UMTS
Forum
License and Regulatory Update
on UMTS
Thomas Sidenbladh
Vice Chairman, UMTS Forum
President Ericsson European Affairs Office
Thomas Sidenbladh
Slide # 1
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Main evolution into 3G networks
UMTS
Forum
Existing Spectrum
GSM
GSM/GPRS
GSM/GPRS/EDGE
CDMA2000 1X
CDMA2000 1XEV
TDMA/
CDPD
cdmaOne
New Spectrum
WCDMA
2G
First Step into 3G
3G phase 1
Evolved 3G
≤ 28.8 kb/s
64 - 144 Kb/s
384 Kb/s - 2 Mb/s
384 Kb/s - 10Mb/s+
Thomas Sidenbladh
Slide # 2
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Spectrum planning
ITU
Identif.
900
1000
1700 1800
IMT-2000
GSM 1800
GSM
Russia
PDC
Cellular
Thomas Sidenbladh
IMT
2000
Slide # 3
2000 2100
2200
MSS
IMT-2000 MSS
IMT-2000 MSS
IMT-2000 MSS
IMT-2000
MSS
IMT-2000 MSS
IMT-2000MSS
IMT-2000 MSS
PHS
Japan
US/Canada
IMT-2000
IMT
-2000
IMT-2000
IMT
-2000
GSM-900
Europe
1900
DECT
800
UMTS
Forum
PCS-1900
MSS
IMT
2500
2600 2700
IMT-2000
MSS
2000
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
3G Licences: Where and when?
UMTS
Forum
(3G implementation in 3G spectrum not covered)
SINGAPORE
HONG KONG
S. KOREA
JAPAN
RUSSIA
TAIWAN
?
THAILAND
NEW ZEALAND
AUSTRALIA
CHINA
ISRAEL
INDIA
BELGIUM
PORTUGAL
ÅLAND LIECHTENSTEIN
FINLAND
ISLE OF
MAN
SPAIN NETHERLANDS AUSTRIA
UK
1999
Thomas Sidenbladh
SWEDEN
POLAND
SWITZERLAND
NORWAY
GERMANY ITALY
2000
Slide # 4
SLOVENIA
SOUTH AFRICA
DENMARK CZECH REP
GREECE
FRANCE
2001
IRELAND
LUXEMBOURG
2002
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Announced & Expected
WCDMA Launch Dates
UMTS
Forum
M1
SK
Vodafone
KT
J-Phone
Vodafone
CSL
NTT DoCoMo
H 3G Austria
Eircell
mmO2
Orange
ONE
IPSE
Hutchison Telecom
Omnitel
H3G
SFR
Mobitel
Europolitan
HI3G
Libertel
Sonera
Tele2
KPN
Viag
Telefonica
Mobilcom
E-Plus
Manx
Vodafone
OniWay
Hutch 3G UK
Vodafone
2001
Thomas Sidenbladh
2002
Slide # 5
KPN
Telfort
Proximus
T-Mobil
Group 3G
mmO2
2003
2004
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
The basis for regulation
UMTS
Forum
The UMTS Forum recommends that the general
competition law framework should be used for
UMTS in conjunction with the existing European
and national telecommunications legislation. It is
unnecessary to overlay the ordinary criteria of
competition law with any additional rules when
sufficient competition has been established in
the telecom field.
Source: UMTS Forum Report #4
Thomas Sidenbladh
Slide # 6
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Important licensing conditions
UMTS
Forum
• Spectrum price and auctions
• Coverage and roll-out obligations
• Rules for sharing of facilities and
infrastructure
• Rules for national roaming
• GIobaI circulation of terminals
Thomas Sidenbladh
Slide # 7
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Spectrum price
UMTS
Forum
• Spectrum must be available at the right
price. Large initial down-payments for
spectrum will adversely affect the growth
of 3 G services
• Yearly fees give better stimulus to efficient
use than initial down-payments
• Intensive use of the spectrum gives better
total value for society than high license
Source: UMTS Forum Report #3
fees
Thomas Sidenbladh
Slide # 8
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Licence prices and country size
UMTS
Forum
60
UK
Euros/pop
50
D
40
30
20
10
0
NL
DK HK
N
CH AUS
NZ
0
20
I
E
Pol
40
F
Kor
60
80
100
Population in millions
Thomas Sidenbladh
Slide # 9
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Categories of Licence holders
UMTS
Forum
100%
90%
80%
70%
60%
Local players
50%
Beauty
contest
40%
Auction
Regional players
Global players
30%
20%
10%
0%
Small country Big
Thomas Sidenbladh
Slide # 10
Small country Big
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Some economic
background data
UMTS
Forum
Total European spectrum licence fees
133 billion €
5 year investments in 3G infrastructure 150-200 billion €
Total yearly European purchase
of telecom equipm.
70-80 billion €
Total yearly European industrial
debt market
450 billion €
Total market capitalisation of big
European operators end 2001
700 billion €
Total market capitalisation of big
European operators end 2000
1300 billion €
Thomas Sidenbladh
Slide # 11
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Coverage and Roll-out
UMTS
Forum
• Roll out of the 3 G networks should be
done according to market demand
• Coverage obligations must be linked to
level of network service capability
• Ubiquitous coverage have to be achieved
by satellite systems
Source: UMTS Forum Report #4
Thomas Sidenbladh
Slide # 12
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Sharing of facilities and
infrastructure
UMTS
Forum
• Sharing of facilities can give a rapid
deployment of networks and introduction
of services
• Sharing of network infrastructure may
conflict with the goal of infrastructure
competition
• Sharing should be commercial; mandatory
sharing is normally not acceptable
Source: UMTS Forum Report #4
Thomas Sidenbladh
Slide # 13
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
National roaming
UMTS
Forum
• National roaming may be a way to achieve
terrestrial coverage of unprofitable regions
• Licence conditions should allow commercially negotiated roaming agreements, if
infrastructure competition is maintained
• National roaming should only as an
exception be mandatory. It can during a
transitionally period help new operators to
establish a market
Source: UMTS Forum Report #4
Thomas Sidenbladh
Slide # 14
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
How did it turn out ?
UMTS
Forum
• Most countries require the same speed
for roll-out, 50% in 4 - 5 years. A few
require significantly more.
• Site acquisition an increasing problem.
• Unclear how far co-operation may go,
either via sharing or national roaming.
Rules not easy to change in auction
countries.
Thomas Sidenbladh
Slide # 15
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Why is co-operation wanted?
UMTS
Forum
• Operators in general have a high debt
burden, negative cash-flow and
decreasing market capitalisation.
• Environmental concerns make site
acquistion more complicated.
• Co-operation between operators may
– facilitate deployment of network,
– decrease investment, and
– increase coverage and market size.
Thomas Sidenbladh
Slide # 16
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Profitable
areas for
four
operators
with
cooperation
UMTS
Forum
Separate infrastructure
Cooperation allowed
(This is an example to
show a principle and is
not based on detailed
calculations)
Thomas Sidenbladh
Slide # 17
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
Global circulation of terminals
UMTS
Forum
• The right to carry and use personal
terminals, “global circulation”, is very
important for many users.
• There are very few, if any, technical
problems with the circulation of GSM
terminals.
• The ITU has decided on a regulatory
framevork for global circulation. This
should be the basis for national rules.
Thomas Sidenbladh
Slide # 18
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
What can be done by
governments?
UMTS
Forum
• Do not use the industry as a cash cow;
• Use the spectrum bands according to
IMT-2000;
• Set realistic roll-out and coverage
obligations;
• Allow co-operation between between
operators in suburban and rural areas
(network sharing, national roaming);
Thomas Sidenbladh
Slide # 19
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
What can be done by
governments? (cont.)
UMTS
Forum
• Simplify the process of site acquisition and
agree on harmonised environmental
conditions;
• Support the creation of new advanced
mobile services ( e.g. e-government, ecommerce);
• Support global circulation of terminals.
Thomas Sidenbladh
Slide # 20
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
UMTS
Forum
Yes, the telecom business climate is
depressed for the moment, but remember:
The stock market crash in the 1840s, when
the railways were starting to be built, was
disastrous to many companies.
But the railways were still key to the
industrial revolution over the next 100 years.
Thomas Sidenbladh
Slide # 21
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002
UMTS
Forum
Thank you for your attention !
Visit the UMTS Forum website
www.
umts-forum.org
www.umts-forum.org
Thomas Sidenbladh
Slide # 22
License and Regulatory Update of UMTS - Moscow 10 - 13 September 2002