Edited by Gerald R. Faulhaber, Gary Madden and Jeffrey Petchey
Chapter 11: Regulator Incentives and Third Generation National Mobile Telecommunications Market Entry
Gary Madden, Aaron Morey and Erik Bohlin INTRODUCTION Mobile communications rapidly evolved since the 1980s introduction of (voice only) first generation analogue systems. Technology is characterised by relatively low network capacity and large handset size. Subsequent second generation (2G) technology developments are in response to demand for enhanced voice and data services (Gruber and Hoenicke, 1999). Digitally based 2G systems also benefit from unified European standards. Penetration of 2G mobile in advanced economies rose rapidly. More recent third generation (3G) mobile telephony, which uses packet-based broadband technology, addresses the need for global compatibility, multi-media services provision and greater speed. Granting rights to spectrum to provide mobile service is a three-stage process. Initially, spectrum bands are allocated for particular uses crosscountries via international institutions such as the International Telecommunication Union (ITU). The process ensures interference free transmission and reception. In particular, ITU World Radio Conferences (WRCs) allocate spectrum bands to specific uses. Secondly, radio frequency channels are allotted to a particular use within a geographical area. Finally, national regulatory authorities (NRAs) assign spectrum within countries to mobile network operators (MNOs) (Gruber, 2005). While the global framework for the utilisation of radio frequency spectrum is contained in the ITU Radio Regulations, there is considerable flexibility within the framework for NRAs to assign spectrum in a manner consistent with the local environment. 247 248 Regulation and performance of communication and information networks In 1992 the WRC IMT-2000 project defined standards for the deployment of 3G systems. The first 3G licences were issued across...
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