ITU ACADEMY CASE STUDY
ITU ACADEMY
SPECTRUM Policy and
Planning - Case Study based Contents
Assignment SECTION I……………………………………..2
Introduction 2
Learning Objectives
Ministry Guidelines 3
Learning Objectives for this Case include: Patria ICM Sector Overview 3
Applying spectrum policy guidelines and
SECTION II…………………………………….5
objectives in assessing competing interests
Viewing spectrum policy development as a
process
Assessing and evaluating spectrum policy
priorities
2
Case Study Methodology
Participants are expected to review relevant study materials and
develop and prepare a brief paper identifying issues, opportunities
and responses to the questions raised in the case study.:
Engaged – all participants are expected to prepare a brief
response;
Questioning – identify potential key issues and consider
options and solutions;
Key skill focus: Understanding the spectrum policy framework, processes and tools used by regulators.
Section I
Introduction
Country setting: Kasnia The Government of the Republic of Kasnia established a
independent converged communications regulator, the Telecom
Key Stakeholders Regulator (TelcoReg), five years after competition was introduced
in the telecommunication sector, by combining the functions of
Communications Minister two previous separate quasi-independent regulators and a
government department: the Telecommunications Authority of
TelcoReg
Kasnia, the Kasnian Broadcasting Agency, and the
Radiocommunications Dept.
Other Ministries: Defense,
The Government of Kasnia has placed significant emphasis on
Transport (airports and rail)
modernizing the telecommunications sector in Kasnia. The
KasTel, DigiKasnia and AllTel: Ministry of Communications is the ministry charged with
Existing Mobile Operators responsibility for the telecommunication and broadcast sectors
(ICM). The first step taken by the Government included
Newtel: Potential New Entrant privatization and then liberalization the sector by introducing two
new mobile operators to the sector in 2007.
KBC: Kasnia Broadcasting
Progress to date has been acceptable in terms of coverage,
Corporation
consumer prices and penetration however the Communications
KBA: Kasnia Broadcasting Minister is committed to publishing the Government’s first five
Association year strategic plan within 18 months. The spread of broadband
communications throughout the country is expected to be a
ICM：Information, priority (to date, rollout of broadband has been slow and mainly
Communications and Media confined to Kasnia’s two largest cities). TelcoReg’s role is to
Sector advise the Minister on policy matters, requirements for change or
new regulation (s), and on spectrum management and technical
and aspects in support of developing the Five Year Strategic Plan.
3
Ministry Guidelines
_______________________________________
In seeking advice and input from TelcoReg, the Ministry of
Communications has provided some guidelines for the Information,
Communications and Media Sector (ICM) (previously referred to
telecommunications and broadcast sectors :
Promote the development of efficient and competitive ICM
industries;
Promote access to ICM services for all citizens of Kasnia;
Promote consumer choice;
Provide transparent regulatory processes to facilitate
competition and efficiency of ICM industries;
Manage the radiofrequency spectrum so as to ensure its
efficient use;
Case Study Guidelines
Establish a fair system of regulation for ICM industries;
Ensure spectrum is available for public safety and emergency Before exploring the task
services;
further, it is important that
Facilitate and encourage investment.
participants review the
The Minister has asked TelcoReg to provide an initial report on what
steps need to be taken by TelcoReg in fulfilling its mandate. The brief previous sessions in this
report should include as a first step and outline of the following: Module and understand
What are the key activities to be undertaken? the spectrum management
What information is needed?
policy principles and
Who should be involved?
What issues can be anticipated? objectives and tools used
by spectrum managers to
Kasnia ICM Sector Overview
develop spectrum master
The Government of Kasnia has long recognized the importance that
plans and what are the
improved telecommunications infrastructure and service play in the
economic and social development of the country. It believes that intended purposes for such
the pace of development in the ICM sector needs to increase and is
plans.
committed to providing the necessary catalysts for growth. A Five
Year Strategic plan identifying areas of government policy and
regulatory action is being developed with key support and advice
from TelcoReg.
Kasnia has since 2007 three mobile carriers, providing 2G and 3G
(GSM, WCDMA, etc.) services across most of the country. The
carriers ― Kasnia Telecom (KasTel), DigiKasnia, and AllTel ― were
subject to coverage requirements with their 3G licenses acquired in
2011 that required them to cover 75% of the country’s population
by 2012. All of the carriers have met this obligation.
KasTel is the former monopoly fixed line telecommunications
provider in the country, having evolved from the former
government department responsible for posts, telegraphs and
telephones (KTT). It is the dominant fixed line carrier in the market
and has 55% of the mobile market share and the best network
coverage. As well as its mobile network and its fixed network, and is
also the first player in the emerging fixed broadband market.
4
The other telecommunications operators have complained in the past that KasTel exploits its strong
dominant market position in order to restrict their ability to compete with it.
DigiKasnia and AllTel both entered the market in 2007 when the Government opened up its
telecommunications market to competition. At that time, they acquired licenses via a beauty
contest to provide mobile services in the GSM 900 and 1800 MHz bands. Spectrum in the IMT Core
band is allocated but not assigned. These licences were subject to the network coverage
requirement (of at least 75% of the population of Kasnia by 30 June 2012). The same condition was
imposed on Kasnia Telecom, in order to put the three carriers on an equal footing.
Both DigiKasnia and AllTel are consortiums of foreign owned carriers and local business interests.
However, AllTel is believed to be struggling in the market with less than 15% market share, with its
take-up rate lagging behind the other two mobile carriers. The company has reported recently that
it may be interested in focusing on wireless broadband if new licenses become available using the
Digital Dividend and it may be considering selling its 2G network to one of the other two mobile
carriers.
Mobile phone penetration in Kasnia relatively high at over 75% ―and mobile penetration is much
stronger than that for fixed broadband which is lagging at 20%. Because of the high mobile
penetration rates and expected higher traffic levels as consumers migrate to 3G services, the
operators are interested in acquiring additional cellular spectrum beyond the current 320 MHz
allocated to IMT services in order to boost capacity. DigiKasnia also sees the prospect of using
mobile broadband to capture a significant share of the broadband market. It believes that mobile
broadband will be quicker and cheaper to roll-out than fixed broadband. On the other hand, KasTel
is rumored to be ambivalent about mobile broadband given its heavy investment in fixed
infrastructure however there is likely interest in acquiring additional mobile broadband spectrum
even if only as a defensive measure (to prevent it falling into the hands of a new entrant or its
competitors). In other words, it will not want to be locked out of the mobile broadband market.
AllTel’s position on acquiring mobile spectrum is also unclear. It would be most concerned if
spectrum was acquired by a new entrant because that could put at risk its already low market
share.
Broadcasting sector in Kasnia is quite mixed with a government broadcaster providing terrestrial
analogue radio and TV coverage and there are two private sector companies providing analog TV in
the major cities using the 700 MHz UHF broadcasting band. The Government has announced that it
plans to move to digital TV transmission in the period covered by the forthcoming strategic plans
and following the adoption of a Digital Switchover implementation report to be prepared by
TelcoReg.
Broadband services have been slow to develop in Kasnia. Fixed broadband is limited to the two
largest cities in the country. Apart from some rollout of Wi-Fi networks in the cities, there is
currently no significant wireless broadband rollout. However, DigiKasnia has told the Minister that it
would like to establish a wireless broadband network using its 2G cellular telephony spectrum
Furthermore, a foreign owned company, NewTel, has approached the Minister with a proposal to
build a wireless broadband network with significant regional coverage. The Minister is favorably
disposed towards these proposals but there are significant unresolved issues where advice is
needed including the spectrum to be used for such a service.
5
Currently the spectrum licences issued to the three cellular carriers restrict the use of the spectrum
to GSM
Task at hand
The Minister has requested that TelcoReg prepare a report identifying the issues facing the ICM
Sector and which provides advice to the Minister on the necessary steps and required actions to be
taken in support of the Five Year Strategic Plan. The report should first appear as an outline
addressing the following in point form:
The brief report should include as a first step and outline of the following:
1. What are the key activities to be undertaken?
2. What information is needed?
3. Who should be involved?
4. What issues can be anticipated?
5. What policies are likely to be needed?
ASSIGNMENT
After considering the information and having conducted preliminary analysis, what should TelcoReg give as
priority recommendations and advice to the government concerning spectrum policy and planning?
Submit the report (Maximum 2 pages) prior to 5th March 2017
Hints
TelcoReg should consider the following:
1. What policies are needed concerning flexible use and market-based mechanisms?
2. Are the policy guidelines sufficient? What should be added?
3. Does the Ministry or TelcoReg have an established and clear policy formulation and
planning framework? What do you recommend?
4. What priorities should be established by TelcoReg?
5. What process or steps do you recommend for gathering information and data?
Special thanks to support from Mr. Adrian Foster in preparing this case study