Page 113 - ITU Kaleidoscope 2016
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ICTs for a Sustainable World




           respectively.  It  then  turns  to  argue  that  spectrum  sharing   al, [6] would allow both types of potential buyers to bid in
           provides  a  renewed  management  tool  to  increase  the   an  auction  whose  outcomes  would  determine  who  would
           effectiveness  of  allocations  and  the  effectiveness  of   use the spectrum, and in doing so also deciding the service,
           assignments, which should translate into additional benefits   as  well  as  the  amounts  to  be  paid  for  the  licenses.  By
           to society at large.                               introducing  a  slight  change  to  such  auction  design,  which
           The typical problem a SA faces is the following: what is the   would  restrict  the  use  of  those  bands  to  the  fringe  of
           best use that can be given to a given frequency band and   participants interested in the unlicensed option, a SA would
           who should be entitled – or licensed – to use it?   be shifting the burden of spectrum allocation decision to a
                                                              market-based  mechanism  that  simultaneously  over  the
           As  discussed  above  a  SA  allocates  a  spectrum  band  to  a   course of a clock ascending auction would decide whether a
           service or services that can occupy the band. International   band is to be shared or not, and it is, the price to be paid for
           agreements  and  harmonisation  in  the  possible  uses  of  the   a shared license. Potential sharers need to solve a collective
           spectrum  have  led  SAs  to  designate radio spectrum bands   action problem; in such situations, typically efficiency of the
           for  their  utilisation  by  prescribed  services,  which  in  many   allocation may be compromised as bidders find incentives to
           cases  must  follow  technical  standards  of  transmission  and   free-ride.
           interference management. Assignment of spectrum to users
           follows  an  administrative  process  that  grants  them  rights   Opportunistic  use  of  a  frequency  band,  as  enabled  by
           over a number of bands Most SAs use auctions for assigning   WRAN technology, requires a centralized database to allow
           spectrum in bands allocated to commercial communications   CR-based  devices  to  transmit  on  TV  white  spaces.
           and broadcasting operations.                       Establishing and managing – or outsourcing - such a system
                                                              requires  that  the  SA  covers  the  costs  of  equipment  and
           Building upon Larbi-Apau and Moseley [11] who state that   administration.  ASAs  such as this would probably have to
           effectiveness means doing the right thing while efficiency is   be  funded,  at least partially, through license fees but most
           about doing the things right, it is here suggested that if a SA   likely will need to be subsidized as the target population is
           puts  spectrum  to  its  best  use,  it  will  maximize  the   usually sparse and remotely located from urban centres.
           effectiveness of the allocation, and if a SA puts the spectrum
           in the hands of those who value it the most, it will maximize   A common concern raised by potential new users to SAs is
           the  efficiency  of  the  assignment.  It  is  clear,  from  the   about  the  efficiency  with  which  government  agencies  use
           evolution of some of the so-called ISM bands –such as 2.4   parts of the radio spectrum, indicating too that they would
           GHz  and  5.8  GHz,  which  were  originally  conceived  for   need  shared  access  to  such  bands.  Upon  releasing  its
           applications  non-related to telecommunications, to become   spectrum  sharing  framework  [15],  Ofcom  outlined  the
           the  support  of  Wi-Fi  systems,  that  allowing  non-licensed,   request  process  as  one  by  which  a  mobile  operator  or
           open access use of the spectrum can create conditions that   interested party initiate a request to gain access to a specific
           demonstrated the effectiveness of spectrum management.    band that has been either licensed to an incumbent  or held
                                                              by users, such as government agencies, traditional holders of
           In  considering  spectrum  sharing  a  SA  would  need  to  ask   rights. The spectrum access seeker needs to have exhausted
           itself  how  the  introduction  of  sharing  will  affect  its  main   a  number  of  options  that  must  precede  their  sharing
           spectrum management functions. In particular it is adequate   aspirations. First, it must have not found any suitable option
           to wonder what the impact of spectrum sharing would be on   among  the  currently  available  licenses  (including  license-
           allocation and assignment.                         exempt bands), or found no trading or leasing opportunities.
           In some cases SAs are pressed from different directions to   Then,  and  only  then,  Ofcom  will  consider  looking  into
           allow new users, particularly wireless broadband operators   available  information  to  determine  whether  the  request  is
           and other providers of newly developed services to access   worth being further investigated [15].
           spectrum  bands  which  are  being  cleared  up  from  their   Building  provisions  to  endow  spectrum  sharing  decisions
           previous  licensees.  The  US  700  MHz  band  is  one  case  at   with  market-based  mechanisms  was  attempted  by  Ofcom
           hand in which several competing parties demanded that the   with its 800 MHz and 2.6 MHz spectrum auction in 2013. A
           Federal  Communications Commission should designate the   previous 2012 Ofcom’s previous consultation on the award
           digital dividend – those bands left empty by the introduction   of  those  bands  gave  ample  consideration  to  auction  rules
           of digital television – to their particular uses of interest. On   that  would  lead  bidders  to  reveal  preferences  for  wining
           one  side,  mobile  telecommunications  operators  demanded   bands contiguous to bands won by other bidders with whom
           those  bands  be  allocated  to  4G  services  and  an  auction   potential  sharing  agreements  could  be  reached  [16].  The
           administered  to  assign  extensive  geographical  licenses.  On   proposal first explored the pros and cons of allowing bidders
           the other side, new comers – among them information and   to express their preferences consistent with their goal to get
           contents operators as well as some equipment manufactures   blocks contiguous to the blocks won by other bidders with
           -  demanded  those  bands  should  be  designated  unlicensed   whom they would be sharing the spectrum. Bidders would
           and opened for common exploitation by Wi-Fi services.    see  benefits  from  pooling  together  resources  with  higher
           One  interesting  proposal  was  to  design  an  auction  that   speed  and  improved  quality  of  service  possibly  achieved.
           would  solve  both  problems  jointly:  allocation  and   Bidders,  on  the  other  hand,  would  be  exposed  to the risk
           assignment.  The  auction design, proposed in  Bykowsky et   involved  in  not  being  able  to  win  the  necessary  blocks,
                                                              hence the likelihood of an inefficient auction outcome. This



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