This record is a partial extract of the original cable. The full text of the original cable is not available.

131022Z Feb 06

UNCLAS SECTION 01 OF 03 THE HAGUE 000317 
 
SIPDIS 
 
STATE FOR EUR/UBI/REITER 
STATE FOR EB/CIP/MA 
USDOC FOR NTIA 
 
E.O. 12958: N/A 
TAGS: ECPS NL
SUBJECT: NETHERLANDS: SPECTRUM MANAGEMENT POLICIES 
 
REF: 05 SECSTATE 225777 
 
¶1.  SUMMARY:  The Dutch Ministry of Economic Affairs (MEA) is 
primarily responsible for spectrum management in the 
Netherlands.  Priority in the allocation of scarce 
frequencies is given to public service functions, such as 
police, security, emergency services, air and water traffic 
control, and meteorology.  Other, non-public-interest 
applicants for scarce frequencies (e.g., commercial 
broadcasting) must file a needs justification; allocation 
decisions among competing parties are made on the basis of 
auctions or comparative assessments.  Licenses are awarded on 
a technology-neutral basis.  Secondary market trading of 
spectrum licenses is authorized.  Licenses for non-scarce 
spectrum (e.g., taxi radiotelephones) are granted on a 
first-come, first-served basis, but must be justified by an 
actual need.  Post will forward to EB/CIP/MA via e-mail a 
2005 MEA memorandum on radio spectrum policy.  END SUMMARY. 
 
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RESPONSIBLE AUTHORITY 
--------------------- 
 
¶2.  The Ministry of Economic Affairs (MEA), through the 
Director General for Energy and Telecommunications and the 
Radio Communications Agency (both fall under the authority of 
the MEA) are primarily responsible for spectrum management in 
the Netherlands.  The Netherlands has a National Frequency 
Plan (NFP) prepared by the MEA in close cooperation with 
other interested ministries: Ministry of Education, Culture 
and Science (media policy), Ministry of Transport and 
Ministry of Public Works and Water Management (aviation and 
shipping industry), and Ministry of Defense, Ministry of the 
Interior, and Ministry of Kingdom Relations (essential 
government tasks related to spectrum management).  The 
Council of Ministers must approve substantial or politically 
sensitive changes to the NFP. 
 
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ASSIGNMENT PROCESS 
------------------ 
 
¶3.  Public interest and public service functions have a 
statutory preferential position, such as direct assignment of 
frequencies and preferential licensing treatment, where such 
functions are free from harmful interference and access to 
sufficient spectrum is guaranteed.  Public service functions 
in the Netherlands encompass services and applications 
concerning the country's safety and security, such as 
defense, emergency services, the police, air traffic 
management, and vessel traffic control.  They also include 
all other services and applications considered essential from 
a social or cultural perspective, such as public service 
broadcasting or the use of the frequency spectrum for 
scientific purposes, including meteorology and radio 
astronomy.  A general underlying principle in the NFP is that 
the frequencies used for public service functions should not 
be more than needed for the exercise of these tasks. 
 
¶4.  The use of scarce frequency space for public service 
functions is at the expense of other possible uses of the 
spectrum.  Assignment is based on a needs justification plan, 
which will become statutory under a new radio spectrum policy 
and implemented through relevant regulations.  For licenses 
where the number of interested parties exceeds the total 
number of available licenses, or where there are more 
interested parties for one or more specific licenses within 
this total number, assignment is done through an auction 
and/or a comparative assessment.  Such a process applies to 
commercial uses of spectrum (including commercial 
broadcasting).   Other licenses are granted by the MEA on a 
first-come, first-served basis, including licenses for 
radiotelephones in taxis and licenses for point-to-point 
digital fixed radio systems.  These licenses are subject to 
individual requirements that are based on effective frequency 
use.  The application for the license must be supported by 
valid reasons, and the frequency space granted must not 
exceed the amount necessary for the purpose indicated.  A 
license-exempt domain concerns frequency use that is not 
subject to such requirements (such as WiFi, consumer 
appliances, two-way radios, etc.).  However, the absence of 
requirements attached to the use of license-exempt 
frequencies does not mean that the use of these frequencies 
is entirely free, since this frequency use is also subject to 
regulations of effective frequency use. 
 
--------------------------- 
LICENSING REGIME/PRIVILEGES 
--------------------------- 
 
¶5.  Licenses are awarded on a technology neutral basis 
(unless there are legitimate reasons for not doing so).  A 
license is issued only for the provision of specific services 
or applications and does not provide exclusive use of the 
respective frequency bands.  The challenge in the Netherlands 
for the near future is to issue licenses not only on a 
technology neutral basis, but also as much as feasible on a 
service neutral basis.  In general, once a license is issued, 
it is not subject to renewal, with the exception of 
non-scarce licenses. 
 
¶6.  Spectrum trading (through secondary markets) is allowed. 
Aggregation or subdivision of licenses is allowed as long as 
it does not lead to dominant positions and/or inefficient use 
of spectrum.  Licensees may make spectrum available to other 
entities based on geography or time.  Payment for spectrum 
access is possible in the Netherlands. 
 
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SPECTRUM FEES 
------------- 
 
¶7.  Licensees may be required to make the following payments 
for the use of frequency space: 
 
¶A.  Every licensee (including holders of non-scarce licenses) 
must pay the relevant administrative costs for the license 
and a supervision fee to the Radio Communications Agency; 
¶B.  Holders of scarce licenses must pay the amounts they bid 
at an auction or a comparative assessment; 
¶C.  The government may charge an additional amount as a 
supplement to an amount offered at the auction or for the 
comparative assessment.  The current Dutch government 
considers this requirement necessary for the purpose of 
safeguarding effective spectrum utilization, both in terms of 
the issuance of licenses and in terms of any potential 
license extension (even though this is contrary to the basic 
principle that licenses cannot be extended).  Under the 
Telecommunications Act, the government can charge an 
arbitrary amount for the use of frequency space.  However, 
the government has used this practice only in a very limited 
number of cases. 
 
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GOVERNMENT VERSUS COMMERCIAL USERS 
---------------------------------- 
 
¶8.  The Dutch do not differentiate between government and 
commercial users, but rather between public service functions 
and other uses. 
 
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OTHER INCENTIVES 
---------------- 
 
¶9.  On the European level, the European Conference of Postal 
and Telecommunications Administrations (CEPT) and the 
European Telecommunications Standardization Institute (ETSI) 
enjoy excellent cooperation with the Netherlands (through a 
Memorandum of Understanding) in identifying needs for radio 
spectrum.  These agreements could lead to future 
European-based incentives that encourage more efficient use 
of spectrum. 
 
------------------- 
GOVERNMENT SPECTRUM 
------------------- 
 
¶10.  Spectrum use for public service functions (including 
government spectrum) is based on a needs justification plan. 
Since spectrum assigned for these tasks is not always fully 
used, third-party use is possible.  Under the needs 
justification plan, third-party use can be considered (in 
mutual consultation between the ministries involved) and 
arrangements can be made concerning conditions or 
stipulations attached to third-party use.  The MEA can grant 
third-party use of government spectrum through a license or 
discontinue third-party use in emergency situations.  Any 
needs justification plan submitted to the MEA shall be 
assessed in terms of effective frequency use to ensure that 
the quantity of frequency space is suitable for the exercise 
of the public service function.  Such frequency use is 
assessed every three years to ascertain whether the relevant 
frequency space still meets the asserted needs and is still 
used efficiently.  This assessment includes technical 
developments, frequency space assigned, and the investments 
made.  This assessment could also involve measurements of 
actual use.  Also, a needs justification plan can always be 
changed in the interim, for example, because the needs for 
the application or service (that is charged with the public 
interest function) have changed. 
------------------------------------- 
DUTCH CONTACTS ON SPECTRUM MANAGEMENT 
------------------------------------- 
 
¶11.  The following are contacts in the area of spectrum 
management: 
 
¶A.  Fokko G. Bos 
Senior Policy Advisor, Information-Infrastructure 
Directorate-General for Telecommunications and Post 
Ministry of Economic Affairs 
Office:   31 61-502-5873 
E-mail:  F.G.Bos@minez.nl 
 
¶B.  Paul W. J. de Bijl 
Research Coordinator 
TILEC (Tilburg Law and Economics Center), Office M6.30 
Tilburg University 
P.O. Box 90153 
5000 LE Tilburg 
Office:   31 13-466-8763 
E-mail:  pdebijl@uvt.nl 
 
-------------------- 
USEFUL LINKS/STUDIES 
-------------------- 
 
¶12.  The following studies (in Dutch) are available on the 
MEA website: 
 
 
Rapport Quotient & associates naar frequentiewaardering 
www.ez.nl/content.jsp?objectid=24923 
 
Werkdocument TNO naar aanbodontwikkeling van nieuwe technieken 
www.ez.nl/content.jsp?objectid=24920 
 
Marktonderzoek Stratix naar vraagontwikkeling van 
frequentiegebruik 
www.ez.nl/content.jsp?objectid=24922 
 
Reactie van Agentschap Telecom op het rapport van Stratix 
www.ez.nl/content.jsp?objectid=24921 
 
Quick scan van het IVIR naar juridische aspecten rond 
frequentiebeleid 
www.ez.nl/content.jsp?objectid=24924 
 
Feitenonderzoek van het Agentschap Telecom 
www.ez.nl/content.jsp?objectid=24925 
 
Mastersheet behorend bij het feitenonderzoek 
www.ez.nl/content.jsp?objectid=24926 
 
Onderzoek Opportunity costs 
www.ez.nl/content.jsp?objectid=28900 
BLAKEMAN