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UK Spectrum Policy Forum - Cluster 3

UK Spectrum Policy Forum - Cluster 3

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UK Spectrum Policy Forum - Cluster 3

  1. 1. Cluster 3 meeting 7th May 2014
  2. 2. Agenda  Introduction (TL)  Terms of reference and links with Clusters 1&2 (TL+SS)  Work plan (TL + RS)  UK Spectrum strategy (TL)  Existing material on social value of spectrum (Discussion)  Next steps (TL)
  3. 3. Terms of reference and links with Clusters 1 and 2 2
  4. 4. Terms of reference  Cluster 3 was established to bring cross-industry insights to develop a common understanding or framework for looking at the value of spectrum to the UK – both social and economic. Its work should consider all uses of spectrum. It should also act as a two way communication channel with the Government’s Expert Panel established by the UK Spectrum strategy ・ To do its work Cluster 3 requires a strong link with Cluster 1 to identify the applications using spectrum and to understand how demand will evolve ・ Cluster 2 will provide input on access mechanism and particularly the role of sharing  As a first step, the Spectrum Forum scoping document requires the Forum to collate existing study data on the economic and social value of spectrum and the evolving demand for spectrum and identify any gaps or shortfalls [by July 2014]  Cluster 3 will develop recommendations for consideration by the Forum on a framework or set of principles for the valuation of spectrum ・ Hopefully in conjunction with the Government’s Expert Panel 3
  5. 5. Framework for use of spectrum  The work of Cluster 3 requires a framework and it is proposed that the framework being used in Cluster 1 should also be used here ・ This will provide consistency across the work of the forum ・ Although it is possible to segment use in a number of different ways what we have captures most applications (is there anything missing?) ・ Some of the data gathered for each of the Cluster 1 review meetings should also be useful for Cluster 3 4
  6. 6. Spectrum Usage Sectors 5 Sector Status in Cluster 1 Utilities  16/9/13 Private Mobile Radio - Business radio - Emergency services  11/12/13 Public (cellular) mobile  26/3/14 11/12/14 Transportation (aviation, road, rail, maritime) 30/9/14 Broadcasting and entertainment (Delivery and content creation)  26/3/14 Fixed broadband Defence 30/9/14 Radio amateurs Industrial, medical, scientific / Short range devices (incl. Wi-Fi) 11/12/14 Space 22/5/14 IoT / M2M
  7. 7. Data being gathered for each sector in Cluster 1 6 Scope of the sector Contributions to social and economic value Current and recent past status Sector trends Usage of technologies and spectrum Expected changes to tech and spectrum Longer-term (10-20 years) tech and spectrum needs and options
  8. 8. Work plan 7
  9. 9. Work plan  Task 1 – organisation (now) ・ TORs and any feedback on the Cluster to go to the plenary  Task 2 (July 2014) ・ Collate existing study data ・ Review material for key issues and data points  Task 3 (on-going) ・ Provide input and support to the Expert Panel  Task 4 (tbd) ・ Any specific study items driven from within the Cluster or by the Forum on the scope and approaches for developing a common set of principles for valuing spectrum 8
  10. 10. UK Spectrum Strategy 9
  11. 11. UK Spectrum strategy  Government’s aim is “to elicit best economic and social value from spectrum”  Spectrum management and efficient allocation/assignment is an important part of the process for achieving optimum economic value ・ This has been looked at on a number of occasions (e.g. Cave)  Government now wants to take social costs and benefits into account in its assessment of value in addition to looking at the economic value it has already considered  It also wants to consider a consistent and transparent set of valuation criteria ・ “consistent valuation criteria that are as general as possible”  Key action is formation of the Expert Panel 10
  12. 12. Ideas in the strategy document © Plum 2014 11 Factors likely to influence “value” Behaviours and constraints on use of spectrum Social, technology, economic and financial factors Legal and technical constraints Dynamic as opposed to static Proposed – well being valuation Agree or not agree with this, thoughts, other ideas?
  13. 13. Existing material 1
  14. 14. Examples of existing material  Cave Reports ・Review of spectrum management (2002) ・Independent audit of spectrum holdings (2005)  Social Market Foundation report Beyond Cave: Addressing the social value and impacts of Private Mobile Radio in an evolving regulatory climate (October 2002)  EUTC report on economic value of spectrum used by utilities (January 2012)  BEREC/RSPG report on exploring the economic and social value of radio spectrum for certain electronic communications services with respect to the frequency assignment procedures (April 2012)  JRC UETC UTC report on socio economic value of spectrum (January 2014) 13 We will do a trawl for more inputs but any inputs from elsewhere welcome Summarise key points on concepts and methodology
  15. 15. LSE seminar on ‘public value’ of spectrum  An informal seminar involving academics and spectrum experts was organised by the LSE Media Policy group earlier this year – discussion conducted under Chatham house rule  3 questions were posed: ・ While market mechanisms should underpin the allocation of spectrum between users and uses, is there an argument for also considering ‘social’ value? ・ If so, how should we apply a value to different spectrum uses that recognise a social/public good value? ・ How to do this consistently – for example, how might we evaluate the use of a band of spectrum for mobile broadband, train communications, emergency services or broadcasting? 14
  16. 16. Key points from discussion  Land analogy is closest (but not perfect) metaphor to spectrum ・ A finite resource like land; spectrum as a publicly owned place in which communication rights are exercised ・ Some parts can be sold to private owners and traded freely, other parts reserved for public use like a park (land zoning)  Not possible or constructive to attempt to attach a ‘value’ to every type of spectrum use; economic efficiency is important goal but not the only goal  Broadcasting case – economic value can be attached to advertising but there are externalities beyond consumer value; auction value ≠ economic impact  Opportunity cost of spectrum; non-spectrum alternatives to delivering services must be considered  There should be more flexibility and tradability of spectrum – e.g. 2-sided auctions to determine allocation and use, rather than regulator determining the use and then holding an auction 15
  17. 17. Open discussion 1
  18. 18. Next steps  Notes of key points from today for feedback to the Forum – 2 weeks  Provide update on the Expert Panel to Cluster 3 and Forum [tbd]  Inputs of existing studies and other material to Chair by end May 2014 ・ When Expert Panel meets make it aware of these  Identify and progress specific topics for Cluster 3 ・ Ideas f

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UK Spectrum Policy Forum - Cluster 3

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