I. ITU spectrum fees guidelines research and suggestions
According to ITU “Guidelines For The Review of Spectrum Pricing Methodologies And the Preparation of Spectrum Fees Schedules” , radio frequency charging mechanisms can be classified into Administrative Mechanisms and Market-based Mechanisms. Administrative Mechanisms include pricing for administrative purposes and charging formulas (cost basis) that can recover frequency management costs. Market-based Mechanisms include market transaction behavior of frequency like auctions or (second-hand market) frequency trading.
With reference to the ITU and the frequency usage fee charging mechanism from benchmark countries, regardless of the Administrative Mechanism and Market-basic Mechanism, the frequency usage fee charging mechanism may contain the two major purposes of "reflecting the economic value of the spectrum" and "recovering the administrative cost". This research proposes two concepts - "frequency value" which ensures that frequency users effectively use frequency resources, and the "administrative management fee" which reflects the cost of frequency management.
II. Comparison of usage fee regulatory frameworks, mechanism differences and fee levels in benchmark countries
Benchmark countries differentiate the charging structure based on frequency use, or apply fixed rate, or apply the a charging formula which applies for all frequency uses with different adjustment coefficients.
III. Overall Usage Fee Charging Structure
1. Clarify the purpose and connotation of usage fees
Usage fees include "frequency value" and "administrative management fees". The former reflects the economic value of frequency and the fees charged to ensure that frequency users use resources effectively; the latter reflects the cost of frequency management by the competent authority, and direct costs and indirect costs must be considered.
2. Auction price reflects frequency value, which belongs to the usage fee and should be included in the Communications Supervisory Fund
Frequency value collected in accordance with Articles 53-55 or Article 56 of the Telecommunications Management Act belongs to usage fees and should be collected in the Communications Supervisory Fund which reserve 5% to 15%. Frequency value should be collected in consistency with financial operation purpures.
3. Establish an integrated frequency charging formula and an overall frequency coefficient table
Construct a consistent charging mechanism for each frequency usage, and make a consistent table considering the value and characteristics of different frequency ranges. The research team focused on the Telecommunications Management Act with the idea of assigning frequencies, and referring to the Australian and Finnish usage fee formulas, conceived draft formula, including usage fees per MHz, frequency usage factor, and frequency adjustment factor.
4. Observe the trend of technology and regulations, and conceive the possibility of charging fees based on service content
As communication technologies continuously developing, various types of technologies could provide the same service. It is necessary to track think of possible ways of charging fees based on the type of service.
IV. Usage Fee of Mobile Telecommunications
1. The calculation of the benchmark frequency values should be based on one year
The license periods released by benchmark countries are different, which is also an important consideration that affects the value of frequency. Therefore, when performing benchmark and calculating the frequency band adjustment factors or international average frequency value per MHz, it is suggested that the license validity period should be considered.
2. Frequency adjustment factor should refer to the license periods of benchmark countries to calculate the economic value of the spectrum per MHz per capita per year
As mid- and high-frequency applications rising, frequency adjustment factor should be adjusted in response to the increase in the value of the frequency band. Although the aforementioned frequency band equipment and services are not yet mature, it is recommended to maintain the current adjustment factor in the short-term; in the medium term, it is necessary to adjust according to the spectrum value, and analyze the current international frequency value of frequency bands. It is recommended to set F<1GHz, 1GHz≦F<3GHz, 3GHz≦F< 6GHz, 6GHz≦F as 1 0.36, 0.35, 0.009, respectively.
3. Usage fee per MHz refers to license periods of benchmark countries to calculate the economic value of the spectrum per MHz per capita per year
According to the current calculation method, it is recommended that the usage fee per MHz is between NT$4,233,700 to NT$8,467,300 and the current usage fee per MHz has excluded the auction price which should be clearly stated in the Charge Standard to avoid misunderstanding. In addition, usage fee per MHz should include international auction price and administrative costs. It is recommended that the usage fee per MHz be adjusted to NT$7,461,300.
4. Adjust coverage factor and remote area 2 coverage factor according to future policy and industry development
It is suggested that the current coverage factor is maintained, yet adjustments should still be made in line with future policies. If further development to more remote area is applied, it is recommended to increase the remote area 2 coverage factor and discounts to encourage operators.
5. Adjust the annual discount rate for participating in vertical application service discount fees
Considering that 5G is still evolving, and it can be seen from the first year of discount fee of participate in vertical application service reviews are still immature, it is recommended to maintain a 30% discount rate in 2022, 2023, 20% discount rate in 2024, 2025.
6. The 700MHz interference discount formula would be planned after the system is established
As the interference determination technology and practice have not yet been in practice, the feasibility of data such as the interference area and periods of interference is still awaiting "Mobile Communication Network Base Station Interference Information Report System", which would be the basis for formula.
V. Usage Fee of Fixed Telecommunications
1. Current fixed telecommunications usage fee mechanism is in line with the international practices and the status of the industry. It is recommended to maintain the current practice.
Current mechanism is in line with international practices such as Japan, South Korea, and Germany adopting a base station number system, and is similar to the consideration of adjustment factors in Canada, France, and Australia. Current Charge Standard adopts adjustment factors such as remote areas, universal services, and isolated island. It is recommended that the current practice can be maintained.
2. Encourage cross-polarization of different operators to promote effective use of frequency resources
The current charging mechanism is to charge 100% for the single polarization of a single operator in the microwave link. It is recommended that the two operators applying cross-polarization in the same microwave link are charged 75% of the original usage fee. It can provide a discount for improving the efficiency of frequency use, and it can also cover the potential interference processing cost.
VI. Usage Fee of Radio and Television
1. Adjust the calculation base to reflect the current situation of my country's broadcasting industry
Observing the current situation of Taiwan's broadcasting industry, it is recommended to adjust the calculation base in the medium and long term accordingly.
2. Consider the frequency value of the technology category, and plan the charging standards for the frequency value of broadcasting and wireless TV
It is suggested that the frequencies used for FM, AM, and television should reflect the characteristics of their frequency bands, and take their characteristics and value into consideration for charging.
3. Determine the radio and television charge standard according to the actual population coverage
It is suggested to adjust charge standard according to the actual coverage population. However, it is necessary for the authority to adjust it after assessing the actual situation, adjusting the electric field strength, and carrying out the corresponding population coverage calculation; it is recommended that it may exclude areas where the signals are poorly received to further calculate the usage fee. In addition, considering that FM and AM radio frequencies are shadowed by buildings and affect the transmission of radio signals, it is recommended to give the operators who actually take improvement measures related subsidies or discounts.
4. No exclusion of the population of overlapping coverage areas; or only exclude those who provide the same service in overlapping areas.
If the non-nationwide radio broadcasting enterprises covers the calculation of the usage fee of the entire country, the existing Radio and Television Usage Fees Charge Standard might exclude the population in the overlapping coverage area. The research team recommends not excluding of the population of overlapping coverage areas, or only exclude those who provide the same service in overlapping areas.
VII. Usage Fee of Dedicated Mobile Telecommunications
1. Add "flight safety and forestry services" into the station category of "Base station constructed by the police, coast guard, medical services, and fishery"
It is suggested to add "flight safety and forestry services" into the station category of "Base station constructed by the police, coast guard, medical services, and fishery" with adjustment factor of 0.1.
2. Usage fee exemptions are granted only for critical uses
It is suggested to usage fee exemptions are granted only for critical uses.
3. Considering issues such as difficulty in calculating the actual use range or interference caused by the increase in the number of base stations, it is not recommended to use the coverage calculation in the short term
Considering that the coverage of major dedicated mobile telecommunications users may be difficult to simulate coverage area due to geographic environment. Furthermore, it may increase unnecessary base station construction, causing issues such as interference or impacts on the natural environment. Therefore, it is not recommended to use calculation benchmarks such as coverage area in the short term, but it may be adjusted according to the future development of applications.
4. Adjust charge standard to calculate the usage fee based on coverage area in the long-term
The research team conceived formula that includes usage fees per MHz, assigned bandwidth, and frequency usage adjustment factor (including consideration of land, sea and air frequency usage), application area coverage factor, remote area adjustment factor, field type adjustment factor, and frequency band adjustment factor.
VIII. Usage Fee of Mobile Broadband Dedicated Telecommunications
According to the 3679th resolution of the Executive Yuan, 4.8-4.9GHz was assigned as the mobile broadband dedicated telecommunications, and based on the "Mobile Broadband Dedicated Telecommunications Network (4.8-4.9GHz) Policy Consultation", this research proposes formula coefficient with “the usage fee per MHz”, “field type adjustment factor”, “utilized area coverage factor”, “area adjustment factor”, “application type and network usage adjustment factor” and “annual adjustment factor”.
In the long run, "the usage fee per MHz usage fee" is calculated based on the cost of adjacent frequency bands. However, since only 3.5GHz is currently allocated, 3.5GHz usage cost (deducting the subsidy for 5G construction) is calculated. However, if other adjacent frequency bands are allocated in the future, it is recommended that rolling adjustments should be made to accurately reflect the value of 4.8-4.9GHz. The "annual adjustment factor" must also be tracked and adjusted according to the maturity of industrial development equipment and application popularity. Regarding the “incentive zone coefficient”, it is recommended to coordinate with the future broadband dedicated telecommunications application and the promotion of regional development related policy adjustments.
IX. Usage Fee of Satellite Communications
Consider that the satellite link with frequency allocated under Article 56 of the Telecommunications Management Act and the satellite communication network with frequency allocated under Article 53 of the Telecommunications Management Act exist different allocation methods, frequency usage and supervision mechanisms., which means billing methods should be different. It is recommended that new billing formula for new GSO/NGSO operators or existing operators allocated frequencies under Article 53 of the Telecommunications Management Act is necessary. The satellite usage fee is charged for the product of parameters such as “the usage fee per MHz”, "allocated bandwidth", "annual adjustment factor" and "interference handling factor".
In the long run, it is recommended to continue to observe the international adjustment of the GSO/NGSO satellite communication usage fee, and to review Taiwan's billing mechanism on a rolling basis. If the overall usage fee structure adopts a uniform charging formula in the future, the frequency adjustment coefficient proposal can refer to the French frequency coefficient table, and the usage fees for each frequency use are applicable, and also include the frequency used by satellites (C-band, Ku-band, Ka-band and V-band). At the same time, it is recommended that future research continue to track the development trend, complementarity, competitiveness, incentive practices, international practices, interference and other factors of satellites using higher frequency, comprehensively consider the range of frequency used and frequency characteristics, construct a table of frequency coefficients applicable to Taiwan, and review it frequently.
