NETHERLANDS: SPECTRUM MANAGEMENT POLICIES

UNCLAS SECTION 01 OF 03 THE HAGUE 000317 SIPDIS STATE FOR EUR/UBI/REITER STATE FOR EB/CIP/MA USDOC FOR NTIA E.O. 12958: N/A TAGS: ECPS NL SUBJECT: NETHERLANDS: SPECTRUM MANAGEMENT POLICIES REF: 05 SECSTATE 225777 ¶1. SUMMARY: The Dutch Ministry of Economic Affairs (MEA) is primarily responsible for spectrum management in the Netherlands. Priority in the allocation of scarce frequencies is given to public service functions, such as police, security, emergency services, air and water traffic control, and meteorology. Other, non-public-interest applicants for scarce frequencies (e.g., commercial broadcasting) must file a needs justification; allocation decisions among competing parties are made on the basis of auctions or comparative assessments. Licenses are awarded on a technology-neutral basis. Secondary market trading of spectrum licenses is authorized. Licenses for non-scarce spectrum (e.g., taxi radiotelephones) are granted on a first-come, first-served basis, but must be justified by an actual need. Post will forward to EB/CIP/MA via e-mail a 2005 MEA memorandum on radio spectrum policy. END SUMMARY. -------------- RESPONSIBLE AUTHORITY -------------- ¶2. The Ministry of Economic Affairs (MEA),through the Director General for Energy and Telecommunications and the Radio Communications Agency (both fall under the authority of the MEA) are primarily responsible for spectrum management in the Netherlands. The Netherlands has a National Frequency Plan (NFP) prepared by the MEA in close cooperation with other interested ministries: Ministry of Education, Culture and Science (media policy),Ministry of Transport and Ministry of Public Works and Water Management (aviation and shipping industry),and Ministry of Defense, Ministry of the Interior, and Ministry of Kingdom Relations (essential government tasks related to spectrum management). The Council of Ministers must approve substantial or politically sensitive changes to the NFP. -------------- ASSIGNMENT PROCESS -------------- ¶3. Public interest and public service functions have a statutory preferential position, such as direct assignment of frequencies and preferential licensing treatment, where such functions are free from harmful interference and access to sufficient spectrum is guaranteed. Public service functions in the Netherlands encompass services and applications concerning the country's safety and security, such as defense, emergency services, the police, air traffic 
management, and vessel traffic control. They also include all other services and applications considered essential from a social or cultural perspective, such as public service broadcasting or the use of the frequency spectrum for scientific purposes, including meteorology and radio astronomy. A general underlying principle in the NFP is that the frequencies used for public service functions should not be more than needed for the exercise of these tasks. ¶4. The use of scarce frequency space for public service functions is at the expense of other possible uses of the spectrum. Assignment is based on a needs justification plan, which will become statutory under a new radio spectrum policy and implemented through relevant regulations. For licenses where the number of interested parties exceeds the total number of available licenses, or where there are more interested parties for one or more specific licenses within this total number, assignment is done through an auction and/or a comparative assessment. Such a process applies to commercial uses of spectrum (including commercial broadcasting). Other licenses are granted by the MEA on a first-come, first-served basis, including licenses for radiotelephones in taxis and licenses for point-to-point digital fixed radio systems. These licenses are subject to individual requirements that are based on effective frequency use. The application for the license must be supported by valid reasons, and the frequency space granted must not exceed the amount necessary for the purpose indicated. A license-exempt domain concerns frequency use that is not subject to such requirements (such as WiFi, consumer appliances, two-way radios, etc.). However, the absence of requirements attached to the use of license-exempt frequencies does not mean that the use of these frequencies is entirely free, since this frequency use is also subject to regulations of effective frequency use. -------------- LICENSING REGIME/PRIVILEGES -------------- ¶5. Licenses are awarded on a technology neutral basis (unless there are legitimate reasons for not doing so). A license is issued only for the provision of specific services or applications and does not provide exclusive use of the respective frequency bands. The challenge in the Netherlands for the near future is to issue licenses not only on a technology neutral basis, but also as much as feasible on a service neutral basis. In general, once a license is issued, it is not subject to renewal, with the exception of non-scarce licenses. ¶6. Spectrum trading (through secondary markets) is allowed. Aggregation or subdivision of licenses is allowed as long as it does not lead to dominant positions and/or inefficient use of spectrum. Licensees may make spectrum available to other entities based on geography or time. Payment for spectrum access is possible in the Netherlands. -------------- SPECTRUM FEES -------------- ¶7. Licensees may be required to make the following payments for the use of frequency space: ¶A. Every licensee (including holders of non-scarce licenses) must pay the relevant administrative costs for the license and a supervision fee to the Radio Communications Agency; ¶B. Holders of scarce licenses must pay the amounts they bid at an auction or a comparative assessment; ¶C. The government may charge an additional amount as a supplement to an amount offered at the auction or for the comparative assessment. The current Dutch government considers this requirement necessary for the purpose of safeguarding effective spectrum utilization, both in terms of the issuance of licenses and in terms of any potential license extension (even though this is contrary to the basic principle that licenses cannot be extended). Under the Telecommunications Act, the government can charge an arbitrary amount for the use of frequency space. However, the government has used this practice only in a very limited number of cases. -------------- GOVERNMENT VERSUS COMMERCIAL USERS -------------- ¶8. The Dutch do not differentiate between government and commercial users, but rather between public service functions and other uses. -------------- OTHER INCENTIVES -------------- ¶9. On the European level, the European Conference of Postal and Telecommunications Administrations (CEPT) and the European Telecommunications Standardization Institute (ETSI) enjoy excellent cooperation with the Netherlands (through a Memorandum of Understanding) in identifying needs for radio spectrum. These agreements could lead to future European-based incentives that encourage more efficient use of spectrum. -------------- GOVERNMENT SPECTRUM -------------- ¶10. Spectrum use for public service functions (including government spectrum) is based on a needs justification plan. Since spectrum assigned for these tasks is not always fully used, third-party use is possible. Under the needs justification plan, third-party use can be considered (in mutual consultation between the ministries involved) and arrangements can be made concerning conditions or stipulations attached to third-party use. The MEA can grant third-party use of government spectrum through a license or discontinue third-party use in emergency situations. Any needs justification plan submitted to the MEA shall be assessed in terms of effective frequency use to ensure that the quantity of frequency space is suitable for the exercise of the public service function. Such frequency use is assessed every three years to ascertain whether the relevant frequency space still meets the asserted needs and is still used efficiently. This assessment includes technical developments, frequency space assigned, and the investments made. This assessment could also involve measurements of actual use. Also, a needs justification plan can always be changed in the interim, for example, because the needs for the application or service (that is charged with the public interest function) have changed. -------------- DUTCH CONTACTS ON SPECTRUM MANAGEMENT -------------- ¶11. The following are contacts in the area of spectrum management: ¶A. Fokko G. Bos Senior Policy Advisor, Information-Infrastructure Directorate-General for Telecommunications and Post Ministry of Economic Affairs Office: 31 61-502-5873 E-mail: F.G.Bos@minez.nl ¶B. Paul W. J. de Bijl Research Coordinator TILEC (Tilburg Law and Economics Center),Office M6.30 Tilburg University P.O. Box 90153 5000 LE Tilburg Office: 31 13-466-8763 E-mail: pdebijl@uvt.nl -------------- USEFUL LINKS/STUDIES -------------- ¶12. The following studies (in Dutch) are available on the MEA website: Rapport Quotient & associates naar frequentiewaardering www.ez.nl/content.jsp?objectid=24923 Werkdocument TNO naar aanbodontwikkeling van nieuwe technieken www.ez.nl/content.jsp?objectid=24920 Marktonderzoek Stratix naar vraagontwikkeling van frequentiegebruik www.ez.nl/content.jsp?objectid=24922 Reactie van Agentschap Telecom op het rapport van Stratix www.ez.nl/content.jsp?objectid=24921 Quick scan van het IVIR naar juridische aspecten rond frequentiebeleid www.ez.nl/content.jsp?objectid=24924 Feitenonderzoek van het Agentschap Telecom www.ez.nl/content.jsp?objectid=24925 Mastersheet behorend bij het feitenonderzoek www.ez.nl/content.jsp?objectid=24926 Onderzoek Opportunity costs www.ez.nl/content.jsp?objectid=28900 BLAKEMAN