not part of the radio spectrum and form
their own microwave spectrum.

Another note of merit is that all objects have their own radio frequency, no matter how
minute.

Named frequency bands

The following are the names given to bands in common usage:

Table 6-2: Broadcast Frequencies:
                           Name                                             Range
                           12
Longwave AM Radio                                          = 0hz(LF)
Mediumwave AM Radio                                        =   530kHz - 1710kHz (MF)
TV Band I (Channels 2 - 6)                                 =   54MHz – 88MHz (VHF)
FM Radio Band II                                           =   88MHz - 108MHz (VHF)
TV Band III (Channels 7 - 13)                              =   174MHz - 216MHz (VHF)
                                                                                        13
TV Bands == IV == & V (Channels 14 - 69)                   =   470MHz - 806MHz (UHF)

Amateur radio frequencies

The range of allowed frequencies vary between countries. These are just some of the more
common bands, often collectively termed shortwave.

12
     NTIA frequency allocation chart: http://www.ntia.doc.gov/osmhome/allochrt.html
13
     http://etvcookbook.org/extra/frequences
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 Table 6-3: Amateur Radio Frequencies
 Band               Frequency range                   Band              Frequency range
160 m       1.8 to 2.0 MHz                         12 m          24.89 to 24.99 MHz
80 m        3.5 to 4.0 MHz                         10 m          28.0 to 29.7 MHz
60 m        5.3 to 5.4 MHz                         6m            50 to 54 MHz
40 m        7 to 7.3 MHz                           2m            144 to 148 MHz
30 m        10.1 to 10.15 MHz                      70 cm         430 to 440 MHz
20 m        14 to 14.35 MHz                        23 cm         1240 to 1300 MHz
15 m        21 to 21.45 MHz




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                                          Table 6-4: IEEE US
       Band               Frequency range Origin of name
       HF band            3 to 30 MHz         High Frequency
       VHF band           30 to 300 MHz       Very High Frequency
                                              Ultra High Frequency
                                              Frequencies from 216 to 450 MHz were
       UHF band           300 to 1000 MHz     sometimes called P-band: “Previous” Early
                                              British Radar used this band but later switched
                                              to higher frequencies.
       L band             1 to 2 GHz          Long wave
       S band             2 to 4 GHz          Short wave
       C band             4 to 8 GHz          Compromise between S and X
                                              Used in WW II for fire control, X for cross (as in
       X band             8 to 12 GHz
                                              crosshair)
       Ku band            12 to 18 GHz        Kurz-under
       K band             18 to 26 GHz        German Kurz (short)
       Ka band            26 to 40 GHz        Kurz-above
       V band             40 to 75 GHz
       W band             75 to 111 GHz       W follows V in the alphabet
              ITU-R Recommendation V.431: Nomenclature of the frequency and wavelength bands used
              in telecommunications. International Telecommunication Union, Geneva.

  ANSI/IEEE Standard 521-2002 Letter designations for radar-frequency bands.
  AFR 55-44/AR 105-86/OPNAVINST 3430.9A/MCO 3430.1, 27 October 1964 superseded by
  AFR 55-44/AR 105-86/OPNAVINST 3430.1A/MCO 3430.1A, 6 December 1978:
  Performing Electronic Countermeasures in the United States and Canada, Attachment
  1,ECM Frequency Authorizations.
                               Table 6-5: Radio Spectrum
Radio spectrum

ELF       SLF       ULF     VLF     LF       MF       HF       VHF       UHF          SHF     EHF
3 Hz      30 Hz     300     3 kHz   30 kHz   300      3 MHz    30 MHz    300          3 GHz   30 GHz
                    Hz                       kHz                         MHz
30 Hz     300       3 kHz   30      300      3 MHz    30       300       3 GHz        30      300
          Hz                kHz     kHz               MHz      MHz                    GHz     GHz




  Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                    6-6
Appendix 3: WTO Telecommunications Services: Reference Paper 24 April 1996

From the Negotiating group on basic telecommunications

The following are definitions and principles on the regulatory framework for the basic
telecommunications services.

Definitions

Users - mean service consumers and service suppliers.
Essential facilities - mean facilities of a public telecommunications transport network or
service that
(a) are exclusively or predominantly provided by a single or limited number of suppliers;
    and
(b) cannot feasibly be economically or technically substituted in order to provide a service.

A major supplier - is a supplier, which has the ability to materially affect the terms of
participation (having regard to price and supply) in the relevant market for basic
telecommunications services as a result of:
(a) control over essential facilities; or
(b) use of its position in the market.

1.      Competitive safeguards

1.1     Prevention of anti-competitive practices in telecommunication

        Appropriate measures shall be maintained for the purpose of preventing suppliers
        who, alone or together, are a major supplier from engaging in or continuing anti-
        competitive practices.

1.2     Safeguards

        The anti-competitive practices referred to above shall include in particular:
        (a) engaging in anti-competitive cross-subsidization;
        (b) using information obtained from competitors with anti-competitive results; and
        (c) not making available to other services suppliers on a timely basis technical
            information about essential facilities and commercially relevant information,
            which are necessary for them to provide services.

2.      Interconnection

2.1     This section applies to linking with suppliers providing public telecommunications
        transport networks or services in order to allow the users of one supplier to
        communicate with users of another supplier and to access services provided by
        another supplier, where specific commitments are undertaken.

2.2     Interconnection to be ensured
        (a) Interconnection with a major supplier will be ensured at any technically feasible
            point in the network. Such interconnection is provided under non-discriminatory
            terms, conditions (including technical standards and specifications) and rates
            and of a quality no less favourable than that provided for its own like services or
            for like services of non-affiliated service suppliers or for its subsidiaries or other
            affiliates;
        (b) in a timely fashion, on terms, conditions (including technical standards and
            specifications) and cost-oriented rates that are transparent, reasonable, having
            regard to economic feasibility, and sufficiently unbundled so that the supplier
            need not pay for network components or facilities that it does not require for the
            service to be provided; and



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        (c) upon request, at points in addition to the network termination points offered to
            the majority of users, subject to charges that reflect the cost of construction of
            necessary additional facilities.

2.3     Public availability of the procedures for interconnection negotiations

        The procedures applicable for interconnection to a major supplier will be made
        publicly available.

2.4     Transparency of interconnection arrangements

        It is ensured that a major supplier will make publicly available either its
        interconnection agreements or a reference interconnection offer.

2.5     Interconnection: dispute settlement

        A service supplier requesting interconnection with a major supplier will have
        recourse, either:

        (a) at any time or,
        (b) after a reasonable period of time which has been made publicly known

        to an independent domestic body, which may be a regulatory body as referred to in
        paragraph 5 below, to resolve disputes regarding appropriate terms, conditions and
        rates for interconnection within a reasonable period of time, to the extent that these
        have not been established previously.

3.      Universal service

Any Member has the right to define the kind of universal service obligation it wishes to
maintain. Such obligations will not be regarded as anti-competitive per se, provided they
are administered in a transparent, non-discriminatory and competitively neutral manner and
are not more burdensome than necessary for the kind of universal service defined by the
Member.

4.      Public Availability Of Licensing Criteria

Where a licence is required, the following will be made publicly available:
(a) all the licensing criteria and the period of time normally required to reach a decision
    concerning an application for a licence and
(b) the terms and conditions of individual licences.

The reasons for the denial of a licence will be made known to the applicant upon request.

5.      Independent Regulators Back to Top

The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services. The decisions of and the procedures used by regulators shall
be impartial with respect to all market participants.

6.      Allocation and Use of Scarce Resources

Any procedures for the allocation and use of scarce resources, including frequencies,
numbers and rights of way, will be carried out in an objective, timely, transparent and non-
discriminatory manner. The current state of allocated frequency bands will be made
publicly available, but detailed identification of frequencies allocated for specific government
uses is not required.

Reference Paper: Telecommunication Services
(http://www.wto.org/english/tratop e/sere e/telecom eltel23 e.htm)

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Appendix 4: Current Frequency Spectrum Regulation



                                    Kingdom of Cambodia

                                     Nation Religion King

  Ministry of Post and Telecommunication                                     August 15, 2003
                                  Phnom Penh

                                       No³ 272 bT>Rbk


Declaration

On the management of the Radio Telecommunication Equipment and the Cost on Radio
Frequency

Minister of Post and Telecommunications having seen

The constitution of Kingdom of Cambodia
-      The Constitution of Cambodia,
-      The Decree No NS RKT 1198 72 dated 30 November 1998 on the formation of the
       Government of Cambodia,
-      The Decree No 02.NS.94 dated 20 July 1994 on the establishment an conduct of the
       Council of Ministers,
-      The Decree No NS RKM 0196-20 dated 24 January 1996 on the establishment of the
       Ministry of Posts and Telecommunications,
-      The Sub-decree No 66 GNRKBK dated 22 October 1997 on the organisation and
       conduct of the Ministry of Pasts and Telecommunications,
-      The sub-decree 05 GnRk dated on January 28, 2003 on promoting the
       administrative and training department to the general department of administration
       of Ministry of Post and Telecommunication.
-      The approval 154 ssr dated on 11-12-91 by the council of minister on the hierarchy
       of cost management

According to the meeting achievement of the planning committee of the ministry of post and
Telecommunication on June 27, 2002 and its meeting July 19, 2003 regarding the
management of the Radio Telecommunication device and the adjust in the Cost of
Frequency use of 2003 proposed by work teams from specialized units

Decides

Article 1:
Determine applicable principle of the Equipment Radio Telecommunication device service
as in annex 1 to annex 3 attached to the declaration.

Article 2:
Declaration on the management of the Radio Telecommunication Equipment and the cost of
Frequency No 80 bT> Rbk dated March 12, 2002, and if all previous declarations are as
opposed to the declaration, they will be considered void.

Article 3:
General department of Administration, general department of post and telecommunication,
cabinet, inspection, all related department, all provincial and municipal department of post
and telecommunication under the ministry of post and Communication shall comply a duty
with the declaration effectively.

Article 4:

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the declaration will come into effect from a signing date.

                                           Minister So - Khun


Registration:
-General Secretariat of Senate
-General Secretariat of Parliament
-Council Minister Office
-Royal affair
-Ministry of planning
-Ministry of Economics and Finance
-Cabinet of Prime Minister (be notified)
-As Article 3(applicable)
-Chronicle




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Applicable on August 15, 2003

Annex 1.
The expenditure on the radio frequency
1) Type of radio MF                                              Riel
  a. Type of Mobile Radio MF
Inspect an application form for using each equipment             1000
Inspect the installation fitting before installing on the ship   30000
Inspect equipment before installation on land                    25000

The cost of annual license for equipment.
  b. Type of Non-Mobile Radio MF
Inspect an application form for using one equipment              10000
Inspect one installation fitting before installing               25000
The cost of annual license for output power                      70000+3000x+7000y

2) Type of Radio HF (PTT: Push To Talk)                          Riel
Note: The embassy will be allowed to use free license
for personal communication with its own country.
   a. Type of Radio HF
Inspect an application form for using each Equipment             10000
Inspect equipment before installation on the ship                30000
Checking equipment before installing on land                     25000
The cost of annual license for each one with X watt
power and frequency with Y KHz                                   70000+2000X+7000y
   b. Type of Radio HF
Inspect an application form for equipment                        10000
Checking equipment before installation                           25000
The cost of annual license for per unit with X
watt power and Y KHz frequency with                              70000+15000x+
70000y

3) Type of Radio VHF (PTT: Push To Talk)                         Riel
   a- Type of Mobile Radio VHF for Mobile nation wide use.
Inspect an application form for equipment                        10000
Checking equipment before installation
For Small Radio Communication in Hand                            10000
For normal radio , not hand- used on the ship                    20000
For normal radio, not hand -used on land                         15000

The cost of annual license for per unit with X watt
power and frequency with Y KHz                                   30000+1800x+800.

   b- Type of Radio VHF for provincial and municipal uses.
Checking an application form for each installation fitting       10000
Checking for each equipment before installation for
Small Radio Communication on Hand                                10000
For normal radio, not hand- used on the ship                     20000
For normal radio, not hand- used on land                         15000
The cost of annual license for per unit with X watt
power and frequency with Y KHz                                   30000+15000x+800y
   c- Type of Radio VHF
Inspect an application for using equipment                       10000
Check equipment before installation                              15000
The cost of annual license for per unit with X watt power
and frequency with Y kHz                                         30000+15000x+ 800y

4) Type of radio UHF (PTT: Push to Talk)                         Riel
   a- Type of Mobile radio UHF using nationwide
Inspect an application for per unit                              10000
 - Check per unit before installation:

 For walkie Talkie                                                         10000
 For normal radio, not hand- used on the ship                              20000
 For normal radio, not hand- used on land                                  15000

 -The cost of annual license for per unit with X watt power
 and frequency with Y KHz                                                  30000+15000x+800y
   b- Type of Mobile Radio VHF for provincial and municipal uses.
   -Inspect an application for per unit
   -Check per unit before installation:

 For walkie Talkie                                                         10000
 For normal radio, not hand- used on the ship                              20000
 For normal radio, not hand- used on land                                  15000
   -The cost of annual license for per unit with X watt power
 and frequency with Y KHz                                                  30000+1300x+800y
   c- Type of Non-Mobile Radio UHF
   -Inspect an application form for using equipment                        10000
   -Inspect equipment before installation on the ship                      10000

   -The cost of annual license for per unit with X watt power
 and frequency with Y KHz                                                  30000+1000x+800y

 5) Type of radio TLMRS, Paging, Mobile Cellular Phone, Wireless Mobile Phone
 Note: For mini –device or handed-use without license               $
    -Inspect an application for operation of Base Station           50
    -Check per unit of Base Station                                 100
    -The cost of annual license for nation wide operation system
 with X watt power and frequency with Y KHz                         100+30x+2.5y

 6) Wireless Access Network                                                $
 a- ISP case:
    -Inspect an application for operation of Base Station                  50
    -Check per unit of Base Station                                        100
    -The cost of annual license for nation wide operation system
 with X watt power and frequency with Y KHz                                500+0.2y
  (For subscriber of ISP, not necessarily licensed)
 b- Normal case:
    -Inspect an application for per unit                                   30
    -Check per unit before installation                                    50
    b- 1 Analog case:
 the cost of annual license per unit with X watt power and
 Frequency with Y KHz
    b. 2. Digital case
 the cost of annual license installation fitting per unit
 Transmission speed lower than or equal to 128 Kbps                        350
 Transmission speed higher than 128 Kbps or equal to 512 Kbps              400
 Transmission speed higher than 512 Kbps or equal to 2 Mbps                450
 Transmission speed higher than 2 Mbps                                     500

 7) All types of radio microwave                                            $
    -Inspect an application for per unit                                   30
    -Check per unit before installation                                    50
 -The cost of annual license per unit for transmission speed:
    a- Frequency band from 1.5 GHz to 6 GHz
 From 2Mbps but lower than 8Mbps                                           500
 From 8Mbps but lower than 34 Mbps                                         600
 From 34Mbps but lower than 140Mbps                                        800
 From140Mbps                                                               1000

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    - Frequency band from 7GHz to 15 GHz
         From 2Mbps but lower than 8Mbps                                   450
         From 8 Mbps but lower than 34Mbps                                 550
         From 34 Mbps but lower than 140Mbps                               700
         From 140 Mbps up to                                               850
    c- Frequency band higher than 15 GHz
         From 2Mbps but lower than 8Mbps                                   400
         From 8Mpbs but lower 34Mbps                                       500
         From 34Mbps but lower than 140Mbps                                600
         From 144Mbps up to                                                700

 8) International communication device (in case of special permission) $

    a- International radio (PTT: Push to Talk).
    -Inspect an application for each unit                                  10
    -Check per unit before installation                                    20
    -The cost of annual license for one Radio                              20+0.8x+2y
 b- VSAT sound /Data
    -Inspect an application for each unit                                  50
    -Check per unit before installation                                    100
    -The cost of monthly tax                                               2000
    -The cost of annual license for one station                            4000

 c- VSAT picture transmission (non-preemptible)
    -Inspect an application for each unit                                  50
    -Check per unit before installation                                    100
         -The cost of annual license for one station                       2000

 9) Radio Broadcasting                                                     $
    -Inspect an application for each radio operation                       30
    -Check per unit before installation                                    50
 a-the cost of annual license for radio type AM; SW with X watt
 power and frequency with Y KHz                                            100+0.05x+20y
 b-the cost of annual license for FM radio with X watt power
 and frequency with Y K Hz                                                 100+0.05x+2y
 10) Television                                                            $
    -Inspect an application for each TV operation                          30
    -Check per unit before installation                                    50
 a- the cost of annual license for VHF TV
 with X watt power and frequency with Y KHz                                100+0.05x+0.05y
 b- the cost of annual license for UHF TV with X watt power
 and frequency with Y KHz                                                  100+0.05x+0.04y
 c- the cost of annual license for MMDS TV with X watt power and
 frequency with Y KH                                                       100+0.05x+0.03y
 11) Amateur radio                                                         $
     -Inspect an application                                               5
    - Check per unit before installation                                   10
    The cost of annual license for one station                             25

 12) INMARSAT                                                        $
 a- All kinds of Mobile and non-Mobile INMARSAT or installed on ship
 Inspect an application for each device                              30
 Check per unit before installation                                  100
 The cost of annual license                                          200
 The cost of application equal to that of INMARSAT on land.
 Deposit on expenditure on the application of one INMARSAT           1000

 With INMARSAT installed on ship, customers can not choose Ministry of Post And
 Telecommunication as accounting authority to pay the price with INMARSAT on land;
 except for Four and five above:

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 b- All kinds of INMARSAT licensed abroad and imported to Royal
 Government of Cambodia                                                    $
    Inspect an application for each device                                 30
    check per unit before installation                                     50
    The cost of annual license                                             400

 13) Service Supply contract
 Ministry of post and telecommunication promote development and telecommunication
 service in line with technicality. If telecommunication service is not available, ministry of
 post and Telecommunication will allow utilizing radio communication and determining the
 cost of frequency; but if telecommunication services have already been installed, the cost of
 radio frequency will be as usual. As result, its cost could be high or low in any case. In case
 it has greatly affected telecommunication services, the ministry of post and
 telecommunication will not allow to do so.

 13) -1 international humanitarian organization or non-governmental organizations, which
 have had an official agreement with royal government of Cambodia over duty-free, will be
 favoured 27% of normal cost of annual license.

 13) -2 for the frequency of Two-Way Radios, it has two parts. One is for broadcasting;
 another is for receiving information. In this case, the cost of frequency is only part of
 broadcast device.

 13) -3 the power of broadcasting is in accordance with maximum power of device.

 13) -4 the period of determining license lasts 6 months or one year .In case the license
 lasts 6 months , the cost of license will be equal to half of that of annual device.

 13) -5 the continuous application without changing the condition in the previous license will
 include only the cost of annual license for the new one.

 13) -6 the person who falsified the license will be liable to law of the Royal government of
 Cambodia.




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 Applicable on 15 August 2003

 Annex 2

   Type Approval per Model                                                 $
   Mobile phone                                                            2 000 (one time only)
   Facsimile machine                                                       1 500(one time only)
   PABX                                                                    1 500(one time only)
   Wireless phone                                                          1 500(one time only)
   Pager                                                                   1000 (one time only)
   Any other radio communication device                                    1000(one time only)
   Radio device importing agent                                            800(one time only)
   The import of radio device for personal use                             100(each time)
   Annual certificate for import and sale of radio device                  100
   Annual certificate for repairing and sale of radio device               50




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                                     Kingdom of Cambodia

                                      Nation Religion King

   Ministry of Post and Telecommunication                                     August 15, 2003
                                   Phnom Penh
                                 No. 272 bT>Rbk



                                            Declaration

 On the Adjustment and the Implementation of Radio equipment and Cost of Radio
 Frequency

 Minister of Post and Telecommunications having seen:

 The constitution of Kingdom of Cambodia
 -      The Constitution of Cambodia,
 -      The Decree No NS RKT 1198 72 dated 30 November 1998 on the formation of the
        Government of Cambodia,
 -      The Decree No 02.NS.94 dated 20 July 1994 on the establishment an conduct of the
        Council of Ministers,
 -      The Decree No NS RKM 0196-20 dated 24 January 1996 on the establishment of the
        Ministry of Posts and Telecommunications,
 -      The Sub-decree No 66 GNRKBK dated 22 October 1997 on the organisation and
        conduct of the Ministry of Pasts and Telecommunications,
 -      The sub-decree 05 GnRk dated on January 28, 2003 on promoting the
        administrative and training department to the general department of administration
        of Ministry of Post and Telecommunication.
 -      The approval 154 ssr dated on 11-12-91 by the council of minister on the hierarchy
        of cost management
 -      The approval elx 154 ssr GnRk>bk dated on December 11, 1991 by council of
        minister on cost hierarchy.
 -      Declaration elx 272 bT>Rbk dated on August 15, 2003on the management of radio
        device and cost of radio wave.

 In accordance with the main tasks of the ministry of post and Communication.

 Decides

 Article 1:
 was added and improved for the cost of radio wave in annex 1, point 8 and annex 2
 Of the declaration dated August 15 , 2003 on the cost of international communication
 device (in the case of special permission ) and also added and improved as following:
 I Annex I: the cost of radio wave

   D VST sound \Data (for mobile phone company)                            $
 Inspect the application for each unit                                     50
    Check per unit before installation                                     100
    The cost of annual license for one station                             2000
    E VSAT for picture transmission use nationwide                         $
 Inspect the application for each device                                   50
   Check each unit before installation                                     100
   The cost of annual license for one station                              1000

 II-Annex 2: Type of Approval Per Model “Adjustment”
 Mobile Phone                                                              2000(one time only)
        Facsimile Machine                                                  1500(one time only)
        PABX                                                               1500(one time only)

Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                6-5
          Wireless Phone                                              1500(one time only)
          Pager                                                       1000(one time only)
          Other Radio Communication Device                            1000(one time only)
 Acknowledgement of Radio Device Import Agent                         800(one time only)
          Letter for Imported Radio Device                            100(each time )
 Annual Certificate for Import, Sale and Radio Communication
 Device Maintenance                                                   100
 Certificate for annual Import and Sale of Radio Communication device 80
 Certificate for annual Sale and Radio Communication
 device maintenance                                                   50

 Article 2:
 Declaration No 272 bT> Rbk dated on 15 August 2003, the cost is still in effect.

 Article 3:
 General Director of Administration, General Director of Post & Telecommunication, all
 related department, and all provincial and municipal department of post and
 telecommunication under the ministry of post and Communication must be responsible for
 carrying out a duty to the declaration effectively.

 Article 4:
 The declaration will come into effect from a signing date.

                               Minister So-Khun

 Registration:
 -General Secretariat of Senate
 -General Secretariat of Parliament
 -Council Minister Office
 -Royal affair
 -Ministry of planning
 -Ministry of Economics and Finance
 -Cabinet of Prime Minister (be notified)
 -As Article 3(applicable)
 -Chronicle




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates           6-6
 Appendix 5: RFS Fresnel Clearance Zone

 FRESNEL ZONE (sometimes freznel) – is an area around the signal path that should be kept
 clear of all reflective surfaces so that out of phase/delayed phase signals are not received that
 have been reflected off such surfaces.

 Objects like mountain ridges or buildings close to a radio signal path can affect the quality and
 strength of the signal. These objects diffract the radio waves, which in turn affect the strength of
 the received signal. Direct visual path (line of sight) is important but it is not enough. The area
 between receiver and transmitter is known as the "Fresnel Zone" and it must be kept clear of all
 obstructions. 60 percent is considered a good Fresnel clearance.

 Caution must be used in determining such what reflective surfaces are. Water is obvious,
 however tree growth or even a low lying inversion layer over farmland can cause problems if it
 enters the Freznel zone.

 Calculation of Fresnel Zone:

                 Fresnel Zone = 43.3 * SqrRoot (dMi / (FreqGHz * 4))

 Illustration of Fresnel Zone:




 For more information try: http://www.aria-glb.com/wireless/reset_frames.htm?/wireless/fcs.php4




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                       6-7
 Appendix 6: RFS Charges in Cambodia and Neighbouring Countries

 Because every country’s allocations are slightly different it is not possible to have a fully
 meaningful comparison for every charge. Below are a set of representative examples from
 Cambodia, Sri Lanka, Indonesia and New Zealand.

 New Zealand’s charges are designed to reflect the cost of administration of the sophisticated
 regime. They tend to be higher and more comprehensive than those imposed in Sri Lanka and
 Indonesia. The charges in Cambodia are frequently comparable to New Zealand’s, although
 MPTC offers almost none of the services available in New Zealand.

 Example 1

 HF Ship Station

 100 watt SSB transmitter/receiver with 10 channels

                     Cambodia           Sri Lanka           Indonesia          New Zealand
  App. Fee                7                    0                  0                  0
  Annual Fee              77                  180                 0                 75

 Note Indonesia does not charge a license fee for Aeronautical or Maritime services

 Example 2

 HF Fixed Station

 100 watt SSB transmitter/receiver with 2 channels at 5 and 10 MHz

                     Cambodia           Sri Lanka           Indonesia          New Zealand
 App. Fee                 7                    0                   0                300
 Annual Fee               77                  280                26.80              300

 Note Indonesia has a geographical scaling factor so chose the maximum.

 Example3

 VHF (150 MHz) Simplex station 25 kHz channelling 25 watts

                     Cambodia           Sri Lanka           Indonesia          New Zealand
 App. Fee                 7                    0                   0                300
 Annual Fee               19                  102                19.50              150


 Example 4

 VHF Marine 25 watt Ship Station

                     Cambodia           Sri Lanka           Indonesia          New Zealand
 App. Fee                4.5                   0                  0                  0
 Annual Fee               18                   18                 0                 100

 Example 5

 AM Broadcasting transmitter 10 kW at 1 MHz 20 kHz bandwidth

                     Cambodia           Sri Lanka           Indonesia          New Zealand
 App. Fee                 80                                       0                640
 Annual Fee              620                                     1758              2600

Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                6-8
 Example 6

 FM Broadcasting 10 kW at 100 MHz 275 KHz bandwidth

                     Cambodia           Sri Lanka           Indonesia          New Zealand
 App. Fee                 80                                       0                825
 Annual Fee              800                                     1596              2250


 Example 7

 VHF TV Station 100kW at 200 MHz bandwidth 7 MHz

                     Cambodia           Sri Lanka           Indonesia          New Zealand
 App. Fee                 80                                                        675
 Annual Fee              5100                                                      1350


 Example 8

 UHF TV Station 300 kW at 600 MHz bandwidth 7 MHz

                     Cambodia           Sri Lanka           Indonesia          New Zealand
 App. Fee                 80                                                        675
 Annual Fee             15124                                                      1125


 Example 9

 Wireless Broadband 8 watt transmitter 7 MHz channelling at .3.5 GHz

                     Cambodia           Sri Lanka           Indonesia          New Zealand
 App. Fee                 150                  -                  -                 400
 Annual Fee              1200                 345                                   100

 Example 10

 Low Capacity Fixed link 2Ghz 3.5 MHz bandwidth 20 dBw e.i.r.p.

                        Cambodia           Sri Lanka          Indonesia         New Zealand
 App. Fee            80                 -                   -                  300
 Annual Fee          500                186                 200                75


 Example 11

 High Capacity Fixed Link 7 GHz 28 MHz bandwidth 30 dBw eirp

                     Cambodia           Sri Lanka           Indonesia          New Zealand
 App. Fee            80                 -                   -                  400
 Annual Fee          850                790                 1000               75




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates             6-9
 Appendix 7: Proposed Scale of Fees


 Introduction

 In line with the practice in many countries it is suggested that there be two fees levied for
 licences and these are an application fee, which should meet the cost of processing and issuing
 of the licence and an annual fee, which meets the cost of ongoing spectrum management.
 When a frequency assignment is entered into the Cambodian National Frequency Register it
 should receive on going protection from future frequency assignments and a reasonable levy for
 this long tem protection is reasonable.

 Some frequency assignments like the provisions for aeronautical beacons require little on going
 spectrum engineering whilst others like the Instrument Landing Service require a lot of ongoing
 protection.

 A base price of $5 per technical person day has been used in this exercise.


 The Mechanics of Spectrum Licensing

 Good spectrum management employs a structured licensing arrangement.                           When an
 application is received it is registered in. To facilitate billing it is useful that each customer has a
 unique billing code. It is useful if this billing code is also the filing code so that all of a
 customers transactions with the Ministry are kept in the same place.

 Later on when the billing arrangements are refined it is possible then to send the customer a bill
 covering all of their licences. For big customers this may mean a monthly bill etc but the
 success or otherwise of the Ministry to collect revenue will depend on the setting up of the
 customer data base and the billing arrangements.

 When an application is received, it first of all needs an examination to determine if it is within the
 existing Government policies. If it is a brand new technology, this may require the development
 and approval of policies to cover it.

 Following on from the policy examination, there is a technical examination to determine if a
 licence can be issued without causing interference problems to any of the existing licences. It is
 good practice for a second technical officer to verify the technical work. Mistakes in the
 technical content on licence can be very expensive for the user and for the Ministry. It is
 therefore a good practice to ensure quality assurance through independent verification.

 Finally, after a successful policy determination and a verified technical examination the licence
 can be authorised for issue.

 In cases like VHF Maritime where there are no new frequency assignments involved the
 technical examination is restricted to ensuring the apparatus proposed is appropriate

 In cases where a new frequency assignment is involved this can involve many engineering
 studies to minimize interference and to meet the communications requirements of the applicant.


 Minimum Fee Levels

 Taking the above into account it is estimated that even with a simple licence application there is
 a need to ensure the data entry is right and items like the correct customer billing code is used.
 It must be noted that the correctness of the data base is essential for the application of modern
 spectrum management software and strict processes should be followed even with the simplest
 of licence application or very quickly the data bases will become corrupted and loose their
 usefulness.

Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                           6-10
 For the above reasons a minimum application fee of $5 is proposed. When a licence is
 renewed the data entry should be checked to make sure that it is right and that things like
 change of address are taken into account. Further, during the year a licence receives on going
 protection as it is taken into account with any new frequency assignment being carried out to
 ensure interference is not caused

 There are also a number of ongoing activities. These include station inspections and
 interference resolution. It would appear reasonable therefore that a renewal fee for the simplest
 of licences of $10 be levied. This will be adjustable when the MPTC knows the actual costs and
 number of licences.

 In the case of more complex licences, higher application and renewal fees will be needed to
 meet the costs of this activity.

 Maritime Mobile Service.

 Under the current arrangements there appears as though a separate licence is required for
 each frequency but this serves neither the shipping community nor the Ministry well. Under the
 International Radio Regulations, the frequencies used for ships plying the high seas have been
 established and it does not make sense for shipping to have a separate set of frequencies for
 domestic and international usage as they use the same shore facilities.

 The frequencies used for VHF Maritime services are the same in the Mekong as they are in
 Wellington Harbour in New Zealand. Appendix 18 of the International Radio Regulations
 determines the frequencies. In a similar manner, Appendix 17 identifies the MF/HF frequencies
 used by shipping on the high seas along with the provisions for safety of life at sea in Appendix
 13. Appendix 25 allots these frequencies on a country by country basis but Cambodia appears
 not to have any allotments within this framework. Cambodia should urgently apply the relevant
 provisions and obtain national allotments for this service.

 Apart from these internationally allocated frequencies, some companies have their own
 company HF networks, which can include ships. Where this occurs it is suggested that while
 the records of the ship station will include the extra frequencies that no extra licence fee be
 levied. Instead, there needs to be a reasonable levy on private coast stations.

 In practice, the licence for a ship should be one document and contain all apparatus in use
 including radar and Inmarsat terminals. The itemized bill approach is easier to collect than
 multiple bills to the same ship.

 In the simplest case, a ship will have a VHF radio only and for this it should attract the minimum
 fee established above of $5 for the application and $10 for the renewal.

 The next level of complexity is where the ship has also MF/HF capability. In this case there is
 extra work involved checking the international arrangements and even possible the need for
 coordination with neighbouring states. As this ship uses individual frequency assignments, it
 has to be taken into account in the ongoing spectrum engineering. It will also attract some radio
 inspections. For the above reasons an application fee of $25 is proposed and an annual
 renewal fee of $100.

 In the case of Ocean going Cambodian Registered vessels the Ministry has the responsibility to
 ensure that the vessel meets all the international requirements under the International Radio
 Regulations and the Safety of Life at Sea (SOLASP) Convention. For this reason, it is proposed
 that an application fee of $100 would be appropriate and an annual renewal fee on $200.

 The minimum fee levy will need to apply to ship borne radars and to maritime beacons should
 they be used.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                     6-11
 Turning to the Coast stations, in the simplest form, the VHF coast station requires a detailed
 examination of its proximity to other stations to avoid mutual interference and therefore an
 application fee $25 representing up to 40 hours of work is recommended.

 Interference can be caused by a number of things like arcing electrical connections to
 commercial equipment like plastic welders that use radio frequency energy. Protection of the
 frequencies in the ongoing frequency assignment process and the speedy resolution of
 interference if it occurs is necessary and an annual renewal fee of $75, are proposed to reflect
 this commitment.

 In the case of MF/HF coast stations there are a number of ongoing international obligations like
 the ITU service documentations as well as spectrum management commitments like the
 resolution of interference into non radio devices like audio equipment that require good initial
 spectrum engineering and a considerable ongoing work load. The proposed application fee of
 $100 reflects this as does the $200 annual renewal fee.

 Aeronautical Mobile Services

 It does not appear as though the aeronautical service is licensed, at the moment, but it is
 essential that they are captured within the Ministry data base and taken into account in the
 technical examination for new frequency assignments to avoid interference to vital safety of life
 services.

 In the simplest case, a light aircraft will be minimally equipped and therefore should attract the
 minimum fee. Commercial aircraft though require some days of work to ensure compliance with
 international requirements so a fee representing up to 40 hours of work is reasonable.
 Commercial aircraft often have company frequencies that require protection hence an annual
 renewal fee of $100 is proposed.

 There is also a need to consider the ground infrastructure. In the simplest case, the VHF
 air/ground station needs some spectrum engineering to ensure it does not case interference
 into adjacent frequency users and likewise does not receive interference. The location and
 accuracy of grid reference needs checking. The work requirement is similar to a VHF Coast
 Station and therefore it is proposed that the charges be the same.

 The same parallel exists between an HF aeronautical station and its maritime equivalent and
 therefore the charges have been aligned.

 In order to control aircraft during the take off and landing phases there are a number of
 aeronautical navigation stations, which include vertical makers, and ILS transmitters. These
 need special consideration and some ongoing protection. For example FM stations near 108
 MHz can affect the ILS reception in aircraft on approach and have a number of limitations on
 them under Annex 10 of the ICAO Chicago Convention. For this reason an application fee of
 $25 is proposed and an annual renewal fee of $100.

 Aeronautical beacons like non-directional MF beacons require little work and the minimum fee is
 proposed ($5 and $10 respectively).

 Ground based aeronautical radar requires a large amount of initial site consideration as they are
 so high power but after the original work there is very little ongoing work needed. For this
 reason an application fee of $100 is proposed and the minimum renewal fee.

 Land Mobile Services other the Cellular Radio.

 There are two general types of land mobile service. Simplex service use the same frequency to
 transmit and receive on while duplex services use a transmit frequency and a receive
 frequency. In the case of simplex services frequency assignment can be made so that the
 apparatus can be used anywhere n the country or they can be restricted to a geographical area
 like a Province.


Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                     6-12
 There is a lot more work in nationwide assignments and this needs to be reflected in the
 charges. The simplest mobile is the handheld unit. These are by nature power limited.

 Good spectrum planning would ensure that there is channelling plans for all bands as well as
 usage plans with some frequencies reserved for nation wide applications and other restricted to
 an area or service. In some cases, exclusive use in an area is required for example in crane
 control where a crane is being directed from the ground below. In other cases, sharing is
 acceptable especially if it can be between geographical areas.

 The degree of channel planning in Cambodia is not known. The Ministry is urged to draw up
 plans and seek public input into this process. The final plans should be a public document. In
 the absence of such information simplex land mobile is split into nationwide and provincial.

 A provincial area limited handheld unit should attract the minimum fees. While a provincial
 limited mobile unit should also attract the minimum application fee it is often of much higher
 power than a handheld unit and can cause interference that because of its mobile nature is
 difficult to resolve. For this reason, the annual renewal fee is proposed to be twice the handheld
 fee.

 For the privilege of being able to operate anywhere in the country and use the relatively scarce
 number of nationwide channels a doubling of the provincial fee is proposed.

 Simplex base stations require more work than the mobile stations as they require checking on
 the locations etc and therefore a fee of twice the handheld fee is proposed.

 The other form of land mobile is duplex where a high repeater is used. In the experience of the
 Consultant, one high repeater can service some 30-50 mobile units with a reasonable grade of
 service. The spectrum engineering is a lot more difficult as the repeaters tend to be on high
 sites and have the ability to cause interference over large distances.

 The spectrum engineering can also require field measurement work, so an application fee of
 $200 is proposed. The best way to approach these networks is to include the mobiles as
 mobile can be added without any new frequency assignment. A renewal fee is, therefore
 proposed based on 30 mobiles at the minimum fee or $300.

 Paging.

 There two basic types of paging: wide area paging and local area. Wide area of paging
 requires a frequency to be reserved across the country. Paging receivers are not very sensitive
 and reasonably high powered base stations are often used. For this reason, even if a national
 frequency plan is adopted, the location of the base stations can be critical. An application fee of
 $200 is proposed for the network but additional stations in the network would not be charged for
 as no new frequency is required. The minimum renewal fee is proposed to apply to all
 individual stations in the network.

 Local area paging is normally achieved by a single moderately powered transmitter and
 requires a similar amount of work as a simplex base station, so it is proposed to charge then at
 the same rate.

 Cellular Radio

 As has been detailed elsewhere cellular radio is best served by allocating bands of frequencies
 rather than individual station licensing. A price per MHz of allocated band is the recommended
 approach. This price is best settled using a market based approach. Even though the
 companies have access to a band of frequencies their individual stations should be included in
 the data base for spectrum engineering and interference resolution.

 It is, therefore proposed that each cell site be notified once a year so that the changes can be
 recorded at a cost of $5 per cell site. Alternatively, licence renewal could happen every 10
 years with a cost of $500 per cell site.

Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                      6-13
 Fixed Services

 The current way in which fixed services are charged is very complicated and hard to police.

 It is recommended that the whole process be simplified; there are three cases: fixed services
 point to point below 1 GHz , point to point above 1 GHz and point to multi point networks. Point
 to multipoint networks are increasing being used for the reticulation of broadband services.

 Point to Point fixed services generally require well established spectrum band plans to be
 successful and often are part of large networks. The time and expertise required to develop
 and maintain the spectrum band plans should be met from the annual renewal fees. Some
 fixed services are shared with other types of radio-communications services and require careful
 engineering.

 Unlike other services, detailed path calculations are often necessary requiring path profiles and
 other map work. Therefore, an application fee representing 40 hours work is appropriate. The
 Planner must take into account existing fixed services when new assignments are being carried
 out especially on common high sites where there may be a number of operators.

 Fixed services below 1 GHz tend to have a homogenous bandwidth within the same frequency
 band, fixed links above 1 GHz can have a family of bandwidths within the same band. Further
 fixed services above 1 GHz can be expected to share with the fixed satellite service. For this
 reason an annual renewal fee of $50 for fixed services below 1 GHz is suggested while above
 1 GHz renewal fee of $100 would be needed to meet costs.

 Point to Multipoint services, are similar in nature to duplex land mobile services and it is
 proposed to levy the same charges. In the future there maybe a different approach taken for Wi
 Max type networks similar to that taken for cellular radio.


 Broadcasting Services

 MF AM Radio

 It is noted that either Cambodia has no entries in the MF Broadcasting Plan for the Region so
 there are no MF/AM stations or they are in derogation of the ITU Radio Regulations. At the time
 of writing there is little knowledge about what existing stations there are. A table of fees has
 been proposed and may be relevant.

 TV and FM Radio .

 There is a need to have a number of licence categories based on power. There is a lot of work
 involved in the assigning of frequencies to high power stations including coordination with
 neighbouring countries. As the number of networks increase, so the complexity of the
 assignments will increase along with the need for field measurement. A table of charges has
 been proposed that will meet the costs of this commitment. Until the numbers of stations in
 each power category are known these tables cannot be finalized., .

 Satellite Services

 There are a number of different types of satellite service ranging from a mobile satellite terminal
 like an Inmarsat terminal to major teleports. There are also a number of receive only
 applications. Unless required for other reasons receive only stations should be free of charge
 but receive no protection from interference. If users seek protection, like television satellite
 feeds at TV studios for example, receive only applications should be entered into the frequency
 register and be taken into account during the assignment of new frequencies for the minimum
 fee. As there is little ongoing work required a small renewal fee should also be levied.



Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                      6-14
 For the mobile satellite terminal like Inmarsat there is no frequency assignment action so the
 minimum application fee should apply. It is noted that the existing fees for this activity are very
 high and the reason is not clear. If it is because the Ministry is acting as the Inmarsat agent
 then this should be a separate activity for spectrum licensing. In this case they should consider
 issuing a free class licence and bring the Inmarsat under the Telecom wing rather than
 spectrum management.

 MPTC now charges VSAT voice and data services a monthly tax of $2000 and an annual
 licence fee of $4000.

 Special events occasionally require a temporary satellite link for television coverage. These are
 often needed in a short time frame hence a high application fee is proposed as other work will
 be displaced.. A relatively high one month licence fee is also proposed to ensure that this is not
 used on an ongoing basis.

 A major teleport often need a large amount of engineering and could need external engineering
 expertise brought in. High charges are proposed to reflect this.

 Amateur Radio

 It is not clear what the requirements are for an amateur radio operator. Under Article 25 of the
 International Radio regulations Cambodia is required to ensure the qualifications of any person
 holding an amateur radio licence. There does not appear to be any provision for such
 examinations under the existing fee schedule.

 It is not clear if the application fee covers this cost but there is sufficient for it to do so. The
 ongoing fee of $25 is reasonable as it covers the resolution of any interference that may be
 caused by the Amateur station.

 Meteorological Aids.

 Modern meteorology uses a number of radio devices to assess the climate and assist in the
 forecasting process. In the simplest for these can be weather balloons, meteorological satellite
 monitors, weather radars etc. These services require adequate protection and need to be taken
 into account in the national frequency planning. They also need to be taken into account
 whenever a new assignment is made. For this reason an application fee equivalent to two
 technical man days is proposed. There is a measure of ongoing work required to ensure
 continued protection hence the minimum renewal fee is recommended.


 Table of Fees

 Based on the above, the fees set out in the schedule to the draft regulation are appropriate.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                       6-15
 Appendix 8: Proposed Frequency Spectrum Regulation

                          [NB. Further Revisions to this Draft are Being Considered]




                              THE KINGDOM OF CAMBODIA

      RADIO-FREQUENCY SPECTRUM ADMINISTRATION REGULATION

 PART 1 - PRELIMINARY

 The Minister of Posts and Telecommunications having seen:
 -       The Constitution of Cambodia,
 -       The Decree No NS RKT 1198 72 dated 30 November 1998 on the formation of the
         Government of Cambodia,
 -       The Decree No 02.NS.94 dated 20 July 1994 on the establishment an conduct of the
         Council of Ministers,
 -       The Decree No NS RKM 0196-20 dated 24 January 1996 on the establishment of the
         Ministry of Posts and Telecommunications,
 -       The Sub-decree No 66 GNRKBK dated 22 October 1997 on the organisation and
         conduct of the Ministry of Pasts and Telecommunications,
 -       The resolution No 154 SSR dated 11 December 1991 by the Council of Ministers on the
         tariffs,
 -       The recommendation by the ministry of Finance, letter No 1300 shv dated 3 April 2002,
 -       The Law on Telecommunication dated             /   / 2008.

 Decides:


 1.      Short title and Commencement

         (1)     These Regulations may be cited as the Radio Frequency Spectrum Regulations,
         (2)     These Regulations come into operation on           /   / 2007.


 2.      Objectives

         In respect of the administration of the system of Radio Frequency Spectrum and the setting
         of fees and charges for the use of spectrum, to make provision for a clear and consistent set
         of principles to govern the activities of the Telecommunication Regulator of Cambodia
         (hereinafter referred to as “TRC”) under Chapter 13 of the Law on Telecommunication and
         thereby:
         (1)     Establish the rights and obligations of licensed users of radio frequency
                 spectrum in Cambodia.
         (2)     Provide for a system of transparent and non-discriminatory allocation of
                 radio frequency spectrum.
         (3)     Provide for an efficient and public method of collecting and storing data on
                 the licenses issued to use radio frequency spectrum and for the spectrum
                 currently in use.


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         (4)     Define the terms and conditions for the payment of fees and charges for the
                 use of Radio Frequency Spectrum by licensed operators in Cambodia,
         (5)     Establish a High Level Council (hereafter referred to as the Council) to
                 assist the regulator with the Implementation of the policy of the Royal
                 Government of Cambodia (hereinafter referred to as the RGC) with respect
                 to Radio Frequency Spectrum Management, the composition and terms of
                 the Council to be decided by TRC.
         (6)     Promote the Establishment of a users' forum or association to provide
                 advice to the Regulator on matters related to radio frequency spectrum.


 3.      Definitions

         In these regulations, words and phrases will have the meaning defined in Article 1 of the
         International Radio Regulations being Regulations made under the Convention and
         Constitution of the International Telecommunications Union and Article 6 of the
         Telecommunications Law, except as provided for in this Article or unless the context
         indicates otherwise:


 PART II - ADMINISTRATION

 4.      Role of the Regulator in respect of Radio Frequency Spectrum

 (1)     The Administration of this Regulation shall be by the Telecommunications Regulator of
         Cambodia (TRC).
 (2)     In accordance with Article 72 of the Telecommunications Law, the Regulator shall be the
         sole Authority to Issue Licences for use of the radio frequency spectrum.
 (3)     The regulator shall ensure that all the detailed information contained in each licence shall be
         entered into a database known as the National Frequency Register, which shall be
         available as a public document.
 (4)     The Regulator shall authorise the Specialised Agencies (for broadcasting, civil aviation and
         maritime trade) to issue licences within the area of their mandate.
 (5)     The Regulator shall also authorize the other Government Agencies responsible the security
         of the Nation and law and order to manage use of spectrum within bands of frequencies,
         allocated to them for this purpose.
 (6)     The authorisation described in paragraph (4) shall require the Specialised Agency to
         provide the Regulator with the details of each licence issued and the Regulator shall add
         these details to the National Frequency Register.
 (7)     The Regulator shall be responsible for:
         (a)     the Regulator shall consolidate current spectrum allocation and licensing
                 arrangements into the single transparent and objective set of criteria.
         (b)     the management of the system of allocation and registration of spectrum
                 licences,
         (c)     the creation and operation of the National Frequency Register for recording and
                 publishing the licenses issued,
         (d)     creation and maintenance within the National Frequency Register of an
                 accurate list of the licensees authorised to use the spectrum, and the technical
                 data relating to the use of that licence,
         (e)     determining all technical matters in relation to that licence required for the
                 prevention of interference between licensed transmitters, and
         (f)     the invoicing and collection of fees required from licensed operators.



Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                          6-17
 5.      Radio Inspectors and authorised officers

         The Regulator may appoint persons to be:-
         (a)     Radio Inspectors for the purpose of inspecting and examining apparatus that is
                 part of a station and documents relating to any such apparatus; and
         (b)     authorised officers for the purposes of these Regulations.


 6.      Functions of Radio Inspectors

 (1)     In addition to their other powers and functions under these Regulations, a Radio
         Inspector may enter and inspect any station, vessel, aircraft, vehicle, premises or place
         in which any apparatus is installed or is being installed, and any thing in or on it, and
         may:-
         (a)     test the apparatus; and
         (b)     examine and take copies of extracts from any documents, messages or
                 registers relating to the apparatus.
 (2)     The owner, licensee or person in charge of the station, vessel, aircraft, vehicle, premises or
         place must afford a Radio Inspector all necessary facilities for a test examination under
         subregulation (1).
 (3)     If, in the opinion of a Radio Inspector, a breach of these Regulations has been committed in
         respect of the installation or operation of any apparatus, the Inspector may:-
         (a)     order the owner, licensee, operator or person in charge of the apparatus to
                 cease the operation of or to dismantle to the satisfaction of the Inspector, the
                 apparatus; and
         (b)     if he thinks it necessary:-
                 (i)       take possession of the apparatus; or
                 (ii)      make it incapable of operation.
 (4)     A person aggrieved by an order of a Radio Inspector under subregulation (3) may
         appeal to the Regulator
 (5)     A person who appeals under subregulation (4) may further appeal to a Court if such
         person is not satisfied with the decision of the Regulator
 (6)     Subject to subregulation (4), an order under subregulation (3) remains in force until
         countermanded by the Regulator or the appropriate court as the case may be.


 PART III - LICENSING

 7.      Application of Part III

         Except as otherwise provided by the Act or these Regulations, but subject to any other
         law, or International Agreement, this Part applies to and in respect of all stations in
         Kingdom of Cambodia including all stations on ships or aircraft registered in Cambodia.


 8.      Forms and Classes of licences

 (1)     The licences shall be in such forms as are approved by the Regulator acting after
         consultation with the appropriate specialised agency, in respect of the classes of
         stations specified in Schedule 1.




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 (2)     The licences referred to in subregulation (1) may be granted by the Regulator acting
         after consultation with the Specialised Agency. The Specialised Agency may also be
         empowered to issue such licences under agreement with the Regulator
 (3)     Special licences shall be in such forms as are approved by the Regulator, acting after
         consultation with the Council, in respect of:-
         (a)     stations of a class not specified in Schedule 1; or
         (b)     stations in respect of which, in the opinion of the Regulator, a licence to which
                 subregulation (1) applies would not be appropriate.
 (4)     Special licences referred to in subregulation (3), may be granted by the Regulator
         acting after consultation with the Council.
 (5)     A licence shall specify the premises, ship, aircraft or vehicle and the apparatus, to
         which it relates.


 9.      Period of licence

         A licence remains in force for normally for one year but where appropriate can be
         issued for period, not exceeding five years. The period of validity of the licence shall be
         specified in the licence. Licences may be renewed by the Regulator, acting after
         consultation with the appropriate specialised agency or Council, from time to time for
         periods each not exceeding the original period of validity


 10.     Licence fees

 (1)     The fees payable for the issue or renewal of a licence (other than a special licence) are
         in accordance with Schedule 1.
 (2)     The fee payable for a special licence is as determined by the Regulator after
         consultation with the Council..
 (3)     A fee is not payable for the issue or renewal of a licence for a station working solely into
         the radio-communication system operated by or on behalf of the Government.


 11.     Permits

 (1)     Where the Regulator is satisfied that a station or apparatus is to be used for a period
         less than one calendar year only, the Regulator may issue a permit, authorising the use
         of the station or apparatus for a period specified in the permit.
 (2)     A permit shall be issued a fee calculated on a pro rata basis from the equivalent fee in
         Schedule 1.
 (3)     The provisions of these Regulations relating to licences apply to and in respect of
         permits.


 12.     Applications for licences and permits

         An application for a licence or a permit shall:-
         (a)     be in a form approved by the Regulator; and
         (b)     contain the information and particulars specified in the form, or as are required
                 in any particular case by the Regulator




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         (c)       pay the application fee as detailed in Schedule 1. The application fee for a
                   permit is the same as would be payable for a licence for the same class of
                   station


 13.     Conditions of licences

         A licence is subject to these Regulations and the prescribed terms, conditions and
         restrictions, and to such other terms, conditions and restrictions as the Regulator may
         include in the licence.


 14.     Lost, etc., licences

         Where the Regulator is satisfied that a licence has been lost, destroyed or defaced, the
         Regulator, may issue a replacement licence or permit on payment of a fee of $5


 15.     Variation of conditions of licences

         The Regulator, may at any time, in his discretion, by written notice to the licensee, vary
         the conditions of a licence, or impose conditions or additional conditions.


 16.     Non responsibility for bodily injury or damage to property

         The Kingdom, the Minister, the Regulator, a radio inspector, any other authorised officer
         or any other person exercising or performing powers or functions under these
         Regulations shall not be liable in respect of any action, claim, or demand that may be
         brought or made by any person in respect of any bodily injury or damage to property or
         any other circumstances arising from any act permitted by a licence issued under these
         Regulations.


 17.     Stand-by apparatus

         A licensee may keep stand-by apparatus approved in writing by the Regulator, for use
         during any period during which the apparatus which the subject of his licence is out of
         operation for maintenance or adjustment, and may use it during any such period.


 18.     Suspension or revocation of licences

 (1)     Where:-
         (a)       the licensee fails to comply with these Regulations, or with a term or condition
                   of their licence; or
         (b)       the Regulator, considers that it would be in the public interest to do so, the
                   Regulator may, by written notice to the licensee, suspend for a period specified
                   in the notice, or revoke, a licence.
 (2)     Before suspending or revoking a licence the Regulator shall:-
         (a)       give notice of its intention to do so to the licensee; and
         (b)       give the licensee an opportunity to make such written representations as it
                   thinks fit within such period as is specified in the notice.
 (3)     The period of the licence continues to run during a period of suspension.


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 19.     Assignment of licence

         Except with the written consent of the Regulator, a licensee shall not transfer their
         licence or assign, sublet or otherwise dispose of, or admit any other person to
         participate in, any of  the benefits of his licence or the powers or authorities granted
         by his licence.


 20.     Refusal of licence

         The Regulator, acting after consultation with the appropriate specialist agency or the
         Council, may in writing refuse to grant or renew a licence.


 21.     Form of licences

         A licence shall be in the form of a document or a label or both, as determined by the
         Regulator


 22.     Exhibition and inspection of licences.

 (1)     Except in the case of a licence to which subregulation (3) applies, a licensee must
         clearly exhibit their licence at all times in the room or place where the apparatus the
         subject of the licence is situated.
 (2)     In the case of a licence in the form of a label, the licence must be kept affixed at all
         times to part of the apparatus the subject of the licence.
 (3)     In the case of:-
         (a)     an aircraft station licence; or
         (b)     a handphone station licence; or
         (c)     a harbour mobile station licence; or
         (d)     an interior paging service licence; or
         (e)     a land mobile station licence; or
         (f)     a radio-determination station licence;
         the licensee must make his licence available for inspection at all reasonable times on
         demand by a Radio Inspector.


 23.     Use of authorised stations

 (1)     A licence shall indicate the purpose for which or the service in which the authorised
         station may be used, and the licensee, without the written consent of the Regulator,
         must not use the authorised station, or allow it to be used, for any other purpose or in
         any other service.
 (2)     Except with the written consent of the Regulator, a licensee must not alter, modify or re-
         position the authorised station in respect of any matter specified in the licence.
 (3)     Any person who contravenes this Regulation is guilty of an offence.


 24.     Operators



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 (1)     Except as otherwise provided by or under these Regulations, or in case of emergency
         involving safety of life or property, the owner, licensee or person in charge of an
         authorised station must not allow any apparatus in or on it to be operated by any person
         other than the holder of the appropriate certificate.
 (2)     Any person who contravenes this Regulation is guilty of an offence.
 (3)     For the purpose of subregulation (1), the Regulator in consultation with the relevant
         Specialised Agency, shall determine what is the appropriate certificate in relation to
         each class of licence. For some classes of licence the Regulator can determine that no
         operator certificate is needed and these will be published.


 25.     Request for assistance, etc

         As far as practicable, the licensee and all persons employed in or about an authorised
         station must acknowledge any emergency transmission seeking help and pass on to
         the appropriate authority with the least possible delay.


 26.     Privacy of communications

         Except as required or permitted by or under any law, a licensee, operator or any other
         person who, by virtue of his connection with a station or with any apparatus has access
         to messages passed by radio-communications and not intended for his action,
         information or use, discloses communicates, records or makes use in any way of any
         such message or the information contained in any such message is guilty of an offence.


 27.     Improper signalling, etc

 (1)     A person, by the use of a station, must not:-
         (a)     impersonate another person or other station; or
         (b)     use the call-sign of another station,
 (2)     A person must not transmit, or make a signal containing, any profane or obscene
         language.
 (3)     The owner, licensee, person in charge or operator of a station must not knowingly
         transmit or cause or allow to be transmitted any message of a false or misleading
         character.
 (4)     A person must not transmit or cause or allow to be transmitted a false or deceptive
         distress signal or call.


 28.     Standards for and approval of apparatus

 (1)     The Regulator, may in writing from time to time fix minimum requirements and
         performance standards to be met by apparatus for use in or in connection with
         authorised stations.
 (2)     In determining performance standards the Regulator may apply or adopt with or without
         modifications   any    existing  international  standard   including    International
         Telecommunications Union (ITU) standards.
 (3)     An apparatus deemed by the Regulator to meet the appropriate standard shall receive
         a certificate if compliance. All apparatus of the same type are considered to come
         under the same certificate of compliance. The Regulator shall publish quarterly a list of
         approved apparatus and certificates of compliance that have been issued


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 (4)     A testing laboratory may apply to the Regulator for accreditation as a testing laboratory.
         Test results from a laboratory accredited by the Regulator will normally be sufficient in
         proof of compliance with the required standard. The application fee for accreditation as
         a laboratory is US$100. The certificate of accreditation has validity for a period of 5
         years from the date of issue.
 (5)     Apparatus having a test certificate from a Laboratory accredited under sub section 3
         above can be submitted for a certificate of compliance. The fee for the certificate is
         US$50
 (6)     Apparatus that holds testing a certificate of compliance from any ASEAN Member
         Nation can be submitted for approval. The Fee for the issue of a certificate of
         compliance is US$50
 (7)     The Regulator, acting after consultation a specialised agency or the Council, may
         declare any apparatus to be approved apparatus for the purposes of these Regulations.
 (8)     Any person who contravenes any provisions of this Regulation is guilty of an offence.


 29.     Installation and Modification of Apparatus

 (1)     Except in the case of an amateur station, only approved apparatus may be used in
         connection with the station, and the apparatus shall:-
         (a)     be installed and maintained to the satisfaction of the Regulator; and
         (b)     not be altered in anyway without the consent of the Regulator and subject to
                 such conditions as the Regulator thinks proper.
 (2)     All apparatus must operate within the ranges of tolerances required by the licence and
         its associated standard.
 (3)     Any person who contravenes any provisions of this Regulation is guilty of an offence.


 30.     Call-signs

         The Regulator, shall allot call-signs in accordance with Article 19 of the International
         Radio Regulations.


 31.     Stations causing interference

 (1)     The licensee of an authorised station must”-
         (a)     operate the station in such a manner as not to cause harmful interference to
                 other stations; and
         (b)     comply with any direction of the Regulator in that regard.
 (2)     The licensee, owner or the person in charge of an authorised station who contravenes
         this Regulation is guilty of an offence.
 (3)     An offence against subregulation (1) is not committed if the harmful interference is due,
         in the opinion of a Radio Inspector, to deficiency as regards design, maintenance or
         operation in the affected receiving station.


 32.     Testing and adjustment.

 (1)     No tests or adjustments of any station or apparatus shall be carried out or made except
         under and in accordance with a licence issued under these Regulations and shall be
         made in such a way as not to cause harmful interference to other stations.

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 (2)     Test and adjustment signals shall be of such a character as not to be confused with a
         message, abbreviation or other signal having special signification in any radio-
         communication system.
 (3)     The owner, the person in charge and the operator who contravenes this regulation is
         guilty of an offence.


 33.     Assignment of frequencies

 (1)     The frequency or frequencies on which each authorised station may operate are as
         determined in writing by the Regulator acting after consultation with the appropriate
         specialised agency. During the operation of the transmitting equipment of the
         authorised station the licensee must maintain the frequency or those frequencies to the
         frequency stability limits specified by the Regulator
 (2)     The same frequency may be assigned to two or more transmitting stations.


 PART IV– RADIO DEALERS

 34.     Radio dealers’ licences

 (1)     A radio dealer’s licence authorises the licensee to deal in or let or hire or loan, or to
         demonstrate, apparatus, or to repair or adjust apparatus for classes of licences
         determined by the Regulator in consultation with the Council. .
 (2)     A limited radio dealer’s licence authorises the licensee to deal in or let or hire or loan, or
         to demonstrate, apparatus. for classes of licences determined by the Regulator in
         consultation with the Council. .


 35.     Exhibition of licence, etc

         The holder of a radio dealer’s licence must exhibit:-
         (a)     in a prominent position on the front of his place of business a sign bearing the
                 words “Licensed Radio Dealer” or “Licensed Limited Radio Dealer”, as the case
                 may be; and
         (b)     his licence in a prominent position inside his place of business.


 36.     Records of dealings

 (1)     Subject to subregulation (2), the holder of a radio dealer’s licence must keep at his
         place of business a record of:-
         (a)     all sales, hirings, loans and other dealings of or with apparatus; and
         (b)     the date of the dealing; and
         (c)     details of the apparatus; and
         (d)     the name and address of the other party.
 (2)     The record under subregulation (1) must be kept until the end of the calendar year
         following the date of the dealing.
 (3)     Any person who contravenes this Regulation is guilty of an offence.


 37.     The Regulator may exempt the need for a dealers licence

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         The Regulator may decide that a dealers licence is not need for sale of certain classes
         of apparatus. A list of exemptions must be published and available.


 38.     Unauthorised dealing with apparatus that requires a Dealers
         Licence

         A person other than the holder of a radio dealer’s licence must not sell or otherwise
         dispose of any apparatus that requires a dealers licence without the prior approval in
         writing of the Regulator


 PART V– CERTIFICATES OF PROFICIENCY AND EXAMINATIONS

 39.     Classes of Certificates of proficiency

         The Specialised agencies shall ensure that all operators under their jurisdiction have
         the appropriate qualifications as required by the International Radio regulations. The
         Regulator shall be responsible for Amateur Operators Certificate of Proficiency as
         required under the International Radio regulations.


 PART VI - MISCELLANEOUS

 40.     Application of the International Telecommunication Convention, etc

 (1)     Subject to the Act and these Regulations, the provisions of the Constitution and
         Convention and the Radio Regulations of the International Telecommunication Union
         apply to and in relation to all stations, as if enacted in these Regulations.
 (2)     The Regulator will be responsible for providing all returns and information required by
         the International Telecommunication Union and its agencies.


 41.     Indemnity

         The Minister, the Regulator, a Radio Inspector or any authorised officer, or any other
         person exercising or performing powers or functions under these Regulations is not
         responsible for any act or omission done bona fide and without negligence under or for
         the purposes of these Regulations.


 42.     Obstruction

 (1)     A person must not hinder or obstruct any person in the exercise of his powers or the
         performance of his functions under these Regulations.
 (2)     Any person who contravenes this Regulation is guilty of an offence.


 43.     False statements

         A person who makes any false statement for any of these Regulations is guilty of an
         offence and shall be liable on conviction to imprisonment for a term not exceeding 2
         months or a    fine not exceeding $200.



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 44.     Failure to comply with directions

         Person who falls to comply with any order, requirement or directive given under these
         Regulations is guilty of an offence and shall be liable on conviction to imprisonment for
         a term not exceeding 2 months or a fine not exceeding $200.


 45.     Operating without certificate

         A person who operates any apparatus for which a Certificate of Proficiency is required
         under these Regulations without having the appropriate certificate is guilty of an offence
         and shall be liable on conviction to imprisonment for a term not exceeding 2 months or
         a fine not exceeding $200.


 46.     General penalty

 (1)     A person who contravenes or fails to comply with any provision of these Regulations or
         in the case of the holder of a licence or the owner, operator or person in charge of an
         authorised station, the conditions of the licence, is guilty of an offence and shall be
         liable on conviction to imprisonment for a term not exceeding 2 months or a fine not
         exceeding $200, and in the case of a continuing offence, a further fine not exceeding
         $10 for each day during which the offence continues.
 (2)     Where the owner or importer of any apparatus or the holder of a licence in respect of
         any apparatus contravenes or fails to comply with any provision of these Regulations,
         or of the licence, in relation to the apparatus, the court that convicts him, in addition to
         or in substitution for any other penalty, may order that the apparatus be forfeited to the
         Kingdom.
 (3)     Apparatus forfeited under subregulation (2) may be seized by an authorised officer and
         disposed of or otherwise dealt with as determined by the Regulator.


                                         SCHEDULE 1

         (CLASSES OF LICENCE AND FEES PAYABLE FOR LICENCES

                                           Table of Fees
 The following is the schedule of fees for use of Radio Frequency Spectrum:

                  Service                      Application Fee US$            Annual Fee US$

  Maritime Mobile

  Ship Station
  VHF Only                                                5                           10
  MF/HF/VHF                                              25                          100
  Ocean Going                                           100                          200

  VHF Coast Station                                     25                           75
  Full Coast Station                                    100                          200

  Ship borne radars                                       5                           10

  Maritime Beacons                                        5                           10

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                     Service                   Application Fee US$           Annual Fee US$

  Aeronautical Mobile

  Light Aircraft                                        5                           10
  Aircraft Station                                      25                          100

  VHF Aeronautical station                              25                          75

  HF Aeronautical station                               100                         200

  Aeronautical Navigation stations                       5                          10

  Aeronautical beacons                                   5                          10

  Aeronautical Radar                                    100                         10

  Land Mobile

  Nationwide Simplex

  Hand held                                             10                          20
  Mobile                                                10                          50

  Provincial simplex
  Handheld                                               5                          10
  Mobile                                                 5                          20

  Simplex Base station                                  10                          20

  Duplex Base station (Includes Mobiles)                200                         300

  Wide area single frequency Paging                     200                    10 per station

  Local area paging                                     50                          20



  Cellular

  Assigned bandwidth below 1 GHz                 $1 million /MHz            10 per base station
                                                    assigned
  Assigned bandwidth above 1 GHz                $0.75 million /MHz          10 per base station

  Wide Area Broadband

  Wireless Broadband                              $200,000 /MHz             10 per base station

  Individual base                                       200                         300

  Point to Point Fixed Services

  Below 1 GHz                                           50                          20

  Above 1 GHz                                           50                          100



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                  Service                      Application Fee US$           Annual Fee US$
  Point to Multipoint

  Per network                                           200                         300




  Broadcasting

  MF/HF AM Radio in Transmitter
  power

  <1 kW                                                 20                          50

  1 kW <10 kW                                           100                         200

  >10 kW                                                400                         500

  FM Radio in maximum eirp

  <1 kW                                                 20                          50

  1 kW <10 kW                                           100                         100


  10 kW <100 kW                                         400                         200

  >or =100 kW                                           600                         500

  VHF Television in maximum eirp

  <10 watts                                             20                          10

  10 <100 watts                                         50                          50

  100 watts< 1 kW                                       100                         50

  1< 10 kW                                              200                         100

  10<100kW                                              400                         200

  >or = 100kW                                           600                         500

  UHF Television in maximum eirp

  <10 watts                                             20                          10

  10 <100 watts                                         50                          50

  100 watts< 1 kW                                       100                         50

  1< 50 kW                                              200                         100



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                  Service                      Application Fee US$           Annual Fee US$
  50<300kW                                              400                         200

  >or = 300kW                                           600                         500

  Satellite Services

  Mobile satellite services (Inmarsat)                   5                          200

  Receive Only                                           10                          5

  VSAT voice and data                                    25                         1000

  Temporary TV Relay                                    100                   100 per month.

  Teleport                                              1000                        4000

  Other Services

  Amateur radio                                          15                          25

  Radio Control of models                                5                          10

  Meteorological Aids                                    10                          10


                                           SCHEDULE 2

  FEES PAYABLE IN RESPECT OF EXAMINATION FOR CERTIFICATES OF PROFICIENCY.


 6.1.1 Item                                                                               Fees per
     No:                                 Class of Certificate:                            subject
                                                                                            ($)
       1         Amateur Operator’s Certificate of Proficiency                               15




 Date this …………day of…………………………………….2005.




                                                          ________________________________
                                                                 Minister of Communications



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 Appendix 9: Proposed TOR for additional Technical Assistance

 CAM: IMPLEMETATION OF RADIO FRQUENCY SPECTRUM ALLOCATION AND
 MANAGEMENT REFORMS AND CAPACITY BUILDING

                      TERMS OF REFERENCE FOR CONSULTANT

 A.      Purpose

 1.      The Asian Development Bank has engaged consultants to deliver assistance to the
 Royal Government of Cambodia (RGC) to develop a telecommunications regulatory
 framework that will provide the telecommunications sector of Cambodia with a sound
 foundation for future development. A previous technical assistance 6004-REG delivered a
 draft telecommunications law and policy advice. The RGC anticipates that Cambodia’s
 parliament will agree to a new telecommunications law soon. A further technical assistance
 TA-4830 has provided capacity building to the Ministry of Posts and Telecommunications
 (MPTC), investigated several aspects of its operations in more detail and helped develop a
 business plan to Telecom Cambodia and a sector road map for MPTC.

 2.      A critical finding of the assignment is that the administration of the Radio Frequency
 Spectrum has failed to develop. It is now at a point where it now non-compliant with many
 international obligations in respect of spectrum management and is beginning to threaten
 the economic development of the country, and represents a life threatening hazard in
 Cambodia and for Cambodian vessels on the high seas.                   Accordingly, the Asian
 Development Bank has agreed to provide further assistance to ensure that radio frequency
 spectrum management has improved and can play a positive role in the development of the
 nation.

 B.      Outputs

 3.          The TA has five outputs: (a) a comprehensive Policy Framework, (b) Supporting
 Regulations, (c) Inter-agency agreements on managing spectrum, (d) Regulatory Procedures
 and (e) a comprehensive programme of capacity building, (f) a consensus building plan and a
 decision making tree and timetable.

 C.      Findings of TA-4830

 4.   The Conclusion of TA-4830 is that there are four major problems stopping
 Cambodia achieve excellence is spectrum management.

         •   complete lack of overall policy and objectives,

         •   lack of transparency and accountability,

         •   MPTC only administers about 10% of the spectrum usage, and

         •   MPTC’s people need capacity building in many of the policy and technical areas.

 5.      RFS Regulation and management will not serve its purposes unless the regulator
 has a policy framework in which to operate. The RGC and many of its advisers, fail to note
 that over time the RFS staffing and work commitment will be much bigger than the Telecom
 Regulatory function. This could undermine the entire process of developing the nation’s
 regulatory framework. .

 6.      The MPTC needs additional Capacity Building to address spectrum policy matters
 and ensure that its staff is properly trained and equipped to carry out their functions in
 respect of:

         •   ITU Radio Regulations,

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         •   spectrum Choices for Cambodia

         •   use of the spectrum to meet government objectives

         •   inter-agency spectrum arrangements

         •   spectrum access policies for bands and frequencies

         •   arrangements for transition to new generation services

         •   International common frequency arrangements.

 7.       When it is constituted under the Telecommunications Law the new regulatory
 authority, the Telecommunications Regulator of Cambodia, will need Capacity Building in
 the following areas:

         •   Physics of Radio Systems
             o    radio wave propagation
             o    radio applications and emission types
             o    interference mechanisms
             o    radio communications hardware

         •   applying the Cambodian Radio Regulations
             o     band planning
             o     frequency engineering and assignment
             o     measures to avoid interference.
             o     licence and data base management
             o     field measurement and interpretation.
             o     monitoring theory and practice

 D.      Scope of Work:

 8.         In Phase One, the Consultant will prepared drafts of the documents containing:
 (a) a comprehensive Policy Framework, (b) Supporting Regulations, (c) Inter-agency
 agreements on managing spectrum, (d) Regulatory Procedures and (e) a comprehensive
 programme of capacity building, (f) a consensus building plan and a decision making tree and
 timetable.

 9.         In Phase Two, the Consultant will engage with the RGC to implement (f), the
 consensus building plan, the decision making tree, define a time-bound action plan for
 implementation of the decisions taken and assist the RGC select a project manager for
 implementation of the plan..

 10.           In Phase three, the Consultant will operate, as the technical adviser to the project
 manager responsible for the implementation of the action plan and at the conclusion of the TA
 will certify whether or not Cambodia is fulfilling its obligations under the international treaties
 and other obligations in respect of frequency spectrum management, which it has signed and
 adopted. In effect the consultant will develop and draft:

         •   a spectrum management policy framework for the allocation and assignment of
             spectrum, arrangements for the use of spectrum by specialised agencies,
             applications to meet special government needs and migration arrangements for
             new technologies.

         •   Draft Radiocommunications Regulations to be used by TRC




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         •     Given that spectrum management is carried out by a number of specialised
               agencies outside of the MPTC draft a framework to formalize these arrangements
               consistent with good spectrum management practice.

         •     Develop a procedures manual for TRC consistent with good international spectrum
               regulatory practice.

         •     Provide Capacity building in spectrum management as follows:

               o    physics of radio systems
               o    radio wave propagation
               o    radio applications and emission types
               o    interference mechanisms
               o    radio communications hardware
               o    Cambodian Radio Regulations
               o    band planning fir the fixed and mobile services
               o    frequency engineering and assignment
               o    measures to avoid interference.
               o    licence and data base management
               o    field measurement and interpretation.
               o    monitoring theory and practice
               o    ITU Radio Regulations
               o    spectrum choices and implications for Cambodia
               o    use of the spectrum to meet government objectives
               o    inter-agency spectrum arrangements
               o    spectrum access policies for bands and frequencies
               o    arrangements for transition to new generation services
               o    international common frequency arrangements.

 E           Reporting and Public Consultation Requirement

 11.         The consultant team will submit the following reports to MPTC and ADB:

 F           Implementation Arrangements

 12.         MPTC will be the Executing Agency. A secretary of state of MPTC, who will be
 responsible for the TA, will set up a subunit staffed with counterpart personnel for day-to-day
 coordination in MPTC and TRC.           The team of counterpart personnel will consist of
 telecommunications engineers, policy planning staff, accounting staff and lawyers. The
 personnel will work with the TA consultant's personnel, as well as other Government agencies,
 private telecommunications companies, and other related parties. Comprehensive training
 programs for MPTC and TRC will be developed and implemented.

 G           Facilities to be provided

 13.         The contribution of the executing agency of the TA will include office
 accommodation and facilities, counterpart staff, data, and other information needed for the TA.
 The office accommodation includes installation of two international and local telephone lines for
 one fax machine and one telephone, three high-speed Internet connections, air conditioners in
 the consultant's office, electricity and water charges, and office rental fee. The telephone and
 Internet user charges will be paid through the consultant fee.

 14.         Equipment to be procured under the TA will that deemed necessary by the
 consultant and will be paid for out of the budget provided without the need for further
 authorisation by anyone other than the secretary of state.




Guinness Gallagher International / David Butcher Associates / Sciaroni Associates                    6-32

								
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