© GSMA 2015

UTILISING THE DIGITAL DIVIDEND

IN EUROPE Creating a sustainable future for mobile broadband

Wladimir Bocquet, Head of Policy Planning,

Government & Regulatory Affairs, GSMA

June 2015

SPECTRUM FOR MOBILE

© GSMA 2015

GSMA BY THE NUMBERS

SPECTRUM FOR MOBILE

© GSMA 2015

A MOBILE BROADBAND REVOLUTION

SOURCE: MOBILE ECONOMY, GSMA 2014

SPECTRUM FOR MOBILE

© GSMA 2015

MAJOR RECENT GLOBAL MOBILE DATA GROWTH

SOURCE: ERICSSON MOBILITY REPORT FEB 2015

ALMOST 20X DATA GROWTH IN ONLY 5 YEARS (PB/PER MONTH)

SPECTRUM FOR MOBILE

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SIGNIFICANT GROWTH TO CONTINUE…

Exa

byte

s of

dat

a (p

er a

nnum

glo

bally

)

Sources

Analysys Mason, Global Mobile Network Traffic, Oct 2014

ABI Research, Mobile Data Traffic & Usage, Oct 2014

Cisco VNI Mobile Forecast, Jan 2015

Ericsson Mobility Report, Feb 2015

GROWTH FROM 2014-2019 EXPECTED TO BE 6-10X

SPECTRUM FOR MOBILE

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HOW CAN THIS DATA BE SUPPORTED?

FOUR MAIN WAYS MOBILE NETWORKS CAN SUPPORT RISING DATA

Increasingly spectrum efficient technologies (e.g. 3G to 4G to 5G)

Denser networks (e.g. more cell sites inc. small cells)

Wi-Fi offload (i.e. shifting data on to Wi-Fi networks as much as possible)

Using more mobile spectrum

SPECTRUM FOR MOBILE

© GSMA 2015

THE DIGITAL DIVIDEND

<700MHz

700MHz 800MHz

2100MHz

Cell radius

5800MHz

THE FREED SPECTRUM IN THE UHF BAND CAN BE USED TO

TRANSFORM MOBILE BROADBAND

Connect more people in more

places: Extend good value, and faster,

mobile services more widely - including

covering remote areas at a reasonable

cost

Better service quality, fewer

blackspots

Propagation benefits mean better quality

coverage including deep inside buildings

The 2.1GHz band needs 4x more base stations and 3x the network

CAPEX to deliver the same coverage as the 700MHz band

SPECTRUM FOR MOBILE

© GSMA 2015

TIMELY RELEASE OF THE 700MHz BAND

- Satisfying the exploding demand for mobile broadband

- Ensuring all citizens, whether in metropolitan or rural areas, benefit from the key

socio-economic benefits of broadband connectivity

RATIONALE

EU DIGITAL

AGENDA

Alongside the 800 MHz band, this would give the EU a powerful opportunity to

deliver on the Digital Agenda objective of universal high-speed broadband access

(i.e. 30Mbit/s for all EU citizens by 2020)

TIMELY

DECISION

- A timely decision to begin this process would allow Member States to release

the 700MHz band to the market, preferably, between 2018 and 2020 and

potentially earlier in some countries

- Finalised at the latest by the end of 2017 cross-border coordination

agreements, including transitional arrangements

SPECTRUM FOR MOBILE

© GSMA 2015

DIGITAL DIVIDEND 2: 700MHz

WRC-15 will finalise the conditions for IMT in 694-790MHz in Region 1 (EMEA)

– Involves agreeing a common band plan and out of band emissions – Europe has agreed both

– Germany is the first European country to auction the 700MHz band in May 2015

Why does harmonisation with the Asia Pacific 700MHz band plan matter?

– Creates a nearly-global band plan, enabling economies of scale for lower cost devices and roaming

– The APT700 band plan is dominant globally BUT its upper duplexer clashes with the 800MHz plan

REGION 1: 800 MHz BAND PLAN

APT700MHz BAND PLAN

791MHz 832 862MHz 790

821

703MHz 733 788MHz 758

718MHz 773 748 803MHz

Upper APT duplexer

Lower APT duplexer

SPECTRUM FOR MOBILE

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NEAR TO GLOBAL HARMONISATION

Adopted or leaning towards

APT Band plan (Population)

Afghanistan 30M

Australia 23M

Bangladesh 161M

Bhutan 0.7M

Brunei 0.4M

India 1,2B

Indonesia 249M

Japan 127M

Malaysia 29M

Maldives 0.4M

Nepal 30M

Pakistan 190M

Papua New Guinea 7M

Singapore 5M

Sri Lanka 21M

Tonga 0.1

Taiwan 23M

New Zealand 4M

TOTAL 2 Billion Pop

Adopted or committed to

APT Band Plan

Slow Progress

Band not allocated to mobile

No information

Momentum in Asia Pacific

SPECTRUM FOR MOBILE

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NEAR TO GLOBAL HARMONISATION

Momentum in LatAm

Leaning towards APT Band Plan

Adopted APT Band Plan

Adopted US Band Plan

Colombia

May. 2012

Costa Rica

Mar. 2012

Chile

Feb. 2013

Uruguay

Dec. 2011

Mexico

Sep. 2012

Panama

Oct. 2012

Ecuador

Oct. 2012

Bolivia

Dec. 2012

Argentina

Dec. 2012

Brazil

Feb. 2013

Nicaragua

Venezuela

Apr. 2013

Dominican Rep

Apr. 2013 Adopted or leaning towards APT

Band plan (Population)

Brazil 195M

Mexico 117M

Colombia 47M

Argentina 41M

Peru 30M

Venezuela 30M

Chile 17M

Ecuador 16M

Dominican Rep. 10M

Costa Rica 5M

Panama 3M

Uruguay 3M

TOTAL 514 Million Pop

SPECTRUM FOR MOBILE

© GSMA 2015

PREFERRED BAND PLAN – 700MHz BAND

2x30MHz

- Consist of 703-733MHz (uplink) paired with 758–788MHz (downlink) as the preferred

700MHz band plan

- Harmonise the regulatory and technical conditions for the 700MHz band plan with the

Asia Pacific band plan to maximise economies of scale

733-758MHz

- Support, when implementing the preferred band plan for the 700MHz and 800MHz

bands, that the duplex gap be used for public commercial mobile networks

(supplemental downlink)

- Recognize, however, that some governments may want to consider another option –

use of the duplex gap for Public Protection/Disaster Relief (PPDR) mobile broadband

applications

703 758 733 788 MHz

791 832 862 MHz 821 694

700MHz band 800 MHz band

Source: http://www.gsma.com/spectrum/wp-content/uploads/2014/05/GSMA-Recommended-Band-Plan-for-

Digital-Dividend-2-in-ITU-Region-1.pdf

SPECTRUM FOR MOBILE

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TV content consumption is changing with a shift from terrestrial TV delivery

to broadband, cable and satellite delivery in many European countries

VARIATION IN BROADCAST USE MEANS REGULATORS SHOULD HAVE

FLEXIBILITY TO USE THE BAND ACCORDING TO NATIONAL PRIORITIES

CURRENT UHF USAGE (470-694MHz):

Recent data, published by the European Commission (Source: Eurobarometer), shows

– The number of European households with a TV using terrestrial TV has fallen by 10% since 2011

– There are only five EU countries where the majority of people use DTT

• DTT subscriptions in the Netherlands dropped from 11% to 8% between Q1 2013 and Q1

2014 with the latest quarter the first ever when fiber has a bigger market share than DTT

HOW TO ACCOMMODATE MOBILE IN A PORTION:

Terrestrial TV is vital today, and in future, but on-demand, HD and mobile are changing the market

Broadcast evolution means more can squeeze into less spectrum

Potential for more DTT use in VHF (e.g. 174-230MHz) creating possibilities in the UHF band for mobile

– Terrestrial TV services in Finland, Sweden and Russia use some VHF so it is feasible

– Option is dependent on how much DTT spectrum is required

EVOLUTION OF CONSUMPTION TRENDS

SPECTRUM FOR MOBILE

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EVOLUTION OF CONSUMPTION TRENDS

Significant mobile data traffic is already video as content providers increasingly use mobile apps

- Ericsson’s TV and Media study highlights that 72% of people surveyed use mobile devices at

least weekly to view videos and 42% do this outside the home

- Younger viewers are increasingly choosing to consume TV content over the Internet, and

consume half as much traditional TV as older viewers (Ofcom TV trends survey), indicating a

major shift in the future of audio-visual content delivery

- Older viewers are also increasingly consuming on-demand content and this will likely continue

as smart TV and smartphone adoption grows

Forecasts of evolving linear and nonlinear viewing trends must measure all device platforms

(TV, PC, tablet or mobile) – not just large TV screens –

Ericsson predicts half of all TV consumption will be on-demand by 2020 in Western Europe

Mobile devices are also becoming a major way to consume audio-visual content and

generational differences in content consumption means the trend is towards IPTV

SPECTRUM FOR MOBILE

© GSMA 2015

SUB-700MHz BAND AND CONVERGENCE

- The differing use of terrestrial broadcast and IPTV, and the availability of low cost,

high speed broadband, around Europe means there is unlikely to be a single ‘one-

size-fits-all’ solution so requires a more flexible approach

DIVERSITY

ACROSS

EUROPE

CONVERGEN

CE IN

EUROPE

- Conduct analysis including convergence between mobile broadband and broadcast

in the sub-700MHz band under the remit of the existing EU research projects

- Conduct a review of the sub-700MHz band no later than 2020 to ensure Europe can

respond to fast changing mobile and media markets

PREPARING

CONVERGEN

CE

- Incorporate the results of the research on convergence as well as the other work

being conducted as part of the WRC-15

- Support a co-primary allocation in the sub-700MHz band at WRC-15 (subject to

possible provisions in the Radio Regulations)

SPECTRUM FOR MOBILE

© GSMA 2015

SUMMARY

Address the 700MHz and sub-700MHz bands as two distinct issues

Allow swift progress on the release of the 700MHz band

Review of the sub-700MHz band no later than 2020 considering the differing needs of the EU

Member States and the evolving nature of the broadcast and mobile broadband markets

Timely release of the 700MHz band is critical

A timely decision to begin this process would allow Member States to release the 700MHz band to the

market, preferably, between 2018 and 2020 and potentially allow for earlier release in some countries

Need for a clear roadmap detailing the different actions to be taken to minimise the transition time for

the change of use

Long term approach to address the sub-700MHz band

Ensuring broadcast and mobile broadband services share a co-primary allocation in the sub-700MHz

band (i.e. 470-694MHz) at WRC-15 gives Member States the ability to react to the rapidly evolving

mobile and media markets rather than being constrained by the current Radio Regulations

SPECTRUM FOR MOBILE

© GSMA 2015

GSMA RESOURCES

Digital Dividend Toolkit www.gsma.com/digitaldividendtoolkit

An online resource offering the latest policies,

perspectives and best practices for securing

and implementing Digital Dividend spectrum

for mobile broadband.

Digital Switchover Guide www.gsma.com/spectrum/digital-switchover

An interactive tool that describes how to

manage the conversion to digital television

and release Digital Dividend spectrum

for mobile.

Mobile Policy Handbook www.gsma.com/publicpolicy/handbook

A portal to GSMA positions on mobile policy

issues, including spectrum management and

licensing.

GSMA Spectrum Resources www.gsma.com/spectrum/resources

Our library of research, reports, case studies

and collateral.

© GSMA 2015

THANK YOU