ADDITIONAL FREQUENCY LICENCES IN THE 900 AND 1800 MHz BANDS - INVITATION TO COMMENT ON CONFIGURATION OF AUCTION LOTS

1. Introduction

In the State Budget for 2001 the Government proposed to assign new licences in the 900 and 1800 MHz bands through an auction in 2001. The Storting, Norway`s Parliament, supported the proposal.

The 900 and 1800 MHz bands[1] are allocated to mobile services in the Norwegian Frequency Plan. An overwiew of the available frequencies is given in appendix 1. To survey the demand for the frequency resources and to be able to configurate the auction lots in the most suitable manner, the telecommunication authority invites all interested parties to comment on our proposal for configuration of auction lots in the 900 and 1800 MHz bands.

All queries relating to this matter should be adressed to Erlend Fanebust, erlend.fanebust@npt.no, tel. +47 22 82 47 27 or Stein Gudbjørgsrud, stein.gudbjorgsrud@npt.no, tel. +47 22 82 48 81.

2. Background

2.1 Legal issues

The Norwegian Post- and Telecommunications Authority issues frequency licences in accordance with Act 23. juni 1995 nr. 39 relating to telecommunications (the Telecommunications Act) § 5-2, cf Regulation no 1032 of 15. desember 1995 relating to allocation of authority within the telecommunications authority § 2.

Pursuant to Regulation no 994 of 3. october 2000 relating to authorisation of providers who have been assigned a frequency licence pursuant til the Telecommunications Act chapter 5 to establish and operate essential telecommunications networks, providers who do not have significant market power pursuant to the Telecommunications Act section 2-1 are required to obtain authorisation from The Ministry of Transport and Communications if the frequencys shall be used to establish, possess or operate a public telecommunications network for the purpose of providing transmission capacity or that provides public telephony services. Existing providers with authorisation for GSM 900 and GSM 1800 networks only need a licence from the Norwegian Post- and Telecommunications Authority to use additional frequencies.

Frequency management is subject to obligations under public international law. In this respect, special mention is made of the EEA Agreement[2] , in particular the licencing directive[3] and the WTO framework, especially the fourth protocol[4] of the GATS, in the area of trade in telecommunications services. In addition , the Radio Regulations imposes obligations upon Norway regarding the use of frequencies by radio stations which are capable of causing harmful interference to radio services in other countries[6]. A summary of legal provisions for the 900 og 1800 MHz band is described below.

2.2 The frequency bands

900 MHz band

A Council Directive[7] has set out common frequency bands (890-915MHz and 935-960MHz) to be allocated in each EU ( since the entering into force of the EEA agreement also the EEA) Member State to ensure pan-European operation of GSM900 and a Council Recommendation[8] promoted the co-ordinated introduction of GSM services in the Community.

Later, the ERC adopted two Decisions relevant to GSM900 as follows:

• ERC/DEC/(94)01: designating the frequency bands 890-915MHz and 935-960MHz to GSM as from 24 October 1994.
• ERC/DEC/(97)02: deciding that when an Administration requires additional spectrum for GSM, beyond the frequency bands mentioned in the ERC/DEC/(94)01, all or parts of the frequency bands 880-890MHz paired with 925-935MHz shall be used.

Therefore, the current GSM900 frequency band (2x35MHz) in Europe corresponds to 880-915MHz paired with 925-960MHz.

By Royal Decree of 1. November and 20. December 1991, NetCom GSM as and Telenor Mobil AS, respectively , were awarded authorisations to establish, possess and operate a GSM 900 network

The frequency licences were assigned 17. December 1992. The licences give the licencees access to 2 x 9,6 MHz of bandwidth each. They expire 1. November 2005.

By Royal Decree of 8. May 1992, Telenor Mobil AS was awarded authorisation to establish, possess and operate a NMT 900 network The frequency licence was assigned 17. December 1992. It expires 31. December 2001. The Ministry of Transport and Communications

have given their approval to the termination of NMT services 1. March 2001.

2 x 14,4 MHz of bandwidth[9] is available in this band. The existing licences cover the part of the band which i subject to legally binding obligations under the EEA agreement. The Norwegian Frequency Plan fulfils the requrement that the frequency band 880-915 MHz paired with 925-960 MHz shall be available for GSM, but does not preclude other technologies.

It will be considered to limit the geographical coverage of the licences or to include conditions to prevent the use of frequencys from causing harmful interference to the EISCAT radar in Tromsø.

1800 MHz band

As recommended in the Mobile Directive[10] the ERC/DEC/(95)03 designated the frequency bands 1710-1785MHz and 1805-1880MHz for GSM1800 and requested that at least 2x15MHz within the designated bands should be made available for GSM1800 by 1 March 1997 and an additional 2x5MHz should be released in order to meet market demand by 1 January 1998.

2 x 50 MHz of bandwidth[11] is available in this band.

NetCom GSM as, Telia AB and Telenor AS were awarded authorizations to establish, possess and operate a DCS 1800 network 11. March 1998. The frequency licences were assigned 16. March 1998.

Telia AB`s licence was terminated 3. August 2000. The remaining licences give each licencee access to 2 x 10 MHz of bandwidth. They expire 15. March 2010.

The usage of available frequency bands are not governed by legislation precluding other technologies than GSM.

2.3 Future use of the bands

WRC 2000 identified three optional frequency bands[12] for terrestrial IMT 2000. The decision is not an allocation of spectrum per se, but rather constitute a declaration of intent for additional spectrum for IMT2000. ITU members have the flexibility to determine whether, when and to what extent to allocate IMT 2000 applications in the identified bands.

The available 900 og 1800 MHz bands are among the bands identified by WRC 2000. The uppermost of the three bands[13] is Europes preferred solution for additional spectrum for IMT 2000.

The telecommunication authority will consider the transition to IMT 2000 in these bands in the future.

3. Invitation to comment on the configuration of auction lots

In the State Budget for 2001 the Government proposed to assign new licences in the 900 and 1800 MHz bands through an auction in 2001. The Storting, Norway`s Parliament, supported the proposal.

The 900 and 1800 MHz bands[14] are allocated to mobile services in the Norwegian Frequency Plan. An overwiew of the available frequencies is shown in appendix 1. To survey the demand for the frequency resources and to be able to configurate the auction lots in the most suitable manner, the telecommunication authority invites all interested parties to comment on our proposal for configuration of auction lots.

Part 1

The telecommunication authority invites all interested parties to comment on our proposal for configuration of auction lots in the 900 og 1800 MHz illustrated in appendix 2. We also welcome alternative proposals.

If diverging preferences exist regarding bandwidth amongst potentional bidders, a simultaneous multiple-bid auction may be designed to facilitate the aggregation of bandwidth.

Part 2

Views on the following questions are sought from all parties interested in obtaining a frequency licence in the 900 and 1800 MHz bands:

1. What is your preference regarding bandwith and defined spectral position. We ask for alternative options to be presented in prioritized order.
2. What is your view on the possibility to use the frequencies for other applications than GSM, including the co-existanse with existing operators?
3. What is your preference, if any, regarding bandwith and defined spectral position for use with other applications than GSM. We ask for alternative options to be presented in prioritized order.
4. What is your view on the need for guard bands against other services and the possibility of using parts of the guard band against DECT e.g. for low power devices?
5. How probable is it that you will participate in an auction over frequency licences in the 900 and 1800 MHz bands?

If confidentiality is requested, the telecommunications authority will decide whether or not the response qualifies for exemption from public access, including the parties’ right of access to documents under Norwegian administrative law.

Please send your responses by 9. March 2001 to: The Norwegian Post and Telecommunications Authority, P.O.Box 447 Sentrum, N-0104 Oslo,Norway

It would be helpful if documents could be supplied on disk, or attatched to an e-mail sent to firmapost@npt.no, as well as in printed form.

Footnotes:

• Appendix 1
• Appendix 2