COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT on the use of the 470-790 MHz frequency band in the Union Accompanying the document Impact assessment Proposal for a Decision of the European Parliament and of the Council on the use of the 470-790 MHz frequency band in the Union
Date: 2016-02-02
Institutions: Directorate-General for Communications Networks, Content and Technology, European Commission
Subjects: audiovisual communications policy, harmonisation of standards, innovation, radio telecommunications, regulation of telecommunications, transmission network, waveband

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   EUROPEAN COMMISSION  Brussels, 2.2.2016  SWD(2016) 19 final   COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT  on the use of the 470-790 MHz frequency band in the Union Accompanying the document Impact assessment  Proposal for a Decision of the European Parliament and of the Council on the use of the 470-790 MHz frequency band in the Union {COM(2016) 43 final} {SWD(2016) 20 final}  
 
 
Executive Summary Sheet 

Impact assessment on the use of the 470-790 MHz frequency band in the Union 

A. Need for action 

Why? What is the problem being addressed? 
Wireless  connectivity  requires  access  to  appropriate  spectrum.  Mobile  traffic  growth,  driven  mainly  by  video 
content,  generates  pressure  on  the  bands  currently  available  for  wireless  broadband  (WBB).  To  address  this, 
actions and discussions at the level of the International Telecommunications Union (ITU) have been underway on 
the possible use of spectrum below 1 GHz. The ITU allows for the 694-790 (‘700’) MHz frequency band to be used 
for WBB. Countries from North America also plan to use the 470-694 (‘sub-700’) MHz frequency band for WBB. As 
the whole UHF band (470-790 MHz) is currently used by digital terrestrial television (DTT) and audio programme 
making and special events (PMSE) equipment in the EU, there is a conflicting demand for this ‘prime’ spectrum. 

EU harmonised bands for WBB, especially those below 1 GHz, are important to achieve the Union’s connectivity 
targets set by the Digital Agenda for Europe (DAE). EU countries support a coordinated EU approach to providing 
WBB services in the 700 MHz band, but have different views on the appropriate timing because their DTT needs 
are  very  different.    These  diverging  views  may  delay  the  roll-out  of  advanced  networks  required  to  achieve  EU 
connectivity targets and create cross-border interference between EU countries. 

What is this initiative expected to achieve? 
The digital single market (DSM)  is  one of the 10 key political priorities of the Commission. To achieve the DSM, 
universal high-speed wireless connectivity is crucial. It can be provided in a cost efficient manner to all EU citizens 
through  equally  essential  fixed  and  wireless  networks.  EU-wide  high-speed  connectivity  will  make  it  possible  for 
innovative services in the audiovisual and mobile markets to be developed. It will also be the basis for new services 
such as connected cars relying on EU-wide coverage and capacity. 

The Commission sets out an EU strategy for the future use of the UHF band so that this part of the spectrum can 
be used efficiently to adapt to evolving telecoms and media markets while preserving the EU's audiovisual model 
and the current free-to-view public service broadcasting.. 

What is the value added of action at the EU level? 
An EU coordinated approach will have the following benefits over action at national or regional level: 

 

 
 

it will ensure EU-wide connectivity at 30 Mbps by 2020 to allow for innovation in existing services and to 
provide the basis for new services that require universal connectivity; 
it will avoid interference between WBB and DTT; 
it will benefit from economies of scale of a near-global market for equipment tuned to the 700 MHz band. 

B. Solutions 

What legislative and non-legislative policy options have been considered? Is there a preferred choice 
or not? Why? 
The following 4 policy options have been considered: 

1 — No EU action: EU countries will decide independently on the service allocation and authorisation of the 700 
MHz band (DTT and/or WBB), the available frequencies and the relevant technical and access conditions. 

2 — Coordinated designation and authorisation of the 700 MHz band. This would include:  

  a deadline for assignment and for cross-border coordination;  
the promotion of coverage obligations for 700 MHz licences; 
 
reservation of the sub-700 MHz band for DTT and audio PMSE.  
 

A market evaluation at EU level is envisaged by 2025 to reassess the rules on the sub-700 MHz band. 

3  —  Coordinated  designation  and  authorisation  of  the  700  MHz  band  (like  in  option  2)  and  coordinated 
designation  of  the  sub-700  MHz  band  solely  for  downlink-only  use  under  the  condition  that  the  provision  of 
audiovisual media services (AVMS) to a mass audience, including free-to-view distribution, and audio PMSE use 
are safeguarded, if there is demand at national level. 
A market evaluation at EU level is envisaged by 2025 to reassess the rules on the sub-700MHz band. 

4 — Coordinated designation and authorisation of the whole UHF band for WBB services by 2020. 

Policy option 3 is the preferred option because it ensures a balanced and flexible solution in support of the digital 
economy, the European audiovisual model and citizens' benefits. 

Who supports which option?    

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Broadcasting and media sectors support the Lamy Report1. This report provides the basis for the preferred option 3 
as it recommends a coordinated designation and authorisation of the 700 MHz band and a flexible approach for the 
sub-700 MHz band. In this approach, traditional broadcasting services co-exist with wireless broadband services in 
downlink-only mode.  

Representatives of EU Member States in the Radio Spectrum Policy Group (RSPG) adopted an RSPG opinion2 in 
which they support the option for a coordinated EU approach to repurpose the 700 MHz band. This includes: 
- harmonisation of the technical conditions for WBB use in the 700 MHz band;  
- setting a common deadline for release of the 700 MHz band;  and 
- flexible use of the sub-700 MHz band. 

Public consultations were carried out on both documents and respondents expressed support for EU coordination. 

C. Impacts of the preferred option 

What are the benefits of the preferred option (if any, other than the main ones)?                                         
Option 3 will: 

  provide  additional  EU  harmonised  spectrum  for  WBB  in  fulfilment  of  the  spectrum  target  of  the  Radio 

Spectrum Policy Programme (RSPP); 
contribute to DSM connectivity targets and DAE broadband targets; 
reduce fragmentation of UHF broadcasting band use and prevent interference between WBB and DTT; 
facilitate innovation and market transformation towards more efficient technologies; 

 
 
 
  adapt to new forms of audiovisual consumption while sustaining the current free-to-view model; 
  give EU countries the flexibility to open the sub-700 MHz band for uses other than DTT and audio PMSE, 

where this is possible and while safeguarding those uses; 
reinforce the EU's position in international negotiations on the future use of the sub-700 MHz band. 

 

What are the costs of the preferred option (if any, other than the main ones)?                                         
DTT broadcasters (public and private) and audio PMSE users will be deprived of another portion of UHF spectrum 
(in  addition to the 800MHz  band already repurposed). Migration to the sub-700MHz  band will generate transition 
costs to reconfigure the broadcasting networks. DTT network operators will have to upgrade to the most efficient 
spectrum technologies within a short timeframe, if they wish to maintain (or improve) the current variety and quality 
of programmes transmitted. Consumers will face the inconvenience of retuning or replacing equipment (set-top-box 
and in some cases a new aerial) to continue to receive DTT services. 

How will businesses, SMEs and micro-enterprises be affected? 
On  the one  hand,  the majority  of  cultural  and  creative  industries are  SMEs.  The  most  affected category  is  audio 
PMSE users, who would experience a significant reduction of available ‘white spaces’ for producing and recording 
programmes  and  events.  On  the  other  hand,  a  number  of  SMEs  linked  to  the  wireless  broadband  sector  would 
benefit from additional spectrum availability and thus business case enhancement. 

The Commission has ensured, through an implementing decision of 20143, that a baseline of frequency bands is 
available for audio PMSE. In addition, the Commission will request an opinion from the RSPG on its EU strategy for 
PMSE services. In option 3, EU countries may decide to use part of the 700 MHz band (up to the 25 MHz in the so-
called 'duplex gap') for PMSE use. 

Will there be significant impacts on national budgets and administrations?   
For  national  authorities,  costs  and  benefits  will  depend  on  the  applicable  national  regulatory  framework  i.e.  the 
possibilities and terms for licence withdrawal, renewal or modification and/or other administrative costs. A number 
of EU countries will have to withdraw or amend current licences in the 700 MHz band in order to enable transition 
within  this  band  to  mobile  broadband  services.  While  auctions  would  generate  public  revenues,  potential  public 
support measures for upgrading end user equipment may need resources from the national budget. 

Will there be other significant impacts?   
No.  

D. Follow up 

When will the policy be reviewed?    
Market developments on the use of the sub-700MHz band will be assessed through an EU level process organised 
by the Commission by 2025 and the regulatory framework may be amended if needed.  

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3  

Report by Pascal Lamy on the "Results of the work of the High Level Group on the future use of the UHF band (470-
790 MHz)": http://ec.europa.eu/digital-agenda/en/news/report-results-work-high-level-group-future-use-uhf-band  
RSPG Opinion on "A long-term strategy on the future use of the UHF band (470-790 MHz) in the European Union" 
(document RSPG14-585(rev1)) 
Commission Decision 2014/641/EU 

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