Table 6.3 Advantages and Disadvantages of various methods of
redeployment (re farming)
Method of
Advantages
Disadvantages
paying for
redeployment
Existing
No additional costs for Unless there are advantages for
operator or user new entrants.
the existing user associated with
pays for
Administratively
the migration it is likely that it
redeployment of straightforward.
would take a long time and be
his own system
subject to extra delays. Some
kind of compensation, direct or
indirect would be needed to
induce the operator to move. An
exception is where migration is
driven by external market or
technology developments, e.g.
the migration from analogue to
2G digital cellular
12
.
New entrant
Spectrum is freed Costs may be prohibitive making
pays for
when needed for the it difficult for the new player to
migration
new service.
compete equally with other
Only spectrum
Service Providers.
needed for new
May require regulatory
entrant is freed.
intervention to ensure that
Cost of spectrum is payments are on a genuine cost
not directly linked to recovery basis.
the market value of
the spectrum but is
agreed between the
users on a cost
recovery basis.
Has proved
successful in several
countries where a
quick migration was
necessary.
Redeployment
Provides a means of
Risk that the fund is not
fund established funding
sufficiently large to pay for
redeployment from a
redeployment.
central source
Issues about who will manage
the fund, who should contribute,
what the contributions should be
and how to establish which
migrations should be supported
from the fund.
12
For example, in the UK the Government determined that analogue cellular services should cease by
no later than 2005; in practice the capacity and cost advantages associated with GSM led to both
analogue networks being closed five years before this date.
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