Economic aspects of spectrum
management for space satellite
systems
Dr. Vadim Nozdrin
Radiocommunication Engineer
BR/SSD/SSC
Report expresses opinion of author
Introduction
z
z
z
z
z
Current state and trends in satellite
services development
Orbit capacity
International spectrum management of
satellite services
Theory of common open resource
management
Options for improving international
regulation
Current state and trends in satellite
services development
World satellite services revenue
45
41.3
Revenue (Billions)
40
35.8
35
28.8
30
25.5
22
25
20
15
10
5
18.3
9.1
9
1.5
9.5
8.8
1.3
1.3
9.8
9.3
1.6
1.8
1.7
0
2000
2001
2002
2003
2004
FSS-capacity leasing, backbone network, VSAT
DBS-DTV, DARS, broadband
MSS- mobile date and telephony
Futron Corporation, SIA
2005
Year
Current state and trends in satellite
services development (2005)
1)
2)
3)
4)
5)
6)
240 commercial satellite systems (Via
Satellite)
Near 6 000 transponders (Futron)
VSAT- near 1 million (ITU-D)
BSS TV - 112 millions users (ITU)
MSS (2005) –1,4 million users (ITU-R SG8D)
BSS (sound)- near 12 millions (Research and
Market eMarketer)
Current state and trends in satellite
services development
1)
2)
3)
4)
5)
6)
2006-2015- 208 GSO and 160 NGSO to be launched
(FAA)
2015- near 9 000 transponders (Futron)
FSS- broadband excess for business, office and
home
BSS TV- in Europe up to 40% users in 2015
(Euroconsult)
MSS- Complementary ground component,
multimedia broadcasting
BSS (sound)- Europe (2010) – 12 000 000 (Digital
Radio)
Demand grows- is there enough
capacity?
Orbit capacity
Nopt=F(NPV)
Number of
satellites
n max
P
NPV = −C + ∑
(1 + R )
n
k =1
k
k
C- project cost
Pk-profit(revenueoperational costs)
n opt
Frequency-orbit capacity, %
N- project time
R-discount rate
Δ opt
100
Orbit capacity
z Example-
Teledesik
Narrow
bandwidth
NGSO
constellation,
many satellites,
cellular
coverage
EMC
requirements
Cognitive
antennas
New
allocation
Pizzas for
delegates of
WRC-95
COST
NPV<0
International spectrum management
of satellite services
the Union shall in particular …effect allocation of bands of the radio-frequency
spectrum, the allotment of radio frequencies and the registration of radio-frequency
assignments and, for space services, of any associated orbital position in the
geostationary-satellite orbit or of any associated characteristics of satellites in other
orbits, in order to avoid harmful interference between radio stations of different
countries;
coordinate efforts to eliminate harmful interference between radio stations of different
countries and to improve the use made of the radio-frequency spectrum for radiocommunication services and of the geostationary-satellite and other satellite orbits;
Radiocommunication Sector shall be, bearing in mind the particular concerns of
developing countries,..by ensuring the rational, equitable, efficient and economical
use of the radio-frequency spectrum by all radiocommunication services, including
those using the geostationary-satellite or other satellite orbits, subject to the
provisions of Article 44 of this Constitution, and
ITU Constitution
International spectrum management
of satellite services
zTwo mechanisms for sharing orbit /
spectrum:
Coordination
Approach
Efficiency ⇔ First come, first
served for actual requirements
Planning Approach
Equitable access ⇔ Plan for
future use
( BSS and FSS Plans)
International spectrum management
of satellite services
Planning
Approach
Size:
Country A
Country B
Country C
Country ..
Country ..
Country ..
Country X
Country Y
Country Z
Frequency
band
Orbit
Power
National
Coverage
International spectrum management
of satellite services
Current problems
Plans up-take practically non-existent
Free riders (additional use and regional
systems)
Reason: lack of capital,
Lack of know-how,
Low current demand,
National coverage restrictions.
International spectrum management
of satellite services
Coordination
Approach
-API
-Coordination
(CR/C)
-Notification
-Near 3000
filings in
processing.
-400 MIFR
entries
Country A
Country B
Country ..
Country C
Country ..
Country X
Country Y
Country ..
Country Z
International spectrum management
of satellite services
Number of filings, 2000-2006, Ku-band
18
A PI
16
CR/C
notif
Number of administrations
14
12
10
8
6
4
2
0
1
8
15
22
29
36
43
50
57
64
71
78
85
92
99 106 113 120 127 134 141 148
Orbital pos ition,de gre e s Eas t
International spectrum management
of satellite services
Current problems:
EMC is calculated on the basis of SRS
date base.
“paper” satellites
“paper” parameters
⇛“paper” congestion
z Dysfunctional enforcing mechanism
z
International spectrum management
of satellite services
Result:
P
NPV = −C + ∑
(1 + R)
n
k =1
z
z
z
k
k
Increasing C due to rising transaction
costs
Decreasing Pk due to coordination with
newcomers
Increasing R- investment risk
International spectrum management
of satellite services
z
z
z
Transaction cost
expenditure of time and resources to
obtain the spectrum access
Latecomer penalty: currently US$ 3-5 m,
increasing 2-3% annual (see recent US DB
orbital position auctions)
Affects incumbents too!
H.J. Levin
International spectrum management
of satellite services
Creep in annual operational costs
Coordination with newcomers
z Staff, software, coordination
meetings, travel costs
z
International spectrum management
of satellite services
Risk of investment
z
Uncertainty of access to resource under
required
conditions,
probability
of
interference, limitations imposed on
power, service area etc.
Theory of
common property resources
z Tragedy
of commons
z Methods to improve efficiency:
- independent public regulation body,
- economic approaches,
- effective enforcement mechanism.
G.Hardin, R.Pindyck,C. Runge
Options to improve
international regulation
Independent common public
regulation body
ITU
Options to improve
international regulation
Economic approach
Spectrum
rights trading
Spectrum
price
Options to improve
international regulation
z Spectrum
rights trading
First theorem of social welfare
economics:
in a competitive market, all possible
mutually profitable transactions end up
taking place sooner or later, resulting in
the economically efficient distribution of
resources.
R.Coase
Options to improve
international regulation
EC Radio Spectrum Policy Group
Existing FSS Plan
Spectrum right
National allotment
Name of the public authority that
assigns the right
Name of Administration
Name of holder
Spectrum bandwidth
800 MHz (up- and down- links),
orbital position
Max in band power or
Max out of band power or
Spectrum mask
A,B,C,D, aggregate C/I≥26 dB,
C/N≥16 dB, single entry C/I≥30 dB
Service area and maximum in-band
power beyond geographical limits
National coverage,
Test points
Duration and rights of renewal
Options to improve
international regulation
Bands subject to a Plan
z Spectrum
right is very well defined
z Regulatory framework to promote
allotment leasing
z Service neutrality
Options to improve
international regulation
Non- plan bands
z Leasing impossible, as spectrum
rights remain undefined
z Annual spectrum fee for systems
in SRS database (opportunity
price-NERA-Smith)
Options to improve
international regulation
Enforcement mechanism
Independent radio monitoring
z Victim receives interference
fine
z
Conclusions
1)SatCom prospects remain good
2)Existing system for international
spectrum management system needs
to be looked at
3) Introduction of economic methodspromising option to increase
efficiency of spectrum use for
satellite systems
Questions?