Eband Light Licensing White Paper V051310

�� Light licensing licensing be benefits nefits of the the 71-76 & 81-86 GHz frequency freque ncy bands

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Licensing and License Fee Considerations for E-band 71-76 GHz and 81-86 GHz Wireless Systems How the USA, UK, Australia, UAE and other countries are encouraging e-band adoption to enhance their national broadband infrastructures Jonathan Wells, PhD

Executive Summary Many countries have chosen to open the 71-76 and 81-86 GHz ITU “e-band” frequencies for ultra high capacity point-to-point communications. Most of these countries’ regulators have recognized two unique aspects of high frequency propagation physics and high data rate e-band radio systems: The unique transmission properties of very high frequency mm-waves enable much simpler frequency coordination, interference mitigation and path planning than lower frequency bands Licensing fees based on amount of data transmission or bandwidth usage will result in tariffs that can be extraordinarily high for high data rate systems; so high that gigabit per second wireless systems are penalized and both adoption and competition is discouraged •

•

For these reasons, several regulators manage e-band using “light licensing” techniques that reflect the ease of coordinating, registering and licensing, and set license fees that cover administrative costs, but do not penalize the high data rates and bandwidths that are required for ultra-broadband services. A summary of some of the countries leading this adoption is shown below. Despite very recent adoption by some of these regions, thousands of e-band radios have been registered and installed in these coun tries alone. Country USA UK Czech Republic Russia Australia UAE Ireland Jordan Bahrain

E-band license structure On-line light license Light license Unlicensed Light license Light license Traditional PTP Traditional PTP Traditional PTP Traditional PTP

Typical E-Band license fee $75 for 10-year license £50 per year (~$100) Free of charge Minimal registration fee AU$187 per year (~$175) 4,500 Dirhams per year (~$1,200) €952.30 per year (~$1,500) JD200 per year (~$300) 1% of generated link revenue

Table 1: Examples of many countries promoting e-band deployments. E-Band Communicat ions Corp. 10095 Scripps Ranch Ct, Suite A San Diego, CA 92131 USA

2 www.e-band.com

Phone: +1-858-408-0660 Fax: +1-858-408-0655 ©2010 E-Band Communications Corp. V051310

Introduction

The millimeter wave spectrum above 70 GHz is especially suitable for high data-rate fixed links with cost effective, fiber-like wireless performance. Because of the unique propagation characteristics in these bands it is possible to employ highly directional “pencil beams,” allowing multiple services and applications to be implemented without interference concerns, ensuring highly efficient re-use of the spectrum. Worldwide Regulatory Overview The 71-76 GHz and 81-86 GHz bands (widely known as “e-band”) were established for Fixed Link services by the ITU in 1979 and adopted, following minor modifications, in their present form by the ITU in 2000 1. In 2005, the FCC released rules to govern these bands in the USA2 and initiated a unique “light licensing” scheme to manage high density fixed services 3. Systems operating in the 71-76 GHz and 81-86 GHz are widely available offering 1 Gbps transmission with carrier-class availability over several kilometers. In Europe, CEPT has released a European-wide frequency channel plan for fixed service systems in these bands4. An ETSI Technical Standard defining rules for such bands has been published5 and CE-Marked equipment is available for commercial sales and are being widely installed around the various EU countries. Many other regions around the world have introduced similar rules to allow gigabit per second wave high density fixed services.

1

Original rules established at WRC-79 (Geneva). Minor modifications at WARC-92 (Malaga-Torremolinos) and WRC-97 (Geneva). Current plans adopted at WRC-2000 (Istanbul).

2

FCC Memorandum Opinion and Order 05-45 “Allocations and Service Rules for the 71-76 GHz, 81-86 GHz, and 92-95 GHz Bands,” March 3, 2005.

3

FCC Public Notice DA 05-311, “Wireless telecommunications bureau announces permanent process for registering links in the 71-76 GHz, 81-86 GHz, and 92–95 GHz bands,” February 3, 2005.

4

ECC Recommendation (05)07, “Radio frequency channel arrangements for fixed service systems operating in the bands 71-76 GHz and 81 - 86 G Hz”, Revised Dublin 2009

5

ETSI TS 302 217-3-, “Fixed Radio Systems;Characteristics and requirements for point-to-point eq uipment and antennas; Part 3: Equip ment operating in frequency bands where both frequency coordinated or uncoordinated deployment might be applied; Harmonized EN covering the essential requirements of article 3.2 of the R&TTE Directive”, July 2009.

E-Band Communicat ions Corp. 10095 Scripps Ranch Ct, Suite A San Diego, CA 92131 USA

3 www.e-band.com


The “Light Licensing” Principle

Systems operating at the e-band frequencies have several unique characteristics not experienced by conventional lower frequency radio systems: •

•

At high operational frequencies, antennas used in e-band systems are highly directional, meaning systems communicate point-to-point via highly focused “pencil beam” transmissions Because of propagation limitations, particularly rain fading, high frequency links are only useful for relatively short range distances (a few kilometers).

Together these two characteristics of e-band systems means that system operators can realize networks with minimal frequency coordination, a high degree of frequency reuse, and even configure links close to one another without interference concerns6. In addition to this, since there are very few services at these frequencies, it can be argued that spectrum at the millimeter-wave frequencies is no longer scarce7. Furthermore, many countries have configured the e-band frequency allocation as a single pair of channels, each with a 5 GHz bandwidth, extending from 71 to 76 GHz and 81 to 86 GHz as shown in figure 1. Because these frequency bands are not channelized, traditional frequency coordination does not need to be considered. Channel size 5 GHz

0

10 GHz

20 GHz

30 GHz

40 GHz

50 GHz

60 GHz

70 GHz

80 GHz

Channel size 5 GHz

90 GHz

1 00 GHz

Figure 1: ITU allocation of 71-76 and 81-86 GHz e-band frequencies.

6

For a detailed technical analysis of mm-wave propagation, high frequency radio interference characteristics, and how to plan, coordinate and even co-exist e-band systems, see WCA Document Number WCA-PCG-7080-1, “Path Coordination Guide for the 71-76 and 81-86 GHz Millimeter Wave Bands,” Version 1.0, June 2004.

7

A.D. Kelley, “Economically Efficient Licensing of the Millimeter Wave Band,” HAI Consulting Inc, Sept 5, 2001.


4 www.e-band.com


The national wireless link regulators in many countries have recognized that all these characteristics vastly simplify the licensing process. With no frequency coordination and much simplified interference analysis, the burdensome traditional link licensing schemes are not necessary. Innovative streamlined processes can be realized that undertake interference analyses and link approval automatically8. Such “light licenses” still award the link operator the same “first come first served” link registration rights, and full interference protection benefits of a traditional link license. Because administration is vastly reduced, the cost of analyzing and issuing “light licenses” can be dramatically reduced. If this cost is reflected in the fee levied for the license, adoption of and competition for high data rate services at the e-band frequencies can be encouraged. E-band License Fees

It is important to recognize that high data rate systems require a large frequency bandwidth in which to transmit these high data rates. This is why the mm-wave region of the spectrum has been allocated for such systems; spectrum is not scarce and high bandwidth channels (such as the 2 x 5 GHz allocated to e-band) are available. Often countries employ formulas for determining licensing fees that are based on either data rate transmission, bandwidth use, or sometimes both. If not carefully constructed, such formulas can result in prohibitively high license fees for high capacity systems. Often, such license fee methodologies were derived and implemented into national radio policy before such high data rate, high bandwidth usage systems were envisaged. Nevertheless, these high tariffs penalize high data rate transmissions, and in some cases effectively eliminate any economic reason for installing such systems. When considering the e-band frequencies, regulators often realize that new tariffs are required. The countries that have set up light licensing schemes have all adopted new fee structures that reflect the reduction in administration associated with the light license procedure. Some other countries have modified policy to avoid unfairly discriminating against high bandwidth systems that operate in non-scarce spectrum. Analysis of Countries Who Are Embracing High Data Rate E-band Systems

United States The USA was the first country to open the e-band frequencies for commercial use. After three years of public consultation, in 2005 the FCC initiated a “light licensing” scheme 8

A.D. Kelley, “Economically Efficient Licensing of the Millimeter Wave Band,” HAI Consulting Inc, Sept 5, 2001.


5 www.e-band.com


that enables links to be registered on-line in a few minutes 9. Link registration fees are currently as low as $75 for a 10-years. The “light license” process is relatively simple in the U.S. First the applicant files to become a nationwide e-band licensee with the FCC. This application takes a few weeks and carries a filing fee of less than a thousand dollars. Once approved and issued a call-sign, the licensee can then register for any number of individual e-band links in the USA and its territories. Applications for individual e-band link licenses are via the website of one of three FCC selected independent database managers, tasked with managing the link registration process and being custodians of a central e-band link database. Registration involves simply logging onto any one of the three database manager’s websites, entering the user’s call sign, and inputting a few technical link parameters. The band manager then undertakes a four-step automated analysis of the link10. Assuming no problems are encountered, this complete procedure takes about 15 seconds. • •

•

•

Time and date stamp assignment, to resolve any future time-based conflicts Conduct automated interference analysis against other closely located links to identify any possible interferers Verify non-violation to specific FCC-imposed rules (close to international border, proximity to radio astronomy quiet zones or violation of special antenna rules) Pass system parameters to NTIA for final interference analysis against undisclosed military and government links

After successful analysis of the proposed link, the user is advised that link registration is complete and electronic payment for the license is requested. Given there are competing database managers, processing fees are kept low. United Kingdom In March 2007, after considerable public consultation, the UK Office of Communications (Ofcom) opened up the e-band frequencies in the UK11 under a similar “light licensed” process to the US, with point to point fixed wireless licenses obtained rapidly and at a low cost – currently £50 per year. 9

The FCC’s Milli meter Wave 70-80-90 GHz Service Page can be found at http://wireless.fcc.gov/services/index.htm?job=service_home&id=millimeter_wave 10 A good overview of t he e-band license procedure is “71-95 GHz Registration – ‘ Light’ Licensing with Interference Protection,” L. Fontaine, Comsearch; available at http://www.comsearch.com/articles/7090MCarticle.pdf 11

See http://www.ofcom.org.uk/consult/condocs/licensing7176/statement/


6 www.e-band.com


Currently, Ofcom administers the e-band frequencies under an interim manual licensing and link registration processes12. The process is similar to that in the USA; the applicant first applies to Ofcom to become a nationwide licensee (unlike the US, this is at no charge to the applicant), and can then apply for any number of individual link licenses. A form containing equipment parameters and site information is submitted to Ofcom for each individual link. Responsibly for interference analysis rests with the licensee, who needs to check Ofcom’s link database prior to link registration (links are protected on a “first come, first served” basis). This self-coordination aspect significantly reduces Ofcom’s administration costs. The annual cost per e-band license is £50 per year, and link licenses are approved within 7 days of receipt. Ofcom is developing a permanent web-based tool to automate this entire process. Australia In December 2007, after public consultation, the Australian Communication and Media Authority (ACMA) opened the full 71-76 and 81-86 GHz mm-wave bands for point to point fixed services13. The “light licensed” process introduced is essentially identical to that used in the UK. In determining the license fee for such links, ACMA noted the following: “This low cost fixed fee structure reflects the bandwidth availability, spectrum reuse capability and the fact that coordination is carried out by the licensee, the equipment or equipment supplier, independent of the licensing process”. 14

ACMA set a license fee for e-band links at AU$187 per year. In just the first six months of opening up this new band and process, almost 30 commercial links were registered.

12

See “Guidance Notes for Self Co-ordi nated License and Interim Link Registratio n Process in the 71.125-75.875 GHz and 81.125-85.875GHz bands,” OfW 369, March 2007; avail able at http://www.ofcom.org.uk/radiocomms/ifi/licensing/classes/fixed/scl/ofw_369.pdf 13 See “Millimeter-wave Point to Point (Self Coordinating) Stations”, ACMA Radiocommunication Assignment and Licensing Instruction (RALI) FX20, 13 Dec 2007; available at http://www.acma.gov.au/webwr/radcomm/frequency_planning/frequency_assignment/docs/ralifx20_millimetre_wa ve_point.pdf 14

Ibid ,

page 3


7 www.e-band.com


United Arab Emirates Like the countries above, the AUE is embracing high frequency, high capacity e-band links, but is doing so under the traditional point to point link licensing already proven and in place. Numerous e-band links are being installed and commissioned in the region. The Telecommunications Regulatory Authority (TRA) applies the following fixed formula to determine annual license fees for all fixed service (point to point) links15: Spectrum charge = F x 2000 + P x 500 + BW x 500

In this formula, F is a frequency factor that is determined from Table 2 below: Frequency range 0 – 230 MHz >230 MHz – 3 GHz >3 GHz - 14 GHz >14 GHz – 40 GHz Above 40 GHz

F factor 5 4 3 2 1

Table 2: F factors for UAE fixed link licenses. It can be seen that F reduces as frequency increases, rightly reflecting the reduced transmission distance, improved frequency reuse and general ease of coordination at higher frequencies. P is a power factor that increases as output power increases, reflecting the increase coverage and hence more value a license is worth. Finally, BW is a bandwidth factor that increases depending on the bandwidth of the system. For systems transmitting at above 1 GHz, the values in Table 3 below hold: Channel bandwidth 7 MHz or less >7 MHz -14 MHz >14 MHz – 28 MHz More than 28 MHz

BW factor 1 2 3 4

Table 3: BW factors for above 1 GHz transmissions for UAE fixed link licenses. It can be seen from this table that all high capacity systems of bandwidth more than 28 MHz are treated equally. This recognizes that higher bandwidths do bring more value 15

See “Policy for Spectrum Fees,” Jan 2006; available at http://www.tra.ae/pdf/spectrum_affairs/spectrum_price_policy_english.pdf


8 www.e-band.com


(and hence need should be levied higher license fees) but does not discriminate against systems such as e-band who by necessity require large bandwidths at non-scarce frequencies to provide their unique value (multi gigabit per second transmission rates). Applying the TRA formula to a typical e-band link will result in the following: Spectrum charge for e-band link = 1 x 2000 + 1 x 500 +4 x 500 = 4,500 dirhams

The TRA license has adopted a license fee formula that reflects the physics of radio transmission and the real-world usage of radio links. The application of this thoughtful process is enabling the adoption of a large number of e-band links in the UAE region. Ireland Ireland, like the UAE, is encouraging e-band adoption without adopting a light licensing procedure. Ireland licenses e-band links under its conventional fixed link methodology, which encourages the benefits that higher capacity radio systems bring. In December 2007, after public consultation, Ireland’s Commission for Communications Regulation (ComReg) opened the e-band frequencies for point to point links16. ComReg considered, but did not adopt a light licensing methodology for e-band links, since their existing fixed link registration policy and fee structure was capable of managing the bands, without penalizing the large bandwidths that such systems require. ComReg’s license policy for point to point radio links of above 1 GHz 17 levies different fees depending on the bandwidth used. Like the UAE formula, this recognizes that higher bandwidth use does bring more value and should be taxed higher, but does not overly discriminate against systems that by necessity require large bandwidths to provide their unique offerings. For any point to point link that ComReg defines as “wideband”18, ComReg assess an annual license fee of €952.30. This fee is much higher than in many other countries, but it is at a level where wireless operators can make e-band business plans work, especially when offering alternatives to high capacity fiber installs. For this reason, much interest is being shown in high capacity system installs in Ireland.

16

See http://www.comreg.ie/_fileupload/publications/PR281207.pdf

17

See “Revised Guidelines to Applicants for Radio Links - Point-to-Point above 1GHz Licenses,” Document 98/14R5, 28 December 2007; available at http://www.comreg.ie/_fileupload/publications/ComReg9814R5.pdf

18

Ibid ,

page 23.


9 www.e-band.com


Bahrain Bahrain is another country considered that is encouraging e-band adoption. Bahrain is doing so without any changes to its nation radiocommunications policy. This is because the Telecommunications Regulatory Authority (TRA) of Bahrain applies a simple license fee determination rule to fixed services19; equivalent to 1% of gross turnover arising from the activities associated with that license. Such a formula seems to fairly balance taxes against the value of the link, independent of the characteristics of the wireless network. Other countries Many other countries have opened the e-band frequency for high capacity gigabit per second data transmission. There are many deployments of e-band systems throughout Europe, including the developing Eastern European states and Russia, South Africa, Mexico, the Caribbean, and other regions of the world. Conclusions

This report identifies a number of key points regarding the licensing and license fee pricing of e-band links: Worldwide 71-76 GHz / 81-86 GHz availability The ITU-approved 71-76 GHz / 81-86 GHz e-band frequencies are permitted worldwide for ultra high capacity point-to-point communications. •

The e-band frequencies were specifically opened up to enable ultra-high capacity links that require high operational bandwidths Ultra-high capacity radio links (1 Gbps and up) require large amounts of bandwidths (1 GHz and above) that is not available at microwave frequencies and below. Thus ultra-high capacity links can only be realized at the mm-wave bands. Spectrum is not deemed scarce at the mm-wave bands, where services do not currently exist, transmission distances are limited and frequency reuse is naturally promoted (see below). •

•

The unique properties of e-band transmission significantly ease the licensing processes At the high e-band frequencies, antennas are highly directional, meaning systems communicate point-to-point via highly focused “pencil beam” transmissions. Thus interference concerns are greatly reduced, and frequency reuse is promoted. •

19

See “License overview and Award Process for National Fixed Service ( NFL) License”; see http://www.tra.org.bh/en/pdf/licenses/NFL/NFL_overview.pdf


10 www.e-band.com


•

•

Propagation limitations, particularly rain fading, limit high frequency links to relatively short range distances (a few kilometers). This means much greater frequency reuse and easier path planning. The e-band allocation is a single pair of channels, each with a 5 GHz bandwidth (71 to 76 GHz and 81 to 86 GHz). With no channelization, traditional frequency coordination does not need to be considered.

National regulators are implementing “light licenses” that reflect the ease of e-band licensing Wireless regulators in the USA, UK and other countries have implemented streamlined “light licensing” schemes that provide the registration, coordination and interference protection benefits that a wireless license guarantees, but at a cost and application time significantly lower than traditional wireless licensing. •

License fees for e-band systems cannot be linearly based upon bandwidth or data rate usage By necessity, high capacity transmission systems require high operation bandwidths in which to transmit. This is why the ITU allocated the e-band frequencies of non-scarce spectrum for this purpose. License fees that are linearly based on link bandwidth or data rate can lead to excessively high license fees of e-band systems; sometimes orders of magnitude more than medium capacity, lower frequency links. Such license fees to not reflect the cost of administering the license, which can be significantly easier for e-band systems than lower frequency systems which require far more consideration of frequency reuse, frequency channelization and interference mitigation. •

•

Countries that employ “light licensing” or licensing schemes that do not penalize higher bandwidth systems in non-scarce frequency bands, are seeing widespread adoption of e-band systems Despite very recent adoption by many regions in the world, thousands of e-band radios have been registered and installed in countries offering favorable ultra-high capacity broadband national wireless policies. •

This report has highlighted examples of many countries whose national wireless policy encourages e-band deployment. License fees have been set at levels that reflect the simplified administration of analyzing and issuing high frequency transmissions. A summary of countries leading this adoption is shown on the following page.


11 www.e-band.com


Country USA UK Czech Republic Russia Australia UAE Ireland Jordan Bahrain

E-band license structure On-line light license Light license Unlicensed Light license Light license Traditional PTP Traditional PTP Traditional PTP Traditional PTP

Typical E-Band license fee $75 for 10-year license £50 per year (~$100) Free of charge Minimal registration fee AU$187 per year (~$175) 4,500 Dirhams per year (~$1,200) €952.30 per year (~$1,500) JD200 per year (~$300) 1% of generated link revenue

Table 4: Examples of many countries promoting e-band deployments. About E-Band Communications

E-Band Communications Corporation is the leading supplier of ultra-high capacity 70/80 GHz wireless solutions, serving 4G carriers (WiMAX, LTE) and enterprises. In 2009, EBand achieved the highest market share in the U.S., based on publicly available annual FCC license data. A key advantage is its Monolithic Microwave Integrated Circuit (MMIC) technology originally designed for high-end military applications and now under exclusive field-of-use license from a major defense contractor. E-Band's investors include Avalon Ventures, Hercules Technology Growth Capital, Reliance ADA Group, ADC Telecommunications, Investec, Express Ventures, OpenAir Ventures and a topthree U.S. telecommunications carrier. www.e-band.com E-Band Communications Corp. 10095 Scripps Ranch Ct, Suite A San Diego, CA 92131 USA


Phone: +1-858-408-0660 Fax: +1-858-408-0655

12 www.e-band.com


Appendix Sample License Policies Americas

Open

Open with restrictions

Canada

Under consideration

Comments

X

Carribean (select countries)

X

Mexico

X

USA

X

Europe

Austria

X

Czech Republic Croatia

X X

Estonia

X

France

X

Germany

X

Hungary

X

Ireland

X

Italy

X

Luxembourg

X

Lithuania

X

Norway

X

Poland

X

Romania

X

Russia

X

Slovak Republic

X

Slovenia Republic

X

Spain

X

Switzerland

X

Turkey

X

Ukraine United Kingdom

Reviewing license fee

Reviewing license fee

X X

Middle East

Bahrain

X

Saudi Arabia

X

Kuwait

X

Qatar

X

Jordan

X

United Arab Emirates

X


13 www.e-band.com


Africa

Nigeria

X

South Africa

X

Other African Countries

X

X

Case by case basis

Asia

China

X

India

X

Japan

X

Vietnam

X

Other

X

X

Case by case basis

Australasia

Australia

X

New Zealand

X


14 www.e-band.com


Eband Light Licensing White Paper V051310

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