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ICASAFundamentalSkillsTraining

Module:SpectrumFeeCalculation
WilliamStucke PhilemonMolefe
ICASACouncillor ActingGM:E&T
27
th
January2012
1
Agenda
WhatisSpectrum?
SpectrumFees
TelecommunicationsusesofSpectrum
ExplanationofFactors
EdgeCases
WorkedExamples
SatelliteCommunications
Summary
2
Spectrum
Spectrumistherange ofelectromagnetic
frequenciesofinterest.
ICASAregulatesfrom9kHzto1000GHz(1
THz)
FMRadiousesfrom87.5MHzto104MHz
UHFTVBroadcastingusesfrom470 860
MHz
Cellphonesuse900,1800,2100MHzbands,
etc.
Visiblelightis400 789THz
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SpectrumFees
Spectrumhastraditionallybeenregardedasascarce
resource.
Spectrumwithinacountryisregardedasanationalasset,
anduseofitisusuallyregulatedbyaRegulatoryAuthority
ICASAinourcase.
Scarcityisduetothreefactors:
Poortechnology whichhasimproveddramaticallyoverthelast
century,andespeciallyinthelastdecade.
Pooradministration duepartlytooldmodelsofspectrum
assignment
Popularusesforcertainbands,duetoavailabilityofequipment
and/orpropagationcharacteristicsofthatfrequency
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SpectrumFees2
Onewayofmanagingdemandforalimitedresourceis
tochargefeesforitsuse.
Feesreducetheincentivetohoardspectrum
Spectrumisnotownedbyalicensee hehasrightof
use
ICASAhasintroducedanAdministrativeIncentive
Pricingsystemfortelecommunicationsusesof
spectrum
AIP SpectrumFeesapplyfrom1
st
April2012
Nofeescharged yet forbroadcastuses
Thenewsystemmeanssignificantchangesforsome
operators.Somewillpaymuchless,somewillpaymuch
more.Mostwontbeaffectedmuch,buteveryoneneeds
toknowhowmuchtheywillpay
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SpectrumFees3
AnnualSpectrumFeesarecalculatedusingoneof
twoformulae:
PointtoPoint:
Fee=(UNIT*BW*FREQ*CG*GEO*SHR*HOPMINI*UNIBI)
PointtoMultiPoint:
Fee=(UNIT*BW*FREQ*CG*GEO*SHR*ASTERI*UNIBI)
ExceptforAmateur,aeronauticalandmaritime
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FeePrinciple
Fundamentalprincipleispayingfortheamount
ofspectrumused:
Fee=UnitcostperMHz * NumberofMHz
Fee= UNIT * BW
Modifiedbyanumberofnumericalfactors
Addsincentives
Encouragessomeuses,discouragesothers
Basiccostismultipliedbythefactors,toincreaseor
decreasethefinalfee
TheminimumfeeisdefinedasR120,toease
administration
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TermsUsed
UNIT CostperMHz ZAR
BW Bandwidth MHz
FREQ FrequencyBand Factor
CG Congestion Factor
GEO Geographical Factor
SHR Sharing Factor
HOPMINI MinimumHopLength Factor
ASTER AreaSterilisation Factor
UNIBI Uni orbidirectional Factor
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UNIT
ThecostperMHzisdefinedintheAppendix
totheRegulationsasUNIT=R2,000
ThismeansthatthebasicpriceisR2,000per
MHzperyear
Thisappliestoalltelecommunicationsuses,
includingsatellite
Doesnotapplytobroadcastinguses
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BW
TheBandwidthused(BW)isthenumberof
MHzassigned.
Whenasingleblockisassigned,e.g.forTDD
use,thenBW=thesizeoftheblock
E.g.2570MHzto2575MHz=5 MHz
Whenapairofblocksisassigned,e.g.forFDD
use,thenBW=thesizeofone oftheblocks
E.g.2500MHzto2505MHzUL plus 2620MHzto
2625MHzDL =5 MHz
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FREQ
Differentfrequencieshavedifferent
propagationcharacteristics
Higherfrequencieshaveashorterusefulrange,
andaregoodtouseindenseurban
environments,becausethereusedistanceis
smaller
Lowerfrequencieshavealongerusefulrange,
andaregoodtouseinruralenvironments,or
forlongdistancePtPlinks,becausethesignal
travelsfurther
AtableintheRegulationsassignsanumerical
valuetoeachband,withhigherfrequencies
(FREQ)beingcheaper
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FREQ
FREQUENCY RANGE FREQFACTOR
FROM(MHz) TO(MHz)
30 174 1.00
174 880 0.75
880 1800 0.50
1800 5,000 0.40
5,000 10,000 0.30
10,000 17,000 0.20
17,000 23,000 0.15
23,000 30,000 0.10
>30,000 0.05
Notethatnofactorisspecifiedfor9kHzto30MHz.Useavalueof1.00
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CG
TheCongestionFactorindicatesifthebandis
congestedornot.
Thismaybeinterpretedtobetheequivalentof
HighDemand
Definedasmorepotentialusersthanspectrum
available
AtICASAsdiscretiontospecify
Mostbandsarenotcongested,unlessotherwise
specified
CONGESTION CGFactor
Congested 1.50
Notcongested 1.00
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GEO
TheGeographicalfactordependsonwherein
thecountrythespectrumistobeused.
Ifitisnot usedinGautengortheCapeTown
MunicipalityortheDurbanMunicipalitythen
itsLowDensity
Otherwise,itsHighDensity
Itstentimesasexpensivetousespectrumin
JoburgthanPutsonderwater
Yes,wedomeanit.Itsnotamistake
GEOAREA GEOFactor
HighDensity 1.00
LowDensity 0.10
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SHR
Spectrumcanbeassignedinoneofseveral
ways,includingExclusiveandShared
Whenexclusiveuseofspectrumisassigned,
thenICASAisresponsibleformakingsure,as
faraspossible,thatnointerferenceoccurs
Whenspectrumisshared,thenthesharing
partiesareresponsibleforcoordinating
amongstthemselvestoavoidinterference.
Yougetadiscountforthis.
SHARING SHR Factor
ExclusiveUse 1.00
SharedUse 0.50
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UNIBI
TheUnidirectionalfactor(UNIBI)takesintoaccount
inefficienciesinherentinonlymakingunidirectional
useofspectrum.
ForPtPuses,aslightdiscount(25%)isofferedfor
unidirectionaluse.
Specifically,itisphrased(perhapsincorrectly)inthe
RegulationsasbeinglinkeddirectlytoPairedor
UnpairedspectrumforPtMPuses.Notethateven
Unpairedspectrummaybeusedforbidirectional
communications,usingTDD,forexample.
Whenunidirectionaluseismadeofspectrumina
PointtoAreausage,thena50%discountisoffered
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UNIBI FACTORfor PtP FactorforPtMP
Unidirectional 0.75 0.50
Bidirectional 1.00 1.00
ASTER
RadioFrequencypropagationsoftwareisoftenused
todrawamapoftheareawhereonecanexpecta
usefulsignaltobereceived.
Usefulisdefinedasasignallevel>=60dBV/m
Intheabsenceoftopographicalfeatures,thisarea
wouldbeacircleorasector
Weignore thetopographicalfeatures,forsimplicity,
soweworkonaradiusfromthecentraltransmitter
Thisareaisconsideredtobesterilised,insofaras
witholdfashionedradiotechnology,noothercentral
transmitter,operatingonthesamefrequencywith
thesamepolarisation,canbeclosetothefirst
transmitter
Itsirrelevantifthespectrumissharedornot
OnlyappliestoPtMP usesofspectrum
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ASTER
AREA(km
2
) ASTERFactor
From To
0 1 0.6
1 10 2
10 100 6
100 1,000 18
1,000 10,000 56
10,000 100,000 180
100,000 500,000 400
>500,000 600
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TheRegulationsshow1,000,000km
2
asthemaximumvalue,even
thoughtheareaofRSA>1,200,000km
2
HOPMINI
Asnotedearlier,lowerfrequencieshavealongerrange.
ItsthereforeawastetousealowfrequencyforashortPtP
link
Atabledefinestheminimumexpectedlinklength,basedon
thefrequencyband
Ifthelinklengthisgreaterthanorequaltotheminimum,oris
unknown,thenthevalueofthisfactoristakenas1.00
Ifthelinklengthisshorter,thenthefactoristhesquareroot
oftheminimumpathlengthdividedbytheactualpathlength
Itsoundsmorecomplicatedthanitis!
Theshortertheactuallinkcomparedtothedefinedminimum,
thehigherthefactor,andthereforethemoreexpensive
OnlyappliestoPtP usesofspectrum
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HOPMINI
FREQUENCY BAND MINIMUMPATH LENGTH(km)
400MHZ 100
800 MHz 60
1.4/1.6/2GHz 30
4and5GHz 16
7.5GHZ 14
10and11GHz 10
13/14/15GHz 9
17/18GHz 4
2223GHz 3
25/26GHZ 3
28GHZ 2
31and32GHz 1.5
38GHZ 1
Higher 0
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EdgeCases
Thereareinstanceswheretheanswerisnot
obvious,perhapsbecausetwodifferentfactors
arepotentiallyapplicable,perhapsbecausethe
Regulationsarebadlyworded.
RULEOFTHUMB:
Usetheoneleast advantageoustoyou,asthe
licensee?
Usetheonemostadvantageoustoyou,asthe
licensee?
Someexamplesfollow
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EdgeCases2
COVERAGE
LetussaythatalicenseeoperatesaPtPlinkfromsomewhere
insideGautengtosomewhereoutsideGauteng.
GEOFactor=1 /0.1 Thecorrectvalueis1
AlicenseeoperatesanationalPtMPnetwork
GEOFactor=1
ASTER=600
HOPLENGTH
LetussaythataPtPlinkisinabandthatisnotlistedinthe
HOPMINItable.
HOPMINI=Largerdistance/Smallerdistance Smaller
FREQUENCYBAND
Itispossiblethatspecificspectrumassignedmayfallintotwo
rangeslistedintheFREQTable
FREQ=Higherfrequency/Lowerfrequency Higher
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EdgeCase:GEOFactor
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HIGHDENSITY LOWDENSITY
GEO=1 GEO=0.1
GEO=1
GEOFACTOR
EdgeCase:FREQBand
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FREQ=1
174MHz
FREQ=0.75 FREQ=0.5
30MHz
880MHz
1.8GHz
Example: Channel with centre frequency of 880 MHz
where paired spectrum is assigned and falls within two different bands the
highest FREQ Factor frequency applies
FREQFACTOR
ErrorsintheRegulations
ThereareanumberoferrorsintheRegulationsas
published.Manyofthesecanbecorrectedbyasimple
amendmentprocess,ratherthanrequiringreopening
thehearingsprocess.Thosethatmaymeanthatthe
Regulationswillnothavethedesiredeffectinclude:
6(3)FREQ:Valueof1for<30MHzshouldapply
6(7)ASTER:RSAhasanareaof~1,200,000km
2
.Last
lineshouldread>500,000
6(8)HOPMINI:wordingclarificationsin(a)&(c)
6(9)UNIBI:Valuesmaybereversed/confusing?
12CommencementDateis1
st
April2012
Weintendtocorrecttheseerrorsafterthisworkshop,
sopleasedontrelyonthem!
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WorkedExamples
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WorkedExamples
27
A = nr
2
A = nJ
2
r
50km
d=2r r
50km
100km
A = nJ
2
=3.14*100km*100km
=31,400km
2
A = nr
2
=3.14*50km*50km
=7,850km
2
STERILISATIONAREAWITHPROTECTION
WorkedExamples
28
A = nr
2
LicenseeB
LicenseeA
r
r r
r
Frequencyreusedistance=4r
(forr=50km,distance=200km)
ProtectionZone
STERILISATIONAREA
WITHPROTECTION
WorkedExamples
29
AREA(km
2
) ASTER
Factor
From To
0 1 0.6
1 10 2
10 100 6
100 1,000 18
1,000 10,000 56
10,000 100,000 180
100,000 500,000 400
>500,000 600
AREASTERILISEDwithoutProtection
Zone(A=7,850km
2
)
AREASTERILISEDwithProtection
Zone(A=31,400km
2
)
WorkedExamples
30
HopLength
HOPMINI
FREQUENCY
BAND
MINIMUM
PATH LENGTH
400MHZ 100
800 MHz 60
1.4/1.6/2GHz 30
4and5GHz 16
7.5GHZ 14
10and11GHz 10
13/14/15GHz 9
17/18GHz 4
2223GHz 3
25/26GHZ 3
28GHZ 2
31and32GHz 1.5
38GHZ 1
Higher 0
WorkedExamples
31
Request8kmhoplength@5GHz
8km
Adviseusefrom17GHzupwards
8km
EXAMPLEOFHOPMINICALCULATIONS
FREQUENCY
BAND
MINIMUM
PATH LENGTH
400MHZ 100
800 MHz 60
1.4/1.6/2GHz 30
4and5GHz 16
7.5GHZ 14
10and11GHz 10
13/14/15GHz 9
17/18GHz 4
2223GHz 3
25/26GHZ 3
28GHZ 2
31and32GHz 1.5
38GHZ 1
Higher 0
WorkedExamples
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Request8kmhoplengthLink@5GHz
8km
Adviseusefrom17GHzonwards
8km
IfApplicantinsistsonrequest.
PREMIUMISCHARGEDby
calculatingHOPMINI
IfApplicantacceptsadvice
thenNOPREMIUMCharged.
HOPMINI=1
WHATNEXT.
WorkedExamples
33
Premiumchargedforinsistingtodeployan8kmHoplengthlinkat
5GHzwillbecalculatedasfollows:
HOPMINI =
MINIMUM PATH LFN6TH
ACTUAL PATH LFN6TH
=
1km
8km
=1.414
Thepremiumtobepaidis1.414timesthenormalfeeforthe
5GHzband.
WorkedExamples
34
Fee=(UNIT*FREQ*BW*CG*GEO*SHR*ASTER*UNIBI)
EXAMPLE1
AlicenseeinJohannesburgdeployspointtoareasystem
(repeater,tracking,alarm)at150MHz.
Therequestedbandwidthis25KHz=0.025MHz
(Simplex/Unpaired);
AssumingthatthisparticularbandiscongestedinJohannesburg
Andthattherequestedcoverageareis1,256km(or
alternativelyaradiusof20Km (A = nr
2
))
Noprotectionzone(determinedbytheAuthority)
NB:ServiceslikealarmsandtrackingareMultipointtoPointin
practiceandcanbetreatedAsPointtoMultipointforthepurpose
ofthecalculations.
CALCULATIONSOFFEESFORPOINTTOAREA
WorkedExamples
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Fee=(UNIT*FREQ*BW*CG*GEO*SHR*ASTER*UNIBI)
CALCULATIONSOFFEESFORPOINTTOAREA
EXAMPLE1contd.
UnitPrice=R2000,00
FrequencyFactor(FREQ)=1[150MHzfallswithin30MHzand
174MHz]
BandwidthFactor=0.025
CongestionFactor(CG)=1.5[CongestioninJohannesburg]
GeographicalFactor(GEO)=1[JHBfallsunderhighdensityarea]
SharingFactor(SHR)=1[Exclusiveassignment]
ASTER=56[Sterilisedarea:between1,000and10,000]
UNIBI=0.5[unidirectional]
Theannualfeewouldthenbe:
R2000*1*0.025*1.5*1*1*56*0.5=R2,100
PointtoAreaSpreadsheet
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Bandwidth BW 0.025 (MHz)
Frequency FREQ 150 (MHz)
HighDemandSpectrumCG Yes Yes/No
HighDensityGeographGEO HighDensitLow/High
SharedUsage? SHR ExclusiveUsExclusive/Shared
Unidirectional? UNIBI UnidirectionBi/Uni AreaSelectedAreafactor
AreaSterilised ASTER 1256 km
2
1000 km
2
56
Fee= UNIT* BW*FREQ CG* GEO*SHR*UNIBIASTER
ANNUALSPECTRUMFEE=
R2100.00 =( R2000.00 0.03 1 1.5 1 1 0.5 56 )
Spreadsheet
WorkedExamples
37
Fee=(UNIT*FREQ*BW*CG*GEO*SHR*ASTER*UNIBI)
CALCULATIONSOFFEESFORPOINTTOAREA
Theannualfeewouldthenbe:R2000*0.1*28*1*1*1*600*1=
R3,360,000
EXAMPLE2
Alicenseehasbeenassigned28MHzbandwidth(duplex)inthe26GHz
bandtodeploypointtomultipointlinksonanationalbasis(exclusive).
UnitPrice=R2000,00
FrequencyFactor(FREQ)=0.1[26GHzfallswithin23GHzand26GHz]
BandwidthFactor=28
CongestionFactor(CG)=1[Nothighdemand]
GeographicalFactor(GEO)=1[National]
SharingFactor(SHR)=1[Exclusiveassignment]
ASTER=600[Sterilisedarea:>500,000km]
UNIBI=1
PointtoAreaSpreadsheet2
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Bandwidth BW 28 (MHz)
Frequency FREQ 26000 (MHz)
HighDemandSpectrumCG No Yes/No
HighDensityGeographGEO HighDensity Low/High
SharedUsage? SHR ExclusiveUse Exclusive/Shared
Unidirectional? UNIBI Bidirectional Bi/Uni AreaSelected Areafactor
AreaSterilised ASTER 1200000 km
2
500000 km
2
600
Fee= UNIT* BW* FREQ* CG* GEO* SHR* UNIBI* ASTER
ANNUALSPECTRUMFEE=
R3360000.00 =( R2000.00 28 0.1 1 1 1 1 600 )
WorkedExamples
39
CALCULATIONSOFFEESFORPOINTTOPOINT
Fee=(UNIT*FREQ*BW*CG*GEO*SHR*HOPMINI*UNIBI)
Theannualfeewouldthenbe:R2000*0.3*28*1*0.1*1*
1.414*1=R2,375.88
Alicenseeoperatesahoplengthof8kmusing28MHzof
Bandwidth (Duplex)inthe5GHzbandinalowdensityarea.
UnitPrice=R2,000
FrequencyfactorFREQ=0.3
BandwidthfactorBW=28MHz
CongestionfactorCG=1.0(nocongestion)
GeographicalfactorGEO=0.1(lowdensity)
SharingFactorSHR=1.0
HOPMINI=1.414 [Premium,Slide32]
UNIBI=1
PointtoPointSpreadsheet
40
Bandwidth BW 28 (MHz)
Frequency FREQ 5000 (MHz)
HighDemandSpectrumCG No Yes/No
HighDensityGeographGEO LowDensityLow/High
SharedUsage? SHR ExclusiveUsExclusive/Shared
Unidirectional? UNIBI BidirectionaBi/Uni BandSelected MinimumHop Factor
HopLength HOPMI 8 km 5000 16 km 1.414
-5
Fee= UNIT* BW* FREQ*CG* GEO* SHR* UNIBI HOPMINI
ANNUALSPECTRUMFEE=
R2375.88 =( R2000.00 28 0.3 1 0.1 1 1 1.414 )
SatelliteCommunications
Satellitecommunicationsusesspectrum,injustthe
samewayasdoesterrestrialcommunications.
Satellitescanbeusedinapointtopointmode,orin
pointtomultipoint.
SatellitecommunicationsrequiresatleastoneGround
Station,althoughthisdoesnothavetobewithinthe
bordersofRSA.
IftheGroundStationisinRSA,thenafeeofR50,000
perannumisdue
ThereisnoannualfeeperSatelliteterminal(theCPE)
Satellitecommunicationsareimportant,astheyare
oftentheonlyeconomicallyviableoptionforproviding
Broadbandconnectivityinremoteunderservedareas.
41
SatelliteCommunications2
Itisoftendifficulttocalculatethespectrumfeedue
forsatelliteoperations,especiallywhenusedfor
supplyingInternetconnectivitytoendusers
ThisisbecausetheLicenseeispayingtheSatellite
OperatoronaMbpsbasis,notaMHzbasis.
Inaddition,theLicenseedoesntknowatthe
beginningofayearhowmuchbandwidthhewillbe
consumingbytheendofthatyear
Figuresvary,but45Mbpsoutof36MHzistypical,
i.e.1.25bps/Hz
TheonlypracticalsolutionisfortheLicenseeto
makeanestimate,andtoadjustthatestimateinthe
lightofexperienceeveryyear.
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SatelliteCommunications3
ThePtPformuladoesntmakealotofsense
withahoplengthof72,000km!
Similarly,withcoverageareasofasingle
satellitetransponderpossiblymuchlarger
thanRSA,thePtMPformuladoesntmake
muchsenseeither.
ThesolutionistoignoretheAIPformulae,
andreverttothebasicformulaofUNIT*BW
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SatelliteExample
AnewLicenseehasitsGroundStationin
Europe,forageosynchronoussatellite
ownedbyathirdparty,providingKuband
coverageoverSouthernAfrica.
Hehasnocurrentcustomers,butestimates
thathewillhave 1000 Internetaccess
customersconsumingatotalof45Mbps
Downlinkand15MbpsUplinkbytheendof
theyear.ThisisaPtMPapplication.
NoPtPsatelliteLinksareenvisaged.
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SatelliteExample2
GroundStation R0
Terminals
0atbeginningofyearand1000atendofyear=500
average*R0p.a.each= R0
BandwidthDownlink
0Mbpsatbeginningofyearand45Mbpsatendof
year=22.5Mbpsaverage~=18MHz*R2,000=
R36,000
BandwidthUplink
AlreadycoveredbyDownlinkfee(pairedspectrum)
R0
TotalannualFee = R36,000
45
MultiYearLicences
Forsomeapplications,suchasAmateur,
AeronauticalandShipStations(allofwhich
attracttheMinimumFeeofR120),itsto
bothpartysbenefittoofferthefacilityto
payforseveralyearsatonce.
Adiscountstructureapplies.
Multiplythefeeforoneyearbythefactor
46
Years 1 2 3 4 5
Factor 1 1.91 2.74 3.49 4.17
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QuestionsandDiscussion
Copyright2012ICASA