Light

Licensing
Light licensing benefits of the 71-76
& 81-86 GHz frequency bands

E-Band Communications Corp.

 Licensing and License Fee Considerations for
E-band 71-76 GHz and 81-86 GHz Wireless Systems
How the USA, UK, Australia, UAE and other countries are encouraging
e-band adoption to enhance their national broadband infrastructures

Jonathan Wells, PhD

Executive Summary
Many countries have chosen to open the 71-76 and 81-86 GHz ITU “e-band”
frequencies for ultra high capacity point-to-point communications. Most of these
countries’ regulators have recognized two unique aspects of high frequency propagation
physics and high data rate e-band radio systems:
• The unique transmission properties of very high frequency mm-waves enable
much simpler frequency coordination, interference mitigation and path planning
than lower frequency bands
• Licensing fees based on amount of data transmission or bandwidth usage will
result in tariffs that can be extraordinarily high for high data rate systems; so high
that gigabit per second wireless systems are penalized and both adoption and
competition is discouraged

For these reasons, several regulators manage e-band using “light licensing” techniques
that reflect the ease of coordinating, registering and licensing, and set license fees that
cover administrative costs, but do not penalize the high data rates and bandwidths that
are required for ultra-broadband services. A summary of some of the countries leading
this adoption is shown below. Despite very recent adoption by some of these regions,
thousands of e-band radios have been registered and installed in these countries alone.

Country E-band license structure Typical E-Band license fee

USA On-line light license $75 for 10-year license
UK Light license £50 per year (~$100)
Czech Republic Unlicensed Free of charge
Russia Light license Minimal registration fee
Australia Light license AU$187 per year (~$175)
UAE Traditional PTP 4,500 Dirhams per year (~$1,200)
Ireland Traditional PTP €952.30 per year (~$1,500)
Jordan Traditional PTP JD200 per year (~$300)
Bahrain Traditional PTP 1% of generated link revenue

Table 1: Examples of many countries promoting e-band deployments.

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Introduction

The millimeter wave spectrum above 70 GHz is especially suitable for high data-rate
fixed links with cost effective, fiber-like wireless performance. Because of the unique
propagation characteristics in these bands it is possible to employ highly directional
“pencil beams,” allowing multiple services and applications to be implemented without
interference concerns, ensuring highly efficient re-use of the spectrum.

Worldwide Regulatory Overview

The 71-76 GHz and 81-86 GHz bands (widely known as “e-band”) were established for
Fixed Link services by the ITU in 1979 and adopted, following minor modifications, in
their present form by the ITU in 20001.

In 2005, the FCC released rules to govern these bands in the USA2 and initiated a
unique “light licensing” scheme to manage high density fixed services 3. Systems
operating in the 71-76 GHz and 81-86 GHz are widely available offering 1 Gbps
transmission with carrier-class availability over several kilometers.

In Europe, CEPT has released a European-wide frequency channel plan for fixed
service systems in these bands4. An ETSI Technical Standard defining rules for such
bands has been published5 and CE-Marked equipment is available for commercial sales
and are being widely installed around the various EU countries. Many other regions
around the world have introduced similar rules to allow gigabit per second wave high
density fixed services.

1
Original rules established at WRC-79 (Geneva). Minor modifications at WARC-92 (Malaga-Torremolinos) and
WRC-97 (Geneva). Current plans adopted at WRC-2000 (Istanbul).
2
FCC Memorandum Opinion and Order 05-45 “Allocations and Service Rules for the 71-76 GHz, 81-86 GHz, and
92-95 GHz Bands,” March 3, 2005.
3
FCC Public Notice DA 05-311, “Wireless telecommunications bureau announces permanent process for registering
links in the 71-76 GHz, 81-86 GHz, and 92–95 GHz bands,” February 3, 2005.
4
ECC Recommendation (05)07, “Radio frequency channel arrangements for fixed service systems operating in the
bands 71-76 GHz and 81 - 86 GHz”, Revised Dublin 2009

5
ETSI TS 302 217-3-, “Fixed Radio Systems;Characteristics and requirements for point-to-point equipment and
antennas; Part 3: Equipment operating in frequency bands where both frequency coordinated or uncoordinated
deployment might be applied; Harmonized EN covering the essential requirements of article 3.2 of the R&TTE
Directive”, July 2009.

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The “Light Licensing” Principle

Systems operating at the e-band frequencies have several unique characteristics not
experienced by conventional lower frequency radio systems:

• At high operational frequencies, antennas used in e-band systems are highly

directional, meaning systems communicate point-to-point via highly focused
“pencil beam” transmissions
• Because of propagation limitations, particularly rain fading, high frequency links
are only useful for relatively short range distances (a few kilometers).

Together these two characteristics of e-band systems means that system operators can
realize networks with minimal frequency coordination, a high degree of frequency reuse,
and even configure links close to one another without interference concerns6. In
addition to this, since there are very few services at these frequencies, it can be argued
that spectrum at the millimeter-wave frequencies is no longer scarce7.

Furthermore, many countries have configured the e-band frequency allocation as a

single pair of channels, each with a 5 GHz bandwidth, extending from 71 to 76 GHz and
81 to 86 GHz as shown in figure 1. Because these frequency bands are not
channelized, traditional frequency coordination does not need to be considered.

Channel Channel
size size
5 GHz 5 GHz

0 10 GHz 20 GHz 30 GHz 40 GHz 50 GHz 60 GHz 70 GHz 80 GHz 90 GHz 100 GHz

Figure 1: ITU allocation of 71-76 and 81-86 GHz e-band frequencies.

6
For a detailed technical analysis of mm-wave propagation, high frequency radio interference characteristics, and
how to plan, coordinate and even co-exist e-band systems, see WCA Document Number WCA-PCG-7080-1, “Path
Coordination Guide for the 71-76 and 81-86 GHz Millimeter Wave Bands,” Version 1.0, June 2004.
7
A.D. Kelley, “Economically Efficient Licensing of the Millimeter Wave Band,” HAI Consulting Inc, Sept 5, 2001.

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The national wireless link regulators in many countries have recognized that all these
characteristics vastly simplify the licensing process. With no frequency coordination and
much simplified interference analysis, the burdensome traditional link licensing schemes
are not necessary. Innovative streamlined processes can be realized that undertake
interference analyses and link approval automatically8. Such “light licenses” still award
the link operator the same “first come first served” link registration rights, and full
interference protection benefits of a traditional link license. Because administration is
vastly reduced, the cost of analyzing and issuing “light licenses” can be dramatically
reduced. If this cost is reflected in the fee levied for the license, adoption of and
competition for high data rate services at the e-band frequencies can be encouraged.

E-band License Fees

It is important to recognize that high data rate systems require a large frequency
bandwidth in which to transmit these high data rates. This is why the mm-wave region of
the spectrum has been allocated for such systems; spectrum is not scarce and high
bandwidth channels (such as the 2 x 5 GHz allocated to e-band) are available.

Often countries employ formulas for determining licensing fees that are based on either
data rate transmission, bandwidth use, or sometimes both. If not carefully constructed,
such formulas can result in prohibitively high license fees for high capacity systems.
Often, such license fee methodologies were derived and implemented into national radio
policy before such high data rate, high bandwidth usage systems were envisaged.
Nevertheless, these high tariffs penalize high data rate transmissions, and in some
cases effectively eliminate any economic reason for installing such systems.

When considering the e-band frequencies, regulators often realize that new tariffs are
required. The countries that have set up light licensing schemes have all adopted new
fee structures that reflect the reduction in administration associated with the light license
procedure. Some other countries have modified policy to avoid unfairly discriminating
against high bandwidth systems that operate in non-scarce spectrum.

Analysis of Countries Who Are Embracing High Data Rate E-band Systems

United States

The USA was the first country to open the e-band frequencies for commercial use. After
three years of public consultation, in 2005 the FCC initiated a “light licensing” scheme

8
A.D. Kelley, “Economically Efficient Licensing of the Millimeter Wave Band,” HAI Consulting Inc, Sept 5, 2001.

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that enables links to be registered on-line in a few minutes9. Link registration fees are
currently as low as $75 for a 10-years.

The “light license” process is relatively simple in the U.S. First the applicant files to
become a nationwide e-band licensee with the FCC. This application takes a few weeks
and carries a filing fee of less than a thousand dollars. Once approved and issued a
call-sign, the licensee can then register for any number of individual e-band links in the
USA and its territories.

Applications for individual e-band link licenses are via the website of one of three FCC
selected independent database managers, tasked with managing the link registration
process and being custodians of a central e-band link database. Registration involves
simply logging onto any one of the three database manager’s websites, entering the
user’s call sign, and inputting a few technical link parameters. The band manager then
undertakes a four-step automated analysis of the link10. Assuming no problems are
encountered, this complete procedure takes about 15 seconds.

• Time and date stamp assignment, to resolve any future time-based conflicts
• Conduct automated interference analysis against other closely located links to
identify any possible interferers
• Verify non-violation to specific FCC-imposed rules (close to international border,
proximity to radio astronomy quiet zones or violation of special antenna rules)
• Pass system parameters to NTIA for final interference analysis against
undisclosed military and government links

After successful analysis of the proposed link, the user is advised that link registration is
complete and electronic payment for the license is requested. Given there are
competing database managers, processing fees are kept low.

United Kingdom

In March 2007, after considerable public consultation, the UK Office of Communications

(Ofcom) opened up the e-band frequencies in the UK11 under a similar “light licensed”
process to the US, with point to point fixed wireless licenses obtained rapidly and at a
low cost – currently £50 per year.

9
The FCC’s Millimeter Wave 70-80-90 GHz Service Page can be found at
http://wireless.fcc.gov/services/index.htm?job=service_home&id=millimeter_wave
10
A good overview of the e-band license procedure is “71-95 GHz Registration – ‘Light’ Licensing with Interference
Protection,” L. Fontaine, Comsearch; available at http://www.comsearch.com/articles/7090MCarticle.pdf
11
See http://www.ofcom.org.uk/consult/condocs/licensing7176/statement/

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Currently, Ofcom administers the e-band frequencies under an interim manual licensing
and link registration processes12. The process is similar to that in the USA; the applicant
first applies to Ofcom to become a nationwide licensee (unlike the US, this is at no
charge to the applicant), and can then apply for any number of individual link licenses. A
form containing equipment parameters and site information is submitted to Ofcom for
each individual link. Responsibly for interference analysis rests with the licensee, who
needs to check Ofcom’s link database prior to link registration (links are protected on a
“first come, first served” basis). This self-coordination aspect significantly reduces
Ofcom’s administration costs. The annual cost per e-band license is £50 per year, and
link licenses are approved within 7 days of receipt.

Ofcom is developing a permanent web-based tool to automate this entire process.

Australia

In December 2007, after public consultation, the Australian Communication and Media
Authority (ACMA) opened the full 71-76 and 81-86 GHz mm-wave bands for point to
point fixed services 13. The “light licensed” process introduced is essentially identical to
that used in the UK.

In determining the license fee for such links, ACMA noted the following:

“This low cost fixed fee structure reflects the bandwidth availability,
spectrum reuse capability and the fact that coordination is carried out by
the licensee, the equipment or equipment supplier, independent of the
licensing process”. 14

ACMA set a license fee for e-band links at AU$187 per year. In just the first six months
of opening up this new band and process, almost 30 commercial links were registered.

12
See “Guidance Notes for Self Co-ordinated License and Interim Link Registration Process in the 71.125-75.875
GHz and 81.125-85.875GHz bands,” OfW 369, March 2007; available at
http://www.ofcom.org.uk/radiocomms/ifi/licensing/classes/fixed/scl/ofw_369.pdf
13
See “Millimeter-wave Point to Point (Self Coordinating) Stations”, ACMA Radiocommunication Assignment and
Licensing Instruction (RALI) FX20, 13 Dec 2007; available at
http://www.acma.gov.au/webwr/radcomm/frequency_planning/frequency_assignment/docs/ralifx20_millimetre_wa
ve_point.pdf
14
Ibid, page 3

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United Arab Emirates

Like the countries above, the AUE is embracing high frequency, high capacity e-band
links, but is doing so under the traditional point to point link licensing already proven and
in place. Numerous e-band links are being installed and commissioned in the region.

The Telecommunications Regulatory Authority (TRA) applies the following fixed formula
to determine annual license fees for all fixed service (point to point) links15:

Spectrum charge = F x 2000 + P x 500 + BW x 500

In this formula, F is a frequency factor that is determined from Table 2 below:

Frequency range F factor

0 – 230 MHz 5
>230 MHz – 3 GHz 4
>3 GHz - 14 GHz 3
>14 GHz – 40 GHz 2
Above 40 GHz 1

Table 2: F factors for UAE fixed link licenses.

It can be seen that F reduces as frequency increases, rightly reflecting the reduced
transmission distance, improved frequency reuse and general ease of coordination at
higher frequencies. P is a power factor that increases as output power increases,
reflecting the increase coverage and hence more value a license is worth. Finally, BW is
a bandwidth factor that increases depending on the bandwidth of the system. For
systems transmitting at above 1 GHz, the values in Table 3 below hold:

Channel bandwidth BW factor

7 MHz or less 1
>7 MHz -14 MHz 2
>14 MHz – 28 MHz 3
More than 28 MHz 4

Table 3: BW factors for above 1 GHz transmissions for UAE fixed link licenses.

It can be seen from this table that all high capacity systems of bandwidth more than 28
MHz are treated equally. This recognizes that higher bandwidths do bring more value

15
See “Policy for Spectrum Fees,” Jan 2006; available at
http://www.tra.ae/pdf/spectrum_affairs/spectrum_price_policy_english.pdf

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(and hence need should be levied higher license fees) but does not discriminate against
systems such as e-band who by necessity require large bandwidths at non-scarce
frequencies to provide their unique value (multi gigabit per second transmission rates).

Applying the TRA formula to a typical e-band link will result in the following:

Spectrum charge for e-band link = 1 x 2000 + 1 x 500 +4 x 500 = 4,500 dirhams

The TRA license has adopted a license fee formula that reflects the physics of radio
transmission and the real-world usage of radio links. The application of this thoughtful
process is enabling the adoption of a large number of e-band links in the UAE region.

Ireland

Ireland, like the UAE, is encouraging e-band adoption without adopting a light licensing
procedure. Ireland licenses e-band links under its conventional fixed link methodology,
which encourages the benefits that higher capacity radio systems bring.

In December 2007, after public consultation, Ireland’s Commission for Communications

Regulation (ComReg) opened the e-band frequencies for point to point links16. ComReg
considered, but did not adopt a light licensing methodology for e-band links, since their
existing fixed link registration policy and fee structure was capable of managing the
bands, without penalizing the large bandwidths that such systems require.

ComReg’s license policy for point to point radio links of above 1 GHz 17 levies different
fees depending on the bandwidth used. Like the UAE formula, this recognizes that
higher bandwidth use does bring more value and should be taxed higher, but does not
overly discriminate against systems that by necessity require large bandwidths to
provide their unique offerings.

For any point to point link that ComReg defines as “wideband”18, ComReg assess an
annual license fee of €952.30. This fee is much higher than in many other countries, but
it is at a level where wireless operators can make e-band business plans work,
especially when offering alternatives to high capacity fiber installs. For this reason,
much interest is being shown in high capacity system installs in Ireland.

16
See http://www.comreg.ie/_fileupload/publications/PR281207.pdf
17
See “Revised Guidelines to Applicants for Radio Links - Point-to-Point above 1GHz Licenses,” Document
98/14R5, 28 December 2007; available at http://www.comreg.ie/_fileupload/publications/ComReg9814R5.pdf
18
Ibid, page 23.

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Bahrain

Bahrain is another country considered that is encouraging e-band adoption. Bahrain is

doing so without any changes to its nation radiocommunications policy. This is because
the Telecommunications Regulatory Authority (TRA) of Bahrain applies a simple license
fee determination rule to fixed services 19; equivalent to 1% of gross turnover arising from
the activities associated with that license. Such a formula seems to fairly balance taxes
against the value of the link, independent of the characteristics of the wireless network.

Other countries

Many other countries have opened the e-band frequency for high capacity gigabit per
second data transmission. There are many deployments of e-band systems throughout
Europe, including the developing Eastern European states and Russia, South Africa,
Mexico, the Caribbean, and other regions of the world.

Conclusions

This report identifies a number of key points regarding the licensing and license fee
pricing of e-band links:

Worldwide 71-76 GHz / 81-86 GHz availability

• The ITU-approved 71-76 GHz / 81-86 GHz e-band frequencies are permitted
worldwide for ultra high capacity point-to-point communications.

The e-band frequencies were specifically opened up to enable ultra-high capacity links
that require high operational bandwidths
• Ultra-high capacity radio links (1 Gbps and up) require large amounts of
bandwidths (1 GHz and above) that is not available at microwave frequencies and
below. Thus ultra-high capacity links can only be realized at the mm-wave bands.
• Spectrum is not deemed scarce at the mm-wave bands, where services do not
currently exist, transmission distances are limited and frequency reuse is naturally
promoted (see below).

The unique properties of e-band transmission significantly ease the licensing processes
• At the high e-band frequencies, antennas are highly directional, meaning systems
communicate point-to-point via highly focused “pencil beam” transmissions. Thus
interference concerns are greatly reduced, and frequency reuse is promoted.

19
See “License overview and Award Process for National Fixed Service (NFL) License”; see
http://www.tra.org.bh/en/pdf/licenses/NFL/NFL_overview.pdf

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 • Propagation limitations, particularly rain fading, limit high frequency links to
relatively short range distances (a few kilometers). This means much greater
frequency reuse and easier path planning.
• The e-band allocation is a single pair of channels, each with a 5 GHz bandwidth
(71 to 76 GHz and 81 to 86 GHz). With no channelization, traditional frequency
coordination does not need to be considered.

National regulators are implementing “light licenses” that reflect the ease of e-band
licensing
• Wireless regulators in the USA, UK and other countries have implemented
streamlined “light licensing” schemes that provide the registration, coordination
and interference protection benefits that a wireless license guarantees, but at a
cost and application time significantly lower than traditional wireless licensing.

License fees for e-band systems cannot be linearly based upon bandwidth or data rate
usage
• By necessity, high capacity transmission systems require high operation
bandwidths in which to transmit. This is why the ITU allocated the e-band
frequencies of non-scarce spectrum for this purpose.
• License fees that are linearly based on link bandwidth or data rate can lead to
excessively high license fees of e-band systems; sometimes orders of magnitude
more than medium capacity, lower frequency links. Such license fees to not
reflect the cost of administering the license, which can be significantly easier for
e-band systems than lower frequency systems which require far more
consideration of frequency reuse, frequency channelization and interference
mitigation.

Countries that employ “light licensing” or licensing schemes that do not penalize higher
bandwidth systems in non-scarce frequency bands, are seeing widespread adoption of
e-band systems
• Despite very recent adoption by many regions in the world, thousands of e-band
radios have been registered and installed in countries offering favorable ultra-high
capacity broadband national wireless policies.

This report has highlighted examples of many countries whose national wireless policy
encourages e-band deployment. License fees have been set at levels that reflect the
simplified administration of analyzing and issuing high frequency transmissions. A
summary of countries leading this adoption is shown on the following page.

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 Country E-band license structure Typical E-Band license fee
USA On-line light license $75 for 10-year license
UK Light license £50 per year (~$100)
Czech Republic Unlicensed Free of charge
Russia Light license Minimal registration fee
Australia Light license AU$187 per year (~$175)
UAE Traditional PTP 4,500 Dirhams per year (~$1,200)
Ireland Traditional PTP €952.30 per year (~$1,500)
Jordan Traditional PTP JD200 per year (~$300)
Bahrain Traditional PTP 1% of generated link revenue

Table 4: Examples of many countries promoting e-band deployments.

About E-Band Communications

E-Band Communications Corporation is the leading supplier of ultra-high capacity 70/80

GHz wireless solutions, serving 4G carriers (WiMAX, LTE) and enterprises. In 2009, E-
Band achieved the highest market share in the U.S., based on publicly available annual
FCC license data. A key advantage is its Monolithic Microwave Integrated Circuit
(MMIC) technology originally designed for high-end military applications and now under
exclusive field-of-use license from a major defense contractor. E-Band's investors
include Avalon Ventures, Hercules Technology Growth Capital, Reliance ADA Group,
ADC Telecommunications, Investec, Express Ventures, OpenAir Ventures and a top-
three U.S. telecommunications carrier.

www.e-band.com

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 Appendix

Sample License Policies

Americas Open Open with Under consideration Comments

restrictions
Canada X
Carribean (select countries) X
Mexico X
USA X
Europe
Austria X
Czech Republic X
Croatia X
Estonia X
France X
Germany X
Hungary X
Ireland X
Italy X Reviewing license fee
Luxembourg X
Lithuania X
Norway X
Poland X
Romania X
Russia X
Slovak Republic X
Slovenia Republic X
Spain X Reviewing license fee
Switzerland X
Turkey X
Ukraine X
United Kingdom X
Middle East
Bahrain X
Saudi Arabia X
Kuwait X
Qatar X
Jordan X
United Arab Emirates X

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 Africa
Nigeria X
South Africa X
Other African Countries X X Case by case basis

Asia
China X
India X
Japan X
Vietnam X
Other X X Case by case basis
Australasia
Australia X
New Zealand X

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