Regulatory and Policy Implications of Advanced …...Advanced Wireless Technologies to Spectrum...

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2002.

Motorola Document Classification, File Name, Rev NumberAdd additional legal text here if required by your local Legal Counsel.

Regulatory and Policy Implications of Regulatory and Policy Implications of Advanced Wireless Technologies to Advanced Wireless Technologies to

Spectrum ManagementSpectrum Management

Bharat BhatiaRegional Government Relations,

ma

Workshop on Radio Spectrum Management for a Converging World Workshop on Radio Spectrum Management for a Converging World February 16February 16--18, 2004 18, 2004


Internal Use Only

Global Telephone SubscribersWireless Subscribers Surpassed Fixed Lines in April 2002

(Millions)

0

500

1,000

1,500

2,000

’82 ’84 ’86 ’88 ’90 ’92 ’94 ’96 ’98 ’00 ’02 ’04

Wireless

Wireline

Today there are more users of wireless Today there are more users of wireless spectrum than ever in the past and this trend spectrum than ever in the past and this trend

is growing.is growing.


Internal Use Only

Today Each User Spends More Time on Today Each User Spends More Time on Wireless and This Trend is GrowingWireless and This Trend is Growing

MOUs (Trillions)

Global Telecom Voice MOUsWireless MOUs 38% of Total in 2005

CAGR

31%

5%

Wireless

Wireline

0

2

4

6

8

10

‘00 ‘01 ‘02 ‘03 ‘04 ‘05


Internal Use Only

Today the Mobile Phone Has Become a Today the Mobile Phone Has Become a Way of Life and a Necessity Way of Life and a Necessity


Internal Use Only

Today New Wireless Technologies are Driving Global Today New Wireless Technologies are Driving Global Information Society NEEDING More BandwidthInformation Society NEEDING More Bandwidth

3G

2.5G

2G

Data Transmission Speed - kbps 9.6 32 64 128 144 384 2,000

Still Imaging

Video Streaming

Voice

Audio Streaming

Text MessagingE-Mail

Mobile Radio

MobileTelevision

Mobile Video Conferencing

E-Commerce

Video on demand

Incr

easi

ng V

alue 3.5G

4GShared Environments


Internal Use Only

Today New Mobile Technologies Have Today New Mobile Technologies Have Changed How we Live and WorkChanged How we Live and Work

“Everything, Everywhere " Communicates “Everything, Everywhere " Communicates People to PeoplePeople to People People to ThingsPeople to Things Things to ThingsThings to Things

Buildings HomesAppliances

TransportationVehicles & Systems

VendingMachines

Intelligent SubscribersDevices

Computers

S


Internal Use Only

Spectrum Management needs to keep pace Spectrum Management needs to keep pace with this new paradigm in wireless usagewith this new paradigm in wireless usage

• The traditional design of spectrum management that has emerged since early 1900 was based on high signal to noise ratios.

• Future Spectrum management needs to focus on:– License free operation – Spectrum harmonization

• Spectrum auctions introduced in some markets had created a major setback in the growth of wireless technologies. APT has recommended against the use of spectrum auctions


Internal Use Only

In the Past ITU used to Play a Leading Role in In the Past ITU used to Play a Leading Role in Global and Regional Spectrum HarmonizationGlobal and Regional Spectrum Harmonization

• International Radio Regulations have driven global/regional harmonization for many services driving lower service costs and other benefits– Broadcast bands – Amateur Bands– Aeronautical bands, – Space services– etc.


Internal Use Only

National regulations and regional bodies have National regulations and regional bodies have driven global/regional harmonization where ITU driven global/regional harmonization where ITU

did not keep pace with Technologydid not keep pace with Technology

• International Standards and or National regulations leading to global harmonization has brought in economies of scale and lower costs of wireless systems for consumers– GSM – PCS– CDMA– IDEN


Internal Use Only

In the recent years, ITU has tried to play a In the recent years, ITU has tried to play a limited role using alternative regulatory limited role using alternative regulatory

approaches to harmonize global/regional approaches to harmonize global/regional spectrum for new services/technologiesspectrum for new services/technologies

• IMT 2000 spectrum “identified” at WARC1992 and WRC 2000

• PPDR in spectrum “identified” at WRC2003

• Spectrum for “Beyond 3G” to be considered at WRC-07


Internal Use Only

But ITU is still finding it difficult to accept But ITU is still finding it difficult to accept new “converged” terrestrial services new “converged” terrestrial services

• New Technologies using globally harmonized bands promise to deliver the future high bandwidth wireless services– 802.11b technologies in 2.4 – WLAN and FWA in 5GHz bands


Internal Use Only

With its high interference tolerance and directional antennas on all access points, Canopy expands the areas that receive good serviceand reduces areas experiencing interference (red areas).

New Interference rejecting technologies such as Motorola Canopy make delicensing as the optimum spectrum

management solutions for high bandwidth needs


Internal Use Only

Is this the time for an overall review of Is this the time for an overall review of Terrestrial Services under the Radio Terrestrial Services under the Radio

Regulations?Regulations?

Thank You


Internal Use Only

Auctions in 99/00 drove Up Cost of LicensesLicense Cost per POP (cost per subscriber will be substantially higher)$180$180

$160$160

$140$140

$120$120

$100$100

$80$80

$60$60

$40$40

$20$20

$0$0Chicago/DallasChicago/Dallas

9999UK UK 0000

$19$19

$120$1203G3G

30% Capex Cost30% Capex Cost70% License 70% License

CostCost

PCSPCS60% Capex Cost60% Capex Cost

40% License 40% License CostCost

Germany Germany 0000

$93$93


Internal Use Only

Shrinking Capital Available Shrinking Capital Available Based on Cost of 3G for Europe Alone Based on Cost of 3G for Europe Alone

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0(US$ Billions)

Germany UK France Italy Spain N'lands Belgium Austria Portugal Swiss DenmarkSweden Norway

CAPEXLicense

$18.5$18.5

$10.5$10.5

$10.6$10.6 $8.6$8.6

$7.2$7.2 $3.5$3.5

$46.3$46.3

$35.4$35.4

$19.0$19.0 $19.2$19.2

$2.0$2.0$3.9$3.9 $1.6$1.6 $1.0$1.0 $1.4$1.4$0.5$0.5

$64.8

$45.9

$29.6$27.8

$7.7 $7.4$3.8 $3.1 $2.8 $2.7 $2.0 $1.6 $1.2

Aggregate Expenditure = $200.4 Aggregate Expenditure = $200.4 bnbn

Source: Chase Manhattan 9//00


Internal Use Only

Financing “Gap” Faced By Some Operators

Source: Motorola / Chase Manhattan 9/00

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

(US$ Billions)

CAPEX CostLicense Cost

$18.5$18.5$24.9$24.9

$3.3$3.3

$22.0$22.0 $22.7$22.7

$9.0$9.0

$16.7$16.7

$9.0$9.0

$10.2

$11.2

$10.1 $9.1

$4.7

$6.7

$4.6

$61.7

$48.5

$10.2$8.5

$25.8

$9.0 $8.5 $6.4 $5.1

Strong ResourcesStrong Resources Credit PressuresCredit Pressures

$40~$50 Billion of Cash still Needed $40~$50 Billion of Cash still Needed

Debt & CashDebt & Cash

Operators – names not revealed

Regulatory and Policy Implications of Advanced …...Advanced Wireless Technologies to Spectrum...

Documents

Transcript of Regulatory and Policy Implications of Advanced …...Advanced Wireless Technologies to Spectrum...