regulations and local spectrum access models for 5g micro matinmikko-blue.pdfm. latva-aho. analysis...
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© Centre for Wireless Communications (CWC), University of Oulu
Regulations and local spectrum access models for 5G micro operators
Dr.Sc. Ph.D. Marja Matinmikko-BlueSenior Research FellowCentre for Wireless Communications (CWC)
© Centre for Wireless Communications (CWC), University of Oulu2
‒ Small number of big mobile
network operators (MNOs)
dominate the mobile market
with equal service offerings
‒ Spectrum licenses are
auctioned for tens of years
with nation-wide coverage
obligations
‒ Market entry for new
players is high due to high
investment barrier
Today:
‒ Local service demand grows
in digitalization of different
verticals especially in
indoors
‒ There is growing need for
local indoor small cell
networks and spectrum
licenses
‒ Sharing economy allows
cost-efficient network scaling
according to demand
”Network as a Service”
Future:
Trends of change in mobile business ecosystem
‒ Existing regulation does
not support local operator
business
‒ Building of dense indoor
networks by all MNOs is
expensive => Who pays,
what are the incentives?
‒ There is a need for a new
mobile business ecosystem
with local players to speed
up digitalization
Challenges:
© Centre for Wireless Communications (CWC), University of Oulu
Regulations for 5G microoperators
© Centre for Wireless Communications (CWC), University of Oulu
12/19/20184
Trends in 5G
deployment
Location specific high-demand
services
5G technical features
Regulations to establish
micro operators
Local spectrum micro licensing
Access to infrastructure
Construction of indoor networks
From outdoor networks to indoor
deployments
Operations in higher carrier frequencies
Operator role with rights and
obligations
From owning infrastructure to
sharing
Neutral hosting for MNOs’ customers
Micro operator
customers
Hybrid of MNOs and micro
operator’s own customers
Dense indoor small cell networks
Multi-tenancy and network slicing
Serving own restricted customer
set
Micro operator concept
Micro operators to
accelerate 5G deployment
M. Matinmikko-Blue and M. Latva-aho. Micro operators accelerating 5G deployment. 12th IEEE International
Conference on Industrial and Information Systems (IEEE ICIIS 2017), Peradeniya, Sri Lanka, 15-16 December 2017
© Centre for Wireless Communications (CWC), University of Oulu
Operator role
• Traditional MNO role comes with rights and obligations
set by the regulator.
• The changing operator roles with 5G networks
complicate the defining of an operator as infrastructure
sharing and offering network as a service are expected
to become more common.
• Micro operators can have a different sets of rights and
obligations depending on whether they provide multi-
tenancy for MNOs or serve their own restricted sets of
customer.
5
© Centre for Wireless Communications (CWC), University of Oulu
Access to infrastructure
• Competition and market regulation aim to ensure proper functioning of the mobile market so that those holding a significant market position cannot limit or distort competition.
• A micro operator’s network coverage is typically restricted to a local area, which restricts its operations and requires interconnection to other networks.
• Micro operators could make commercial agreements with MNOs so that the micro operator customers could be served by MNO networks outside its own network coverage but MNOs may not be willing.
• Role of national roaming in the future?
6
© Centre for Wireless Communications (CWC), University of Oulu
Construction of indoor networks
• New buildings with strict energy efficiency requirements have resulted
in indoor connectivity problems, which can be solved with indoor
networks.
• The rights of MNOs to place base stations inside buildings vary
considerably depending on the national regulatory conditions. In
Finland, the building owner cannot monopolize the property but has to
let MNOs into their buildings. Thus, micro operator cannot have
monopoly inside a building.
• The new micro operator concept specifically addresses the indoor
connectivity problems by the opportunity to serve MNOs’ customers in
addition to its own customers.
7
© Centre for Wireless Communications (CWC), University of Oulu
Regulatory elements and their role in 5G
12/19/20188M. Matinmikko, M. Latva-aho, P. Ahokangas, V. Seppänen. On regulations for 5G: Micro licensing for locally operated networks.
Telecommunications Policy, Vol. 42, No. 8, Sept. 2018, pp. 622-635.
© Centre for Wireless Communications (CWC), University of Oulu
Spectrum considerations for 5G micro operators
© Centre for Wireless Communications (CWC), University of Oulu
Spectrum access rights for 5G networks
• Spectrum assignment decisions determine who are allowed to
use 5G bands and under which rules and conditions. These
decisions have long-term impact on the mobile market.
• Serving of vertical sectors’ tailored needs in specific high
demand areas will be based on local 5G small cell network
deployments in the higher frequency bands.
➢Who can deploy and operate future 5G radio access networks?
➢ This needs to be done in a fair and transparent way to promote
competition and innovation.
10
© Centre for Wireless Communications (CWC), University of Oulu
Traditional spectrum management approaches
12/19/201811
M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and M. Latva-aho. Analysis of Spectrum Valuation Approaches:
The Viewpoint of Local 5G Networks in Shared Spectrum Bands. IEEE International Symposium on Dynamic Spectrum Access Networks,
22-25 October 2018, Soul, South Korea.
© Centre for Wireless Communications (CWC), University of Oulu
Spectrum options for local 5G networks
12
Allows the
emergence of
independent
local 5G micro
operator
networks
M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and M. Latva-aho. Analysis of Spectrum Valuation Approaches:
The Viewpoint of Local 5G Networks in Shared Spectrum Bands. IEEE International Symposium on Dynamic Spectrum Access Networks,
22-25 October 2018, Soul, South Korea.
© Centre for Wireless Communications (CWC), University of Oulu
Spectrum valuation
12/19/201813
• Spectrum management decisions aim at maximizing the value of
spectrum, its efficient utilization and benefits to the society, which
calls for a thorough understanding of spectrum valuation
approaches.
• Prior research on spectrum value for mobile communications has
considered engineering value, economic value and strategic value
from the mobile network operator (MNO) viewpoint.
• There was no research on spectrum valuation to help regulators in
their 5G spectrum decisions with the emergence of local 5G
networks.
© Centre for Wireless Communications (CWC), University of Oulu
Defining spectrum value
‒ Engineering value considers the cost
savings in the infrastructure that an
operator can achieve by gaining access
to additional spectrum.
‒ Economic value has a wider perspective
and considers the value arising from the
services that are provided for use
through the availability of the spectrum,
in terms of the predicted future profits
that can be earned by the services
offered.
‒ Strategic value of spectrum arises from a
stakeholder’s control of the market
access through spectrum availability,
because the expected market position of
one stakeholder depends on spectrum
assignments of the others.
12/19/201814
Spectrum valuation methods
Economic value:Future profits from wireless services in the spectrum band
Engineering value:Cost savings obtained from using additional spectrum band
Strategic value:Market position resulting from the spectrum assignments
M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and
M. Latva-aho. Analysis of Spectrum Valuation Approaches: The Viewpoint of Local
5G Networks in Shared Spectrum Bands. IEEE International Symposium on
Dynamic Spectrum Access Networks, 22-25 October 2018, Soul, South Korea.
© Centre for Wireless Communications (CWC), University of Oulu
Proposed key elements of spectrum value
12/19/201815
Brings spectrum demand and
supply sides into spectrum
valuation including different views of
smaller and larger players.
Expected future revenues
and costs depend on the
services offered in the
band.
Spectrum rights awarding rules
and resulting conditions for the
use of the band define who can
deploy systems and how.
Bands differ by physical
propagation characteristics,
development of band’s
ecosystem, and restrictions
from incumbents.
Different areas have
different profitability
driven by both
revenues and costs. Elements of spectrum
value
Stakeholders
Offered services
Spectrum allocation and assignment
method
Location specific
characteristics
Band specific characteristics
M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and M. Latva-aho.
Analysis of Spectrum Valuation Approaches: The Viewpoint of Local 5G Networks in Shared
Spectrum Bands. IEEE International Symposium on Dynamic Spectrum Access Networks, 22-25
October 2018, Soul, South Korea.
© Centre for Wireless Communications (CWC), University of Oulu
Stakeholder’s views on spectrum value in 5G
12/19/201816
Elements of
spectrum value
Stakeholders
Regulator MNO Local 5G micro operator
Offered services Division based on services is getting
less relevant as a diverse set of services
can be delivered through 5G mobile
communication networks.
Mobile broadband and various
tailored services.
Diverse set of services to different
customer segments including
closed private networks or neutral
hosting for MNOs.
Spectrum allocation
and assignment
method
Need to find a balance between
different allocation methods that
promote innovation and competition
while ensure investments.
Spectrum property rights with
long license durations are
preferred.
Different methods that allow local
access to spectrum are feasible.
Location specific
characteristics
Population density traditionally used,
but new metrics are needed to
characterize the demand for spectrum.
Current wide area coverage is
expanded by local deployments
in high-demand areas.
Operations are fully confined to
local areas in various vertical use
cases.
Band specific
characteristics
Incumbent spectrum usage limits the
availability of bands. Very wide
bandwidths available in higher 5G
bands. Propagation characteristic limit
network coverage to local area.
MNOs have existing spectrum
licenses in other bands and can
aggregate new 5G bands, which
makes their dependency on the
specific new 5G band lower.
Local operations are highly
dependent on local spectrum
availability and band specific
characteristics and unlicensed
access is the only other option.
M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and M. Latva-aho.
Analysis of Spectrum Valuation Approaches: The Viewpoint of Local 5G Networks in Shared
Spectrum Bands. IEEE International Symposium on Dynamic Spectrum Access Networks, 22-25
October 2018, Soul, South Korea.
© Centre for Wireless Communications (CWC), University of Oulu
Local spectrum micro licensing
• 5G bands will need new
spectrum authorization
models to allow locally
deployed networks by
different stakeholders.
• New micro licensing
model is proposed.
17M. Matinmikko, M. Latva-aho, P. Ahokangas, V. Seppänen. On regulations for 5G: Micro licensing for locally operated networks.
Telecommunications Policy, Vol. 42, No. 8, Sept. 2018, pp. 622-635
© Centre for Wireless Communications (CWC), University of Oulu12/19/201818
Micro licensing:Description: Local access rights are issued to a large number of stakeholders including new entrants which requires coordination with other licensees.
Benefits:=> Predefined level of interference protection leading to quality guarantees => Allows new entrants to market=> Efficient protection of incumbents which makes spectrum available
Traditional individual authorization (Exclusive licensing):Description: Limited number of licenses are issued (via auctions) with long-term availability, high price, and obligations.
Benefits:=> Protection from harmful interference resulting in quality guarantees.=> Static market with investment certainty.
General authorization (License-exempt):Description: Anyone can operate with standardized systems without paying license fees without protection from interference.
Benefits:=> Easy entry to market for a large number of users.=> Arena for experiment and innovation.
M. Matinmikko, M. Latva-aho, P. Ahokangas, V. Seppänen. On regulations for 5G: Micro licensing for locally operated networks.
Telecommunications Policy, Vol. 42, No. 8, Sept. 2018, pp. 622-635.
Benefits of micro licensing
© Centre for Wireless Communications (CWC), University of Oulu
Key elements of spectrum micro licensing
• Key elements describing a spectrum
assignment model have been identified
and existing models (exclusive
licensing, US three-tier, and unlicensed)
were reviewed accordingly. Specific
elements for micro licensing were
proposed.
19
K. B. Shashika Manosha, M. Matinmikko and M Latva-aho. Framework
for Spectrum Authorization Elements and its Application to 5G Micro-
Operators. Internet of Things Business Models, Users, and Networks
conference (CTTE), Copenhagen, Denmark, 2017.
© Centre for Wireless Communications (CWC), University of Oulu20M. Matinmikko, M. Latva-aho, P. Ahokangas, V. Seppänen. On regulations for 5G: Micro licensing for locally operated networks.
Telecommunications Policy, Vol. 42, No. 8, Sept. 2018, pp. 622-635
Key elements of spectrum micro licensing
© Centre for Wireless Communications (CWC), University of Oulu12/19/201821
Indoor
propagation
Outdoor
propagation
Indoor
propagation
Build
ing
entr
y loss
Build
ing
entr
y loss
Interference analysis for micro licensing
Interference
Minimum separation distance
Interference coordination
between local micro
licensees’ and incumbents’
deployments becomes
easier when going to
higher frequency bands.
M. Matinmikko, A. Roivainen, M. Latva-aho & K. Hiltunen. Interference study of micro
licensing for 5G micro operator small cell deployments. CrownCom 2017 conference.
© Centre for Wireless Communications (CWC), University of Oulu
• Measurement campaign at University of Oulu campus in 3.5
GHz band to study propagation losses for the scenario of
indoor to indoor propagation between two different buildings.
• Building material highly impacts the propagation losses.
• Separation distance is case specific.
22
Propagation loss measurement and modelling for micro operators
J. Lehtomäki, R. Vuohtoniemi, M. Matinmikko, and K. Hiltunen. Building-to-Building
Propagation Loss Measurements in the 3.5 GHz Band with Application to Micro Operators.
IEEE WCNC 2018 conference.
© Centre for Wireless Communications (CWC), University of Oulu
Analysis of 5G spectrum decisions
12/19/201823
M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and M. Latva-aho.
Analysis of Spectrum Valuation Elements for Local 5G Networks: Case Study of 3.5 GHz Band.
Submitted to IEEE Transactions on Cognitive Communications and Networking.
• Case study of recent spectrum decisions on 3.5 GHz band in different
countries (Finland, Italy, Ireland, Japan, USA and Germany) revealed the
following:
• All traditional spectrum management approaches are still present (administrative
allocation, market-based mechanism, commons).
• Different levels of spectrum sharing from no sharing to sharing between three layers of
spectrum access rights and within each layer.
• Significant differences in license areas ranging from local areas and regional areas to
country-wide areas.
• Different approaches taken to deal with incumbents in the band ranging from clearing
the band from incumbents, making sure they can continue operations, to protecting their
operations.
© Centre for Wireless Communications (CWC), University of Oulu
Conclusions (1/2)
‒ 5G brings local networks to various vertical sectors if spectrum is made available at an affordable cost level to those who need it, when and where they need it.
‒ Traditional stakeholder roles will change in 5G as location specific indoor networks will complement MNO deployments.
‒ Regulators in different countries have recognized the need for opening the 5G market to new entry to promote innovation and competition, which calls for changes in existing regulations to allow local micro operators.
‒ Ensuring local spectrum availability should be a key priority for regulators in 5G decision making, and requires adjustments to existing spectrum valuation approaches that are used as basis for spectrum assignment decisions.
12/19/201824
© Centre for Wireless Communications (CWC), University of Oulu
Conclusions (2/2)
‒ We have analyzed regulations related to 5G micro operators and focused on spectrum access options.
‒ We have investigated spectrum valuation approaches and expanded them to consider local 5G networks.
‒ We have developed spectrum micro licensing approach.
‒ Future work is needed to revise the regulatory framework that allows wide-spread adoption of the micro operator concept.
‒ Future work is needed on band specific studies of the value of spectrum for 5G bands.
12/19/201825
© Centre for Wireless Communications (CWC), University of Oulu
Related scientific publications from uO5G project
‒ M. Matinmikko, M. Latva-aho, P. Ahokangas, S. Yrjölä, and T. Koivumäki. Micro
operators to boost local service delivery in 5G. Wireless Personal
Communications, vol. 95, no. 1, pp. 69–82, May 2017.
‒ K. B. Shashika Manosha, M. Matinmikko-Blue, and M. Latva-aho. Framework for
spectrum authorization elements and its application to 5G micro-operators. 2017
Internet of Things – Business Models, Users, and Networks. Copenhagen,
Denmark, 23-24 November 2017, pp. 1-8.
‒ M. Matinmikko, A. Roivainen, M. Latva-aho and K. Hiltunen. Interference study of
micro licensing for 5G micro operator small cell deployments. Conference on
Cognitive Radio Oriented Wireless Networks and Communications (CrownCom),
Lisboa, Portugal, 20-21 September 2017.
‒ M. Matinmikko-Blue and M. Latva-aho. Micro operators accelerating 5G
deployment. 12th IEEE International Conference on Industrial and Information
Systems (IEEE ICIIS 2017), Peradeniya, Sri Lanka, 15-16 December 2017, pp. 1-5.
26
© Centre for Wireless Communications (CWC), University of Oulu
‒ J. Lehtomäki, R. Vuohtoniemi, M. Matinmikko, and K. Hiltunen. Building-to-Building
Propagation Loss Measurements in the 3.5 GHz Band with Application to Micro
Operators. IEEE Wireless Communications and Networking Conference (IEEE
WCNC 2018) Barcelona, Spain, 15-18 April 2018.
‒ M. Matinmikko-Blue, S. Yrjölä, and M. Latva-aho. Micro operators for ultra-dense
network deployment with network slicing and local spectrum micro licensing. IEEE
87th Vehicular Technology Conference (IEEE VTC2018-Spring), Porto, Portugal, 3-6
June 2018, 6 p.
‒ M. Matinmikko, M. Latva-aho, P. Ahokangas, and V. Seppänen. On regulations for
5G: Micro licensing for locally operated networks. Telecommunications Policy,
Volume 42, Issue 8, September 2018, Pages 622-635.
‒ M. Matinmikko-Blue, S. Yrjölä, V. Seppänen, P. Ahokangas, H. Hämmäinen, and M.
Latva-aho. Analysis of Spectrum Valuation Approaches: The Viewpoint of Local 5G
Networks in Shared Spectrum Bands. IEEE International Symposium on Dynamic
Spectrum Access Networks, 22-25 October 2018, Soul, South Korea.27
Related scientific publications from uO5G project