The National Commission the compentent just published a report on the draft Royal Decree on activities in the area of \u200b\u200bradio spectrum for the development of the digital society of the present Government of Spain.
Report (non binding) suggests important suggestions for promoting competition, avoiding the measures envisaged by the Ministry, which in the view of the CNC, impede competition, the 3 large current incumbents. Highlights paragraph refers to methods for sharing the most valuable frequencies for mobile operators, the band of 900 MHz spectrum where YOIGO has not often, and CNC is committed to open to new entrants.
In essence, the PRD implements the process of technological neutrality, with the return of part of spectrum by operators holders (refarming), and the consequent restructuring of the spectrum available for the 900 MHz band and, where applicable, 1800 MHz, and establishes the bidding for the available spectrum bands 800 MHz and 2.6 MHz also imposes caps (spectrum caps) of spectrum hoarding by individual operators for all the bands above 1 GHz below 1 GHz Finally, the PRD extends the frequency bands which may effectuate the transfer of licenses or transfer of rights to use the public airwaves.
The main points of the CNC to PRD - draft royal decree are:
In essence, the PRD implements the process of technological neutrality, with the return of part of spectrum by operators holders (refarming), and the consequent restructuring of the spectrum available for the 900 MHz band and, where applicable, 1800 MHz, and establishes the bidding for the available spectrum bands 800 MHz and 2.6 MHz also imposes caps (spectrum caps) of spectrum hoarding by individual operators for all the bands above 1 GHz below 1 GHz Finally, the PRD extends the frequency bands which may effectuate the transfer of licenses or transfer of rights to use the public airwaves.
The main points of the CNC to PRD - draft royal decree are:
- Regarding the calculation of the economic balance of concessions after the process of neutrality / refarming, while recognizing the difficulty the same, it is considered that in the absence of elements to estimate how it will calculate the benefit for operators is currently the holders of spectrum to make available, immediately, with technology neutrality in the bands of 900 and 1800 MHz, no can be assumed that the assignment of spectrum to operators are required to access the technology neutrality in spectrum retain expected to cause a net harm to them, as the PRD seems to imply.
- However, remedial action should be directed strictly to eliminate potential distortions of competition. However, the PRD provides compensation decoupled from this purpose that can distort the calculation of economic and financial balance, as the investments required to some operators in the 900 MHz band, or at least be very detrimental to future competition, as for example the possibility to extend the term of existing concessions.
- The PRD performs a process other than the availability of neutrality technology and the consequent return of spectrum in the range of 900 to 1,800 MHz Some of these differences are not related to the objective of avoiding distortions of competition, and therefore should be removed. This is the case, for example, the submission of the application of technological neutrality in the band of 1,800 MHz to the will of the operators currently holders of spectrum. In this band of technological neutrality should apply automatically, and the returned spectrum should be auctioned in blocks of 5 MHz corrective measures regarding the economic and financial balance of concessions, should clear the requirement for additional investment at 900 MHz and the possibility of extending concessions beyond its current term. Also, the additional compensation required the State should extend to both sides.
- In connection with the redevelopment of the 900 MHz band, it is considered that a more flattering of competition adopted in the PRD would set a ceiling of 10 MHz per operator and keep reordering through tenders blocks of 5 MHz, so that, in 2011, firms with a range exceeding that amount would have to return the surplus (and the remaining operators return 1 MHz). In exchange, the spectrum could enjoy withheld full until the end of the term of the current state-owned land concessions and the spectrum would be tendered reversed with immediate (within 2 blocks of 5 MHz).
- With respect to wholesale service obligations should be extended to all bands subject to redevelopment and they should benefit from Mobile Virtual Network Operators as well as the operators with their own network without sufficient spectrum, can be assessed the desirability of ex ante regulation in terms of prices and conditions of service.
- is considered that the hoarding of spectrum limits proposed for the bands above 1 GHz are not ambitious enough to avoid the risk of excessive hoarding by some traders. In this sense, the overall ceiling on the bands above 1 GHz should be lowered at least to 50 MHz paired. Similarly, it should include an additional limit on the frequencies unpaired (TDD) of 10 MHz per operator.
- The holding of tenders must avoid discrimination temporary and, if they are competitive, the award criteria should be outlined in a precise and known in advance. Additionally, could be worth considering that the payments under the bid to be established within auctions or tenders should not be made at once to obtain the concession, but met regularly throughout the life of the same, proportionally or progressively, to reduce the risk that the remuneration derived State access to spectrum to operate as an element that hinders competition in an asymmetric manner. BLOG YOIGO
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