Report on the extent to which the efficiency of frequency use differs between licence holders paying charges for their licences and radio users not paying charges for their radio use - PTS-ER-2007:24 - October 1, 2007

01/10/2007

The National Post and Telecom Agency (PTS) has been assigned by the Swedish Government to report on the extent to which the efficiency of frequency use differs between licence holders paying charges for their licences and radio users not paying charges for their radio use. In order to carry out its assignment, PTS has chosen to make a comparison between the frequency use of the Swedish Armed Forces and frequency use where the users pay charges for their licences.

In peacetime, the Swedish Armed Forces has an exclusive right to utilise more than 16 per cent of the frequencies in the frequency range 29.7-23 600 MHz. In addition to this, the Swedish Armed Forces share nearly 40 per cent of the corresponding frequency range with civilian users. According to the Swedish Armed Forces, the military will still have a considerable need for frequency space in the future due to harmonisation with NATO and other bodies and for training and exercises involving international forces in Sweden. Another contributory factor is that the Swedish Armed Forces will need to communicate using higher bandwidth in the future, for example when using UAVs (Unmanned Aerial Vehicles).

PTS has concluded that the frequencies held by the Swedish Armed Forces represent considerable economic importance in light of the interest and sums generated by both Swedish and foreign spectrum auctions. Neither the Swedish Armed Forces nor telecom stakeholders paying charges for their licences fully utilise the part of the radio spectrum which they have been allocated; for instance, the radio spectrum is not utilised 24 hours a day nor throughout Sweden. When radio spectrum is utilised, it often represents only a small proportion of the practically feasible capacity for electronic communications.

Some of the Swedish Armed Forces' frequencies are mainly used during certain times and at particular locations, e.g. during training and exercises. In those situations where the frequencies are available to the armed forces year round and throughout Sweden, this does not represent efficient utilisation of resources. The Swedish Armed Forces' overall use of frequencies can become more efficient through replanning and a higher level of sharing between civilian and military users. Purchasing new digital military radio equipment to compensate for old analogue equipment would have the same effect since digital technology requires less frequency space and is more resistant to interference.

For this reason, PTS intends to continue an in-depth dialogue with the Swedish Armed Forces in order to better understand the military's need for frequencies. Our aim is to free up valuable radio spectrum in frequency bands attractive for civilian use.

In order to increase the Swedish Armed Forces' frequency efficiency, there may be reason to investigate whether financial incentives can be used in the same way as when licence holders pay their charges. A similar approach is apparent in the United Kingdom, where, for instance, charges and market mechanisms are discussed with the aim of encouraging public authorities to utilise frequencies efficiently.