FINAL REPORT - Stakeholders - Ofcom

Illustrative value of spectrum calculations: In a recently published report on spectrum
pricing, the potential to apply administrative incentive pricing (AIP) to aeronautical
spectrum is considered. The model used is to relate the marginal value of spectrum to the
cost of upgrade. The approach was used to provide three marginal values for the
migration to 8.33 kHz.
The same approach is used in the illustrations that follow. Also included is a very simple
indication of the “value” of the spectrum as a means of assessing if there could be a
business case for adopting spectrum efficient technologies.
The illustrations are based around the emerging strategy for aeronautical communication
shown in the figure 5-5 below.
Figure 5-5 Strategy for Aeronautical Communications
This is the EUROCONTROL strategy for data communication and surveillance. For data
communication the process involves the phasing out of ACARS for digital transmission of
AOC data with a migration to VDL Mode 2. There is then a transition to a more spectrally
efficient VDL mode (VDL M3 or M4) followed by a next generation system, either satellite
or terrestrially based. Simultaneously, there is an introduction of other communication
means to support ADS-B (1090 ES followed by VDL Mode 4). The early stages of the
communication strategy apply to commercial operator data. The later stages include the
transfer of ATS voice services to data.
In parallel with the illustration (Figure 5-5) above, a migration of voice services to 8.33
kHz is expected. The study team believe that it is also vitally important that when the next
generation systems are introduced, there is an equivalent wholescale reduction in the use
of VHF voice channels so that the spectrum can be re-used for data and other services.
Based on Figure 5-5 above, the following “spectrally efficient” illustrations are provided:
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