900 MHz and 1800 MHz band

refarming case study

France
30 November 2011

NERA Economic Consulting

Contents

Contents
Contents.........................................................................................................................................ii
1.

Introduction.......................................................................................................................1

2.

Executivesummary..........................................................................................................3

3.

Awardof3Glicensesinthe2.1GHzband(20002002)..............................................6

4.

ConsultationsonrenewalofGSMlicensesandeventualreuseoflicensesfor
UMTStechnology(20032009)........................................................................................7

5.

Consultationsonlicensingafourth3Goperatorandtheassociatedprocessof
refarmingthe900MHzand1800MHzBands(20062010)......................................13

6.

Currentsituation.............................................................................................................23

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ii

Introduction

Introduction

1.

TheGSMAssociation(GSMA)hasretainedNERAEconomicConsulting(NERA)to
writeareportontheFrenchprocessofrefarmingthe900MHzand1800MHzbandsfor
thepurposeofdocumentingandsharingexperienceonwhathashappenedinactual
refarmingcasesaroundtheworld.Refarmingisthetermusedfortheprocess
governingtherepurposingoffrequencybandsthathavehistoricallybeenallocatedfor
2Gmobileservices(usingGSMtechnology)fornewgenerationofmobiletechnologies,
includingboththirdgeneration(usingUMTStechnology)andfourthgeneration(using
LTEtechnology).ThiscasestudyhasbeenpreparedbyDrMariaMaher,aNERA
SeniorConsultant.
Thisreportisintendedtoprovideafactualdescriptionoftherefarmingprocesscarried
outinFrance.Itdoesnotandisnotintendedtoprovideanyjudgementonthe
effectivenessoftheprocessnoritsimpactonfuturemarketdevelopments.
Furthermore,thisreportisnotintendedtoexpressanyviewsorpositionsoftheGSMA
and/orthemobileindustry.
TheprimarysourcesforthisreportarethedocumentsreleasedbytheFrench
communicationsregulator,LAutoritdergulationdescommunicationslectroniques
etdespostes(Arcep),anditspredecessor,LAutoritdeRgulationdes
Tlcommunications(ART).Thesesources,whichincludebothconsultationdocuments
andsummariesofconsultationresponses,canbefoundonArcepswebsiteat
http://www.arcep.fr/.AllArcepdocumentsareinFrench,althoughsummariesofthe
documentsaresometimesavailableinEnglish.Thiscasestudyisintendedtoprovide
thereaderwithadetailedsummaryoftheFrenchrefarmingprocessintheEnglish
language,suchthatreaderscanunderstandtheprocessregardlessofwhethertheycan
readthesourcematerialinFrench.

Structureofthereport
Theremainderofthisreportisorganisedasfollows:

Section2providesanexecutivesummaryofthereport;

Section3discussestheawardof3Glicensesinthe2.1GHzbandfrom20002002,
wheretheconceptofrefarmingwasfirstdiscussed;

Section4reviewsArcepsconsultationsbetween2003and2009ontherenewalof
GSMlicensesandeventualreuseofGSMlicensesfor3G;

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Introduction

Section5discussesthelinkedprocessesfrom2006to2010forrefarmingthe900
MHzand1800MHzbandsandthelicensingofafourth3Goperator;and

Section6describesthecurrentsituationwithrespecttorefarmingasofOctober
2011.

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Executive Summary

ExecutiveSummary

2.

The900MHzand1800MHzbandsinFrancehavehistoricallybeenusedforproviding
2ndgenerationmobileservicesusingGSMtechnology.As2Gnetworksapproachthe
endoftheirnaturallife,FranceincommonwithallEuropeancountrieshasbeen
obligedtoconsideroptionsforrefarmingthesefrequencybandsfornewmobile
technologies.Suchrefarmingisconsistentwithresolutions223and2124ofthe
InternationalTelecommunicationsUnionsWRC2000,whichidentifiedthesebands
(togetherwiththe2.6GHzband)assuitableforIMT2000technologies.1Morerecently,
in2009,theEuropeanDirective(2009/114/EC)2andDecision(2009/776/ED)3onthe900
MHzand1800MHzbands,alongwiththe2011CommissionDecision(2011/251/EC)4,
haveclearedthewayforrefarmingthe900MHzand1800MHzbandsonatechnology
neutralbasis,subjecttonewsystemswhichmayincludeUMTS,LTEorWiMAX
technologiesbeingabletocoexistwithlegacyGSMnetworks.
Francebegantothinkabouttheprocessofrefarming2Gspectrumasfarbackas2001,at
thetimeofitsfirst3Gaward.Successfulapplicationsfor3Glicencescommitted
themselvestoparticipatinginanyredistributionofspectrumacrossoperatorslinkedto
refarmingoftheir2Glicences.Untilrecently,therewerethree3GlicenseesOrange
France(Orange),SocitFrancaiseduRadiotlphone(SFR)andBouygues
Telecom(Bouygues)whoarealsothethreeincumbent2Goperators.
Therefarmingprocessthatemergedoverthefollowingdecadehasanumberofnotable
features:

RefarminginFranceisoperatordrivenallexisting2Gspectrumlicenceswere
renewedintheirentirety.Operatorsdecidewhentoapplytohavetheirlicences
changedtoallowfordeploymentofnewtechnologies.

Arcephasapolicyofpromotingequitablespectrumholdingsacrossoperators,
andthisisreflectedintherefarmingprocesses.Onceanoperatorappliesto

http://www.itu.int/ITU-R/index.asp?category=conferences&rlink=wrc-00-results&lang=en

Official Journal of the European Union, Directive 2009/114/EC of the European Parliament and of the Council,
amending Council Directive 87/372/EEC (the so-called GSM Directive), 16 September 2009, http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:274:0025:0027:EN:PDF.

Official Journal of the European Union, Commission Decision 2009/766/EC on the harmonisation of 900 and 1800
bands, 16 October 2009, http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:274:0032:0035:EN:PDF.

Official Journal of the European Union, Commission Decision 2011/251/EC amending Decision 2009/766/EC,
18 April 2011, http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:106:0009:0010:EN:PDF

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Executive Summary

refarmspectrumina2Gband,thistriggersaformalreviewofspectrumholdings
inthatband,whichmayresultinredistributionofspectrumbetweenoperators.
Reflectingthispolicy,theprocessofrefarminghasbeencloselylinkedtothe
licensingofafourthmobileoperator,aprocessthatwascompletedinJanuary
2010withtheentryofIlliadFreeMobile(Free).

Therefarmingprocesswasnottechnologyneutral.Alldecisionspriorto2009
focusedonreuseof2Gspectrumfor3G(UMTS)services.Followingthe
adoptionofthe2009ECDirectiveandDecisionandits2011modificationinto
Frenchlaw,theexistingframeworkallowsfortheintroductionofLTEinthe900
MHzand1800MHzbands.5

Franceallowedrefarmingofthe900MHzbandinFebruary2008,beforethe2009EU
DirectiveandDecisioncameintoforce.Accordingly,aprocesswasinitiatedto
collectivelyredistribute2x5MHzof900MHzspectrumfromOrange,SFRand
BouyguestoFree.Withtheadoptionofthe2009ECDirectiveandDecisionintoFrench
law,theexistingframeworkallowsfortheintroductionofLTE,inadditiontoUMTSin
the1800MHzband,inlinewithdevelopmentsintheEuropeanequipmentmarket.
Frenchoperatorsmayrequesttorefarm,triggeringapublicconsultationbyArcep,
whichmightresultinaredistributionoffrequencyholdings.Refarminginthe1800
MHzbandhasnotyetbeeninitiated,asnoneofthethreeincumbentoperatorshave
requestedthis.
Table1belowprovidesanoverviewofthespectrumholdingsofthethreemobile
networkoperatorspriortothegrantingofthefourth3Glicense;andTable2provides
anoverviewofspectrumholdingsafterthelicensingofafourth3Goperatorandonce
theredistributionfromincumbentoperatorswillbecompletein2013.

France has implemented the 2009 EC Directive and Decision, and its 2011 modification into French law,
allowing LTE and/or WiMAX, along with UMTS, in the 900 MHz and 1800 MHz bands.

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Executive Summary

Table1:OverviewofspectrumholdingsinFrancepriortoawardoffourthLicense
France

Orange
France

SFR

Bouygues
Telecom

Unassigned

2x12.4MHz

2x12.4MHz

2x9.8MHz

2x10MHz

2x10MHz

2x14.6MHz

1800MHz(highdensityareas)

2x23.8MHz

2x23.8MHz

2x26.6MHz

1800MHz(allotherareas)

2x23.8MHz

2x23.8MHz

2x21.6MHz

2x5MHz

2100MHz(FDD)

2x14.8MHz

2x14.8MHz

2x14.8MHz

2x14.8MHz

2100MHz(TDD)

1x5MHz

1x5MHz

1x5MHz

1x20MHz

900MHz(highdensityareas)
900MHz(allotherareas)

Source:Arcep

Table2:OverviewofspectrumholdingsinFranceafterawardoffourthLicenseand
redistribution
France

Orange
France

SFR

Bouygues
Telecom

Free
Mobile

Unassigned

2x10MHz

2x10MHz

2x9.8MHz

2x5MHz1

1800MHz
(highdensityareas)

2x23.8MHz

2x23.8MHz

2x26.6MHz

1800MHz(allotherareas)

2x23.8MHz

2x23.8MHz

2x21.6MHz

2100MHz(FDD)

2x14.8MHz

2x14.8MHz

2x14.8MHz

2100MHz(TDD)

1x5MHz

1x5MHz

1x5MHz

900MHz

2x5MHz
2x5MHz

2x9.8MHz2
1x20MHz

1FreeMobile:2x5MHzavailableinallareasexcepthighdensityareasfrom13July2011;andinhighdensityareas
from1stJanuary2013.
2Theremainingunassigned2x5MHzand2x4.8MHzwereawardedrespectivelytoSFRandOrangeinJune2010.
Source:Arcep

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Award of 3G Licenses in the 2.1 GHz Band (2000-2002)

3.

Awardof3GLicensesinthe2.1GHzBand(20002002)

TheFrenchregulatorhasapolicyofawardingfrequencyholdingssuchthatoperators
haveanequitabledistributionoffrequencyholdings.Thepossibilityofredistributing
theGSMbandsintheeventofnewentryandreuseofthe900MHzand1800MHz
bandsfor3Gwasfirstdiscussedinthecontextofawardingthe3Glicensesandwas
closelylinkedwiththelicensingofafourth3Goperator.
FrancelaunchedtwoapplicationprocessesforUMTSlicensesinthe2.1GHzband,the
firstinAugust2000andthesecondinDecember2001.Theawardsformatswere
beautycontests,basedonapplicationsforlicencesatpricesfixedbythegovernment.
Onlythreeofthefour3Glicensesonofferwereeventuallyawarded,andwenttoall
threeoftheincumbentGSMoperators.Atthefirstattempt,thegovernmentonlysold
twoofthefour3Glicencesavailable.OrangeandSFRwereawarded3Glicensesinthe
firstbeautycontest.InOctober2001,Arcepspredecessor,ART,amendedtheterms
andfeesofthe3Glicenses,applyingthemretrospectivelytoOrangeandSFR.In
December2001itrelaunchedthebeautycontestfortheremainingtwolicenses.The
solebidder,Bouygues,wasawardedaconcessioninSeptember2002.Thisleftafourth
possiblelicensestillunassigned.
Theapplicationproceduresforthe3GlicensesforesawthepossiblereuseoftheGSM
frequencybandsforUMTS.SectionI63oftheapplicationproceduresstatesthatinthe
eventsuchreuseisconsidered,theAuthoritywillconductareviewoftheofthe
frequencyholdingsassignedtoeach2Gand/or3Goperator.Intheeventthatan
operatorhasfewerresourcesthanitscompetitors,theAuthoritymayadoptdecisionsto
redistributethefrequenciestorestoreequityamongsttheoperators.Itisthuspossible
thatwhenthefrequenciesoftheGSMbandsarereusedfor3Gthatthesefrequenciesare
redistributed.Anycostsassociatedwithsuchredistributionwillbebornebythe
operatorsandisnotsubjecttoanyfinancialcompensation.Byapplyingfor,and
obtaining,a3Glicenseunderthetermsandconditionsoftheapplicationprocedure
conductedin2000and2001,Orange,SFRandBouyguesagreedtotheseprovisions.

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Consultations on Renewal of GSM Licenses and Eventual Reuse of Licenses for UMTS
technology (2003-2009)

4.

ConsultationsonRenewalofGSMLicensesandEventualReuseof
LicensesforUMTStechnology(20032009)

Theinitial15yearGSMlicensesofOrangeandSFRwereduetoexpireinMarch2006,
withBouygueslicenseexpiringatalaterdateofDecember2009.Theconditionsforthe
renewalofthelicensesaredefinedinArticleL.331ofthePostandElectronic
CommunicationsCode(CPCE).TheMinisterinchargeofTelecommunications,
basedonproposalsbytheregulator,wasobligedtonotifylicenseholdersofthe
renewalconditionsoftheirlicensesor,intheeventofnonrenewal,whythelicenses
wouldnotberenewedtwoyearspriortheirexpiration.WhileART(laterArcep)
determinestherenewalconditions,thedeterminationoflicensefeesistheresponsibility
oftheGovernment.
Giventhedatethelicenseswereinitiallygrantedandthetwoyearnotification
requirement,FrancewasthefirstEuropeanUnioncountrytonotifyoperatorsofthe
renewalconditionsoftheirGSMlicenses.Inthesecondhalfof2003andearly2004,
operatorsandotherinterestedpartieswerediscussingtheGSMlicenserenewal
conditionswithART.TheAuthoritysconsultationonGSMlicenserenewalalsoraised
theissueofreusingtheGSMbandsforUMTS.
Theissueofreuseof900MHzand1800MHzspectrumforUMTScameupnotonlyin
thecontextoftherenewaloftheGSMlicenses,butalsoinregardtothecoverage
obligationspreviouslymadebytheGSMoperatorsintheir3Glicenses.In2004,
recognisingthedifficultyoperatorswerefacinginmeetingtheir3Grolloutobligations,
ARTrevisedtherolloutobligations.Initspresscommunicationof9March2004,ART
announcedtherevisedobligations,whileatthesametimeconfirmingthatthemidterm
objectiveofnationalUMTScoveragewasmaintained.Inordertoachievethisobjective,
ARTstatedinitspresscommunicationthatinnovativesolutions,suchastheuseofthe
GSM900bandforUMTS,wouldbeconsidered.6

July2003ConsultationRenewalofOrangeandSFRsGSMLicenses
InJuly2003,ARTissuedapublicconsultationoftherenewaloftheGSMlicensesof
OrangeandSFR,andaskedallinterestedpartiestorespondby6October2003.7

Press release, 9 March 2004: http://www.arcep.fr/index.php?id=8076.

Consultation publique sur le renouvellement des autorisations GSM, July 2003:

http://www.arcep.fr/uploads/tx_gspublication/conspub-re-nouv-gsm.pdf

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Consultations on Renewal of GSM Licenses and Eventual Reuse of Licenses for UMTS
technology (2003-2009)
InitsJuly2003consultation,ARTalreadynotedthetransitiontoUMTSandraisedthe
issueofthepossiblereuseoftheGSMfrequencies.ItproposedrenewingtheGSM
licenseswiththesamefrequencyholdingsastheexistinglicenses,butleavingopenthe
possibilitytoreviewtheseholdingsatalaterdatedependingontheevolutionof
spectrumrequirementsforGSM,thepossiblereuseofthesefrequenciesfor3G
networks,andthepossibleentryofanew3Goperator.Arcepslaterconsultationson
therefarmingofthe900MHzand1800MHzspectrumthereforewascloselylinkedto
itsplanstolicenseafourth3Goperatorinthe2.1GHzband.
ARTreceived11contributionstoitsconsultation.Inaddition,ARTinterviewedthe
threeGSMoperatorsandtheFrenchAssociationofMobileOperators(AFOM),andmet
withotherstakeholdersthatwishedtoexpresstheirviewsontheGSMrenewal
authorisations.
InJanuary2004,ARTpublishedasummaryoftheresponsestoitsconsultationonthe
renewaloftheGSMlicenses.8WithregardtotheissueastowhentheGSMfrequencies
couldbereusedforUMTS,allcontributorsfavouredgivingmaximumflexibilityto
operators.Giventheuncertaintyconcerningthepaceofmigrationof2Gusersto3G
networks,contributorsfeltitwasdifficulttopredictaprecisetimetableforthe
refarmingofGSMfrequencies.

March2004Decision
Attheendoftheconsultationphase,ARTdetaileditsproposalfortherenewalof
licenses,andinitiateddiscussionswiththetwooperatorsconcerned(OrangeandSFR)
andwithBouygues,whoselicensewasnotyetupforrenewal.Thedetailedconditions
proposedtotheMinisterfortherenewalofOrangeandSFRsGSMlicensescanbe
foundinARTsDecisionNo.040151,dated24March2004.9TheadvisoryCommission
forradiocommunications(CCR)wasalsoconsultedon24March,2004.
AccordingtoArticleL.367(6o)oftheCPCE,theawardingoffrequenciesmustbe
objective,transparentandnondiscriminatory,andensurecompetitiveconditionsinthe
market.AtthetimeoftheconsultationontheGSMlicenserenewalsofOrangeandSFR
therewasnointerestexpressedbyanewentranttoenterthemarket.Intheabsenceof
suchinterest,ARTdecidedtorenewOrangeandSFRsGSMlicenseswiththesame

Arcep received contributions from 11 different parties, including the GSM operators. A synthesis of the these
contributions to its consultation on the GSM license renewal was published in January 2004:
http://www.arcep.fr/fileadmin/reprise/publications/ref_autogsm/synt-renouvgsm.pdf

ART decision no 04-150: http://www.arcep.fr/uploads/tx_gsavis/04-150.pdf

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Consultations on Renewal of GSM Licenses and Eventual Reuse of Licenses for UMTS
technology (2003-2009)
frequencyholdingsforanother15years.However,therenewalincludedprovisionsfor
potentialredistributionofsomeoftherenewedfrequenciestoafourthoperator.
ThemainprovisionsrelatingtotheconditionsfortheGSMlicenserenewalsforOrange
andSFRwerealsopublishedintheOfficialBulletinoftheMinistryofEconomy,
FinanceandIndustry.10InitsBulletintheMinistrystatedthatoperatorsmayrequest
reusingallorpartoftheirGSMfrequenciesfor3G.Inthiscase,theAuthoritywill
consultonthepossibleredistributionofthe900MHzand1800MHzbandandmay
modifytheholdingstoensureafairdistributionoffrequenciesbetweenallGSMand
3Gmobilenetworkoperators.

Utilisationdesfrquences,modalitsetchanceconcernantlarutilisationdes
frquencesGSMpourlUMTS

Loprateurpeutdemanderlarutilisationdetoutoupartiedes
bandesdefrquencesquiluisontattribuesautitredeson
autorisationGSMpourlexploitationdesonrseaumobilede
troisimegnration.

Danscecas,lAutoritengageuneconcertationsurlabasede
laquelleellepeuttreameneredfinirlarpartitiondes
attributionsdefrquencesdanslesbandesGSM900et1800MHz
afindegarantirlemaintiendelquitdesattributionsde
frquencesentrelensembledesoprateursderseaumobilede
deuximeettroisimegnrations.

LAutoritmodifieraenconsquencelesdcisionsdautorisation
dutilisationdesfrquencesdelensembledesoprateurs
concerns.11
Theprincipleoffairdistributionoffrequencyholdingsacrossoperatorsisnotdefined
indetail,thusgivingsomelatitudetotheAuthorityindeterminingfuture
redistributionofspectrum.Thegeneralprincipleisthatoperatorsshouldhaveaccess
to(oratleasthavebeengiventheoptionofhavingaccessto)areasonablyequitable
distributionoffrequenciesacrossbands.

10

BO Minfi n0 12 4e trimester 2004: http://www.arcep.fr/fileadmin/reprise/dossiers/auto-gsm/boac2004-4t.pdf

11

BO Minfi n0 12 4e trimester 2004, p. 15-16.

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Consultations on Renewal of GSM Licenses and Eventual Reuse of Licenses for UMTS
technology (2003-2009)

January2006andFebruary2006:SFRandOrangesGSMlicensesrenewedwith
possibilitytorequestreuseofGSMbandsforUMTS
On31January2006,ArceprenewedSFRsGSMlicenses(DecisionNo.060140)12;and
on14February2006,itrenewedOrangesGSMlicense(DecisionNo.060239)13.The
keytermsoftherenewalwereasfollows:

Thelicenseswererenewedfor15years,withtheoperatorsfrequencyholdings
unchanged.

TheGSMauthorisationsallowArceptoconductareexaminationofthe
frequencyholdingsinrelationtotheactualneedsoftheoperatorsbythe
followingdeadlines:5yearsaftertherenewal(i.e.24March2011)and10years
aftertherenewal(i.e.24March2016).

ThelicensesallowfortheintroductionofUMTSinthe900MHzand1800MHz
bandsi.e.thelicenseholdercouldrequesttouseallorpartofitsGSM
allocationforUMTS.Inthiscase,Arcepcanmodifythelicensesandmay
reallocatethefrequenciestoensureafairdistributionoffrequenciesbetweenall
GSMand3Gmobilenetworkoperators.

Coverageobligationsof99%ofthepopulationfromend2007.

TheGSMlicensefeesweresetbytheGovernmentandconsistedoftwoparts:an
annualfixedpaymentofEuros25millionandavariablefeeequalto1%of
turnoverrelatedtoallrevenuesattributabletotheuseofrelevantfrequency
bands.14

October2006ConsultationRenewalofBouyguesGSMLicense
InOctober2006,ArcepissuedapublicconsultationontherenewalofBouyguesGSM
licenseexpiringinDecember2009,proposingtorenewBouyguesGSMlicenseunder
thesameconditionsasthoseofOrangeandSFR.15AswithOrangeandSFRsrenewals,
Bouyguesfrequencyholdingscouldberevieweddependingontheevolutionof

12

http://www.arcep.fr/uploads/tx_gsavis/06-0140.pdf

13

http://www.arcep.fr/uploads/tx_gsavis/06-0239.pdf

14

http://www.arcep.fr/fileadmin/reprise/dossiers/auto-gsm/avis-redevc-200604.pdf

15

Public consultation on Bouygues GSM license renewal, October 2006:

http://www.arcep.fr/uploads/tx_gspublication/consult-autogsm-bouygues-051006.pdf

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10

Consultations on Renewal of GSM Licenses and Eventual Reuse of Licenses for UMTS
technology (2003-2009)
spectrumrequirementsforGSM,thereuseofthesefrequenciesforUMTS,andthe
possibleentryofanew3Goperator.
On23November2006,Arceppublishedasynthesisoftheresponsestotheconsultation.
ApartfromthecontributionfromBouygues,Arcepreceivedoneothercontribution,
whicharguedthatreallocationoftheGSMbandsintheeventofreuseoftheGSM
bandsfor3GuseshouldbedirectlyincludedintheauthorisationrenewingBouygues
license.ArcepnotedthattheexistingGSMlicensesofthethreeoperatorsalready
containedthenecessaryprovisionsfortheredistributionoffrequencyholdingsinthe
bandsintheeventofreuseoftheGSMbandsfor3G.

December2007Decision
On4December2007,Arceppublisheditsdecisionontherenewalconditionsfor
BouyguesGSMlicense(DecisionNo.20071114),effectivelyproposingtorenew
BouygueslicenseunderthesameconditionsasforOrangeandSFR.16

November2009RenewalofBouyguesGSMLicense
On5November2009,ArceprenewedBouyguesGSMlicencefor15years(DecisionNo.
20090838).17BythetimeBouygueslicensewasrenewed,Arcephadundertaken
consultationsontherefarmingoftheGSMbandsandallowedrefarmingofthe900
MHzbandforUMTS.Undertheconditionstakeninitsdecisionsonrefarmingthe900
MHzand1800MHzband,BouyguesGSMlicensespecifiesthefrequencyassignments
thatBouyguesmayhavetogivebackintheeventthatafourth3Goperatorenteredthe
marketbefore30June2010.

Frequencyassignmentspriortothelicensingofanew3Gentrant18
Asummaryofthefrequenciesassignedtothethreeincumbentoperators,followingthe
renewalofBouygueslicences,andpriortotheentryofafourthoperator,isprovidedin
thefollowingfigures.

16

http://www.arcep.fr/fileadmin/uploads/tx_gsavis/07-1114.pdf

17

http://www.arcep.fr/uploads/tx_gsavis/09-0838.pdf

18

Source: Arcep, Spectrum assignments in France, 26 April 2010. High density areas are defined as the areas
surrounding and including Paris, Lille, Strasbourg, Lyon, Nice, Marseille, Toulouse and Bayonne. See Decision
No. 2006-0140 for the precise boundaries.

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11

Consultations on Renewal of GSM Licenses and Eventual Reuse of Licenses for UMTS
technology (2003-2009)
The900MHzband2x35MHz(880915/925960MHz)
BouyguesTelecom
OrangeFrance
SFR
Unassigned

Highdensityareas
880MHz 880.1MHz

889.9MHz 890.1MHz

902.5MHz

914.9MHz 915MHz

925Mhz 925.1MHz

934.9MHz 935.1MHz

947.5MHz

959.9MHz 960Mhz

880MHz 880.1MHz

889.9MHz 890.1MHz

900.1MHz

904.9MHz

914.9MHz 915MHz

925Mhz 925.1MHz

934.9MHz 935.1MHz

945.1MHz

949.9MHz

959.9MHz 960Mhz

Allotherareas

The1800MHzband2x75MHz(17101785/18051880MHz)
1710.1MHz

Highdensityareas

1712.9MHz

1710MHz

1713.1MHz

1736.9MHz 1737.1MHz

1758.1MHz 1758.3MHz

1784.9MHz 1785MHz

1805MHz

1808.1MHz

1831.9MHz 1832.1MHz

1853.1MHz 1853.3MHz

1879.9MHz 1880MHz

1805.1MHz

1807.9MHz

1710.1MHz

1712.9MHz

Allotherareas

1710MHz

1713.1MHz

1736.9MHz 1731.1MHz

1758.1MHz

1763.3MHz

1784.9MHz 1785MHz

1805MHz

1808.1MHz

1831.9MHz 1832.1MHz

1853.1MHz

1858.3MHz

1879.9MHz 1880MHz

1805.1MHz

1807.9MHz

The2.1GHzband2x60MHz(19201980/21102170MHz)+20MHzunpaired
FDD(pairedspectrum)
1920.5MHz

1935.3MHz

1950.1MHz

1964.9MHz

1979.7MHz

2110.5MHz

2125.3MHz

2140.1MHz

2154.9MHz

2169.7MHz

TDD(pairedspectrum)
1900.1MHz 1905.1MHz

2010MHz

1910.1MHz 1915.1MHz 1915.1Mhz 1920.1MHz

2025MHz

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12

Consultations on Licensing a fourth 3G Operator and the Associated Process of

Refarming the 900 MHz and 1800 MHz Bands (2006-2010)

5.

ConsultationsonLicensingafourth3GOperatorandthe
AssociatedProcessofRefarmingthe900MHzand1800MHzBands
(20062010)

Arcepsproposalsforrefarmingthe900MHzand1800MHzspectrumhavealways
beencloselylinkedtoitsplanstolicenseafourth3Goperator.Inmakingthislink,
Arcephasnoted,inparticular,thecharacteristicsandvalueofthe900MHzband
relativetohigherfrequencybands,specificallythatthe900MHzspectrumis
advantageousforruralcoverage,aslowerfrequencyspectrumcancoverwiderareas
withfewercellsites,andthatitprovidessuperiorinbuildingpenetration.
Accordingly,ithasexpressedconcernthatafourth3Goperatorwouldbeata
competitivedisadvantagerelativetothethreeincumbentsifitdidnothaveaccessto
900MHzspectrum.
Arcephasconsiderableautonomyinmakingdecisionsonredistributionoffrequency
holdingsintheeventofrefarming.Notably,theFrenchCompetitionAuthoritywasnot
involvedintherefarmingprocess,asArcepspolicyistoassignequitableamountsof
spectrumacrossoperatorstoensurecompetitiveconditionsinthemarketunderArticle
L.367oftheCPCE.Inaddition,unlikesomeothercountries,themilitarywasalsonot
involved,asthewholeoftheEGSMspectrumhadbeenreleasedtomobileoperatorsin
priorprocesses.
AkeyaspectofArcepsapproachtorefarminghasbeentoallowoperatorstodrivethe
process.TherenewedGSMauthorisationsofOrangeandSFRallowtheoperatorsto
requestpermissiontoreusethe900MHzand1800MHzbandsforUMTS(Bouygues
laterrenewaldoesthesame).WithintheframeworkoftheirrenewedGSMlicenses,in
March/April2006,bothSFRandOrangestatedtheirdesiretotakeadvantageof
refarminginthe900MHzband.19Inconformitywiththeirauthorisations,Arcep
respondedbylaunchingapublicconsultationaimedatdeterminingwhetherthe
distributionofthe900MHzand1800MHzbandsneededtoberedefinedinorderto
ensurethatthefrequenciesaredistributedequitablyamongstallthe2Gand3Gmobile
operators.

October2006Consultationonrefarmingthe900MHzand1800MHzbandsfor
3Gandonafourth3Glicenseinthe2.1GHzband

19

On 31 March 2006 and 5 April 2006, SFR and Orange respectively wrote to Arcep requesting permission to
refarm the 900 MHz band.

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Consultations on Licensing a fourth 3G Operator and the Associated Process of

Refarming the 900 MHz and 1800 MHz Bands (2006-2010)
On5October2006,Arcepissuedapublicconsultationonrefarmingofthe900MHzand
1800MHzbandandthelicensingofafourth3Goperatorinthe2.1GHzband,and
askedallinterestedpartiestorespondby17November2006.20
ThefirstpartofArcepsOctober2006consultationdealswiththerequestforGSM
refarmingbyOrangeandSFR.Arcepsconsultationnotedtwoimportantobjectivesto
refarmingthe900MHzand1800MHzcurrentlyusedforGSM:

tohelpmeetUMTScoverageobligationsoutsideofhighdensityareasinthe
shortterm(particularlyusingthe900MHzband);and

tohelpmeetcapacityneedsinhighdensityareasinthemediumterm.

ThesecondpartofArcepsOctober2006consultationaddresseswhetherornotthereis
interestinthefourth3Glicensestillavailableinordertodeterminewhetherthe
refarmed900MHzand1800MHzbandneededtobesharedbetweenthreeorfour
operators.Arcepsconsultationnotedthatthiswouldbethelastopportunityforanew
playertohaveaccesstoa3Glicenseundertheconditiondefinedin2001thatis,to
havea3Glicenseinthe2.1GHzbandalongwithcomplementaryaccessinthe900MHz
and1800MHzbandsrefarmedfor3Guse.
Ifnoplayershowedinterestinenteringthemarket,oriftheawardofafourth3G
licensewasunsuccessful,theassignmentoffrequencywouldbebasedonthethree
existingoperators.GiventheinvestmentsnecessarytorefarmtheGSMbands,Arcep
statedthatitwouldnotbepossibletoforanewentrantatalaterdatetohavethesame
accesstothe900MHzand1800MHzbandsfor3Gthatthethreeincumbentoperators
have.IfinresponsetoitsOctober2006consultationinterestwasexpressedinafourth
license,Arcepproposedtoimmediatelylaunchtheprocesstoawardafourth3Glicense
during2007andunderthesameconditionsasthe3Glicensesawardedin2001.

ResultsofOctober2006Consultation
On23November2006,Arcepissuedapressreleaseregardingtheoutcomeofits
consultation.21Arcepreceived21responses.Severalplayersexpressedinterestinthe

20

Arcep, Consultation publique sur la rutilisation des frquences 900MHz et 1800MHz pour la 3G et sur la
quatrime licence 3G dans la bande 2 GHz, http://www.arcep.fr/uploads/tx_gspublication/consult-freqc-9001800-051006.pdf.

21

Press release 23 November 2006 on 3G:

http://www.arcep.fr/index.php?id=8571&tx_gsactualite_pi1[uid]=895&tx_gsactualite_pi1[annee]=&tx_gsactuali
te_pi1[theme]=&tx_gsactualite_pi1[motscle]=&tx_gsactualite_pi1[backID]=26&cHash=5e97bad520

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Consultations on Licensing a fourth 3G Operator and the Associated Process of

Refarming the 900 MHz and 1800 MHz Bands (2006-2010)
assignmentofafourth3Glicensein2007.Thiswasanewdevelopment.Untilnow
therehadbeennointerestexpressedinthefourthlicensewhichremainedavailable
followingthetwopreviousapplicationprocedures.
TheresponsestotheconsultationalsoconfirmedtheimportanceofreusingtheGSM
bandsfor3G,withaccesstothe900MHzbandbeingparticularlyimportant,bothfor
existingoperatorsandforanynewentrant,inordertoextend3Gcoverage.Intheir
responses,industryrepresentativesconfirmedthefutureavailabilityofUMTSnetworks
andterminalsinthe900MHzband.
Initspressrelease,Arcepconfirmed:

thatitwouldproposeanapplicationprocessfortheawardofafourthlicense;
and

thatithadalreadyinitiatedworkwithregardtoestablishingthemeansbywhich
thefrequenciescurrentlyusedfor2Gcouldbeusedfor3Gandthatthis
refarmingwouldbebasedondistributingthefrequenciesbetweenfour
operatorsifafourthlicenseisassigned,orotherwisewouldbebasedon
distributingthefrequenciesbetweenthethreeincumbentoperators.

Launchingofathirdbeautycontestforthefourth3Glicense
FollowingtheOctober2006Consultation,on20February2007,Arcepadoptedandsent
totheMinistryitsDecisioncontainingitsproposalsforawardingafourth3Glicense
underthesameconditionsastheprevioustwoawardsproceduresconductedin2000
and2001forthefirstthreelicenses(DecisionNo.20070177).22
ThegeneralconditionsofthebeautycontestaredefinedintheAnnexofArceps
DecisionNo.20070177andprovidemeasurestofacilitatethelicensingofanewentrant
operator.Thesemeasurescover,amongstothers,thereuseofthefrequenciescurrently
usedfor2Gfor3Guses;national2Groaming;andsitesharing.Asstatedpreviously,
thereuseofthe900MHzand1800MHzbandsfor3Gserviceshadalreadybeen
plannedsincethefirst3Gapplicationproceduresinthe2.1GHzband.Applications
neededtobefiledby31July2007.Inthemeantime,asstatedinitsDecision,Arcep
committeditselftoprovidingmoredetailsonhowthefourthoperatorwouldbe

22

http://www.arcep.fr/uploads/tx_gsavis/07-0177.pdf

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Consultations on Licensing a fourth 3G Operator and the Associated Process of

Refarming the 900 MHz and 1800 MHz Bands (2006-2010)
providedwith900MHzand1800MHzfrequenciesreusedfor3G,23sothatapplicants
wouldbeabletotakethisintoconsiderationwhenpreparingtheirapplications.24
FollowingArcepspublicationofitsDecisionregardingthetermsandconditionsforthe
awardofafourthlicense,theMinisternowhadtoofficiallylaunchtheapplication
processbysimultaneouslypublishingtherelatedfinancialconditions.On8March
2007,theMinistryofIndustryofficiallylaunchedtheapplicationprocessforthe
assignmentofthefourthlicense,andpublishedthefinancialconditions.25
May2007ConsultationontheintroductionofUMTSinthe900MHzand1800MHz
bands
On4May2007,ArcepissuedanotherconsultationontheintroductionofUMTS
servicesinthe900MHzand1800MHzbands,takingintoaccountthelaunchofthe
applicationprocedureforthefourth3Glicense,andlayingoutitsplansforthe
redistributionofthe900MHzband.26Initsconsultation,Arceppresentedananalysis
ofmarketneedsandresourcesavailable,andrequestedcommentsonthepossible
divisionofthe900MHzbandamongtheoperators.Responsestotheconsultationwere
dueon4June2007.
SinceDecember2006,ArcephadbeenengagedintechnicaldiscussionswithOrange,
SFRandBouyguesinordertoestablishaninventoryoftheGSMfrequenciesusedand
toidentifypossiblescenariosfortheirreusefor3G.Arcepidentifiedthe900MHzband
asneedingarapidauthorizationforreusebytheoperatorsandanynewentrant;and
proposedallowingtheintroductionofUMTSinthe900MHzbandassoonasthe
uncertaintiesregardingthenumberof3Goperatorstobeconsideredinthedistribution
offrequenciesisresolved.Itfoundthatthecaseforrefarmingthe1800MHzbandwas
lesspressingthanthatforthe900MHzband;andthatthetimingofcommercial
availabilityofequipmentcompatiblewithUMTSinthe1800MHzbandwouldbemuch
laterthanthatofUMTSforthe900MHzband.Arcepsthereforeproposedthat
refarmingofthe1800MHzbandbedealtwithseparatelyandatafuturedate
dependingontheneedsofthemarket.
23

The cost associated with any redistribution of frequencies is borne by the operators and is not be subject to any
financial compensation.

24

Arcep launched this consultation in May 2007 laying out its proposal for the redistribution of GSM frequencies
in the event of entry of a fourth 3G operator.

25

http://www.arcep.fr/fileadmin/reprise/dossiers/umts/avis-mod-fin-umts-080307.pdf

26

Arcep, Consultation publique sur lintroduction de lUMTS dans les bandes des frquences mobiles 900 et
1800MHz en France mtropolitaine, http://www.arcep.fr/uploads/tx_gspublication/consult-umts-900mhzmai2007.pdf.

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Consultations on Licensing a fourth 3G Operator and the Associated Process of

Refarming the 900 MHz and 1800 MHz Bands (2006-2010)
Arcepsplansfortheredistributionofthe900MHzbandspecifiedtwoscenarios:

Scenario1:intheeventthattheawardofafourthlicenseisunsuccessfulandno
entryoccurs,the900MHzspectrumholdingswouldeffectivelyremain
unchangedwiththeexceptionthatArcepproposedeliminatingtheguardbands
andthattheincumbentthreeoperatorsmanageinterferenceissuesthemselves.
Inthiscase,inhighdensityareasOrangeandSFRwouldeachbeassigned2x12.5
MHz(insteadof2x12.4MHz)andBouygueswouldbeassigned2x10MHz
(insteadof2x9.8MHz);andinallotherareasOrangeandSFRwouldeachbe
assigned2x10MHz(insteadof2x9.8MHz)andBouygueswouldbeassigned
2x15MHz(insteadof2x14.8MHz).
Highdensityareas

Allotherareas

Scenario2:intheeventthatafourthoperatorentersthemarket,Arcepproposed
redistributingthe900MHzspectrumsothatthenew3Gentrantwouldalsobe
awarded2x5MHzofthe900MHzspectrum.Underthisscenario,Arcepwould
redistribute2x2.5MHzeachfromOrangeandSFRinhighdensityareas
(includingguardblocks)and2x5MHzfromBouyguesinotherareas,sothatthe
newentrantwouldhave2x5MHzinallareas.Aftertheredistribution,Orange,
SFR,andBouygueswouldeachhave2x10MHzinallareas,whichcouldbeused
for2Gor3G/UMTS.

Intheeventthatafourthoperatorenteredthemarket,Arcepsconsultationrequested
thatinterestedpartiescommentonthedatesthatshouldbesetforthereleaseofthe
frequenciesfromtheincumbentoperators.

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Consultations on Licensing a fourth 3G Operator and the Associated Process of

Refarming the 900 MHz and 1800 MHz Bands (2006-2010)
ResultsoftheMay2007consultationandDirectionssetbyArcepontheintroduction
of3Ginthe900MHzand1800MHzbands
On5July2007,ArcepissuedapressreleasereportingontheresultsoftheMay2007
Consultation.27Arcepreceivednineresponsestoitsconsultation.AccordingtoArcep,
thecontributionssupportedthemajoroutlinesofitsconsultationproposalsregarding
thedifferentscenariosforredistributionoffrequenciesinthe900MHzband.Taking
intoaccounttheresponsestotheconsultation,on5July2007Arcepalsopublishedits
Directionsfortherefarmingofthe900MHzand1800MHzbandswhichdependon
whetherthemarketwillbecomposedofthreeorfourmobilenetworkoperators.28In
particular:

Threeoperatorconfiguration:Thecurrentassignmentsofthe900MHzand1800
MHzbandwouldnotchangeexceptforsomeminoradjustmentsregardingthe
guardbands.Theauthorisationsofthe2G/3Goperatorswouldbemodifiedto
allowrefarminginthe900MHzand1800MHzbandsuponrequestbythe
operatortoreuseitsfrequencies.

Fouroperatorconfiguration:Thefrequencyusageauthorisationsinthe900MHz
bandofthethreeexisting2Goperatorswouldbemodifiedasquicklyaspossible
toallowrefarmingandtoplanforthereturnoffrequenciesinordertoassign2x5
MHzinthe900MHzbandtothenew3Gentrant.Theexistingoperatorswould
keepabout2x10MHzeach.Thereuseofthe1800MHzbandwouldbe
examinedatalaterdate,withatimetableadaptedtomarketdemands.

Arcepfurtherannounceditsintentiontoimposetheobligationthat3Gusersconformto
themaximumlevelsofinterferencecurrentlyauthorisedfor2Gnetworksinthe900
MHzband.29ThisconditionwasproposedtoensurethattheintroductionofUMTS
technologyat900MHzdoesnotcreateanyinterferenceprejudicialforapplicationsin
adjacentbands.

27

Arceps press release is also available in English:

http://www.arcep.fr/index.php?id=8571&L=1&tx_gsactualite_pi1[uid]=957&tx_gsactualite_pi1[backID]=1&cH
ash=fe91fb5a9d

28

http://www.arcep.fr/fileadmin/reprise/dossiers/umts/orientation-900-1800-mhz-050707.pdf

29

This is in accordance with the electromagnetic compatibility studies mentioned in Arceps consultation which
tend to show that emissions outside the UMTS bands are equivalent to those of GSM.

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Consultations on Licensing a fourth 3G Operator and the Associated Process of

Refarming the 900 MHz and 1800 MHz Bands (2006-2010)

Resultsofthirdapplicationprocess(beautycontest)fortheassignmentofa
fourth3Glicense
Arceplauncheditsthirdbeautycontestfortheassignmentofthefourth3Glicensein
March2007.TheonlycandidatetosubmitanapplicationwasFreeMobile(Free).On
9October2007,ArceprejectedFreesapplicationonthebasisthatitdidnotmeetthe
qualificationcriteriaassetoutintherequiredfinancialconditionsspecifiedinthe
requestforapplications.30

ArcepsFebruary2008authorisationonrefarmingthe900MHzand1800MHz
bands
On27February2008,ArcepimplementeditsDirectionsadoptedon5July2007which
statedthat2G/3Goperatorswishingtoreusetheir900MHzbandfor3Gwouldbe
allowedtodosoin2008.Inaccordancewiththeirrequests,Arcepmodifiedthe
authorisationsofOrange(DecisionNo.20080229)31andSFR(DecisionNo.20080228)32
toallowthemtodeployUMTStechnologyinthe900MHzbandandlaidoutthenew
financialconditionsassetoutbytheMinistryandpublishedintheOfficialJournalon
16January2008.ArcepalsoproposedthatBouyguesbeallowedtoreuseits900MHz
bandfor3G.BouyguesstatedthatitwoulddeployUMTSinthe900MHzbandbythe
endof2009,andthatitwouldrequestthemodificationofitsauthorisationatsuchtime.
Themodifiedauthorisationsalsoallowforreuseofthe1800MHzbandfor3Gupon
requestbytheoperators.Intheeventofsucharequest,Arcepwillundertakea
consultationonthebasisforwhichitmayredistributeoperatorsfrequencyholdingsin
the1800MHzbandtoensurethemaintenanceofanequitabledistributionamongall
2G/3Gnetworkoperators.
Notwithstandingthefailureofthe3Glicenceawardin2007,therefarmingprocess
implementedbyArcepincludedthepossibilityofafourth3Goperatorhavingaccessto
the900MHzband.Inordertoensurethatthereuseofthe900MHzbandfor3Gdid
notaffectfuturedecisionconcerningthefourth3Glicense,Arcepaddedtothe
operatorslicensesaconditional,timelimitedmeasuredescribingthemeansbywhich
theywouldreturnpartoftheir900MHzfrequenciesifafourthoperatorenteredthe
market.Inparticular,intheeventthatafourth3Goperatorwaslicensedinthe2.1GHz
bandbefore30June2010,thelicencetermsrequiredthatincumbentoperatorsmaybe
30

http://www.arcep.fr/uploads/tx_gsavis/07-0862.pdf

31

http://www.arcep.fr/uploads/tx_gsavis/08-0229.pdf

32

http://www.arcep.fr/uploads/tx_gsavis/08-0228.pdf

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Consultations on Licensing a fourth 3G Operator and the Associated Process of

Refarming the 900 MHz and 1800 MHz Bands (2006-2010)
requiredtorelinquishthefrequenciesinthe900MHzbandaslaidoutinArceps
Directionsof5July2007.Ifnonewentrantwasauthorisedby30June2010,the
operatorswouldnotberequiredtorelinquishpartoftheir900MHzallocations.
Thespecificproposalsforreallocating900MHzspectrumtoafourthoperatorswereas
follows:Bouygueswouldfreeup2x4.8MHzoutsidehighdensityareaswithin18
monthsoftheauthorisationofafourthoperator;OrangeandSFRwouldfreeup2x2.4
MHzeachinhighdensityareasby31December2012;andOrangesfrequency
allocationwouldbeshifteddownby200kHzsoastoprovideacontiguousblockof2x5
MHzforthenewentrant.
TheredistributionoffrequenciesproposedbyArcepwouldcreatethefollowing
frequencyassignmentsinthe900MHzband:33

Inaddition,therewasanobligationimposedonOrangeandSFRnottocreateharmful
interferencebytheuseofthefrequenciesassignedtothemandadjacenttothefourth
operator.GiventherulesofcoexistencebetweenGSMandUMTSasdescribedinthe
Report82oftheECC,theimplicationofthiswasthatthesetwooperatorscouldnotuse
channels49and75forGSMdeploymentonceafourthoperatorwasactive.

Awardofafourth3Glicenseandredistributionofthe900MHzfrequency
assignments
AfterthemodificationsinFebruary2008allowingOrangeandSFRtoreusetheir900
MHzbandfor3G,ArceplaunchafurtherpublicconsultationinJune2008ontheaward
of3Glicensesinthe2.1GHzband.Thepurposeoftheconsultationwastoobtainthe
stakeholdersviewonaprocessforawardingtheremainingspectruminthe2.1GHz
frequencybandandassociatedissues.34Arcepreceived23responsesandon22
Septemberitpublishedasummaryoftheconsultationresults.35Asignificantnumber

33

http://www.arcep.fr/fileadmin/reprise/dossiers/umts/modal-orient-umts-900-fev08.pdf

34

Consultation publique sur lattribution de licences 3G dans la bande 2,1 GHz en France mtropolitaine:
http://www.arcep.fr/fileadmin/uploads/tx_gspublication/consultation-pub-2GHzvf.pdf

35

The Executive Summary of the consultation is available in English:

http://www.arcep.fr/uploads/tx_gspublication/synt-consult-3g-2ghz-220908-eng.pdf

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Consultations on Licensing a fourth 3G Operator and the Associated Process of

Refarming the 900 MHz and 1800 MHz Bands (2006-2010)
ofplayers,includingbothpotentialnewentrantsandtheexistingthreemobilenetwork
operators,expressedinterestintheremainingunassigned2.1GHzfrequencies.
Afterfurtherconsultationsandmuchdeliberation,Arceplauncheditsfourthbeauty
contestinAugust2009fortheawardofafourth3Glicense.On17December172009,
ArcepawardedFreethefourth3Glicensewith2x5MHz(FDD)inthe2.1GHz
spectrumand2x5MHzinthe900MHzband.InJanuary2010,Arceppublishedits
decisionauthorisingFreetoimmediatelyuseitsspectrumallocationinthe2.1GHz
bandtobeginestablishinga3Gnetwork.Inthisdecision,Arcepalsolaidoutthe
timetableforreclaimingthe900MHzspectrumfromthethreeincumbentsinaphased
process.Bouyguesmustfreeup2x5MHztobereassignedtoFreeinnonurbanareas
within18months,andSFRandOrangemustfreeup2x2.5MHzeachtobereassigned
toFreeinurbanareaswithintwoyears.36
Followingtheawardofa3GlicensetoFree,2x5MHzand2x4.8MHzofthe2.1GHz
bandremainunassigned.On25February2010,Arceplaunchedtheprocesstoaward
theremaining2.1GHzspectrumthroughabeautycontest.37Applicationswere
evaluatedonthebasisofacandidatescommitmenttohostingMVNOsanditsfinancial
bid.ApplicationswerereceivedfromOrange,SFRandFree,andon18May2010Arcep
selectedthebestapplicationsforeachofthetwounassignedblocks:theonesubmitted
bySFRforthe2x5MHzblock,andtheonesubmittedbyOrangeforthe2x4.8MHz
block.38On8June2010,theremaining2x5MHzand2x4.8MHzblockswereawarded
respectivelytoSFRandOrange39.
Therevisedfrequencyholdingsof3Gspectruminthe2.1GHzband,followingthese
awardsisillustratedinFigure1below.

36

Arcep, Dcision autorisant la socit Free Mobile utiliser des frquences pour tablir et exploiter un rseau
radiolectrique de troisime gnration ouvert au public, Dcision no. 2010-0043, January 12, 2010.

37

See Arcep Decision No. 2010-0199, 11 February 2010: http://www.arcep.fr/uploads/tx_gsavis/10-0199.pdf; and

Arcep Press release of 25 February 2010:
http://www.arcep.fr/index.php?id=8571&tx_gsactualite_pi1[uid]=1254&tx_gsactualite_pi1[annee]=&tx_gsactua
lite_pi1[theme]=&tx_gsactualite_pi1[motscle]=&tx_gsactualite_pi1[backID]=26&cHash=06769b1919

38

Arcep Decision No. 2010-0581, Dcision relative au compte rendu et au rsultat de la procdure dattribution
dautorisations dutilisation de frquences dans la bande 2,1 GHz en France mtropolitaine pour tablir et
exploiter un rseau radiolectrique de troisime gnration ouvert au public:
http://www.arcep.fr/uploads/tx_gsavis/10-0581.pdf

39

Arcep Press release:

http://www.arcep.fr/index.php?id=8571&L=1&tx_gsactualite_pi1[uid]=1283&tx_gsactualite_pi1[annee]=&tx_g
sactualite_pi1[theme]=&tx_gsactualite_pi1[motscle]=&tx_gsactualite_pi1[backID]=26&cHash=6aa1702935

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Consultations on Licensing a fourth 3G Operator and the Associated Process of

Refarming the 900 MHz and 1800 MHz Bands (2006-2010)
Figure1:CurrentassignmentsofFrench2100MHzspectrumfollowingthe2009and2010
awards

BouyguesTelecom
OrangeFrance
SFR
FreeMobile
Unassigned

FDD(pairedspectrum)
1954.9MHz

1959.9MHz

1920.5MHz

1935.3MHz

1950.1MHz

1964.9MHz

1979.7MHz

2110.5MHz

2125.3MHz

2140.1MHz

2154.9MHz

2169.7MHz

2144.9MHz

2149.9MHz

TDD(pairedspectrum)
1900.1MHz 1905.1MHz

2010MHz

NERA Economic Consulting

1910.1MHz 1915.1MHz 1915.1Mhz 1920.1MHz

2025MHz

22

The Current Situation

6.

TheCurrentSituation

Theinterlinkedadministrativeprocessregardingrefarmingandredistributionofthe
900MHzbandisnowcomplete.Figure2illustratestherevisedfrequencyholdingsof
spectruminthe900MHzbandacrossoperators.Theresponsibilityofmanagingthe
transitioninspectrumusefromlegacyGSMtechnologyto3Gtechnologynowrests
withtheoperatorsthemselves,albeitsubjecttotheircommitmentstomanage
interferencebetweenthemselvesandwithadjacentbands,andtheir3Gcoverage
commitments.
Figure2:DistributionofspectrumholdingsintheFrench900MHzbandafterredistribution

BouyguesTelecom
OrangeFrance
SFR
FreeMobile
Unassigned
880MHz 880.1MHz

889.9MHz 890.1MHz

899.9MHz

904.9MHz

914.9MHz 915MHz

925Mhz 925.1MHz

934.9MHz 935.1MHz

944.9MHz

949.9MHz

959.9MHz 960Mhz

FreeMobile:2x5MHzavailableinallareasexcepthighdensityareasfrom13July2011
FreeMobile:2x5MHzavailableinhighdensityareasfrom1January2013

Theprocessofrefarmingandredistributionofthe1800MHzbandisyettobegin.
AccordingtothetermsoftheGSMlicencerenewals,areviewofthefrequencyholdings
inthebandwillbetriggeredatthepointthatoneormoreofthethreeincumbent
mobileoperatorsrequeststherighttorefarmthisspectrum.AsofOctober2011,no
suchapplicationshavebeenreceivedbyArcep.Therefore,thecurrentdistributionand
useof1800MHzspectrum,asillustratedinFigure3,remainsunchanged.

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The Current Situation

Figure3:ThecurrentdistributionofFrench1800MHzspectrum(noreallocationprocessas
yet)
1710.1MHz

1712.9MHz

Highdensityareas

1710MHz

1713.1MHz

1736.9MHz 1737.1MHz

1758.1MHz 1758.3MHz

1784.9MHz 1785MHz

1805MHz

1808.1MHz

1831.9MHz 1832.1MHz

1853.1MHz 1853.3MHz

1879.9MHz 1880MHz

1805.1MHz

1807.9MHz

1710.1MHz

1712.9MHz

Allotherareas

1710MHz

1713.1MHz

1736.9MHz 1731.1MHz

1758.1MHz

1763.3MHz

1784.9MHz 1785MHz

1805MHz

1808.1MHz

1831.9MHz 1832.1MHz

1853.1MHz

1858.3MHz

1879.9MHz 1880MHz

1805.1MHz

1807.9MHz

ItmaybenotedthatARTsandArcepsinitiativesregardingrefarmingwerenot
technologyneutralandcamepriortothe2009ECDirectiveandDecision.Specifically,
ArcepsrefarmingDecisionenvisagedthe900MHzand1800MHzbeingreusedto
provide3GservicesusingUMTStechnology.
AtthesametimethatFrancewasconsideringrefarmingthe900MHzand1800MHz
bands,workwasalsounderwayattheEuropeanlevel.ThenewEuropeandirective
(Directive2009/114/EC)thatamendedtheexistingGSMDirectivecameintoforcein
October2009.TheAmendingDirectiveremovedtheexclusivereservationofthe900
MHzspectrumforGSMservices.40Theotherimportantpieceoflegislationthatcame
intoforceattheEuropeanlevelinOctober2009wastheEuropeanCommission(EC)
decisionontheharmonizationofthe900MHzand1800MHzbands(2009/766/EC),
whichsetsoutthetechnicalharmonizationmeasuresfortheintroductionofother
terrestrialsystemscapableofprovidingelectroniccommunicationservicesthatcan
coexistwiththeGSMsystemsinthe900MHzand1800MHzbands(theECDecision);41
andCommissionDecision(2011/251/EC)42amendingDecision2009/766/EC.TheEC
DirectiveandDecisionhaveclearedthewayforrefarmingthe900MHzand1800MHz
bandsonatechnologyneutralbasis,subjecttonewsystemswhichmayinclude
UMTS,LTEorWiMAXtechnologiesbeingabletocoexistwithlegacyGSMnetworks

40

Official Journal of the European Union, Directive 2009/114/EC of the European Parliament and of the Council,
September 16, 2009, http://eur-

lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:274:0025:0027:EN:PDF.
41

Official Journal of the European Union, Commission Decision, October 16, 2009, http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:274:0032:0035:EN:PDF.

42

Official Journal of the European Union, Commission Decision 2011/251/EC amending Decision 2009/766/EC,
18 April 2011, http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:106:0009:0010:EN:PDF

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The Current Situation

ThesedecisionsrequireEuropeanMemberStatestomakethe900MHzand1800MHz
bandsavailableforGSMandUMTSsystems,aswellasothersystemscapableof
providingelectroniccommunicationsservicesthatcancoexistwithGSMsystems.With
theadoptionoftheECDirectiveandDecisionsintoFrenchlaw,theexistingframework
allowsfortheintroductionofLTE,inadditiontoUMTSinthe1800MHzband.French
operatorsmayrequesttorefarmthe1800MHzband,triggeringapublicconsultationby
Arcep,whichmightresultinaredistributionoffrequencyholdings.Itisnotclear
whetherrefarmingthe900MHzbandforLTEtriggersafurtherredistributionof
spectrum.Refarmingthe900MHzforLTEbyanoperatorwouldrequirefurther
modificationtoitslicence.

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25

Project Team
Dr Maria Maher
Richard Marsden

NERA Economic Consulting

1255 2third Street NW
Washington, DC 20037
Tel: +1 202 466 3510
Fax: +1 202 466 3605
www.nera.com