In a move that will raise concerns among ISPs, Telkom has been granted access to radio frequency spectrum in the 3,5 GHz band on a test basis as it prepares to build a national wireless access network.
<i>Source: Financial Mail, 5 November 2004</i>
<hr noshade size="1">
Management of radio frequency spectrum is in need of an overhaul.
In a move that will raise concerns among Internet service providers (ISPs), fixed-line operator Telkom has been granted access to radio frequency spectrum in the 3,5 GHz band on a test basis as it prepares to build a national wireless access network.
Telkom plans to implement the network using a nascent wireless broadband technology called WiMax (Technology & Communications May 14). But if the company is granted permanent access to 3,5 GHz spectrum it could have the effect of shutting out rivals who hope to use the same technology to offer wireless services to consumers when the market is opened up from February next year.
Peter Zimry, senior manager for spectrum management at Icasa, the industry regulator, confirms that Telkom has been given access to the frequency on a test basis for a period of three months from December 1.
After February 28 2005, it will have to apply for an extension to its test licence or apply for permanent access to the frequency, something which would be "difficult" for Icasa to deny Telkom, Zimry says.
Telkom already also has access to 1 800 MHz and third-generation cellular spectrum. Sentech is the only other company that has access to 3,5 GHz.
If, as appears likely, Icasa uses government's recent telecom policy directives to open the market significantly to new competition from next year, it will have to rethink the way it manages access to this scarce spectrum.
It is probable that from February 1 2005, Icasa, which has tended to encourage competition , will allow value-added network services (Vans) businesses such as ISPs to build their own networks and source telecom facilities from suppliers other than Telkom, the second network operator and Sentech.
This means that from next year many ISPs will probably require access to licensed (and unlicensed) spectrum to provide wireless, broadband access to their customers, and to build high-speed back-haul networks. Many will want to use WiMax to do this and may also apply for access to the 3,5 GHz band.
Former Icasa councillor Gerhard Petrick warns that Icasa must not consider awarding Telkom permanent access to 3,5 GHz until the regulator has made known its position on government's recent policy determinations. Thereafter, an equitable way needs to be found of carving up spectrum for so-called "last-mile" wireless access - the wireless telecom links that will connect consumers to telecom providers' networks.
This is essential, Petrick says, as Icasa will probably take a liberal view of government's policy determinations. "If it doesn't, this country is in real trouble," he adds.
Petrick believes Icasa should hold a formal hearing should Telkom apply for permanent access to 3,5 GHz. At the same time, other operators should ask Icasa to hold an inquiry into this band and what it should be used for. "There is a real risk of Vans not getting access, and therefore a continuation of the monopoly," he says.
Icasa and the policy makers in government, he says, should attach the same degree of importance to spectrum for WiMax as they did when considering the cellular operators' applications for access to 1 800 MHz frequency spectrum.
"Whatever Icasa does, it has to be with a view to the changing landscape," says Hillel Shrock, business development director at Dimension Data-owned ISP Internet Solutions.
"Icasa needs to ensure there is spectrum for Vans to compete [and the process] needs to be objective and transparent."
But much work needs to be done by Icasa to ensure this happens, says Petrick. He explains that spectrum is managed in accordance with the terrestrial broadcasting frequency plan, which regulates the broadcast spectrum, and the Telecommunications Act, which applies to all other areas of radio frequency.
Broadcasting is well managed, Petrick says. The frequency plan, which was reviewed last year, is comprehensive, and allows for the introduction of new technologies, such as digital terrestrial television.
But telecom spectrum management needs an overhaul. Though the SA band replanning exercises (Sabre 1 and Sabre 2) were recently replaced with the SA table of frequency allocations (Satfa), there is still a need for clarity about which frequency bands are being used and for what.
Some of the frequencies used by mass-market consumer products - the ones that ISPs will want to supply to consumers - are "probably already licensed to Telkom", Petrick says. And where Telkom doesn't already own access to the spectrum, which companies should Icasa grant that access to and why?
"I recommend that, at the very least, a hearing is held on this, though it would be good to have a policy directive [from government]," he says.
What would help is a detailed audit of who uses what frequencies and in which geographic areas. Once compiled, this information would need to be kept updated in real-time or near-real-time by the operators and Icasa. Its content will also need to be available to anyone who needs it for network planning purposes. This information must be public to prevent operators from building networks that interfere with each other and should be made available on the Internet, Petrick says.
But he fears that Icasa lacks the financial and human resources muscle needed to undertake this project. Ideally, the regulator needs to be sufficiently staffed to allow it to a make a decision regarding spectrum within days of the receipt of an application. He says Icasa already has the software it needs to build such a database, but it first needs to collect new data, and collate and clean the data it has, before it can put the system to use.
Some ISPs are likely to use the unlicensed industrial-scientific-medical (ISM) bands - 2,4 GHz and 5,8 GHz - to offer services. In fact, some wireless ISPs, such as WaveStream and UniNetwork Communications, already are, though Icasa says they are operating in contravention of existing legislation. However, "serious" operators will want access to licensed spectrum, Petrick says. "ISM is a garbage band. It would be short-sighted to try to use it to offer a network with guaranteed quality of service."
How then should access to licensed frequency be allocated? Operators in Europe burnt through billions of euros bidding for access to high-speed, third-generation (3G) cellular spectrum. These bids crippled them financially and had the effect of delaying the introduction of 3G in Europe.
"It was stupid and in our scenario [frequency auctions] make little or no sense," Petrick says. "The best option may be to link [the awarding of frequency licences] to operators' roll-out strategies and network coverage commitments, though that could lead to the company with the most resources always getting the licence, thereby sidelining smaller operators. It will need to be balanced to allow new players into the market."
One potential solution is for smaller Vans operators to get together to form a new company, whose sole purpose would be managing and bidding for spectrum on their behalf.
<i>Source: Financial Mail, 5 November 2004</i>
<hr noshade size="1">
Management of radio frequency spectrum is in need of an overhaul.
In a move that will raise concerns among Internet service providers (ISPs), fixed-line operator Telkom has been granted access to radio frequency spectrum in the 3,5 GHz band on a test basis as it prepares to build a national wireless access network.
Telkom plans to implement the network using a nascent wireless broadband technology called WiMax (Technology & Communications May 14). But if the company is granted permanent access to 3,5 GHz spectrum it could have the effect of shutting out rivals who hope to use the same technology to offer wireless services to consumers when the market is opened up from February next year.
Peter Zimry, senior manager for spectrum management at Icasa, the industry regulator, confirms that Telkom has been given access to the frequency on a test basis for a period of three months from December 1.
After February 28 2005, it will have to apply for an extension to its test licence or apply for permanent access to the frequency, something which would be "difficult" for Icasa to deny Telkom, Zimry says.
Telkom already also has access to 1 800 MHz and third-generation cellular spectrum. Sentech is the only other company that has access to 3,5 GHz.
If, as appears likely, Icasa uses government's recent telecom policy directives to open the market significantly to new competition from next year, it will have to rethink the way it manages access to this scarce spectrum.
It is probable that from February 1 2005, Icasa, which has tended to encourage competition , will allow value-added network services (Vans) businesses such as ISPs to build their own networks and source telecom facilities from suppliers other than Telkom, the second network operator and Sentech.
This means that from next year many ISPs will probably require access to licensed (and unlicensed) spectrum to provide wireless, broadband access to their customers, and to build high-speed back-haul networks. Many will want to use WiMax to do this and may also apply for access to the 3,5 GHz band.
Former Icasa councillor Gerhard Petrick warns that Icasa must not consider awarding Telkom permanent access to 3,5 GHz until the regulator has made known its position on government's recent policy determinations. Thereafter, an equitable way needs to be found of carving up spectrum for so-called "last-mile" wireless access - the wireless telecom links that will connect consumers to telecom providers' networks.
This is essential, Petrick says, as Icasa will probably take a liberal view of government's policy determinations. "If it doesn't, this country is in real trouble," he adds.
Petrick believes Icasa should hold a formal hearing should Telkom apply for permanent access to 3,5 GHz. At the same time, other operators should ask Icasa to hold an inquiry into this band and what it should be used for. "There is a real risk of Vans not getting access, and therefore a continuation of the monopoly," he says.
Icasa and the policy makers in government, he says, should attach the same degree of importance to spectrum for WiMax as they did when considering the cellular operators' applications for access to 1 800 MHz frequency spectrum.
"Whatever Icasa does, it has to be with a view to the changing landscape," says Hillel Shrock, business development director at Dimension Data-owned ISP Internet Solutions.
"Icasa needs to ensure there is spectrum for Vans to compete [and the process] needs to be objective and transparent."
But much work needs to be done by Icasa to ensure this happens, says Petrick. He explains that spectrum is managed in accordance with the terrestrial broadcasting frequency plan, which regulates the broadcast spectrum, and the Telecommunications Act, which applies to all other areas of radio frequency.
Broadcasting is well managed, Petrick says. The frequency plan, which was reviewed last year, is comprehensive, and allows for the introduction of new technologies, such as digital terrestrial television.
But telecom spectrum management needs an overhaul. Though the SA band replanning exercises (Sabre 1 and Sabre 2) were recently replaced with the SA table of frequency allocations (Satfa), there is still a need for clarity about which frequency bands are being used and for what.
Some of the frequencies used by mass-market consumer products - the ones that ISPs will want to supply to consumers - are "probably already licensed to Telkom", Petrick says. And where Telkom doesn't already own access to the spectrum, which companies should Icasa grant that access to and why?
"I recommend that, at the very least, a hearing is held on this, though it would be good to have a policy directive [from government]," he says.
What would help is a detailed audit of who uses what frequencies and in which geographic areas. Once compiled, this information would need to be kept updated in real-time or near-real-time by the operators and Icasa. Its content will also need to be available to anyone who needs it for network planning purposes. This information must be public to prevent operators from building networks that interfere with each other and should be made available on the Internet, Petrick says.
But he fears that Icasa lacks the financial and human resources muscle needed to undertake this project. Ideally, the regulator needs to be sufficiently staffed to allow it to a make a decision regarding spectrum within days of the receipt of an application. He says Icasa already has the software it needs to build such a database, but it first needs to collect new data, and collate and clean the data it has, before it can put the system to use.
Some ISPs are likely to use the unlicensed industrial-scientific-medical (ISM) bands - 2,4 GHz and 5,8 GHz - to offer services. In fact, some wireless ISPs, such as WaveStream and UniNetwork Communications, already are, though Icasa says they are operating in contravention of existing legislation. However, "serious" operators will want access to licensed spectrum, Petrick says. "ISM is a garbage band. It would be short-sighted to try to use it to offer a network with guaranteed quality of service."
How then should access to licensed frequency be allocated? Operators in Europe burnt through billions of euros bidding for access to high-speed, third-generation (3G) cellular spectrum. These bids crippled them financially and had the effect of delaying the introduction of 3G in Europe.
"It was stupid and in our scenario [frequency auctions] make little or no sense," Petrick says. "The best option may be to link [the awarding of frequency licences] to operators' roll-out strategies and network coverage commitments, though that could lead to the company with the most resources always getting the licence, thereby sidelining smaller operators. It will need to be balanced to allow new players into the market."
One potential solution is for smaller Vans operators to get together to form a new company, whose sole purpose would be managing and bidding for spectrum on their behalf.
