Martin SIMS
WRC-07: the Technological and Market Pressures for Flexible Spectrum Access
Key words: 2007 World Radio Conference, WRC-07, mobile, IMT, IMT-2000, satellite, broadcasting, spectrum liberalisation, mobile TV, DVB-H, WiMAX, technology neutrality, ITU Radio Regulations.

By examining the preparations for the 2007 ITU World Radio Conference (WRC-07) and associated developments this paper identifies practical examples of the market and technological pressures contributing towards a more liberalised approach to spectrum management. It argues that the need to find new spectrum for advanced mobile services (WRC-07 Agenda item 1.4), the growing orthodoxy on spectrum neutrality and the need to accommodate converging technologies are helping to undermine the stricter forms of command and control spectrum management. However, the need for global harmonisation of satellite frequencies and the international variation in rolling out digital terrestrial television place limits on this drive towards greater flexibility.

Frédéric PUJOL et al.
Regulatory and Policy Implications of Emerging Technologies to Spectrum Management
Key words: spectrum, new radio technologies, UWB, SDR, cognitive radio.

This paper provides an overview of the policy implications of technological developments, and how these technologies can accommodate an increased level of market competition. It is based on the work carried out in the SPORT VIEWS (Spectrum Policies and Radio Technologies Viable In Emerging Wireless Societies) research project for the European Commission (FP6)

Phillipa Marks & Brian Williamson
Spectrum Allocation, Spectrum Commons and Public Goods: the Role of the Market
Key words: spectrum policy, auctions, trading, spectrum pricing, digital switchover, real options, public sector use and licence exempt use.

The reallocation of radio spectrum to valuable new and emerging technologies and services is essential to achieving the next wave of productivity and consumer benefits driven by ICT. Currently spectrum is not allocated to the most valuable uses, particularly the large amount of spectrum held for government use, and command and control management cannot respond fully or quickly in reallocating spectrum. To achieve a more economically efficient allocation and the greatest overall benefit market mechanisms including trading and spectrum pricing must be introduced. Complementary reforms in areas other than spectrum management will be required, and the appropriate boundary between market and non-market allocation mechanisms need to be established. Setting clear principles regarding the market/non-market boundary will help in resisting the inevitable rent seeking by incumbents and potential entrants during the transition to market mechanisms. Countries that do not face up to these challenges and move quickly will see their citizens disadvantaged as spectrum becomes a key economic resource.

Gary TONGE & Pierre de VRIES
The Role of Licence-Exemption in Spectrum Reform
Key words: spectrum policy, spectrum management, wireless services, deregulation, digital dividend.

Spectrum reform initiatives in the US and Europe have identified a need to move away from the traditional "command and control" approach towards flexible and tradable licences and licence-exemption. Current regulatory initiatives are tending to focus on the flexible licensing route, and there is a risk that licence-exemption will be sidelined during the important formative years of this major policy transition. This must not happen; licence-exemption supports innovation and entrepreneurship and is an important second leg of a market-based spectrum management regime. A current case in point is the transition in UHF frequency bands from analogue to digital TV, where licence exempt use of resulting gaps in the spectrum could yield enormous benefits for citizens and consumers.

Fulvio Minervini
Emerging Technologies and Access to Spectrum Resources: the Case of Short-Range Systems
Key words: spectrum policy, spectrum access, emerging spectrum-using technology, short-range systems.

Traditional regulatory arrangements have constrained access to radio frequency spectrum. This has resulted in artificial scarcity of spectrum. The paper addresses the issue of whether technological developments in short-range systems (e.g. cognitive radios and ultra wideband) might promote access to spectrum - possibly using market mechanisms such as trading - and reduce spectrum shortages.

Klaus HACKBARTH & Laura RODRIGUEZ DE LOPE
Dragan ILIC & Gabriele KULENKAMPFF
Bottom-up Cost Modelling for Bitstream Services in ATM Based Broadband Access Networks
Key words: bitstream access service, broadband access network, cost modelling, regulation.

This contribution proposes a bottom-up model for determining the cost of bitstream access services. For this purpose a traffic model is developed and a network structure for the corresponding broadband access network (ATM) is determined. The cost model is designed against the regulatory background and respective requirements in cost allocation. In this paper the model is exposed and applied to a network example. Additionally some problems arising for quality of service differentiation in providing bitstream access services are shown and a first approach is indicated.

K.R.Renjish Kumar & Heikki Hämmäinen
Competition in International Mobile Roaming: Alternative Clusters
Key words: International mobile roaming, clusters, alliances, convergence, roaming alternatives, emerging business models.

Traditionally, international mobile roaming (IMR) has generated significant revenue for the operators. The business model has also remained untouched or unchallenged until recently. The traditional bilateral models are today giving way to clusters. The emergence of Internet Protocol (IP), in recent years, has also enabled the possibility of alternative business models and new entrants, acting as complements or rivals to the existing roaming model. In this paper, we identify three different types of IMR clusters and their characteristics. Strategies for competition and cooperation among clusters are discussed. Analysis is based on the existing alliances in Europe. We analyze the impact of competition on a traditionally dominant mobile operator from the member of an emerging alternative cluster type, in terms of the amount of IMR revenue, subscribers and traffic generated and migrated. Our analysis shows that the bit-pipe access network pricing is one of the key factors in providing affordable international roaming services. Notably, the emergence of alternative clusters can create competitive pressure on traditionally dominant mobile operators leading to a considerable reduction in existing tariffs. Regulators should take note of the changing dynamics of IMR market and support the emergence of alternative clusters in order to foster growth and competition for the benefit of customers.

Edmond BARANES is Professor of Economic Sciences at the University of Montpellier and IDATE's Scientific Consultant. He is the Editor for the COMMUNICATIONS & STRATEGIES journal and represents IDATE within academic networks. He holds a Ph.D. in Economic Sciences and a Master of Economics (University of Paris I Panthéon-Sorbonne, 1991). He received a Post graduate diploma (DEA) in Mathematical Economy and Econometrics (1991) and a Master of Econometrics I (1990) from University of Paris.
edmond.baranes@univ-montp1.fr

Martin CAVE is a professor at Warwick Business School, UK. He is a regulatory economist, specialising in the communications industry and co-editor of The Handbook of Telecommunications Economics (2002, 2005) and of Digital Broadcasting (2006). He advises a number of regulatory bodies in Europe and worldwide.
martin.cave@wbs.ac.uk

Isabelle DENERVAUD is a Senior Manager at BearingPoint Paris Office. She worked on various projects on transformation, marketing and innovation issues for telecom, media and energy sectors. She is in charge of the Innovation Expertise Center, published a white paper on innovation management trends as well as points of view related to disruptive business models, competitive dynamics and new products launches. Before joining BearingPoint, Isabelle worked for the World Bank, R&D of Compagnie Generale des Eaux, Coopers & Lybrand, PricewaterhouseCoopers and IBM. She is a graduate of Ecole des Ponts and ESSEC.
isabelle.denervaud@bearingpoint.com

Richard FEASEY is the Public Policy Director for the Vodafone Group, coordinating global public policy and regulatory affairs throughout Vodafone's 28 operating companies including Europe, Africa, the Americas, and the Asia-Pacific. Richard has over fifteen years experience in international telecommunications in fixed, internet and wireless sectors; having been responsible for public policy at Worldcom International, Ionica plc and TeleWest Communications plc. He has chaired worldwide industry bodies and is currently chair of the Regulatory Advisory Board of the GSM Association.

Klaus HACKBARTH Klaus Hackbarth has been Full Professor in the Department of Communication Engineering at Cantabria University, Santander, Spain, since 1992, where he teaches telecommunications network architecture and network design. Currently he is a member of the Excellence Network EURO-FGI were he leads the Cantabria University research team and forms part of the Steering Committee. His current research activities lie in the field of Broadband and Mobile Network design and planning, mainly with application to cost studies for national and European Regulation entities. He has collaborated in this field with the WIK-Consult, Bad Honnef, Germany since 1998. Before joining Cantabria University, he worked in the R&D centre at Telefónica from 1989 to 1992 mainly as project leader and expert for international projects.  He worked for nearly 15 years in the Telecommunications Engineering Centre at Deutsche Telecom in Darmstadt. In the 1980s he took part in studies that led to the decisions by the German Federal Ministry for Post and Telecommunications to introduce broadband pilot services. The main focus of his work at the time was optimal network design and dimensioning. Klaus Hackbarth studied electrical engineering at Berlin Technical University where he received his first degree in 1974 and his Ph.D. in 1984. He is a member of the German association of electrical engineers VDE.

Rüdiger HAHN entered the federal ministry for post and telecommunications in 1990, and was, until 1992, assistant head of section and an advisor in the department of "Principles of Regulation". Since 1993 he has been an advisor for the department "Legal aspects of regulation." In 1996, Hahn became head of divison of "Mobile and Satellite Communication" and in 1998 head of the directorate of the department of Regulation and Licensing for the Regulating Authority for Telecommunications and Post. Since 2001, he has been head of the department of Legal Aspects of Telecommunication Frequency Regulation for the Federal Network Agency.

Heikki HÄMMÄINEN is a professor of Networking Business at the Networking Laboratory, Department of Electronics and Communications Engineering, Helsinki University of Technology (TKK). Prior to joining TKK, professor Hämmäinen made an industry career with Nokia including roles as head of laboratory in Nokia Research Center (Communication Systems Laboratory), vice president (System Development, Network Systems Division), director (System Development, Mobile Internet Applications Division), and general manager (Location Business) in Nokia Networks. His recent duties include ITS (Board Member), Conference on Telecommunications Techno-Economics 2007 (TPC chair), and Nordic and Baltic Journal of ICT (Editorial Board).
heikki.hammainen@tkk.fi

Jean-Michel HUET is a Senior Manager at BearingPoint Paris Office. He worked on different issues on marketing and innovation management for telecom, media and utilities companies. He has published numerous articles and points of view on entry strategies, management and convergence, including a book (Les tendances du management, Pearson, 2007) Prior   to joining BearingPoint, Jean-Michel was product manager at France Télécom Mobiles and consultant for PricewaterhouseCoopers and IBM BCS. He is a graduate of Reims Management School and Sciences Po Paris.
jean-michel.huet@bearingpoint.com

Dragan ILIC is a graduate of Cologne University and has studied economics. As a research assistant (2002-2004) among others, he worked on econometric studies. In 2005, he joined the “cost modelling and Internet economics” department at WIK. Since that time, he has worked on a numerous number of projects in which he gained experience in developing and parameterizing cost models (FL-LRIC as well as historical cost models). He is specialised in access networks (copper and fibre based), broadband networks and mobile networks. In the context of fibre based access networks, he investigated roll-out strategies for fibre based access networks (VDSL), taking account of technical and economic issues.
D.Ilic@WIK.ORG

K.R.Renjish KUMAR is a PhD student at the Networking Lab, Helsinki University of Technology (TKK) and Manager at Capgemini Consulting, India. As a Research Scientist at the Networking Lab (2003- April 07), Renjish worked on techno-economic issues in mobile, convergence and international roaming. He was with Siemens ICM, Singapore as R&D engineer (2001-02), working on the policy server design prototype for UMTS core network and with Cognizant Technology solutions as Programmer Analyst (1997-99). Renjish has a Masters (Computer science) from National University of Singapore (NUS) and B.E. (Electronics and communications) from National Institute of Technology (N.I.T) Surathkal. He has worked in EU project involving key players of the European telecom industry and also published papers in international conferences and journals. His current areas of interest include techno-economic and strategic studies in the telecom, Internet and media sectors.
renjish@netlab.tkk.fi

Gabriele KULENKAMPFF is the Head of Department of “Cost Modelling and Internet Economics” at WIK. She has a PhD in economics from Trier University, Germany. She has been with WIK since 1998. As well as cost modelling, she has advised on regulatory costing and pricing issues and market structures and corporate strategies. In 2001 she was appointed head of the department of cost modelling. Gabriele Kulenkampff has led and is leading several project teams with a focus on regulatory costing and pricing. She managed and carried out studies on bottom-up as well as top-down cost modelling. Regulatory principles with regard to cost standards and their application in regulatory rate cases are one of her core competencies. The current subjects she is investigating are bitstream access, QoS, and NGN/NGA in the context of the upcoming regulatory requirements. In summary, she has worked on the regulation of network access (narrow band and broadband), cost based rates for ULL and interconnection as well as issues concerning cross subsidisation. Prior to her employment in WIK Gabriele Kulenkampff worked as a researcher and lecturer in Microeconomics and Public Economics at Trier University. She has considerable experience in economic modelling.

Florence LE BORGNE is head of TV & New Media Practice at IDATE. Florence’s prime area of focus is the development of digital technologies (terrestrial, cable, satellite and IPTV, mobile TV, digital cinema, video and TV on the web) dealing with both the economic and strategic aspects of those sectors. More generally, her work involves analysis of media groups’ strategies, chiefly in Europe and Japan. Before coming to IDATE, she worked as the Head of Research in the Nord-Pas-de-Calais Regional Development Agency's Economic Observation department, where she devoted herself primarily to issues relating to the Information Society, the development of telework and the mastery of key technologies. Ms. Leborgne is a graduate of the Lille school of management EDHEC (Ecole des Hautes Etudes Commerciales).
f.leborgne@idate.org

Philippa MARKS is a Director of Plum Consulting specialising in the analysis of economic, public policy and regulatory issues in the media and telecommunications industries. She is an expert in the application of market mechanisms to spectrum management and has advised regulators and operators on spectrum pricing, trading and liberalisation in a number of European countries and in Asia. She has been a Director at Indepen Consulting and at NERA. She has Masters degrees in economics from Canterbury University, New Zealand and Oxford University, UK, She is a member of Ofcom’s Spectrum Advisory Board.
Phillipa.marks@plumconsulting.co.uk

Fulvio MINERVINI is a Ph.D. student at the Warwick Business School, University of Warwick, UK, and a research fellow at the University of Macerata, Italy. His research interests include spectrum policy, regulation of network industries and regulatory authorities. He has been involved in a number of research projects in those fields and most of his published work is on spectrum management and regulated industries. He teaches courses in public finance and economics.

Gérard POGOREL is Professor of Economics and Management, Ecole Nationale Supérieure des Télécommunications, (ENST Paris). He graduated from HEC Graduate School of Management (Ecoles des Hautes Etudes Commerciales, Paris) and holds a Doctorate in Economics from Université de Paris-I Pantheon-Sorbonne. He has published numerous articles, books, and reports and participates in numerous Government-level and regulation Authorities Committees on telecom and media policy and regulation in France, Germany, Italy, Thailand, Indonesia, and with the European Commission in Brussels. He is a member of the international panel of experts for the World Competitiveness Yearbook, (IMD, Lausanne).
pogorel@enst.fr
www.enst.fr/egsh/pogorel

Frédéric PUJOL is Director of Studies, Head of Mobile Services Practice at IDATE. Previously, Frédéric acquired solid experience in mobile network architecture working for the France Telecom Group (Sofrecom, Telesystems). He holds a post-graduate degree in engineering from ISEN (Institut Supérieur d'Electronique du Nord, Lille, 1986), where he majored in Telecommunications, and from CITCOM (Centre d'Ingénierie des Technologies de la Communication, Paris, 1987), where he majored in Network Architecture.
f.pujol@idate.org

Laura RODRIGUEZ DE LOPE has been contracted researcher in the Department of Communication Engineering at Cantabria University since 2002. She has participated in various research projects for fixed and mobile network planning in relation to corresponding cost studies for regulator authorities. She studied Telecommunication Engineering at Cantabria University and received a Masters Degree in 2002. She participated in Post-graduate studies for mobile and wireless technologies and received the Diploma of Advanced Studies in 2007 from Cantabria University. She is currently working on a PhD Thesis in the field of cost modelling for Broadband networks.

Julien SALANAVE is Director of Telecom Economics and Strategies practice at IDATE where his responsibilities include assignments carried out for operators and regulators on issues relating to telecommunications equipment. Julien also heads up IDATE's publications on the sector. Prior to joining IDATE, Julien worked as representative and associate for venture capital firms Apax Partners and later Newbury Ventures, where he was responsible for equity investments in the telecommunications sector. Previous to that, Julien Salanave worked in investment banking and as a strategic consultant. He is a graduate of the Ecole des Hautes Etudes Commerciales (HEC) business school in Paris.
j.salanave@idate.org

Martin SIMS is the managing editor of the specialist spectrum policy newsletter, PolicyTracker (www.policytracker.com) and lectures at the University of East London. He is a former editor of Intermedia, the policy journal of the International Institute of Communications and has first hand experience of the UK broadcasting sector, having worked as a News Editor in independent radio then as a journalist for BBC network news.

Henri TCHENG is a Managing Director at BearingPoint Paris office. He is the head of telecommunication, media, utilities and energy sectors. He worked for many companies on the field of new business models, entry strategies, regulatory and economic issues as well as transformation and project developments. For the last fifteen years, Henri has conducted studies and published numerous points of view and insights related to the telecom and energy industries and related incremental or disruptive business models. He manages and edits regular Lettres Convergences. He has written a book on MVNO (Devenir opérateur mobile sans réseau, Editions d’Organisation, 2006). He is a graduate of l’Ecole Poytechnique.
henri.tcheng@bearingpoint.com

Gary TONGE is an independent consultant specialising in spectrum-related policy and technology. He was formerly Director of Technology of the Independent Television Commission. Gary is a Fellow of the Royal Academy of Engineering, the Royal Television Society and of the Institution of Engineering and Technology. He holds a PhD in Applied Mathematics from Southampton University.
gary.tonge@btconnect.com

Pierre de VRIES is a Research Fellow at the Economic Policy Research Center at the University of Washington, Seattle. He was formerly Chief of Incubation and Senior Director of Advanced Technology & Policy at Microsoft Corporation.  He is an independent researcher and consultant working at the intersection of technology and society; areas of interest include communications policy, and cognitive limitations on innovation and governance. He holds a PhD in theoretical physics from Oxford.

Brian WILLIAMSON is a Director of Plum Consulting focusing on regulatory policy and strategy development in the areas of communications, media and radio spectrum.  He has been a Director at Indepen, following employment at NERA and at the New Zealand Treasury.  Brian has contributed to the development of thinking about the relationship between economic growth, ICT, the communications sector and public policy; and has developed new regulatory concepts in the communications sector including "equivalence" and "anchor product" regulation.  Brian has a BSc in Physics and an MSc in Economics from the London School of Economics.
Brian.williamson@plumconsulting.co.uk