located.<sup>27</sup> Subsets of international service categories are often added,<sup>28</sup> and, conversely, international allocations for several services may be restricted at the national level to a single service.<sup>29</sup> Further sub-allocations or designations of use are often made in order to group like technologies or users in the same frequency bands.<sup>30</sup> National allocations are revised from time to time, for example, to reflect changes in international allocations, reallocate spectrum to higher-value uses,<sup>31</sup> or make spectrum available for spectrum-saving new technologies.

<u>Rules. Detailed regulations and procedures provide the primary day-to-day tools of spectrum</u> management. These rules are promulgated by the spectrum authority within the framework set out in legislation.<sup>32</sup> The rules constitute the basis for the conduct of radio services, allow spectrum users to understand how their operations are governed, establish how users and the spectrum authority relate to one another, and set out the steps to appeal decisions and amend the rules themselves.<sup>33</sup> Lack of explicit, clear, and stable spectrum rules discourages the development of radio services and places investments at risk of arbitrary decisions of the authority.

Rules on technical standards provide the basis for preventing interference and ensuring equipment performance. They comprise documents that specify the standards, the processes to obtain approvals and permits, and the processes for testing and certifying radio equipment to determine compliance with standards or manufacturers’ specifications. Technical standards also allow the authorities and users to limit interference between radio equipment and other equipment, such as industrial machinery and power networks. Technical standards are established mainly for radio equipment and spectrum use. Radiation standards are usually set by the health authorities, but the spectrum manager plays a role in ascertaining compliance. Environment, construction, land use, and other standards may also apply to spectrum management (Box 2.2).

Rules on spectrum pricing, in addition to creating incentives for efficient spectrum use, establish the basis for recovering the cost of spectrum management. Often governments also use spectrum charges as a source of public revenue. Cost recovery pricing aims at meeting the costs incurred in managing the spectrum from fees levied on spectrum users.<sup>34</sup> Some of these

> 27The ITU allocation table often contains more radio services than are relevant is the particular country, and related provisions need not apply.

> 28For example, paging, two-way radio dispatch service, cellular mobile telephone service, and trunked mobile radio service may be separated out at the national level under the broader international category of mobile services. 29For example, a band allocated to the mobile or land service may nationally be designated only for cellular mobile telephone service, excluding other services.

> 30Greater technical efficiency of the spectrum can be obtained when uses with similar parameters (e.g., high-power applications such as radar) are grouped in the same frequency bands.

31Such as from analog to digital television and radio broadcasting, discussed elsewhere in this paper. Or to meet excess demand in some bands (e.g., mobile) by reallocating underutilized neighboring frequencies (e.g., earlier reserved for services that did not develop as expected).

32Legislation includes clear allocation of institutional responsibilities for spectrum management.

33Rules cover matters such as obtaining and renewing radio licenses, technical standards, equipment authorization, and operational requirements.

34The costs of running a spectrum authority mainly include skilled labor, information technology resources, technical monitoring equipment, membership and expenses to participate in ITU and other international organizations, and inputs such as office space, utilities, and supplies. In principle spectrum management costs should be recovered from users in both the private and public sectors.

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