Summary of comments and opinions:

Transcription

1 Summary f cmments and pinins: Cnsultatin n future frequency assignments and n the liberalisatin f the 900 MHz and 1800 MHz frequency bands NON-BINDING-TRANSLATION Vienna, May 2011

2 1 Intrductin Austria's mbile cmmunicatins market Refarming Backgrund Refarming in the 900 MHz band Refarming in the 1800 MHz band Upcming frequency assignments MHz band Assignment f the 800 MHz band Assignment f 900 MHz frequencies MHz band Future steps...19 Page 2

3 1 Intrductin Nw that the latest amendment t the Austrian Frequency Utilisatin Plan has gne int effect, the Telekm-Cntrl-Kmmissin (TKK, Austria's telecms regulatr) has been placed in charge f a number f new tasks and decisins. The new legislatin transpses the amended GSM Directive int Austrian law and thus creates the cnditins necessary fr a prcedure pursuant t Art. 57 Par. 4 TKG 2003 regarding the liberalisatin f GSM frequencies. At the same time, the assignment f the "digital dividend" is als planned in the near future. As these develpments are clsely interrelated, the regulatry authrity cnsiders it imprtant t crdinate these prcedures with each ther. The bjective f the cnsultatin carried ut by the regulatry authrity was t gather suggestins and discuss pssible ways t apprach these prcedures. In respnse t the cnsultatin dcument, the regulatry authrity received a ttal f 18 pinin dcuments frm the fllwing cmpanies and individuals: A1 Telekm Austria AG BEGAS Netz GmbH Ericssn Austria GmbH Walter Hfer Hutchisn 3G Austria GmbH ITM GmbH KSC Orange Austria Telecmmunicatin GmbH Österreichs E-Wirtschaft Austrian Bradcasting Crpratin (ORF) Österreichische Rundfunksender GmbH & C KG Qualcmm Eurpe Inc. SES Franz Staffel T-Mbile Austria GmbH UPC Austria GmbH Austrian Federal Ecnmic Chamber (WKO) ZTE Austria GmbH This dcument prvides a summary f the cmments and pinins received. Page 3

4 2 Austria's mbile cmmunicatins market Questin 2.1.: Hw d yu predict that this market will develp in the lnger term? Please estimate the number f mbile subscribers wh will be using mbile bradband services (smart phnes, USB mdems) three years frm nw. What average mnthly data vlume per custmer wuld yu predict? Cmments: The respndents attribute cnsiderable grwth ptential t mbile bradband services. One respndent estimates that the number f mbile custmers will grw at an annual rate f 15% t 20% in the cming years. Anther respndent expects the number f bradband custmers t duble in the next five years. Yet anther respndent prjects that the number f bradband custmers will rise t apprximately 4.9 millin by 2014, while anther estimate fresees 5 millin in the year One participant estimates that mbile bradband users (smart phnes and USB mdems) will accunt fr 90% f its custmer base three years frm nw. Accrdingly, the estimates f grwth in data traffic are als very high. Estimates f the average custmer's data transfer vlume range frm 100 MB t 2 GB per mnth fr smart phnes and up t 5 GB per mnth fr mbile PCs and tablets. Questin 2.2.: What cverage level d yu plan t attain r expect in the cming years? Cmments: With regard t vice services, the respndents expect ppulatin cverage f apprximately 98% t 99% and gegraphical cverage f apprximately 80% in the medium t lng term. Their expectatins varied mre widely with regard t medium t lng-term cverage with mbile bradband services, with estimates ranging frm 82% ppulatin cverage and 38% gegraphical cverage t 98% ppulatin cverage and 80% gegraphical cverage by the year Questin 2.3.: What will a typical mbile cmmunicatins netwrk (r yur netwrk) lk like in 3 t 5 years, and what technlgies will be deplyed? Cmments: All f the respndents believe that multiple technlgies (GSM, UMTS/HSPA+ and LTE) will c-exist in the cming years. Hwever, their expectatins regarding the medium t lng-deplyment f technlgies diverge mre widely: One respndent believes that GSM will primarily be used fr vice services in the 900 and 1800 MHz bands in the next 3 t 5 years, while UMTS/HSPA+/LTE will mainly be deplyed fr data services in the ther bands (800 MHz, 2.6 GHz, etc.). In cntrast, anther respndent assumes that GSM will n lnger be relevant in 5 years' time. Questin 2.4.: When d yu expect UMTS (HSPA), LTE and WiMAX technlgies t be ready fr the mass market in the 800 MHz, 900 MHz and 1800 MHz frequency bands? Cmments: Cverage with Netwrk Mdems (Smart) Phnes UMTS in the 800 MHz band UMTS in the 900 MHz band Nt expected Nt expected Nt expected Already exists Already exists Already exists Page 4

5 UMTS in the 1800 MHz band LTE in the 800 MHz band LTE in the 900 MHz band LTE in the 1800 MHz band Questin 2.5.: When d yu expect that LTE will supprt vice telephny? Cmments: The majrity f respndents expect Vice ver LTE t becme available in the year One respndent expects this technlgy t be available as early as 2012, while anther indicated 2015 at the earliest. Questin 2.6.: What are the lng-term spectrum needs f yur rganisatin / f a typical mbile peratr? Cmments: Frequencies belw 1 GHz Frequencies abve 1 GHz FDD spectrum requirement 2x20-2x40 TDD spectrum requirement 2x45-2x One respndent estimates the lng-term spectrum requirements f the mbile cmmunicatins industry t be apprximately 1000 MHz. Questin 2.7.: D yu cnsider it necessary fr an peratr t perate in all bands designated fr mbile cmmunicatins, r d yu cnsider it mre sensible in the lng term t fcus n "cre bands" (e.g., 900 MHz nly as ppsed t 800 and 900 MHz)? Cmments: Sme respndents d nt cnsider it sensible (r pssible under real cnditins) t fcus n cre bands due t differences in the availability f technlgies; ther respndents indicated that such a fcus wuld be sensible and efficient. Questin 2.8.: Hw imprtant is the assignment f frequencies belw 1 GHz t yur rganisatin / t mbile netwrk peratrs? What advantages d yu see in these assignments? Cmments: All respndents cnsider spectrum belw 1 GHz t be indispensable r extremely imprtant (at least fr their wn cmpanies) in rder t rll ut a cst-effective natinwide mbile cmmunicatins netwrk. One respndent gave a quantitative estimate f the cst disadvantages (based n a greenfield apprach) f a netwrk which des nt use frequencies belw 1 GHz cmpared t a netwrk which des, indicating additinal csts t the tune f tens/hundreds f millins f eur. Anther respndent believes that the cst advantages f frequencies belw 1 GHz are limited t cverage beynd the 95% ppulatin cverage mark. On the basis f demand and cst advantages, yet anther respndent estimated the additinal gains (prducer surplus) f an peratr with Page 5

6 assignments belw 1 GHz at up t EUR 2 billin cmpared t an peratr withut such assignments. Better indr cverage was als mentined as an advantage f frequencies belw 1 GHz. Questin 2.9.: What ther bstacles t the future expansin f mbile bradband can yu identify (e.g., cnnectin f base statins, etc.)? Cmments: The respndents mentined a number f bstacles: Insufficient available frequency spectrum leads t higher csts and thus lwer cverage. High csts f high-speed links t base statins, in the case f bth micrwave radi (fees) and ptical fibre Requirements regarding the preservatin f a twn's verall appearance and the prtectin f landscapes serve t delay (r increase the csts f) establishing new sites and adapting existing sites t new frequencies. "Assessment values" (limits) in reginal plicy Limits n site sharing based n RTR's psitin paper Neighburs'/citizens' initiatives serve t delay the expansin/cnstructin f sites due t fears f adverse effects n health. Availability f LTE terminal devices Questin 2.10.: D yu expect mbile technlgies (UMTS, LTE, WiMAX) t be available t the mass market in the MHz frequency band in the freseeable future? If yes, when d yu expect them t be available, and when culd that frequency band be used? Cmments: Thse cnsultatin respndents wh submitted cmments n this questin d nt believe that any mass-market-ready mbile technlgy will be available in the shrt t medium term, while several cnsider this band t be imprtant fr LTE Advanced, which they see as the future technlgy fr the band. Hwever, they als indicated that it is currently difficult t estimate when mass-market-ready equipment will be available fr this frequency band. Please als refer t the respnses t Questin 4.22 ff. Questin 2.11.: Wuld yu cnsider it useful t assign frequencies in the 450 MHz band in the near future? If yes, when? Hw wuld this band be used? Cmments: Only few respndents prvided a cmment n this questin. Mst f the cmments received indicate that assignment wuld nt be useful in the near future. As reasns, they cited a lack f standards fr mbile cmmunicatins technlgies and the availability f technlgies. Tw respndents see the pssibility f machine-t-machine applicatins in this band, and ne respndent advcates immediate assignment. Please als refer t the respnses t Questin 4.1 ff. Page 6

7 3 Refarming 3.1 Backgrund Questin 3.1.: In yur pinin, hw much lnger will GSM remain in use? What share f the 900 MHz / 1800 MHz band will still be used fr GSM in the year 2015 and in the year 2020? In what sub-ranges f these frequency bands shuld GSM be deplyed in the lnger term? Cmments: Assessments regarding the medium t lng-term use f GSM varied quite widely. Mst respndents cnsider it inevitable that GSM will remain in use in the lng term. Hwever, they prvided very different estimates f the duratin f such use and the crrespnding spectrum requirements. One respndent was f the pinin that grwth in traffic vlumes wuld nt reach a plateau until 2015, and that a reductin in GSM traffic culd nt be expected until One respndent sees the 900 MHz band as a key band fr the further peratin f GSM. Anther respndent believes that GSM will n lnger be prfitable by the year Next, anther respndent believes that GSM usage des nt pse an bstacle t the intensive use f the 900 MHz band fr bradband technlgies frm 2015 nward: First f all, the share f GSM-nly terminal devices will have fallen t 30% by 2014, thus creating great ptential fr the migratin f vice services t 3G/4G technlgies. Secnd, the respndent in questin als nted that it will be pssible t prduce the majrity f GSM traffic (except in rural areas) in the 1800 MHz band. One respndent is f the pinin that GSM will nt play a rle in either frequency band by the year Questin 3.2.: In the lnger term, wuld yu cnsider the current frequency assignments in the GSM bands t be cmpatible with an efficient use f thse frequencies fr 3G/4G technlgies? Please prvide reasns fr yur respnse. Cmments: All f the respndents regard the current frequency assignments in the GSM bands as an bstacle t the efficient use f thse frequencies fr 3G/4G technlgies. In additin t the 5 MHz channel spacing, the assignment f adjacent blcks is regarded as an imprtant requirement fr efficient frequency use. One respndent stated that the prblem is mre substantial in the 900 MHz band than in the 1800 MHz band. Anther respndent suggested changing ver t 5 MHz channel spacing as quickly as pssible. Questin 3.3.: If the 900 MHz and/r 1800 MHz band is liberalised, d yu see any risk that distrtins f cmpetitin will arise? If yes, please prvide precise indicatins f the frm in which such distrtins wuld arise. Cmments: In terms f cntent, the cmments received n this questin can be summarised in three main grups. One grup f respndents wuld expect massive distrtins f cmpetitin if the 900 MHz were t be liberalised withut requirements (r accmpanying measures). The reasns cited fr this distrtin include the fllwing (cf. als Questin 3.2): Cst advantages arising frm the use f frequencies belw 1 GHz (sub-1 GHz frequencies) cmpared t ther frequencies; demand advantages due t better cverage (indr cverage, cverage f rural areas). In the case f refarming withut the impsitin f requirements, liberalisatin culd generate windfall prfits fr existing frequency assignment hlders. The cst advantages / windfall prfits / prducer surplus amunts are estimated t Page 7

8 be between EUR 100 millin and ver EUR 1 billin depending n the reference values and scenaris used. Due t higher spectral efficiency, the use f UMTS in the 900 MHz band wuld lead t a virtual expansin f the frequency band, thus creating a capacity advantage fr peratrs with existing assignments. UMTS900 (including the relevant terminal devices) is already available and in use. This will make it pssible t ramp up mbile bradband mre rapidly at an imprtant time in terms f market develpment. The 800 MHz band is currently nt a substitute fr 900 MHz frequencies (cf. Questin 3.7). Existing 900 MHz peratrs can build n an existing grid cmpatible with frequencies belw 1 GHz (including sites and infrastructure), thus enabling thse peratrs t rll ut their bradband netwrks mre quickly and efficiently in rural areas. This advantage wuld cme at an imprtant time in terms f market develpment. Existing 900 MHz peratrs have access t sites fr large-area antennas, which are especially scarce in urban areas. Existing first-mver advantages resulting frm sequential licensing in the past wuld be maintained r even reinfrced in such a scenari. UMTS900 deplyment wuld bring abut a number f advantages cmpared t GSM900, including higher spectral efficiency, which wuld in turn lead t a virtual imprvement f capacity r f indr cverage. The cmpetitive distrtins are capable f causing ne r mre cmpanies t leave the market, which culd lead t a re-establishment f a mnply n the mbile cmmunicatins market. The respndents called fr a number f measures and requirements (cf. Questin 3.2). In this cntext, anther grup f respndents pinted ut that the jint assignment f the 900 MHz band with the 800 MHz band wuld give all peratrs the chance t satisfy their need fr sub-1 GHz spectrum, and that the 800 MHz band has advantages as well as disadvantages cmpared t the 900 MHz band. A third grup f respndents believe that liberalising the 1800 MHz band wuld lead t massive distrtins f cmpetitin. This is regarded in cnnectin with the uneven distributin f frequencies (amng ther things) and thus with unequal pprtunities in the rllut f LTE1800. The respndents called fr a number f measures and requirements (cf. Questin 3.9). A furth grup f respndents des nt believe that distrtins f cmpetitin wuld arise if frequencies in the 1800 MHz band were refarmed. Questin 3.4.: D yu believe that the time remaining between refarming and the expiratin f current GSM licences will be sufficient t justify investments in 3G/4G technlgies in thse bands? Please prvide reasns fr yur respnse. Cmments: Mst f the respndents wh cmmented n this questin are f the pinin that the time remaining is nt sufficient fr investments in 3G/4G technlgies. One respndent believes that under certain cnditins, 5 years culd be sufficient fr such investments, while anther respndent wuld expect the peratrs in questin t make investments in any case in rder t realise the accmpanying Page 8

9 cmpetitive advantages; the latter respndent referred t the reductin f investment risk thrugh technlgical advancement (e.g. sftware-defined radi). Questin 3.5.: In the lng term, the frequency bands in questin will be used in a technlgyneutral manner with varius technlgies, especially near natinal brders. What effects d yu believe this will have? Cmments: Based n the current "preferred frequencies" arrangement, which was ptimised fr GSM channels, the cnsultatin participants expect a number f effects. On the ne hand, the deplyment f UMTS/LTE is expected t create an advantage due t the higher reusability f frequencies (Reuse 1). On the ther hand, the respndents fear that disadvantages wuld als arise because the new 5 MHz channels are nt ptimised fr the current preferred spacing. Respndents expressed cncerns that technlgical neutrality a plicy which is generally welcmed culd increase interference near natinal brders, which wuld make it mre expensive t cver brder regins. Thrugh detailed agreements with neighburing assignment hlders, it is pssible t increase efficiency and thus reduce lsses in value. The duplex mde shuld remain harmnised near natinal brders in any case, as therwise deplyment alng the brders wuld becme highly inefficient. Questin 3.6.: Can yu identify any ther prblems in cnnectin with refarming? If yes, please explain. Cmments: The fllwing additinal prblems and suggestins were mentined: Prpsal t prlng GSM usage rights Cmplete rejectin f the prlngatin f GSM usage rights General reservatins abut the premature liberalisatin f GSM frequencies (befre the expiratin f existing licences) Return and re-auctining r redistributin f GSM licences in cnnectin with the liberalisatin f thse usage rights Indicatin that the ptential fr using GSM bands fr bradband services (and thus the ecnmic benefits f refarming) in the cming years is cnsidered lw because GSM is very unlikely t be replaced. Indicatin f the urgency f a slutin t the prblem f fragmentatin. Indicatin f the need t align license perids in rder t enhance efficiency in the use f frequencies Transfer f refarming-related windfall prfits t the gvernment (Asymmetric) spectrum caps in the upcming assignments in rder t secure cmpetitin, t cmpensate fr existing asymmetries in assignments and t cmpensate fr "histrical firstmver advantages" Cmbinatin f early liberalisatin f GSM frequencies with the successful defragmentatin f GSM frequencies by the sectr Cnsideratin f infrastructure cperatin arrangements in future frequency assignment prcedures Page 9

10 Increased prbability f interference thrugh technlgy-neutral usage and the resulting need t make special arrangements Cncern that the discussin and review f cmpetitive distrtins linked t refarming culd lead t a delay in the liberalisatin f usage rights and thus t an inefficient use f frequencies 3.2 Refarming in the 900 MHz band Questin 3.7.: D yu agree with this analysis? If nt, please prvide precise reasns why yu disagree. Cmments: The participants' respnses t this questin can be subdivided int three grups: One grup agrees with the analysis and bradly supprts the psitin f the regulatry authrity. Frm their perspective, the assignment f the 800 MHz frequencies wuld give every peratr access t sub-1 GHz frequencies, meaning that any arguments against refarming the 900 MHz frequencies wuld n lnger be justified. Any limitatins n the use f the 800 MHz band will be ffset by the later availability f LTE in the 900 MHz band. In additin, respndents highlighted the ecnmic advantages f rapid refarming and pinted ut that it wuld give peratrs the pprtunity t acquire an ptimal quantity f spectrum in bth bands. The secnd grup f respndents criticised the assumptin in the analysis that 800 MHz frequencies can serve as substitutes fr 900 MHz frequencies. Frm their standpint, the 800 MHz frequencies are nt a sufficient substitute fr liberalised 900 MHz frequencies. Refarming the 900 MHz band withut impsing apprpriate requirements wuld therefre lead t distrtins f cmpetitin pursuant t the amended GSM Directive. Amng ther things, the fllwing causes and prblems were mentined (fr additinal arguments regarding distrtins f cmpetitin, please see the respnses t Questin 3.3 ff.): In the cming years, LTE will be the nly technlgy available in the 800 MHz band. In cntrast, there are multiple alternatives in the 900 MHz band (UMTS, GSM). In cntrast t LTE800, UMTS900 (including the relevant terminal devices) is already available and in use. This will make it pssible t ramp up mbile bradband mre rapidly at an imprtant time in terms f market develpment. LTE currently des nt supprt vice services. This means that in cntrast t the 900 MHz band vice telephny cannt (currently) be ffered in that band. This severely limits the usage f the 800 MHz frequencies in rural areas fr peratrs wh d nt have 900 MHz frequency assignments. The 800 MHz band can nly be regarded as a substitute fr 900 MHz frequencies nce LTE supprts vice services and the relevant terminal devices are available (cf. als the respnses t Questin 2.5). Advantages due t existing sites (grid) and (large-area) antennas; pssibility f rapid, lw-cst rllut f mbile bradband netwrks in rural areas at an imprtant time in terms f market develpment. Advantages f UMTS900 ver GSM900, such as superir spectral efficiency (virtual expansin f capacity) and better indr cverage. The fllwing measures/requirements were mentined in this cntext: A far-reaching and detailed examinatin f the effects f refarming n the cmpetitive landscape Page 10

11 N refarming befre the redistributin f frequencies Redistributin r re-assignment f frequency licenses Transfer f refarming-related windfall prfits t the gvernment (Asymmetric spectrum caps) in rder t crrect asymmetries in frequency assignments and t cmpensate fr "histrical first-mver advantages" The third grup generally argued against early refarming prir t the re-assignment f frequencies r the expiratin f existing licences. Questin 3.8.: Can yu identify any ther ptins? Hw wuld yu assess thse ptins in terms f the bjectives discussed abve? Cmments: The fllwing additinal ptins were suggested: Suggestin f liberalising GSM frequencies simultaneusly with a jint assignment prcedure (instead f after jint allcatin) Indicatin that the assignment f frequencies belw 1 GHz is nt sufficient t create a level playing field. Instead, it is necessary t ensure that all peratrs can ffer bradband services n the market at the same time. Preference assignment and refarming f 900 MHz frequencies at a far later time (but simultaneusly with the 800 MHz frequencies) N early refarming befre the reassignment f frequencies r expiratin f existing licences In rder t create an incentive fr peratrs t defragment the spectrum, it was suggested that the early liberalisatin f GSM licences culd be cmbined with successful defragmentatin. 3.3 Refarming in the 1800 MHz band Questin 3.9.: D yu agree with this assessment? Please prvide reasns fr yur respnse. Cmments: Mst f the respndents agreed with the regulatry authrity's analysis, which stated that each peratr has sufficient spectrum abve 1 GHz at its dispsal and n peratr wuld suffer an irreparable cmpetitive disadvantage due t the liberalisatin f thse bands. One grup f respndents believes that liberalising the 1800 MHz band wuld lead t (massive) distrtins f cmpetitin. This is regarded in cnnectin with the uneven distributin f frequencies in the 1800 MHz band (amng ther things) and thus with the lack f equal pprtunities in the rllut f LTE1800. The respndents suggested the fllwing measures in this cntext: N early liberalisatin prir t the reassignment f frequencies and expiratin f existing licences Cmbinatin f early liberalisatin with successful defragmentatin f spectrum Page 11

12 Transfer f liberalisatin-related windfall prfits t the gvernment Redistributin f usage rights fr frequencies (with cmparable characteristics) in rder t cmpensate fr cmpetitive advantages Page 12

13 4 Upcming frequency assignments MHz band Questin 4.1.: Fr what purpse(s) culd this frequency band be used? What general cnditins wuld be imprtant fr the use f this frequency band? Cmments: The respndents mentined the fllwing ptential areas f use: Bradband services in rural areas with lw capacity requirements Wireless machine-t-machine applicatins Applicatins in e-business Please als refer t the respnses t Questin Questin 4.1.: D yu intend t acquire frequencies in this band? If n, why nt? If yes, when wuld yu plan t start using the frequencies? Cmments: The majrity f respndents did nt express a direct interest in this spectrum. Questin 4.2.: In yur view, which services/applicatins wuld be especially well supprted by this frequency band? What technlgies will be deplyed / wuld yu deply? Cmments: See respnses t Questin 4.1. Questin 4.3.: Please give an estimate f yur frequency requirements / a netwrk peratr's frequency requirements in this band. Hw many interested parties wuld yu expect? Cmments: N respnses. 4.2 Assignment f the 800 MHz band Questin 4.4.: D yu intend t acquire frequencies in this band? If n, why nt? If yes, when wuld yu plan t start using the frequencies? Cmments: Multiple respndents expressed an interest in the frequencies. The actual demand fr (and time f deplyment f) the frequencies depends n usability (e.g. interference by freign bradcasting transmitters), and n the availability f terminal devices and cmplementary frequencies. Page 13

14 Questin 4.5.: In yur view, which services/applicatins wuld be especially well supprted by this frequency band? What technlgies will be deplyed / wuld yu deply? Cmments: The respndents cnsider the 800 MHz band suitable fr wireless bradband. The respndents all indicated LTE as a suitable technlgy, and ne respndent als mentined LTE Advanced as a pssibility frm 2015 nward. Questin 4.6.: Please give an estimate f yur frequency requirements / a netwrk peratr's frequency requirements in this band. Hw many interested parties wuld yu expect? Cmments: The respndents have different expectatins f frequency requirements, ranging frm 2x10 t 2x20 MHz per peratr; they als explained that frequency requirements in the 800 MHz band wuld depend n the assignments received in the 900 MHz band. Questin 4.7.: In yur view, what is the smallest pssible bandwidth an peratr shuld be able t acquire in this frequency band? Cmments: Mst respndents estimate that the minimum required bandwidth wuld be 2x10 MHz. Tw respndents estimated the minimum bandwidth required (in rder t use the band) at 2x5 MHz, with ne respndent explaining that multiple channels wuld be necessary fr ptimal deplyment (at least 2x10 MHz). Questin 4.8.: In yur view, what subdivisin f the frequency band wuld be mst reasnable? Hw many frequency packages (in what size) shuld be put up fr assignment? Cmments: The vast majrity f the respndents wh cmmented n this questin apprved f the subdivisin f the frequency band suggested in the cnsultatin dcument (6 blcks, 2x5 MHz each). One respndent suggested a subdivisin int 3 licenses with 2x10 MHz each. Anther respndent highlighted the need fr a 1 MHz guard band between bradcasting channel 60 and the lwest dwnlink channel (D1). Questin 4.9.: Wuld it be imprtant t btain adjacent frequency blcks? Cmments: All f the respndents wh cmmented n this questin cnsider it essential t btain adjacent frequency blcks. Certain cmments pinted ut that it will be pssible t use fragments in LTE Advanced, but that such use wuld invlve a 20% lss f efficiency. Questin 4.10.: Please describe the rllut scenari yu expect r plan t implement. In what regins will these frequencies primarily be used? Cmments: The respndents expect the frequencies t be used primarily t cver rural areas and t achieve better indr cverage. The frequencies will enable area- cverage. Questin 4.11.: In yur view, hw hmgenus/hetergeneus is this spectrum? What usage limitatins can yu identify? Which parts f the band wuld be affected by thse limitatins? Page 14

15 Cmments: The respndents expect differences in usage cnditins due t bradcasting in neighburing cuntries, due t bradcasting in the channels belw the band (especially channel 60), due t bradcasting n channel 65 and due t cable TV netwrks. One respndent expects majr interference prblems in the MHz frequency range. Questin 4.12.: When d yu believe the frequencies shuld be auctined ff? Wuld yu prefer anther time, fr example if it made it pssible t define specific cnditins f use r if it enabled simultaneus assignment with 900 MHz frequencies? Cmments: The vast majrity f respndents did nt express a specific preference fr a rapid assignment f the frequencies. Instead, the respndents believe that the auctin shuld nt be held until the general cnditins have been defined sufficiently t enable a cmmercial valuatin f the frequencies (e.g. terms f use). In additin, mst respndents cnsider it a high pririty t ensure a simultaneus auctin with ther frequency bands. One respndent advcated an auctin in the first half f 2012, while anther argued that the auctin shuld be held as sn as pssible. 4.3 Assignment f 900 MHz frequencies Questin 4.13.: Wuld yu acquire frequencies in this band? If n, why nt? Cmments: Multiple respndents expressed an interest in the frequencies. Questin 4.14.: In yur view, which services/applicatins wuld be especially well supprted by this frequency band? What technlgies will be deplyed / wuld yu deply? Cmments: The respndents expect GSM t be used fr vice services, while UMTS (as well as LTE in sme cases) wuld be used fr bradband services; in this cntext, their expectatins varied widely with regard t the mix f technlgies t be used ver time. One respndent believes that this band will still be used mainly fr GSM in the future. On the ther hand, anther respndent indicated that GSM wuld nly be perated in this band fr a few mre years. Finally, anther respndent remarked that this band will primarily be used fr UMTS due t its higher spectral efficiency (cmpared t GSM). Questin 4.15.: Please give an estimate f yur frequency requirements / a netwrk peratr's frequency requirements in this band. Hw many interested parties wuld yu expect? Cmments: Estimates f frequency requirements varied widely. Sme cmments indicated a minimum requirement f 2x5 MHz, while thers mentined requirements f up t 2x25 MHz. These requirements are als cnsidered dependent n the frequency assignments received in the 800 MHz band and n the number f technlgies used by an peratr in this band. Questin 4.16.: In yur view, what is the smallest pssible bandwidth an peratr shuld be able t acquire in this frequency band? Cmments: Page 15

16 Mst respndents wh cmmented n this questin estimate the minimum requirement t be 2x5 MHz. One respndent's estimate was 2x10 MHz, and anther respndent mentined better chances n the market with an assignment f 2x10 MHz. Questin 4.17.: In yur view, what subdivisin f the frequency band wuld be mst reasnable? Hw many frequency packages (in what size) shuld be put up fr assignment? Wuld it be imprtant t btain adjacent frequency blcks? Cmments: All f the respndents wh cmmented n this questin apprved f the subdivisin suggested in the cnsultatin dcument (7 blcks, 2x5 MHz each). The respndents cnsider it imprtant r essential t be assigned adjacent blcks. It was explained that this facilitates the cexistence f multiple technlgies (e.g. GSM and UMTS) as well as the deplyment f LTE. Questin 4.18.: Please describe the rllut scenari yu expect r plan t implement. In what regins will these frequencies primarily be used? Cmments: The respndents expect (full) cverage with vice and bradband, especially in rural areas and indrs. Questin 4.19.: In yur view, hw hmgenus/hetergeneus is this spectrum? What usage limitatins can yu identify? Which parts f the band wuld be affected by thse limitatins? Cmments: The respndents see a lack f hmgeneity in brder regins due t the existing preferred channel arrangements (which are ptimised fr GSM) with neighburing cuntries. Tw respndents indicated that they cnsider the band t be fairly r largely hmgenus. Questin 4.20.: In yur pinin, when shuld the auctin take place if the frequencies are auctined ff early? Shuld the frequencies be auctined ff tgether with the digital dividend in a simultaneus auctin? If nt, please prvide precise reasns. Cmments: All f the respndents except fr ne explicitly indicated that the frequencies shuld be assigned as sn as pssible. One respndent advcated assignment by the year 2013 at the latest, while anther indicated that the frequencies shuld nt be assigned until 2013 r thereafter. Hwever, the vast majrity f respndents wh cmmented n this questin advcated the simultaneus assignment f the 900 MHz and 800 MHz bands. The reasns cited include the bands' clse interdependencies in terms f value, flexibility and security fr peratrs t be able t acquire the ptimal cmbinatin f frequencies in bth bands, and legal certainty. One respndent des nt believe that simultaneus assignment is abslutely necessary. Anther respndent indicated that the 900 MHz and 1800 MHz frequencies shuld nt be assigned separately under any circumstances due t their clse substitutin characteristics and specific cnditins (same services, existing custmers, GSM usability, rerientatin f vice traffic, expiratin f a substantial share f licenses at the same time as 900 MHz licences). Finally, ne respndent argued that at least thse parts f the 1800 MHz band which expire simultaneusly with the 900 MHz licenses shuld als be auctined ff in the curse f the simultaneus assignment f the 800 and 900 MHz bands. Questin 4.21.: Wuld yu cnsider selling existing spectrum t ther peratrs in the curse f redistributin in rder t ensure a mre efficient redistributin prcess mre quickly? What minimum time wuld yu require fr the transitin? Cmments: Page 16

17 Sme respndents d nt rule ut the pssibility that peratrs might give up parts f their licences in rder t enhance efficiency (e.g. defragmentatin, shifts t alternative bands which ffer advantages frm a business standpint). In this cntext, hwever, respndents als indicated limits r general cnditins, fr example that such a transactin must nt invlve a reductin in the peratr's bandwidth, r that cmpanies wuld have t be cmpensated financially MHz band Questin 4.22.: D yu intend t acquire frequencies in the MHz band? If n, why nt? If yes, when wuld yu plan t start using the frequencies? Cmments: The cmments pinted t tw interest grups: One has a mre lng-term interest in the spectrum and wuld like t use these frequencies fr LTE Advanced, especially in urban areas with high peak lads. The ther grup indicates a mre shrt-term interest in the frequencies (see als the respnses t Questin 4.23). Questin 4.23.: In yur view, which services/applicatins wuld be especially well supprted by the MHz band? What general cnditins wuld be imprtant fr the use f this frequency band? What technlgies will be deplyed / wuld yu deply? Are there any differences in usage pssibilities cmpared t the MHz frequency band? If yes, hw d the bands differ? Cmments: The respndents cnsider the fllwing applicatins/services t be especially suitable fr this frequency band: Use fr LTE and LTE Advanced Replacement f existing narrwband systems, pint-t-multipint wireless data services, remte mnitring and cntrl, remte management fr data cmmunicatins, extensin f lcal LANs, remte maintenance, remte meter reading, smart grids, cntrl f central heating plants and cntracting systems, backhauling f smart metering aggregatin pints. In-huse applicatins/services Use f IEEE e/WIMAX standard One respnse indicated ptential usage by gestatinary satellites. Applicatins in e-business Please als refer t the respnses t Questin Questin 4.24.: Please give an estimate f yur frequency requirements / a netwrk peratr's frequency requirements in the MHz band. What minimum blck size wuld be apprpriate in yur pinin? Cmments: Accrding t the respndents, the frequency requirements wuld range frm 5 t 20 MHz. Fr the LTE Advanced technlgy, 20 MHz blcks shuld be made available. Fr smaller-scale requirements, hwever, it shuld als be pssible t use 5, 7 r 10 MHz blcks. Questin 4.25.: Wuld yu prefer t use the MHz frequency band fr TDD r FDD? Page 17

18 Cmments: In general, the respndents mentined TDD as well as FDD. Several respndents recmmended waiting fr the standardisatin f LTE Advanced by 3GPP. Questin 4.26.: Hw much interest in these frequencies wuld yu expect t see? Cmments: Several respndents d nt expect any need fr these frequencies, while thers shwed widely varied levels f interest. A third grup f respndents mainly sees lng-term demand fr this spectrum in cnnectin with LTE Advanced. Questin 4.27.: Hw shuld the usage areas be defined? In small areas, by federal prvince, r thrughut Austria? Or wuld yu prefer a different usage area (e.g., by base statin)? Hw shuld different usage areas be delimited? Cmments: Mst respndents did nt cmment n this questin r cnsidered it t early t make a statement n the tpic. Several respndents advcated a gegraphical subdivisin int (relatively small) usage areas. One respndent suggested a "first cme, first served" assignment mdel based n a catalgue f criteria. Page 18

19 5 Future steps The respndents prvided a number f suggestins which are currently being reviewed and discussed extensively. Amng thers, these suggestins include the fllwing: Jint assignment f the 800 MHz band, 900 MHz band and 1800 MHz band Strng preference fr an auctin n earlier than mid-2012 General cnditins t ensure cmpetitin in cnnectin with refarming In rder t ensure planning certainty fr market participants, the regulatry authrity intends t publish a timetable fr future steps in these prcedures nce the internal discussins have cme t an end. Page 19