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6. Spectrum and unwired transmissions
6.1 Governing principles
6.2 General rules for spectrum use
6.3 Licensing of spectrum use
Note on this heading. If pure theory were applied, spectrum issues would be placed under:
6.1 Governing principles
• Government should not prescribe how spectrum may be used
Source: Malcolm Colless
The government should always auction or rent spectrum on a commercial basis, rather than making administrative decisions about how particular frequencies or bands should be used. This should apply to the spectrum released following analogue broadcasting switchoff. The only exception to this principle should be the need to prevent interference between services. Generally speaking there is nothing wrong with government sitting down with industry to co-ordinate technical standards or guidelines but the market should decide on the appropriate business model. The government should not be second-guessing which model, or which use of technology, should succeed.
Examples of the wrong approach to releasing spectrum, where policies about usage reduced community benefit, include:
- the original satellite-based subscription TV licensing scheme in 1992, where the government created different licences for 'new' and 'old' players
- the 2001 datacasting auctions, which limited the nature and format of services to be provided, so as to protect existing players from competition.
- the recent attempts in 2006 to allocate frequencies for new audiovisual services to Licence A and Licence B, to prevent competition with various existing services.
[Source: Malcolm Colless, interviewed by Network Insight in July 2008]
• Digital plans must have input from inclusive expert bodies
Source: Australian Subscription Radio and Television Association (ASTRA)
The impending analogue switch-off in Australia will free up spectrum that can be used for a broad range of services. The make-up of any advisory or expert group working with Government on the digital divided should be broad enough to encompass thoughts and suggestions of new players, consumers and citizens when shaping the policy framework. To limit any established advisory group to incumbent players would replicate the missed opportunities of the mid 90s, to the detriment of industry, consumers and the Australian economy.
In January 1997 the introduction of digital television into Australia was recommended by a specialist group on Digital Terrestrial Broadcasting which reported to the Australian Broadcasting Authority (ABA), the communications regulator at the time. Initial membership of the Specialist Group consisted of members from Network 7, FACTS, ABC, Telecom Broadcasting Ltd, SBS, WIN, the ABA, National Transmission Agency, Northern Rivers Television, Department of Transport and Communications, Nine Network, Optus Communications, Prime Television, the ABA and Philips Consumer Products. The Specialist Group was convened by the ABA which established and approved its terms of reference on the advice of the group. The ABA appointed the chairman and provided the secretariat. No public interest bodies were included in the membership of the Specialist Group.
The lost opportunities that resulted from this limited view of spectrum use and services occurred because many industry participants such as subscription services, the on-line industry, narrowcasters, datacasters and interactive services were excluded from deliberations. While the first report of the Specialist Group said that DTTB would establish a foundation upon which future video entertainment and information services, not yet conceived, could be built , the ABA’s resulting recommendations were unduly influenced by the FTA broadcasters and were unacceptably narrow. One clear indication of the inadequacy of the Report’s recommendations was the lack of adequate consideration of a policy to facilitate the entry of new players.
6.1.1 Who will make decisions, and who implement them?
6.2 General rules for spectrum use
6.2.1 Obligations of all spectrum users
6.2.1.1 interference
6.2.2 Disruption of signals and messages
6.2.3 Decryption and piracy of protected signals
6.2.3.1 Interference-related equipment rules
6.3 Licensing of spectrum use
6.3.1 What services should be licensed, and why?
• Broadcasting spectrum should be allocated by competitive auction, not administratively
Source: Australian Subscription Radio and Television Association (ASTRA)
ASTRA supports the competitive auction of unencumbered spectrum. The recent DBCDE discussion paper titled ABC and SBS: Towards a digital future says that: ‘In the longer term, any expansion of the number of television channels as envisaged by the broadcasters would also create spectrum demands.’ In ASTRA’s view the ‘vision’ for the new channels that that the ABC and SBS want to provide cannot be considered in isolation from the spectrum requirements for those channels, the possible alternative uses for that spectrum, and the best method of allocating such spectrum.
The Productivity Commission has made the point in its inquiry into radiocommunications that ‘economy wide efficiency is usually best achieved through a decentralised, competitive market rather than by administrative means.’ It therefore supports the auctioning of spectrum licences rather than the allocation of such licences by administrative means.
Both the commercial and the national broadcasters have been gifted 7Mhz of spectrum to assist in their transition from analogue to digital. The gifting of such spectrum to these broadcasters provides them with a significant competitive advantage to competitors in the television entertainment market. As the Productivity Commission said, ‘the privileged access to spectrum coupled with the bar on new entry has given the incumbent commercial broadcasters a significant competitive advantage over new media players.’
6.3.1.1 Should spectrum licences be the only form?
6.3.1.2 Apparatus and class licences?
6.3.2 Duration and renewal of licences
6.3.3 Rules and licences for executive government and authorities
For example: police, navigation, emergency and similar services; defence and espionage.
6.3.4 Spectrum rules for licensed broadcasting use
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