The radio local loop - Public consultation

The radio local loop
Public consultation
September 1996

PRACTICAL INFORMATIONS

Contributions to this public consultation on radio local loop are to be adressed to Direction Générale des Postes et Télécommunications, 75007 PARIS, friday december the 13rd 1996 no later than noon (Bureau Réseaux et Services fixes, Room 44 38).

Additional version of the consultation are available and have to be requested by fax at the secretary of the « Fixed Network and Services Office» of the DGPT : Ms Monique BLANLUET : fax 33 - 1 43 19 42 10

Further informations or questions on the consultation document can be obtained from :

Ms Cécile DUBARRY Head of interconnexion & local loop department

tél. 33 - 1 43 19 69 82

M. Vincent MICHEL, Interconnexion and Local loop

tél 33 - 1 43 19 63 46

1 What is the radio local loop?

1.1 Issues involved in the radio local loop

The local loop traditionally consists of pairs of copper wires, either underground or overground. Historically, the use of radio to connect telephone subscribers is almost exclusively reserved for homes which are either in remote areas or of difficult access. More recently, the radio local loop has been used in countries with a low telephone penetration rate to provide a telephone infrastructure and service both rapidly and at lower cost.

It is only recently, with technological developments and the prospect of deregulating the telecommunications market, that radio technologies have been considered viable alternative soutions to the traditional local wire loop.

Today, the possibility of using radio links to provide the last subscriber access segment is considered to be a key factor in the development of telecommunications for at least four reasons:

The radio local loop can be seen as a vector for the development of multimedia services and the introduction of new services. One of the motivations of the British government, in its invitation to apply for licences to operate the 2 and 10 GHz radio local loop, was to encourage the development of advanced telecommunications services in the 10 GHz range (see appendix). Also, the current structure of the local wire loop seems less adapted to the distribution of high speed services than networks operating in the micro-wave frequency range.

It is also a way of stimulating the introduction of competition into the local loop. Radio technologies can be considered by new entrants as a way of competing with the historical operator in order to gain access to the subscriber without having to first bear the cost of investing in wire networks. The use of radio infrastructures should make it possible to set up networks at a lower cost and more rapidly than in the case of wire infrastructures. Also, radio solutions make it simpler to plan the distribution network because it is not usually necessary to know the exact location of current subscribers and, more especially, future clients. By subsequently adding antennae, the operator can increase both the capacity of the network and its coverage according to demand, which allows for more gradual investment, based on the number of subscribers, than in the case of a wire solution.

The radio local loop can contribute to decreasing the cost of the universal service in certain geographical areas. Network installation and maintenance costs based on radio technologies seem to be lower than those required for wire networks, particularly in geographical areas with a low population density.

The radio local loop represents an important potential market, which therefore lends it a strategic character for network operators and manufacturers.

Questions :

1 - How can the radio local loop contribute to the development of the information society in France?

2 - What developments can be expected in the field of voice, image and data services? What are the specific advantages of the radio local loop for these new markets?

3 - What is the estimated impact of using the radio local loop on the cost of the universal service? On the development of new entrants? On the development of new services?

4 - What is the potential market for the radio local loop: private individuals, the professions, small and medium companies, large accounts, etc.? Does the analysis vary according to the geographical area concerned? What type of segmentation is desirable for this market?

5 - Provided you obtain the corresponding licences what are your investment projects in France in the field of radio local loops, for each of the different market segments?

1.2 Description of the main technologies

The systems

Today, manufacturers offer a highly diversified supply of radio local loop equipment, which can be broken down into several main families: fixed radio access systems, point-to-point or point-to-multipoint systems, "wireless" systems and cellular systems.

The various systems are more or less suitable depending on the circumstances under which the radio local loop is to be used:

local loop in a densely populated area, with a fixed dedicated service;

local loop in a densely populated area, with a service allowing for a certain degree of mobility;

local loop in a moderately or sparsely populated area;

local loop in a very sparsely populated area.

Point-to-point systems

Point-to-point systems were not specifically designed for radio local loop applications; their initial field of application is the establishment of infrastructure networks (microwave radio links). However, they can also be used in "radio local loop" applications to provide services to the inhabitants of remote rural areas. France Télécom, for example, operates VHF and UHF frequency systems developed specifically for certain rural subscribers.

Point-to-multipoint systems

Point-to-multipoint systems can be diagrammatically presented as cellular systems in which any terminal in the service area can have access to the network. However, since the system does not have the necessary functionalities to manage the terminal mobility, it must remain fixed. These systems are not intended to offer continuous coverage.

Usually, the subscriber's terminal is connected by wire route to an outside antenna either on the roof of the inhabitant's home or in a machinery room, for example. The subscriber's equipment can also be connected directly to a switchbox with an antenna.

At the present, an open point-to-multipoint standard does not exist. An ETSI working group (TM4) is carrying out studies which should lead to a European standard (ETS).

"Wireless" systems: DECT and CT2

The family of wireless systems in Europe consists of DECT and CT2. These two digital standards allow for three types of digital wireless telephony applications:

private applications, private terminals and PABX. These applications are clearly excluded from the field of the consultation;

radio localtelephony with varying degrees of mobility;

a fixed subscriber access of the same type as those described for the point-to-multipoint systems.

In 1991, the DECT system was the subject of a Directive aimed at harmonising the frequencies which could be used by DECT in Europe. Mutual recognition of technical approvals for DECT terminals has also been established. This system is likely to develop substantially, as can be seen by the outstanding commercial success of the PHS (Personal Handyphone System) in Japan, a standard capable of offering the same type of services as DECT.

Specifications are also being developed at ETSI to manage the mobility of DECT and CT2 terminals among several DECT and CT2 areas using functions of the intelligent network type such as CTM (Cordless Mobility Management) areas

Cellular systems

These systems (GSM, DCS 1800...), originally entirely mobile, now offer access of the radio local loop type. With the tremendous drop in mobile service rates, classical cellular terminals will be increasingly used as an alternative to the local wire loop. Also, certain manufacturers have developed "fixed cellular terminals". The GSM is used within the radio local loop in certain provinces of Spain, for example, to decrease the cost of setting up the Telefonica telephone network. Applications in the field of telephone booths can also be envisaged.

Audio-visual broadcasting services

The question may be asked of the role which MMDS type transmission applications can play in developing multimedia services.

How these systems correspond to the different market environments

Some of these systems, such as DECT and CT2, allow the user to be mobile. Others, however, require fixed use of the terminal, in which case use of the radio link is more obvious to the subscriber. With these systems, the quality of telephone calls can be improved, since the operator can adjust the antenna in order to optimise the signal.

A combination of these different technologies can also be envisaged. For example, point-to-multipoint systems could be used to link up DECT base stations to which end users would be connected, in which case radio access would replace a larger share of the transmission network than the last segment of access to the subscriber's home. Radio technologies can also be used in combination with wired solutions for services in rural areas, for example, in which the final subscriber link is of copper.

The various existing radio local loop technologies do not all enable the same services to be provided. DECT type technologies, for example, seem more adapted to the urban or semi-urban environment, while point-to-multipoint radio systems suit less densely populated areas and point-to-point systems are better for remote subscribers. This means licences could be given for different systems according to the type of geographical area concerned in order to optimise use of the spectrum and cohabitation with other users.

Frequencies

The frequencies selected for introduction of the radio local loop determine the range and traffic capacity of the system and, to a certain extent, the type of application.

Thus, low frequencies allow for a wider coverage area due to better propagation. The highest frequencies, however, require direct visibility between the transmitter and receiver and therefore do not allow for coverage of the cellular type with service available over the entire cell. On the other hand, high ranges - above 1.8 GHz - have greater potential traffic capacities.

Details are given in the appendix of applicable regulations in Europe and France concerning the frequencies which can be used for radio local loop applications.

Frequencies used in France today

In France, transmission systems in remote areas are operated by France Télécom in the 1.4 GHz band (1384-1400 MHz band coupled with 1452-1460 MHz and 1484-1492 MHz). The transfer of systems in the European 1375-1400 MHz band coupled with 1427 -1452 MHz is about to take place.

VHF and UHF bands (160 and 450 MHz) are used by France Télécom to connect up remote subscribers in certain specific areas (islands, coastal areas, mountains, etc.).

Frequencies suitable for new radio local loop applications

A resolutely European approach ...

The CEPT (European Post and Telecommunications Conference) and its permanent office, the ERO (European Radiocommunications Office) are pursuing the target of harmonising the use of the spectrum on a European level. Several instruments contribute to achieving this aim:

Voluntary application Recommendations;

Decisions which are more biding than Recommendations, and which were established by the CEPT in 1992 to implement an institutional agreement between the European Council and the Commission which recognises the central role of the CEPT in the field of harmonisation of radio frequencies.

Very detailed investigations, based on an analysis of existing applications, market needs and industrial developments ("Detailed Spectrum Investigation''). Recommendations on the medium and long term use of the spectrum have been drawn up according to the results of these investigations. The aim is to establish a table for harmonised frequency use on a European level by the year 2008. The ERO's initial proposals do not involve the CEPT. The position taken by the CEPT members on these proposals are the subject of a report, followed by appropriate Recommendations or Decisions.

It is in this context of European harmonisation that frequencybands for the introduction and development of the radio local loop will have to be chosen in France.

DSI Phase 2 (frequencies between 30 and 960 MHz) therefore recommends that, by the year 2008, frequencies below 1 GHz should no longer be used for the fixed civil system, except for the connection of remote subscribers.

DSI Phase 1 (frequencies between 3.4 and 105 GHz) has identified the 3,4-3,6 GHz bands and 10,15 -10,68 GHz bands together with the 31.0-31.3/ 31.5-31.8 GHz band as being suitable for the introduction of point-to-multipoint systems.

ERO has just launched a study aimed at desibnating harmonised bands for introduction of the radio local loop.

A trend can be seen today on a European level to introduce radio local loop systems in the 1.4 GHz, 1.8 GHz, 2 GHz, 3.4-3.6 GHz, 10.5 GHz and 31 GHz frequency bands.

The CSA, for its part, recommends that the MMDS transmission system be introduced into the 3.6-3.8 GHz band while the CEPT has taken a decision recommending introduction of the MMDS into the 40 GHz band.

... Which must take into account current use of frequency bands in France

Due to the current use of frequencies previously identified by other civil telecommunications applications or by users other than telecommunications operators, it will not be possible to introduce radio local loop systems into all these bands. The spectrum will have to be re-organised in order to make some of these frequency ranges available. The necessary negotiations should be started as soon as possible. As a result, the regulatory body for the telecommunications sector must rapidly choose the frequency bands in which it wants to introduce radio local loop systems together with the corresponding schedule.

Questions :

6 - What is the field of application of the different technologies?

7 - Hybrid technologies are being mentioned more and more often in conjunction with the radio local loop. What technologiaal choices can be made to effectively meet the targeted services?

8 - What frequency band(s) should be preferred for introduction of the radio local loop in France? Using which systems?

9 - Should preference be given to different frequency bands and technologies according to the geographical area concerned (rural/densely populated areas)? If so, in what way?

10 - What are the estimated spectrum requirements for the various technologies and applications?

11 - What type of access should the radio local loop have to the radio route - a channel of predetermined width or of variable width? In the second case, what could be the limits of this variability?

12 - Do MMDS transmission systems have a role to play in the radio local loop? Same question for satellite systems such as Alcatel's SATIVOD project or Bill Gates and Craig Mac Caw's Teledesic?

13 - What are the advantages and disadvantages of a European/national standard? A proprietary/open standard?

14 - Should the authorisation of proprietary systems be conditioned by certain restrictions on the user interface (for example, in the case of point-to-multipoint systems, the obligation of being able to connect classical telephones to the switchbox)?

15 - Should the mutual recognition of technical approvals in European be sought for radio local loop equipment through a CTR?

16 - How could these different technologies be connected to existing infrastructure equipment? How could connection to intelligent network type architectures enable the range of services to be widened (limited/broadened mobility, private/public use)?

17 - What means can be envisaged to ensure cohabitation with both existing and future systems?

18 - In the case of shared radio facilities (DECT for example) and provided it is technically feasible, would frequencies available for private use (PABX, cordless domestic telephones) have to be separated from frequencies available for public applications, as the Japanese regulator has done for the PHS?

19 - What could be the role of intelligent antennae (SDMA technology for space distribution multiple access) in the radio local loop?

2 Licensing conditions

2.1 Geographical scope of the licensing zone

The allocation of licenses can be envisaged for a given frequency band, on a local (one or several conurbations), regional (several "départements" or districts) or national basis. A combination of the above is also possible. In its invitation last November to apply for radio local loop operating licences in the 2 and 10 GHz frequency bands, the British regulatory body included the possibility of subdividing one of the three 10 GHz national licences into several regional licences if there was a demand.

Questions:

20 - What should be the extent of the geographical licensing zone for each couple i.e. frequency band/system: local, regional or national?

21 - What is the impact of the type of frequency allocation - exclusive or shared - on the extent of the licensing zone?

2.2 Operator designation method

Licences must be issued under non-discriminating, transparent conditions. This is why the telecommunications Bill require the Telecommunications Regulation Authority to publish the results when licences are granted [after a call of tenders].

Number of operators in a geographical zone

The number of operating licences for public networks is not limited, a priori, except for reasons relating to the respect of essential requirements, one of which is correct use of the spectrum. The non-availability of the spectrum for radio local loop applications or the technical necessity of exclusively allocating an operator part of the available spectrum mean that the number of licences will need to be limited.

A distinction must be made between exclusive frequency allocation systems (most point-to-multipoint systems, GSM and DCS 1800) and frequency sharing systems (DECT, CT2 and CDMA spectrum dispersion technologies). The number of operators in the case of exclusive frequency allocation systems must generally be fixed, since the band which can be allocated is divided up into blocks of frequencies allocated to each operator. In the case of systems with dynamic frequency sharing, it is not technically necessary to determine the number of operators beforehand since the whole of the available band can be shared by all the operators. However, the regulatory body may have to limit the number of operators, even for these systems, in order to maintain the quality of the service offered. The size of the potential market may also be considered a reason for limiting the number of licences when there is a shortage of resources.

Questions :

22 - If it should prove necessary to limit the number of radio local loop operators in a given zone, what number would you recommend, making a distinction in this case between exclusive frequency allocation systems and sharedPfrequency allocation systems?

23 - What spectral capacity should be expected per operator (average capacity in the case f shared frequency systems, capacity actually allocated in other cases)?

Licensing conditions

Two solutions can be envisaged for the allocation of licences:

a selection procedure, which can take several forms: comparative tender, auction or drawing of lots. The selection procedure could be renewed after a period to be determined in the case of areas in which the number of initial respondents is too low.

allocation as required with examination of licensing applications as they are filed.

The choice between these two allocation methods mainly depends on the exclusive or non-exclusive availability of frequencies at the time of allocation. Allocation based on a selection procedure is no doubt more suitable in the case of a limited number of licences. On the other hand, allocation as required allows for gradual positioning, particularly when the total number of licences is not limited a priori.

Questions :

24 - What procedure would you recommend for issuing radio local loop operating licences in the case of shared frequencies (selection procedure with possible renewal or allocation of licences as required)?

25 - In the case of a selection procedure, which of the following three options is best - auction, comparative tender, drawing of lots? In the case of a comparative tender, what selection criteria do you recommend?

Conditions for allocating licences if several frequency bands are designated for introduction of the radio local loop Conditions d'attribution de licences dans le cas où plusieurs bandes de fréquences seraient désignées pour l'introduction de la boucle locale radio

If several frequency bands are designated for introduction of the radio local loop, for instance, the DECT band, and bands allowing for point to multipoint or point-to-point applications, two scenarios can be envisaged:

an allocation procedure for each frequency band (concomitant if necessary),

a single licensing procedure with coupling of frequency bands.

In its recent invitation to apply for licences, the United Kingdom chose to allocate different licences for the 2 GHz and 10 GHz frequency bands.

Question :

26 - If several frequency bands were to be designated for introduction of the radio local loop, should a single licensing procedure be set up, coupling the different frequency bands, or should there be a separate allocation procedure for each frequency band?

Entry conditions applicable to France Télécom concerning access to the radio local loop market Les conditions d'entrée de France Télécom sur le marché de la boucle locale radio

Some of the parties who responded to the public consultation on the future regulations indicated that, in order to encourage the emergence of effective competition in France, France Télécom should be eliminated from certain markets, particularly that of the radio local loop. These parties suggested either totally excluding France Télécom from radio local loop licensing procedures as long as new entrants have not acquired a significant share of the market, or delaying the possibility of France Télécom obtaining radio local loop licences for a determined period of time.

In this respect, it would seem necessary to take three specific features of France Télécom into account:

France Télécom already operates a number of radio local loop systems in several frequency bands - VHF (150 MHz), UHF (450 MHz) and 1.4 GHz - as part of the public network;

The telecommunications Bill specifies that France Télécom is the public operator responsible for the universal service. Since the net cost of these obligations is to be financed by all the operators, it would seem to be in the general interest that France Télécom be able to use the least expensive technical solutions, including the radio local loop, to meet these obligations;

At present, France Télécom has access to virtually all frequencies above 1.8 GHz, of which the telecommunications ministry is the beneficiary. Article 17 of the Bill of 2nd July 1990 relating to organisation of the public post and telecommunications service, gives France Télécom automatic use of the frequencies to which it had access prior to that date. It is probable that radio local loop technologies will develop in frequencies to which France Télécom alone has access at present. Generally speaking, regulation of France Télécom's use of frequency bands for the fixed service allocated to it is a natural consequence of liberalization of alternative infrastructures. Over and above restructuring of the type which has already been undertaken in these bands to allow for introduction of the microwave radio links of public radiotelephone operators and independent networks, this regulation implies the payment of a fee by France Télécom for the availability of frequencies. Also, for new operators, the availability of frequencies is regulated by special specifications which also determine the technical conditions under which they are to be used. The technical and financial conditions governing the use of frequencies by France Télécom should therefore be brought into line with those required of its competitors, not only with regard to the radio local loop, but also with regard to transport infrastructures. This question will be particularly significant if there is a substantial development of the radio local loop in France.

Regulation of entry of the historical operator into the radio local loop market in Germany and the United Kingdom. La régulation de l'entrée de l'opérateur historique sur le marché de la boucle locale radio en Allemagne et au Royaume-Uni.

Germany seems to be moving towards a solution in which Deutsche Telekom could be an applicant for the allocation of DECT licences at the same time as new entrants.

In the United Kingdom, the regulatory body, in its document entitled "Phone on the move" in 1989, set out the measures envisaged to stimulate competition on the British market through the use of radio technologies. For the first generation of this type of technology i.e. personal communications for the general public, BT was excluded from the licensing procedure while its fixed network rival, Mercury, was allowed to apply and obtained a DCS 1800 licence.

On the other hand, as a result of the public consultation on the terms of an invitation to apply for radio local loop licences in the 2 and 10 GHz bands, the British regulatory body decided not to reserve these frequencies for new entrants. BT, allowed to participate in the invitation to apply, obtained a licence in the 2 GHz band identified for the servicing of rural areas with a population density of fewer than 50 people per square kilometre. However, its application for a licence in the 10 GHz band in order to introduce advanced digital services for small and medium-sized businesses, was refused.

Questions :

27 - Should special conditions apply to France Télécom's entry into the radio local loop market according to the geographical zones concerned? The frequencies and systems concerned?

28 - Under what technical and regulatory conditions could France Télécom develop radio local loop infrastructures in the frequency bands which it is currently allowed to use?

2.3 Designation of frequencies or standards to be used2.3 Désignation des fréquences ou normes à utiliser

During the invitation to apply for licences to operate 2 and 10 GHz radio local loops, the British regulatory body required applicants to choose equipment conform with the frequency plan of the CEPT (European Post and Telecommunications Conference) and ETSI standards. However, while waiting for this equipment to become available, other equipment can be used temporarily, provided the operator undertakes to replace it with equipment to ETSI standards as soon as it becoees commercially available.

Germany, on the other hand, seems to prefer DECT technologies for its radio local loop.

Questions :

29 - Should the standards associated with the frequencies allocated to operators be specified or not?

30 - In the first hypothesis, what stanrards should be preferred? What frequencies?

3 Content of radio local loop operating licences

3.1 Link-up with the general licensing system

The orders implementing the telecommunications law which has just been voted by Parliament will not define the general licensing system until the second half of 1996.

The public consultation document entitled "New rules for telecommunications in France" provides for the possibility of issuing licences for particular market segments. This means that the licensing system for public networks could be broken down into a local loop operating licence for the provision of subscriber services and a long distance operating licence for the routing of communications. On the face of it, this type of system would not suppose to allocate two different licences to an operator simultaneously present on both markets. Other terms could also be envisaged.

Questions:

31 - What sort of link-up can be made with licences for open to the public wire networks? Should a distinction be made depending on whether the licences are national or local?

32 - Is it better to issue specific radio local loop licences or should a radio component be included in the local and national licences for public networks ?

Various equipment designed for fixed applications has also been developed in the GSM apd DCS 1800 bands i.e. terminals with restricted-access mobility functions to be installed in the subscriber's home, phone booths, PABX with access to the network by GSM or DCS 1800 radio channel.

One may question the wisdom of permitting such strictly fixed applications in bands which allow for an extended mobility service, particularly with regard to a possible shortage of frequencies in the medium term in conurbations and border areas.

Questions:

33 - Is the time right to permit fixed dedicated applications (terminal in the subscriber's home, PABX with radio access to the network, etc.) in the GSM and DCS 1800 frequency bands? In the affirmative, should restrictions be made according to the geographical zones concerned? What type of restrictions?

3.2Scope of services associated with radio local loop licences

Two options can be envisaged:

a list of services associated with radio local loop licences can be established

the operators can be left complete freedom of choice.

The GSM and DCS 1800 licences state that any service defined in the standard is allowed provided it is a mobile service.

The British Regulator, in its recent invitation to apply for licences in the 2 and 10 GHz bands designated the 10 GHz band for the supply of advanced digital services such as high speed access to Internet and videotelephones.

Questions :

34 - What range of services (Plain old telephony, ISDN, data transmission, rented links, multimedia, advanced digital services, high speed access to Internet, all services, etc.) should a radio local loop operator be allowed to supply?

35 - Should the supply of some of these services be made compulsory? In the affirmative, which ones?

Some radio local loop technologies allow for both fixed access to the network and access with varying degrees of mobility. This is the case of DECT, for example, for which a fixed dedicated radio local loop type utilisation and a mobile, local coverage type utilisation can be distinguished.

The DECT and CT2 licences for public networks allocated in France up until the present are radio localtelephony licences including a type of mobility. In particular, the installation of transmitters or repeaters dedicated to a couple of subscribers is not allowed since this would correspond to a vocal telephony service offered to the public between fixed points, which is reserved for France Télécom under the Bill of December 1990, except in the framework of the experimental licences delivered by inforcement of the 10 April law.

In Germany, the DECT licensing system, which is not to come into force until 1st January 1998, does not make any distinction between the various DECT "public network" applications. The German ministry considers that it is better to leave operators relatively wide latitude in the services to be provided.

Question :

36 - Should licences include restrictions in terms of services i.e. dedicated to fixed or mobile services, or should they leave complete freedom to the operator in this respect?

3.3 Obligation of availability

GSM and DCS 1800 cellular mobile phone operating licences include coverage obligations. GSM operators must cover 85% of the population by the end of 1997 i.e. nearly 7 years after receiving their licence and the DCS 1800 operator must cover 86.6% by the end of 2005 i.e. 11 years after receiving his licence.

DECT and CT2 local mobile phone licences, on the other hand, do not include any obligation of this type.

If it is decided to impose obligations of geographical availability on a radio local loop service, they will have to differ according to the geographical basis on which the licences are issued.

For licences granted on a national basis, it seems unrealistic to include obligations to cover more than a certain percentage of the population in the long term. On the other hand, for licences issued on a local basis, these obligations could be higher. Regional licences are an intermediate case, which will no doubt need to be adjusted according to the geographical basis of the permit.

Questions :

37 - Should the obligation to provide everyone with access to their radio local loop service in a given geographical zone be included in radio local loop operating licences? In the affirmative, in what form?

3.4 Interconnection

The telecommunications law defines different interconnection rights for public network operators and public telephone service providers.

Special provisions will apply to public network operators with a significant influence on a pertinent market, who are required to publish a standard interconnection offer. The corresponding interconnection rates must be cost-oriented.

Question :

38 - Can or should the same rights and obligations in the field of interconnection apply to a radio local loop operator who only offers radio access, and relies on the switching and transmission infrastructure of another public network operator, and a public network operator using all three aspects i.e. switching, transmission and access? If not, what differences should be made?

Certain special obligations could also be made with a view to the interoperability and universality of services, particularly for systems allowing for either limited or extensive mobility. Two questions deserve special attention:

- the first concerns the terms under which the network's intelligence functions can be made available in order to manage mobility.

Under the terms of the CT2 Télépoint licence allocated to France Télécom for its Bi-Bop services, the latter is required to provide access to these functions to any other operator who applies to do so. The Japanese regulatory body has gone even further in this respect. Even though it has allocated several licences to set up public PHS terminals in the same region (see appendix), only one operator is allowed to manage mobility, in return for which he must provide such mobility to all the other operators in the area.

- the second question concerns roaming agreements. This question was already discussed when public mobile phone licences were issued.

Today, GSM and DCS 1800 licences allow operators to conclude national GSM-GSM and GSM-DCS 1800 roaming agreements. France Télécom and SFR's GSM licences also include provisions which, when the time comes, will enable national roaming to be made compulsory between two GSM networks in order to benefit from complementary coverage.

The CT2 licences held by France Télécom (Bi-Bop) and KAPT Aquitaine include the obligation for operators to conclude roaming agreements with any operator who applies to do so.

For future radio local loop operating licences incorporating a mobile dimension, three options are available:

the operators are allowed to conclude national roaming agreements;

they must meet any request for a national roaming agreement;

they must systematically conclude roaming agreements with all the operators present in the different geographical zones using the same technology, so that if the user wishes to do so, he can benefit from the widest possible coverage.

Question :

39 - Should the following obligations be included in radio local loop licences:

availability of the network's intelligent functions to manage shared mobility in the case of systems allowing for limited mobility?

roaming between networks available in unconnected geographical areas?

3.5 General obligations on operators

Whatever the form chosen for local loop operating licences, the latter will include general obligations common to all public network operators. In particular, toll free calls to emergency services will be imposed upon these operators; similarly, provisions relating to security and defence in the licences of public network operators will be reproduced in licences issued to radio local loop operators.

Greater attention will also be paid to provisions relating to protection of the environment - radio equipment should blend into the countryside as harmoniously as possible, not only in rural but also in urban areas.

3.6 Special provisions aimed at guaranteeing efficient, fair use of the spectrum in the case of shared band systems Dispositions spécifiques visant à garantir une utilisation efficace et équitable de la ressource spectrale dans le cas des systèmes à fréquences partagées"\

Unlike the case of exclusive frequency band allocation systems, in which each operator is responsible for its frequency planification and can therefore ensure correct use of the frequencies allocated to him, the situation is more complex in the case of dynamic allocation systems for which correct use depends on several parties.

Even if several operators work in the same geographical area, it is probable that no difficulties will arise initially. On the other hand, when the increase in the overall traffic causes the frequency band to approach saturation point, certain arrangements may prove necessary to ensure fair, efficient use of the spectrum.

Network synchronisation would enable the total available capacity to be increased by improving the overall use of frequencies. CT2 and DECT local mobile phone licences allocated up to the present also include the possibility of the regulatory body making this type of synchronisation compulsory.

The conditions under which repeaters can be used are another point which deserves special attention on the part of the regulatory body. Although the use of repeaters both extends and improves radio coverage, it also decreases the network capacity. In this context, certain restrictions may have to be placed on the way in which they are used.

Questions :

40 - In the case of shared frequencies, how can fair use of the spectrum by the different operators be ensured, and how can pre-emption of the spectrum by fictive traffic be prevented? The answer will differ according to the system considered.

41 - What technical provisions should be imposed on operators using dynamic frequency allocation systems in order to ensure efficient use of the spectrum?

3.7 Making the most of the spectrum allocated Valorisation du spectre alloué"

Fees for using the radio spectrum

The decree of 3rd February 1993 amended stipulates that fees for using the spectrum to be paid by operators authorised in application of article L 33.1 of the Post and Telecommunications Code must be included in their licences (Cahier des charges).

Three examples can illustrate the way in which this decree has been implemented with regard to telecommunications operators.

GSM licences issued in 1991 include a fee for using the radio spectrum of FRF 600 000 per 200 kHz duplex channel allocated for the whole of France. At the end of 1994, authorisation of a DCS 1800 network in France provided the opportunity to define a fees system adapted to the gradual availability of frequencies in metropolitan France. The DCS 1800 operating licence issued to Bouygues Télécom includes a sliding fees scale according to the geographical zones in which DCS 1800 frequencies are available while maintaining the FRF 600 000 duplex channel fee for metropolitan France. The administration and control fees are 1 million FF a year.

The fee for using ERMES frequencies is FRF 300 000 per 25 kHz channel. This higher cost takes into account the potentially greater turnover generated per frequency unit. It is possible to build up a national network with a single channel which can provide services to several tens of thousands of subscribers, which is not the case for the GSM and DCS. The administration and control fees are the same as for the GSM operators.

The rates for microwave radio link frequencies used by mobile operators are based on three parameters - congestion of the band, the frequency range used and the restrictions placed on the operator (co-ordination, etc.).

The rates for fixed frequencies used by France Télécom for microwave radio links should be based on these three parameters. The administration and control fees are FRF 100 000 a year.

It is suggested using the criteria which were applied to DCS 1800 and GSM frequencies and the fixed frequencies of mobile operators in order to determine the fees for "radio local loop" frequencies i.e.

predictable return on investments,

surface area in which the frequencies are made available weighted by the population density,

the frequency range used,

the width of the spectrum allocated,

congestion of the band,

operating restrictions imposed on the operator.

A special case is that of systems used to connect remote subscribers of the IRT type for which a unit price could be used.

Question :

42 - What are your proposals concerning fees relating to the frequencies of radio local loop systems?

Appendix 1: The situation, from a regulatory point of view, in Europe and France, of radio frequencies which can be used for radio local loop applications

The aim of this appendix is to provide a synthesis of the main regulations and current uses of frequency bands suitable for radio local loop applications. It is based on the radiocommunications regulations of the IUT, the relevant European directives, the recommendations and decisions of the CEPT and booklet II of the Telecommunications Co-ordination Committee. By its very nature, it is simplistic and only the regulatory texts mentioned above shall be deemed authentic.

Frequency Bands

Situation on a CEPT level

User in the meaning of booklet II

Main present or future applications for civil telecommunications in France.

160 and 450 MHz

DSI phase II recommends excluding fixed systems from frequencies of less than 1 GHz, with the possible exception of systems designed to connect remote subscribers

The PTT user has priority in the 160 MHz band and exclusive use of t e 450 MHz band.

These frequency bands are used by France Télécom to connect remote subscribers in certain specific areas (islands, coastal areas, mountains, etc.).

900 MHz

864,1/

868,1 MHz

The introduction of GSM in Europe is the subject of a European Council directive (EEC 87/372/) designating the 890-915 MHz frequency band coupled with 935-960 MHz for this system, and an ERC decision (ERC/DEC/94.01).

Because of the commercial success of GSM networks, the ERC has prepared a draft decision on the GSM extended bandwidth which provides that all or part of the 880-890 MHz/925-935 MHz band could also be reserved in the CEPT plan for GSM systems.

An ERC Reconmendation confirms the use of these frequencies by mono frequency applications such as CT2-CAI.

PTT is the exclusive user of the GSM band and the 888-890 MHz/933-935 MHz band.

An agreement between the Armed Forces and the PTT allows the use of this frequency band by PTT for CT2/CAI equipments (ETS 300 - 1 31)

The use of public base CT2/CAI stations is restricted to :

towns with more than 50 000 inhabitants.

areas accessible by the public of big cities.

highway services areas

The GSM applications are as follows:

today, the France Télécom mobile cellular service and SFR have been issued a licence allocating them 12.5 MHz duplex each.

potentially the radio local loop.

Two networks have been authorized to use these frequency band :

France Télécom for its network Bi-Bop in Strasbourg, Paris, Lille and some stations and airports and KAPT' Aquitaine in Bordeaux and Charente-Maritime, Gironde, Landes, Pyrénées Atlantique, Departments.

On the top of these services open to the public, use of private base stations at home or in the offices is also allowed.

1,4 GHz

The ERC adopted a Recommendation in 1993 i.e. Rec T/R 13-01

This recommendation includes the following frequency plans for the fixed service:

1350-1375 MHz coupled with the 1492-1517 MHz band.

1375-1400 coupled with 1427-1452 MHz.

In the case of the fixed service, this recommendation reserves the use of these two bands for low capacity point-to-point and point-multipoint digital systems. The basic channel is 2 MHz. Additional channelisation plans for slower transmissions are the result of a subdivision of the basic model (0.025 MHz, 0.25 MHz and 0.5 MHz, 1 MHz). A 3.5 MHz channel is also to be provided by multiplication of the 0.5 MHz channels.

1375-1377 MHz: PTT shares priority with the Armed Forces and Ministry of the Interior. This band can also be used by secondary services.

1377-1384 MHz: The Armed Forces share priority with PTT (+ secondary services).

1384-1400 MHz: PTT shares priority for the fixed service with the Armed Forces and has equal rights with the Ministry of the Interior's mobile applications.

1427-1429 MHz: PTT shares priority for the fixed service with the Armed Forces and Ministry of the Interior. This band is also used for space operations. .

1429-1452 MHz: CSA is the exclusive user.

1452-1460 MHz : PTT shares priority for the fixed services with the Armed Forces and has equal rights with CSA's radio broadcasting.

1484-2492 MHz: Ditto

A CCT working group is studying transfer to the PTT user of the 1375-1400 band coupled with 1427-1452 MHz.

1350-1375 MHz The Armed Forces share priority for the mobile service with the Ministry of the Interior and PTT.

1492-1515 MHz: CSA is the exclusive user.

1515-1525 MHz: the Armed Forces are the exclusive user.

Distribution systems in the 1.4 GHz band (1384-1400 MHz band coupled with 1452-1460 MHz and 1484-1492 MHz) are operated by France Télécom in the least densely populated areas. These operations will be migrating under the European plan: 1375-1400 MHz coupled with 1427 -1452 MHz .

These applications do not cover the whole territory.

CSA uses the 1429-1452 MHz, 1460-1484 MHz and 1492-1515 MHz channels for video reporting applications, mainly in large cities.

1,8 GHz

Frequency ranges in the 1.8 GHz band have been identified on a European level for DCS 1800, DECT and UMTS.

The DCS 1800 frequency band is the subject of a CEPT recommendation (Rec T/R 22-07). 75 MHz duplex (1710-1785 coupled with 1805-1880 MHz) can be used by the DCS 1800 system. A CEPT Decision which requires that at least 15 Mez duplex be made available to DCS 1800 operators was adopted in June 1996.

The DECT frequency plan is the subject of a European Council directive (EEC/91/287) and a CEPT decision (ERC/DECT (94)03). Thus, 20 MHz (1880-1900 MHz) harmonised through the European Union have been identified in order to introduce DECT.

UMTS will be gradually introduced at the beginning of next century in the 1885-2025 MHz bands coupled with 2110-2200 MHz..

The frequency band designated for the introduction of DECT by Decision of the Council has been the subject of an agreement between PTT and Armed Forces users. The 1880-1900 MHz frequency band is designated for the introduction of DECT in France. The agreement between the PTT and the3Armed Forces makes a distinction between:

the 1892-1900 MHz sub-band for which possible availability is specified for the PTT user over the whole of the territory

the 1880-1892 MHz sub-band for which the geographical extent of availability are subject to an agreement between the parties.

The DECT applications which exist today in France are PABX, domestic cordless phones and radio localtelephony. The introduction of radio local loop applications is envisaged.

The DCS 1800 applications are as follows:

today, the cellular mobile service: Bouygues Télécom has been issued a national permit for 15 MHz duplex and France Télécom Mobiles 1800 and SFR local licences in Toulouse and Strasbourg respectively.

potentially the radio local loop.

2,2 GHz

In 1993, the ERC adopted a Recommendation (Rec T/R 13-01) which includes frequency plans for several fixed service bands:

-2025-2110 MHz coupled with 2200-2290 MHz.

"This band is designed to be used in the future for traditional multi-channel and multiple link radio relay systems, and also for modern public network operator access applications".

- The 2520-2670 MHz band with a duplex deviation of 74 MHz (4 MHz inter-band).

"Future use of this band is set aside for point-to-point or point-multipoint systems for applications consisting of a single link or multiple links".

The Recommendation stipulates that, for these two frequency bands, it is essential that the new channel plans offer sufficient flexibility in order to cover an entire range of equipment capacities, modulation types and transmission techniques. The detailed description of the channels proposed concerns the 1.75 MHz, 5 MHz, 7 MHz and 14 MHz channels.

Today, the Armed Forces are the exclusive user of the 2025-2100 MHz and 2520-2670 Mhz bands for the fixed service, and PTT, the 2100-2310 Mhz band.

A large-scale operation to restructure this part of the spectrum is to be carried out in the medium term. The prospects for fixed civil applications in the future 2025-2110 MHz/ 2200-2290 MHz European plan are relatively limited. The availability of frequencies in this band for local loop applications is extremely unlikely within the next few years.

1A part of these bands is shared with the earth exploration satellite services and space research by the Space user.

Today, France Télécom uses the 2100-2310 MHz band intensively for intra-ZAA transmission equipment.

3,4-3,6 GHz

The CEPT should adopt a frequency plan for the 3.4-3.6 GHz band for fixed point-to-point and point-to-multipoint and ENG/OB applications.

Two possibilities have been selected at this stage:

two 50 MHz duplex deviation plans: 3410- 3450 MHz coupled with 3460-3500 MHz and 3500-3550 MHz coupled with 3550- 3600 MHz.

a single 100 MHz deviation plan: 3410-3500 MHz coupled with 3510-3600 MHz .

In these two plans, the channel can be 0, 25 MHz, 1.75 MHz, 3.5 MHz, 7 MHz and 14 MHz.

Today, CSA is the exclusive user of this frequency band. A CCT working group proposes that PTT share priority use of this band with the Ministry of the Interior.

Today, this frequency band is used by TDF for long distance high capacity analog microwave radio links between large cities.

The CEPT thinks it will give priority to PTT applications of the two half-plans recommended by the CEPT in preference to a single plan.

10,5 GHz

The CEPT should also adopt a plan for the 10.15-10.3 GHz band coupled with 10.5-10.65 GHz. The draft Recommendation includes:

a 0.5 MHz channel for point-to-multipoint systems

a 3, 5, 7, 11 or 18 MHz channel for point-to-point systems.

The Armed Forces are the exclusive user below 10.5 GHz.

PTT is the exclusive user of the 10.5-10.60 GHz band and priority user of the 10.6-10.68 GHz band.

Today, France Télécom uses the 10.5-10.68 GHz band for servicing equipment.

31 GHz

The CEPT has adopted a frequency plan coupling the 31-31.3 GHz band to the 31.5- 31.8 GHz band

31-31.3 GHz : PTT is the exclusive user.

31.3-31.8 GHz: Space and Radio-astronomy are the exclusive users.

Today, France Télécom uses the 31- 31.3 GHz band for short distance subscriber connections.

Appendix 2 : Introduction of the local loop in Germany

The aim of this data sheet is to give an outline of the terms defined by BMPT for the allocation of DECT public operator licences in view of introducing competition into the local loop. BMPT's choice with regard to the radio local loop is now directed towards DECT technology.

1 The two investigations commissioned by BMPT

Prior to defining the system of future DECT licences, BMPT commissioned two investigations. The first concerned DECT as a means of decontrolling the local loop and the second studied the question of how to minimise interference between public and private DECT applications (PABX, private terminals).

1.1 Conclusions of investigation of DECT as a means of introducing competition into the local loop

The main conclusions of this investigation are as follows:

the licensing system should not make a distinction between the different DECT "public network" applications i.e. Télépoint, mobile in a local zone or a radio local loop. These various aspects partly overlap and the operator should be left relatively wide latitude in choosing his positioning;

mobile operators should not be excluded from the DECT licensing procedure because DECT can only replace cellular telephone networks to a very limited extent and the presence of mobile operators, in the form of a combined DECT/GSM service where necessary, would reinforce competition in the local loop;

Deutsche Telekom should not be excluded from this market, insofar as a sufficient number of licences can be allocated;

DECT licences must not contain any geographical restrictions;

the investigation suggests initially limiting the number of licences to 4 or 5 in order to ensure that the networks can be co-ordinated and synchronised and solve any capacity-related problems;

finally, the investigation does not suggest any solution for the cohabitation of private and public DECT applications, but suggests that full scale experiments be carried out.

1.2 Main conclusions of the technical study

The main conclusions of the technical study are as follows:

the frequencies currently allocated to DECT are sufficient in low traffic regions for all types of DECT applications;

in very high traffic areas, interference between public and private applications cannot be avoided when there are more than two DECT public telephone network operators;

protection against interference can be provided by reserving three of the ten DECT carriers for private applications;

public DECT operators can reduce mutual interference by synchronising their networks;

ISDN services, which are high frequency consumers, reduce the total capacity of the networks;

in conclusion, the report considers that the portion of the spectrum allocated toÃDECT is insufficient. Additional frequency requirements are estimated as follows:

5/10 MHz if DECT networks do not offer ISDN services and if frequencies are shared among public operators;

20 MHz, if ISDN is supplied by DECT networks, but frequency sharing is maintained;

30/ 35 MHz if ISDN is provided by DECT networks and there is no sharing among private and public applications.

2 DECT licensing system defined by BMPT

BMPT considers DECT to be one of the essential vectors in introducing competition into the local loop. It hopes to begin a DECT licensing procedure in the summer of 1996 after the law has been voted. Operators will only be able to market their services as of 1st January 1998. Neither Deutsche Telekom nor mobile operators will be excluded from the licensing procedure.

Unless there is a shortage of frequencies, there will be no limit on the geographical coverage of licences. The question of a maximum number of authorised operators still seems open for discussion. The general vocal telephone licensing system will apply.

BMPT already seems to anticipate a shortage of DECT frequencies and is looking for solutions to allocate additional frequencies to DECT. Experiments are apparently to be conducted to test the capacity limits of the DECT system. Another radio local loop solution could perhaps be instigated.

Appendix 3: the PHS system in Japan

Despite the fact that the first networks have only come onto the market very recently - July 1995 - PHS services (Personal Handyphone System) have met with a very keen commercial success: more than 3 564 000 subscribers at the end of August 1996

1. The operators

The market is divided up between NTT Personal Communications Network (611 000 subscribers), DDI Pocket Telephone (1 235 000 subscribers) and ASTEL (598 300 subscribers) to which MPT has issued licences to operate the system on a regional basis(1).

For NTT, the subsidiary belongs to NTT Personal Communications Network Group, a subsidiary of NTT (70 %) and NTT Mobile Communications Network (30%).

DDI, which is already present on the long distance communications market, is also involved in the mobile telephone market. The largest shareholders are commercial companies such as Mitsubishi (10 %), Mitsui (10 %), Sumitomo (7%) and Nissho Iwai (5%) together with long distance and regional operators such as Japan Telecom (8%) and TTNet (8%). Foreign operators have also taken minority shares in the capital of ASTEL: GTE (1,5 %), France Télécom (1%) and Bell Canada (1%).

2. Targeted clientele

While cellular phones are still reserved for a professional clientele, the PHS was designed as a general public product. Advertising campaigns have been conducted along these lines. However, the 32 kbp data transmission channel should eventually encourage part of the business clientele to change over to the PHS. The average price is 40 yen (FF 2(2)) for a three-minute local call plus the initial cost of subscription i.e. about 7 200 yen (FF 360) and a monthly fee i.e. 2 700 yen (FF 135).

3. Regulatory aspects

NTT's ISDN network is mainly used as the transmission infrastructure for this network but both the NCC networks (New Common Carrier) and cable television networks are sometimes used as well. NTT is responsible for the network's intelligence (mobility management).

MPT has reserved the 1895 MHz to 1918.1 MHz frequency band for the PHS. The frequencies are then divided up according to the type of application. For private-type use, that is, for communications between one or several terminals and an individual base or private PABX, the 1895-1906 MHz band is used. For so-called "public" use, that is, for communication between a terminal and a public base station, the authorised frequency band is 1906.1 MHz to 1918.6 MHz.

Like other public services in Japan, the rates are approved by MPT.

4. Technical features of the system

Because of the simplicity of the system (no complex electronics and moderate power consumption), the operating cost is lower than that of existing cellular systems (about 4 times dearer).

The transmission power of the terminals and base stations used for the PHS is lower than required for cellular digital telephony. This has enabled terminals with a greater autonomy to be designed (5 hours of use and 300 hours in power saving mode). NTT's laboratories have developed an LSI circuit which will increase operating time to 9 hours for a PHS terminal.

The operating radius ranges from 100 to 500 metres. This shorter range allows for better reorganisation of frequencies and is suitable for urban areas with a high population density. The PHS system can thus accommodate a large number of potential users.

Handover is possible provided the displacement speed of the terminal is low (less than 20 km/hr). This enables cellular network operators to keep clients who want to use their telephone during car and train journeys. However, 40% of them intend to acquire a PHS system because they believe that it is the mobility of the terminal and not the people which is the most important.

The Japanese government and local firms are very active in contributing to adoption of the PHS as a regional standard. In Hong Kong, the PHS already seems to have its future guaranteed; three of the operators present on the market have opted for the Japanese standard and rejected the rival European DECT standard.

(1) The regions concerned are Hokkaido, Tohoku, Hokuriku, Kansai, Chugoku, Shikoku, Chuo, Tokai, Kyushu, Tokyo, Chubu, Okaniwa.

(2) The exchange rate used is that of 20th September 1995: 1 yen = FRF 0.0495.

Appendix 4: The local radio loop in the United Kingdom

1 A public consultation on the local radio loop before launching of the invitation to apply for licences

In March 1995, the British public authorities announced their intention to widen competition in the field of fixed services on a technological radio basis by offering new opportunities in the 2 GHz and 10 GHz bands.

A consultation document was therefore widely distributed to all those concerned, in view of an invitation to apply for licences. Twenty-seven firms participated in the consultation.

The consultation had four main motivations:

to reduce the cost of the universal service, particularly in remote areas, and widen the range of services available in these regions,

to encourage the development of digital services in the 10 GHz band,

to encourage the development of new technologies, particularly digital,

to provide new opportunities to manufacturers who will be required to confront international markets.

1.1 Organisation of the local radio loop market in the United Kingdom

1.1.1 Background

50 000 new clients subscribe to cable telephone each month. Competition on the cable market has been responsible for a reduction in prices and an improvement in the services offered to clients. However, BT still operates 95% of final connections in the United States.

With regard to the local radio loop, three FRA (fixed radio access) operators had already been issued permits at the time the consultation was launched: Ionica , Liberty and Atlantic. Atlantic operates in the 2.4 GHz band, in the regions of Glasgow and Strathclyde only. Atlantic, bought out by the cable operator Caledonian Media Communications in March 1995, intends to start providing services in the spring of 1996. This means that the operator is in direct competition with BT and the cable operator CableTel. Ionica, whose main shareholders are Pulsar Telecommunications, Telecom Finland, Kingston Communications, Symbionics, 3i, the Independent Investment Group, Northern Electricity and Yorkshire Electricity, is in direct competition with Atlantic, but in the 3.4 GHz band. Liberty Communications, controlled by Millicom International, a subsidiary of the Swedish operator, Kinnevik, has a permit to operate in the 4 GHz band. After several delays, the first services offered by Liberty and Ionica should become commercially available sometime during 1996. Ionica and Liberty obtained exclusive frequency bands but, in exchange, had to agree to cover a large share of the British population.

1.1.2 The consultation

The consultation mainly concerned licensing conditions for the following bands:

10 GHz which is very suitable for digital services and which can be used to develop ISDN applications;

2 GHz, for subscribers in remote areas. Remote services (remote teaching and telecommuting, for example) for villages and other rural areas were the main targets. It was envisaged allocating licences in this band in 20% of the country.

Although several operators had expressed interest in using DECT systems in an urban environment, it was decided not to launch a DECT public licensing system immediately. An examination of this technology is to be carried out subsequently with the possibility of conducting experiments.

The number of operators to be authorised per frequency band had not been decided at the time of the public consultation. The situation of cable operators who may have wished to obtain licences for zones corresponding to the permit to operate their cable television network was also discussed in the consultation document.

After setting out the principle of an invitation to apply for licences to operate 2 and 10 GHz systems, the consultation document raised a certain number of questions. The parties concerned were invited to express their opinion as to possible restrictions on the entry of certain operators into the competitive local radio loop market (particularly BT).

Finally, the British regulatory body said that, with regard to the invitation to apply for licences, it was prepared to allow tests and experiments to be carried out prior to setting up systems in the two bands concerned, provided they did not hinder the introduction of competition.

1.2 Additional information on the frequency bands envisaged

1.2.1 Availability of frequencies

The following frequencies were available:

2 GHz : the available frequencies were 2025-2110 MHz and 2200-2290 MHz. Any new operator in these bands must demonstrate that he can share them with the other occupants: fixed access operators, NATO-owned systems which may be introduced, etc.

10 GHz : the 10.15-10.30 GHz and 10.50-10.65 GHz bands were to be partially available. These frequencies, liberated by the Armed Forces, have to be shared with other users. The lower parts of the band were not available in certain regions.

1.2.2 Choice of standards

2 GHz : The maximum speed of the equipment available in this frequency range was 144 kbit/s. The equipment used must correspond to the CEPT frequency plan and to standards developed by the ETSI STC TM4. The work in had included both CDMA and TDMA technologies. The government specified that equipment which did not yet correspond to the standards being established would be accepted on the provison that the operator would replace his equipment with standardised equipment as soon as the latter became available. Operators in these bands must do everything possible to guarantee optimum use of frequencies.

10 GHz : As for the 2 GHz band, equipment used to provide services in the 10 GHz band must conform with the ETSI STC TM4 standards and the CEPT spectral plan. The work in hand only includes TDMA technology but should soon be extended to cover the CDMA system. The speeds envisaged were 144 kbit/s minimum between the base station and the subscriber. The government did not wish to promote analog technologies or equipment.

2 Invitation to apply for licences

2.1 The conditions of the invitation to apply for licences

The invitation specified that any company could apply for a licence (including BT).

Based on the results of the consultation, the percentage of territory on which 2 GHz systems could be developed was increased to 40% (as against 20% at the time of the consultation).

Applicants had to prove that they were capable of operating the network (financially, technically, etc.). They were asked to give details concerning their long term marketing intentions and any market surveys which had been carried out. The applications also had to contain the following information:

the number of clients they hoped to connect (the geographical zones covered);

the network configuration (interconnection with other networks, other systems; the technologies used; the type of services offered; developments from which they expected to benefit);

the frequency bands used;

the network and services development schedule; for the development and coverage envisaged, it was decided not establish objective criteria a priori but to wait for the applicants' proposals, on the understanding that optimum use of the spectrum is expected, for the benefit of clients.

a business plan with a detailed breakdown of the applicant's capital and relations with both suppliers and clients;

configuration of the system and the type of services offered;

the market targeted;

the equipment used and the innovative aspects thereof;

the normative aspects of the equipment and investments made so that the equipment can be rapidly made conform with European standards.

technical details explaining how bands are to be shared with other occupants;

the security systems proposed, particularly to prevent fraudulent use of the equipment;

details as to the coverage envisaged.

3 Licence applicants

The 24 responses came from major operators such as BT and Mercury, cable operators and new entrants.

Most of the applicants targeted one of the three 10 GHz licences in order to provide an ISDN type service i.e. Atlantic Telecommunications, BT, CableTel, EuroBell, Ionica, Mercury, NTL, Norweb Communications, Racal Network Services, SWEB Telecoms, SpaceTel, Telewest, Torch Telecom, Unisource Mobile, Wireless Cable & Telecoms, and Wireless Fixed Telecom.

Eight other companies applied for the 2 GHz band to provide telecommunications services to subscribers in rural areas i.e. BT, Eurobell, Granger Telecom, Ionica, RadioTel System, SpaceTel UK, Telewest, and Wireless Cable & Telecoms.

4 The results of the invitation to apply

The successful applicants were BT and RadioTel Systems, each of which was issued a semi-national licence in the 2 GHz band, and Mercury, NTL and Ionica, in partnership with Scottish Telecom, each of which obtained a national licence in the 10 GHz band. The possibility offered by DTI in its invitation to divide up a national 10 GHz licence into several regional licences was not taken up.

Frequency Bands	Situation on a CEPT level	User in the meaning of booklet II	Main present or future applications for civil telecommunications in France.
160 and 450 MHz	DSI phase II recommends excluding fixed systems from frequencies of less than 1 GHz, with the possible exception of systems designed to connect remote subscribers	The PTT user has priority in the 160 MHz band and exclusive use of t e 450 MHz band.	These frequency bands are used by France Télécom to connect remote subscribers in certain specific areas (islands, coastal areas, mountains, etc.).
900 MHz 864,1/ 868,1 MHz	The introduction of GSM in Europe is the subject of a European Council directive (EEC 87/372/) designating the 890-915 MHz frequency band coupled with 935-960 MHz for this system, and an ERC decision (ERC/DEC/94.01). Because of the commercial success of GSM networks, the ERC has prepared a draft decision on the GSM extended bandwidth which provides that all or part of the 880-890 MHz/925-935 MHz band could also be reserved in the CEPT plan for GSM systems. An ERC Reconmendation confirms the use of these frequencies by mono frequency applications such as CT2-CAI.	PTT is the exclusive user of the GSM band and the 888-890 MHz/933-935 MHz band. An agreement between the Armed Forces and the PTT allows the use of this frequency band by PTT for CT2/CAI equipments (ETS 300 - 1 31) The use of public base CT2/CAI stations is restricted to : towns with more than 50 000 inhabitants. areas accessible by the public of big cities. highway services areas	The GSM applications are as follows: today, the France Télécom mobile cellular service and SFR have been issued a licence allocating them 12.5 MHz duplex each. potentially the radio local loop. Two networks have been authorized to use these frequency band : France Télécom for its network Bi-Bop in Strasbourg, Paris, Lille and some stations and airports and KAPT' Aquitaine in Bordeaux and Charente-Maritime, Gironde, Landes, Pyrénées Atlantique, Departments. On the top of these services open to the public, use of private base stations at home or in the offices is also allowed.
1,4 GHz	The ERC adopted a Recommendation in 1993 i.e. Rec T/R 13-01 This recommendation includes the following frequency plans for the fixed service: 1350-1375 MHz coupled with the 1492-1517 MHz band. 1375-1400 coupled with 1427-1452 MHz. In the case of the fixed service, this recommendation reserves the use of these two bands for low capacity point-to-point and point-multipoint digital systems. The basic channel is 2 MHz. Additional channelisation plans for slower transmissions are the result of a subdivision of the basic model (0.025 MHz, 0.25 MHz and 0.5 MHz, 1 MHz). A 3.5 MHz channel is also to be provided by multiplication of the 0.5 MHz channels.	1375-1377 MHz: PTT shares priority with the Armed Forces and Ministry of the Interior. This band can also be used by secondary services. 1377-1384 MHz: The Armed Forces share priority with PTT (+ secondary services). 1384-1400 MHz: PTT shares priority for the fixed service with the Armed Forces and has equal rights with the Ministry of the Interior's mobile applications. 1427-1429 MHz: PTT shares priority for the fixed service with the Armed Forces and Ministry of the Interior. This band is also used for space operations. . 1429-1452 MHz: CSA is the exclusive user. 1452-1460 MHz : PTT shares priority for the fixed services with the Armed Forces and has equal rights with CSA's radio broadcasting. 1484-2492 MHz: Ditto A CCT working group is studying transfer to the PTT user of the 1375-1400 band coupled with 1427-1452 MHz. 1350-1375 MHz The Armed Forces share priority for the mobile service with the Ministry of the Interior and PTT. 1492-1515 MHz: CSA is the exclusive user. 1515-1525 MHz: the Armed Forces are the exclusive user.	Distribution systems in the 1.4 GHz band (1384-1400 MHz band coupled with 1452-1460 MHz and 1484-1492 MHz) are operated by France Télécom in the least densely populated areas. These operations will be migrating under the European plan: 1375-1400 MHz coupled with 1427 -1452 MHz . These applications do not cover the whole territory. CSA uses the 1429-1452 MHz, 1460-1484 MHz and 1492-1515 MHz channels for video reporting applications, mainly in large cities.
1,8 GHz	Frequency ranges in the 1.8 GHz band have been identified on a European level for DCS 1800, DECT and UMTS. The DCS 1800 frequency band is the subject of a CEPT recommendation (Rec T/R 22-07). 75 MHz duplex (1710-1785 coupled with 1805-1880 MHz) can be used by the DCS 1800 system. A CEPT Decision which requires that at least 15 Mez duplex be made available to DCS 1800 operators was adopted in June 1996. The DECT frequency plan is the subject of a European Council directive (EEC/91/287) and a CEPT decision (ERC/DECT (94)03). Thus, 20 MHz (1880-1900 MHz) harmonised through the European Union have been identified in order to introduce DECT. UMTS will be gradually introduced at the beginning of next century in the 1885-2025 MHz bands coupled with 2110-2200 MHz..	The frequency band designated for the introduction of DECT by Decision of the Council has been the subject of an agreement between PTT and Armed Forces users. The 1880-1900 MHz frequency band is designated for the introduction of DECT in France. The agreement between the PTT and the3Armed Forces makes a distinction between: the 1892-1900 MHz sub-band for which possible availability is specified for the PTT user over the whole of the territory the 1880-1892 MHz sub-band for which the geographical extent of availability are subject to an agreement between the parties.	The DECT applications which exist today in France are PABX, domestic cordless phones and radio localtelephony. The introduction of radio local loop applications is envisaged. The DCS 1800 applications are as follows: today, the cellular mobile service: Bouygues Télécom has been issued a national permit for 15 MHz duplex and France Télécom Mobiles 1800 and SFR local licences in Toulouse and Strasbourg respectively. potentially the radio local loop.
2,2 GHz	In 1993, the ERC adopted a Recommendation (Rec T/R 13-01) which includes frequency plans for several fixed service bands: -2025-2110 MHz coupled with 2200-2290 MHz. "This band is designed to be used in the future for traditional multi-channel and multiple link radio relay systems, and also for modern public network operator access applications". - The 2520-2670 MHz band with a duplex deviation of 74 MHz (4 MHz inter-band). "Future use of this band is set aside for point-to-point or point-multipoint systems for applications consisting of a single link or multiple links". The Recommendation stipulates that, for these two frequency bands, it is essential that the new channel plans offer sufficient flexibility in order to cover an entire range of equipment capacities, modulation types and transmission techniques. The detailed description of the channels proposed concerns the 1.75 MHz, 5 MHz, 7 MHz and 14 MHz channels.	Today, the Armed Forces are the exclusive user of the 2025-2100 MHz and 2520-2670 Mhz bands for the fixed service, and PTT, the 2100-2310 Mhz band. A large-scale operation to restructure this part of the spectrum is to be carried out in the medium term. The prospects for fixed civil applications in the future 2025-2110 MHz/ 2200-2290 MHz European plan are relatively limited. The availability of frequencies in this band for local loop applications is extremely unlikely within the next few years. 1A part of these bands is shared with the earth exploration satellite services and space research by the Space user.	Today, France Télécom uses the 2100-2310 MHz band intensively for intra-ZAA transmission equipment.
3,4-3,6 GHz	The CEPT should adopt a frequency plan for the 3.4-3.6 GHz band for fixed point-to-point and point-to-multipoint and ENG/OB applications. Two possibilities have been selected at this stage: two 50 MHz duplex deviation plans: 3410- 3450 MHz coupled with 3460-3500 MHz and 3500-3550 MHz coupled with 3550- 3600 MHz. a single 100 MHz deviation plan: 3410-3500 MHz coupled with 3510-3600 MHz . In these two plans, the channel can be 0, 25 MHz, 1.75 MHz, 3.5 MHz, 7 MHz and 14 MHz.	Today, CSA is the exclusive user of this frequency band. A CCT working group proposes that PTT share priority use of this band with the Ministry of the Interior.	Today, this frequency band is used by TDF for long distance high capacity analog microwave radio links between large cities. The CEPT thinks it will give priority to PTT applications of the two half-plans recommended by the CEPT in preference to a single plan.
10,5 GHz	The CEPT should also adopt a plan for the 10.15-10.3 GHz band coupled with 10.5-10.65 GHz. The draft Recommendation includes: a 0.5 MHz channel for point-to-multipoint systems a 3, 5, 7, 11 or 18 MHz channel for point-to-point systems.	The Armed Forces are the exclusive user below 10.5 GHz. PTT is the exclusive user of the 10.5-10.60 GHz band and priority user of the 10.6-10.68 GHz band.	Today, France Télécom uses the 10.5-10.68 GHz band for servicing equipment.
31 GHz	The CEPT has adopted a frequency plan coupling the 31-31.3 GHz band to the 31.5- 31.8 GHz band	31-31.3 GHz : PTT is the exclusive user. 31.3-31.8 GHz: Space and Radio-astronomy are the exclusive users.	Today, France Télécom uses the 31- 31.3 GHz band for short distance subscriber connections.