The Spectrum Tussle - Cdma V Gsm

[kesav 127]

Finally, all the applicants will be receiving the LOIs by today 4:30 PM

:clap:

Look at the press releases of DoT for further info.

http://www.dotindia.com/as/2008/press-rele...2010-1-2008.pdf

http://www.dotindia.com/as/2008/second%20p...2010-1-2008.pdf

[shashank 8]

But when are they going to get spectrum?That is more important!

[Arun 795]

Reliance Communications to get GSM spectrum along with Vodafone, Idea, Aircel

10 Jan, 2008, 1620 hrs IST

Press Trust of India

NEW DELHI: In a development that could bring peace to the turbulent telecom sector, the government on Thursday decided to allocate spectrum to existing GSM players such as Idea Cellular and also to rival CDMA player Reliance Communications for launching mobile services.

The new entrants, on the basis of eligibility and the priority of application, would be considered thereafter, according to a direction given by Communications Minister A Raja to his ministry officials.

Among existing GSM players, Aircel, Idea Cellular and Vodafone-Essar would be getting the start-up frequency of 4.4 MHz for some circles at the existing price based on Rs 1,651 crore for nationwide spectrum.

These companies have been waiting for spectrum to start GSM mobile services in some of the circles to cover the remaining areas in the country.

Besides them, Anil Ambani-led RCom that currently offers CDMA-based services, would also get GSM spectrum under the government's decision of October 19 last year to allow companies to launch operations with both the technologies.

The GSM operators have challenged the dual technology decision in telecom tribunal TDSAT and also in Delhi High Court but haven't been able to get a reprieve.

The Telecom Minister has signed an in-principle order for GDM spectrum allotment to Reliance Commmunication. CNBC-TV18’s Sandeep Gurumurthi said that this allotment is critical for RelComm as it can not go ahead an place orders for GSM spectrum equipment and put their backend in place.

The Telecom Minister has signed an in-principle order for the start up GSM spectrum allotment to Reliance Communications and also for additional GSM spectrum allotment to Bharti Airtel and Vodafone. The in-principle order has not been issued yet and that’s because the secretary and the member - technology also needs to sign that file. But it’s now almost a done deal, just the matter of time or a couple of hours maybe, that’s what our sources tell us.

The allotment of start up spectrum for Reliance Communications is critical because now they can go ahead and place orders for GSM spectrum equipments and put their backend in place. So once defence vacates spectrum, they can roll out GSM services.

As far as Bharti Airtel and Vodafone are concerned, again a long expected line. It’s only as per TRAI criteria and they will not get in all the circles. According to analysts, they could only get in about three or four circles at this point in time because they have reached their subscriber thresholds through additional spectrum allotment only in three or four circles. We understand that Delhi and Bihar could be two of those circles, but that’s not confirmed information.

As far as Idea Cellular is concerned, it also got a start up spectrum in two circles. We are told that it is also going get an Lol for a license in nine circles where it’s not operating right now. Idea currently operates only in 11 circles. So in Mumbai, it gets spectrum and in nine other circles. where it is not operating it will get an Lol. Idea will have to convert that Lol by paying an upfront fee. It’s about Rs 1,650 crore for a pan India license, but it will be lot lesser for idea as they need to pay only for nine circles.

[Honest 836]

^^^

Now thats a great news my dear friends.

Regards.

[@ksh@T 20]

DoT rings in new subscriber-linked spectrum norms

NEW DELHI: Amidst all the chaos over issuing letters of Intent to new players and clearing the application of the Tatas to offer GSM services, the Department of Telecom (DoT) has quietly come out with a new subscriber-linked spectrum allocation norms.

These new norms, which the DoT has said will come into 'immediate effect', will be the basis on which existing GSM and CDMA operators will be granted additional radio frequencies for expansion of their networks in the circles where they already operate.

While the DoT had earlier said that it had decided to accept telecom regulator TRAI's recommendations that both GSM and CDMA service providers increase their subscriber base two to six times (depending on the circle) before they are granted additional spectrum, as the new policy, it has however made some changes on the recommendations of TRAI.

While TRAI had specified that GSM operators should have 1.5 million subscribers in the metros, 3 million in A and B category circles and 2 million users in Category C circles to be eligible for 8 MHz of spectrum, the DoT, in its new policy, has said further tightened it and said that operators will be allotted only 7.2 MHz of radio frequencies against this subscriber base.

The changes are on account of the DoT's decision to endorse its official spectrum panel's recommendation that GSM operators be given additional spectrum in quantities of 1 MHz, as against the current norm where they are given additional radio frequencies in tranches of 1.8 MHz to 2.2 MHz.

As per the new norms, which have been posted in DoT's the Wireless Planning and Co-ordination (WPC) wing's website, GSM operators who hold 6.2 MHz of spectrum in a circle, will get only 1 MHz of additional spectrum in the next round of allotment when their subscriber base increases.

As per TRAI recommendations, after 6.2 MHz, GSM operators get additional radio frequencies in tranches of 1.8 MHz - this implies, from 6.2 MHz to move to 8 MHz, but as per the new policy, they can only move to 7.2 MHz.

While DoT has reduced the spectrum offered, it has not brought down the subscriber base criteria, a move that is bound to see protests from leading GSM operators.

[@ksh@T 20]

Scarce spectrum lot turns free-for-all

NEW DELHI: It was a telecom rush alright, but marred by total disorder. Chaotic scenes were seen at Sanchar Bhavan, the Department of Telecom (DoT) premises on Thursday, as the government issued letters of intent (LoIs) to five new entrants—Unitech, Datacom, S Tel, Swan Connect Communications and Ruias-owned Shipping Stop Dot Com—to launch telecom services.

Simultaneously, the applications of three existing operators—Idea Cellular, Tata Teleservices and Shyam Telelink—to expand their services on a pan-India scale were also cleared while Spice Communications got the DoT’s approval to expand its services to four more circles. However, existing GSM operators and dual-tech licence holders (RCom and Tata Teleservices) will get spectrum before the new entrants.

Each of the nine players who were issued LoIs can convert them into telecom licences after they pay the Rs 1,651-crore licence fee for pan-India operations or a lesser fee if they have applied only for some circles.

The melee began after the DoT, in its official notification, indicated that all players after paying the licence fee will also have to apply to the DoT’s Wireless and Planning Co-ordination Wing (WPC) for a spectrum licence. The order of allocation of radio frequencies will then be based on the order at which the companies make the payment. Put simply, the companies that make the payment first will head the new queue for spectrum allocation.

This resulted in many chaotic scenes as representatives of the nine companies (five new entrants and four existing operators) stormed the DoT premises with demand drafts to make the payments. Verbal altercations led to pushing and shoving and the situation soon began to get out of control as the representatives jostled with each other to make the payment first.

DoT officials could do little but call the police, who restored normalcy after evicting many company executives from the office premises.

“This looks like a mad crowd rushing in to get seats on a state bus; this is a free-for-all. It is more orderly when you invite a crowd to watch a movie for free,” a representative of an leading player told ET.

“The government cannot behave in this manner. This is a telecom licence—not a free—handout,” fumed a new entrant’s executive. In fact, the chairman of an existing operator who landed up at the DoT premises was thrown out by the cops, in their bid to restore normalcy.

According to sources, the applications of HFCL, Parsvnath Developers and Cheetah Corporate Services have been rejected while those of ByCell and Indiabulls-owned Selene Infrastructure have been put ‘on hold’. This is because ByCell is yet to receive the home ministry’s security clearance while Selene is yet to get the FIPB nod, industry sources told ET.

The DoT notification has, however, remained silent on the fate of these companies’ applications. It only said, “The DoT has decided to issue LoIs to all eligible applicants before who applied up to September 25, 2007. DoT has been implementing a policy of first-come-first-served for grant of licences under which initially an application, which is received first will be processed first and thereafter, if found eligible, will be granted LoI, and then whosoever complies with the conditions of LoI first will be granted UAS licence.”

Importantly, under the existing first-come-first-served policy, three existing operators—Idea, Aircel and Vodafone—which have already been allotted LoIs, licences and even have wireless licence from the WPC, but are awaiting spectrum to launch services, will be placed ahead of these 9 companies in the spectrum queue. Idea is awaiting spectrum in 2 circles, Aircel in 7 and Vodafone-Essar in 6 circles.

At the same time, the DoT has also said service providers like Reliance Communications, the Tatas, Shyam and HFCL, who have applied for dual technology (they’ll be able to offer GSM and CDMA services in their respective circles ) will also be placed ahead of these nine companies in the spectrum queue.

In another development, ByCell, which wasn’t given LoIs, has cried foul. While the DoT letter to ByCell said its applications were not cleared due to pending security clearances, the company has pointed out that it had received the FIPB clearance to launch services in five circles as early as January, 2006.

ByCell, which was the No 1 company in the licence queue, has said security clearances were held up due to “certain false complaints filed in the name of a Member of Parliament with the PMO on October 2007”. The company also produced documentary proof to show that the same MP has clarified that his letter was a forged document and he had no complaints against ByCell.

“Therefore, the stand of DoT in keeping the ByCell files pending for security clearance on fake complaints is strange. ByCell feels that this forged complaint may have been instigated by certain competitors who may have played against ByCell, by filing fake complaints,” company executives said.

Till date, under the existing first-come-first-served policy, the priority for licences ensures the same priority in the spectrum queue. Explaining the logic behind a separate spectrum queue, DoT sources said Universal Access Licence (UASL) was an umbrella licence under which operators could offer wireless, wireline, internet telephony, internet services and even broadband service.

“However, at the same time, it does not automatically authorise the usage of spectrum to roll out mobile services, whether it be GSM or CDMA. For this, they require another licence—the wireless operating licence,” the DoT sources explained.

It also means that that players such as Idea, which top the spectrum queue, may have lost their advantage. At the same time, it also improves the prospects of players such as Unitech, S Tel, Datacom Solutions and Shyam, all of whom fall in the rear end of the queue under the earlier system.

[kesav 127]

Here is the link to LOIs issued to new operators.

http://www.dotindia.com/as/2008/LOIs%20dated%2010-1-2008.pdf

Here is the link to new subscriber based criteria

http://www.wpc.dot.gov.in/DocFiles/CDMA-GSM.doc

[Arun 795]

Reliance Communications gets spectrum for GSM services

BS Reporter / New Delhi January 12, 2008

ANIL AMBANI'S DAY OUT

Rival operators' lobby to approach Delhi High Court.

The Department of Telecom (DoT) issued spectrum to Reliance Communications (RCom), the country's largest CDMA player, for GSM operations under the cross-over technology policy for the 14 circles or service areas for which it had applied.

The cross-over technology policy allows service providers to offer customers both GSM and CDMA mobile technologies on the same licence.

The spectrum, the radio frequencies that enable wireless communications, was issued to the Anil Dhirubhai Ambani Group (ADAG) company late on Thursday night for five circles — Karnataka, Tamil Nadu and Chennai, Andhra Pradesh, Kerala, and Maharashtra & Goa.

Spectrum for the remaining nine circles was issued today.

Reliance Communications has already received a letter of intent to provide GSM services in 13 circles. The company already had GSM operations in six circles — Assam, West Bengal, Orissa, Madhya Pradesh, Bihar and Himachal Pradesh.

Responding quickly to the move, the GSM lobby Cellular Operators' Association of India (COAI) has decided to approach the Delhi High Court against the decision.

COAI has already filed a writ petition for staying the issue of spectrum under the cross-over policy. The hearing is slated for Monday.

The move closely follows COAI's failure to get a stay either from the telecom tribunal or the Delhi High Court directing the government not to issue spectrum under the new policy, which they have challenged in the courts.

The GSM lobby has maintained that the cross-over policy was malafide. The Delhi High Court, however, told COAI that it could approach the court if the government issued spectrum under the cross-over policy.

Meanwhile, DoT has also cleared the issue of spectrum to incumbents who have been waiting in the wings from December 2006.

RCOM won its first victory earlier in the day, when the Delhi High Court, hearing a petition filed by leading GSM players, refused to stay the process of spectrum allotment to Anil Ambani-owned company and other aspirants who hold the dual technology license. (Under the dual technology licence, a service provider can offer both GSM and CDMA services across the country.)

During the proceeding senior advocate Fali Nariman, appearing for GSM lobby group, Cellular Operators Association of India (COAI), requested before the single-member bench to stop the allocation of spectrum to RCom.

However, Justice Gita Mittal refused to grant a stay and directed that the matter be adjourned till January 14. Mr Nariman also mentioned an application filed by the COAI before the court to stay the whole process, but GSM players received a major setback as the they failed to find relief from the Delhi High Court.

[coolrajiv 1]

Source - http://economictimes.indiatimes.com/RCom_g...how/2693886.cms

Great news finally Reliance gets 3G & pan india license(dual technology) .. now hoping for the launch of dual mode handset in calcutta asap..

[@ksh@T 20]

@rajiv

let the service begin they cant transmit GSM waves from CDMA equipment!

[coolrajiv 1]

Lower cap spoils spectrum mood

Source - http://www.telegraphindia.com/1080112/jsp/...ory_8773370.jsp

New Delhi, Jan. 11: Much to the discomfort of existing operators, the government today placed a limit of 7.2MHz on GSM spectrum per circle for a telecom player.

The cap will negate the possibility of these firms getting extra spectrum in most telecom circles, meaning huge investments in infrastructure such as towers and boosters, if they want to accommodate more subscribers within existing spectrum space.

While notifying subscriber requirements for extra spectrum, the department of telecom (DoT) has imposed the new limit. Under the old norm, the limit was 15MHz.

The subscriber requirements had been fixed by the Telecom Regulatory Authority of India. They are tougher than existing requirements.

For CDMA players, the government has lowered the cap on spectrum to 5MHz from 7.5MHz. Many GSM operators hold up to 10 MHz of spectrum, but officials said the operators would not be asked to return extra spectrum.

According to a telecom analyst, “Spectrum space is shared by cell phone users when they use their mobile phones. Thus the number of mobile users who can use certain spectrum is limited. This limit can be expanded by using technological innovations such as boosters.”

GSM operators such as Bharti Airtel and Vodafone Essar argued that if older licence norms were taken into account, they were entitled to a maximum of 15 MHz of spectrum. Restricting that amount at this stage was arbitrary and illegal.

The Cellular Operators Association of India (COAI), which represents interests of GSM operators, today moved Delhi High Court against the new norms. “A 7.2-MHz cap on radio waves (spectrum) would put strain on telecom networks, affecting the quality of service,” a COAI official said.

However, DoT officials said the move would bring about a positive change.

“This system would not only force telecom operators to effectively utilise available spectrum but would also ensure that the quality of service, which operators argued was deteriorating because of insufficient spectrum, improved,” officials of the DoT said.

[coolrajiv 1]

Source - http://infotech.indiatimes.com/articleshow/2699506.cms

Spectrum on seniority basis: DoT

NEW DELHI: The government said spectrum to new telecom players, who were last week awarded Letters of Intent, would be distributed on the basis of who was the first to deposit licence fee -- even if the difference is a fraction of a second.

“We cannot change the policy. We have given the LoIs to the eligible candidates in a very transparent manner. First, we have to scrutinise the LoIs and in the next stage, signing of license (will take place) and then comes distribution of spectrum,” Telecom Minister A Raja said on the sidelines of a BSNL conference.

On the day of distribution of LoIs, the applicants had swarmed Sanchar Bhawan to pay the fees, seeking licence and then spectrum to start mobile services.

There are nine companies, including Unitech, Datacom, Shyam Telelink and Swan Communications, in the race to get spectrum first, an exercise which has been ridden with controversies.

Some of the applicants have suggested that spectrum to all the nine companies should be alloted simultaneously to avoid any legal battle.

Asked when the spectrum can actually be allotted to the waiting players, the minister said the availability has to be assessed and then a decision shall be taken.

On the fate of applicants who applied after September 25 and have not been considered in the first round of LoI distribution, he declined to give any definite time frame.

“They (applications received after September 25, 2007) may be considered after allotting spectrum to first batch or earlier,” Raja said.

Asked about Bycell whose application has been rejected, he said after complete scrutiny LoIs has been given. If anyone has any grievance they are at liberty to go to court.

[FEVIN-RAJ 61]

HC declines to stay spectrum allocation to RCom

New Delhi, Jan. 14 In a blow to GSM operators the Delhi High Court on Monday declined to stay the Government’s decision to allocate GSM spectrum to Reliance Communications.

Ms Justice Gita Mittal refused to pass any order after the Additional Solicitor General, Mr Vikas Singh, said it would take at least two months to complete the allocation of airwaves. The Cellular Operator’s Association of India (COAI), representing the GSM operators, had filed an appeal in the High Court against the Government’s decision to allow RCom to offer dual technology.

COAI’s appeal for a stay was turned down by the court and set the date for the next hearing to January 21. The court also issued notices to the Government, RCom, Tata Teleservices, HFCL, Shyam Telelink among others on the COAI application

http://www.thehindubusinessline.com/2008/0...11552171000.htm

[@ksh@T 20]

Spectrum to go to company which made payment first: Raja

NEW DELHI: Telecom minister A Raja on Monday confirmed that priority for allotment of spectrum to new entrants will be determined by who deposited the licence fee first.

This implies that among the nine new entrants, the company that deposited the licence fee first after collecting the Letter of Intent from the DoT would be the first to get spectrum.

So far, under the existing first-come-first-served policy, priority for licences ensured same priority in the spectrum queue. Last week, in a sudden change of policy, the DoT said that the order of allocation of radio frequencies will be based on the order of payment of licence fee. This led to chaos as all nine companies (five new entrants and four existing operators) stormed the DoT premises with demand drafts and jostled with each other to make the payment first.

The change in policy also meant that players such as Idea, which headed the earlier queue for spectrum (since it applied for licenses in mid-2006), may have lost the advantage. On the other hand, it could improve the prospects of Unitech, S Tel, Datacom Solutions and Shyam, all of whom were in the rear end of queue earlier.

The nine companies that were given LoIs include five new entrants, Unitech, Datacom, S Tel, Swan Connect Communications and Ruias-owned Shipping Stop Dot Com — and four existing players, Idea Cellular, Tata Teleservices, Shyam Telelink and Spice.

After speaking to several industry sources ET has learnt that Swan was the first to submit licence fee (but only for two circles), followed by Datacom, Tata Teleservices, Unitech and Shyam Telelink. However, it must be pointed out that the list is source-based as DoT sources refused to confirm the order.

Telcos, such as Idea, have already demanded that the government respect the ‘seniority of its applications’, as the company had been awaiting licences since 2006.

Taking pot-shots at the DoT’s move to allocate spectrum based on the order at which companies deposit the licence fee, Idea’s MD Sanjeev Aga, in a communication to the DoT said, “He (the representative) received our Letters of Intent as soon as they were given to him. He promptly sprinted with the LoIs to the ground floor reception area.

Despite the bedlam, he deposited money and all other documents, as soon as this was accepted from him. We could not have made the payment even a moment earlier than we did.” Mr Aga has added that the company’s representative had been waiting at the DoT premises since January 8, 2008 ready with payments, guarantees and all documents.

Edited January 15, 2008 by @ksh@T

[kesav 127]

Trai opposes DoT proposal

The Trai has come down strongly against DoT alleging that the latter has deviated from its recommendations submitted on August 28, 2007. Earlier the DoT had announced that it will follow Trai’s subscriber linked criteria for spectrum allocation.

“Trai is of the opinion that the DoT’s averment that Trai’s recommendation on allocation of spectrum has been accepted will not be correct.” said Trai.

Trai also objected to creation of new slab of 7.2MHz saying it will create uncertainty in the sector. It also raised concerns regarding subscriber linked criteria of upto 15 times for additional spectrum allocation in some circles reasoning that for incumbent operators it will be very difficult to grow upto that scale especially in circles like Metros.

source :: http://www.telecomtiger.com/fullstory.aspx?storyid=403

[kesav 127]

S Tel plea for LoIs for 16 circles admitted in HC

New Delhi, January 16: The Delhi High Court admitted S-Tel's petition seeking letters of intent (LOIs) for telecom licences for 16 circles. Next hearing will be on January 17 when Dot will respond.

In its petition filed on Tuesday, the company had argued that it had submitted applications for 16 circles well before the cut-off date of Oct 1, 2007.

Its applications for six circles, for which it has already got LOIs, were submitted more than two months before the Government announcement on Sep 24, 2007, that no new applications will be accepted after Oct 1 2007.

The company has also voluntarily offered to pay to the government additional Spectrum charges of Rs 13,752 crore for Pan-India GSM spectrum.

On January 10, S Tel had been awarded LoI's for 6 circles. It immediately complied with the LoI conditions by paying the applicable entry fees (Rs. 25.1 crores) and bank guarantees (Rs. 42 crores) the very same day. S Tel had also submitted applications for spectrum immediately thereafter.

In the Court hearing, S Tel counsel Mr. Soli Sorabjee argued that its case has nothing whatsoever to do with the spectrum case filed by Cellular Operators Association of India (COAI) and that S Tel was only seeking redressal of a genuine grievance arising from its unique case. S Tel had argued that theirs is a unique case since it is the only qualified applicant who has met the eligibility criteria before the cut-off date and has also got 16 pending applications. Further, the company is also willing to pay additional fee of Rs. 13,752 crores over and above the existing charges without disturbing the existing telecom policy regime.

The company is not in confrontation with any of the existing or prospective telecom operators including Reliance and Tata. In its writ petition, S Tel had categorically stated that it "does not insist that any obligations it had undertaken under its proposals be made applicable to other telecom service providers." The company had reiterated that it is "not seeking any change in policy on account of its offer, which may be considered on a stand-alone basis." S Tel has also confirmed to the Court that "it will not object to other operators being considered under the existing policy."

S Tel made a representation to the DoT the very next day, i.e., Jan 11, 2008, requesting issue of LoIs for 16 more circles, for which it had submitted applications earlier, without affecting its right to priority in allocation of spectrum as of Jan 10, 2008.

S Tel had also written to the Communications Minister and the Prime Minister last year, voluntarily coming forward to pay additional spectrum charges of Rs. 13,752 crores, over a period of 10 years, over and above what was payable as per the existing policy, and had also committed not to charge more than 30 paise per minute call to its customers for a period of 10 years.

Observers say that it will be a win-win situation, if DoT accepts S Tel's voluntary offer to pay additional spectrum charges, since it will fetch additional amount of Rs. 13,752 crores to the exchequer, while at the same time not upsetting its present policy regime or any of the other existing or prospective operators.

source:: http://www.financialexpress.com/news/S-Tel...d-in-HC/262107/

Looks interesting case....................

[kesav 127]

Higher-spectrum slabs soon: DoT

NEW DELHI: The Department of Telecommunications (DoT) appears to be in no mood for a confrontation with the regulator, and is in the process of notifying higher frequency slabs that can be allocated to mobile telecom operators.

Reacting to the recent letter from the chairman of Telecom Regulatory Authority of India (Trai) Nripendra Misra, who hit out at the government for deviating from its spectrum allocation recommendations, DoT secretary Siddhartha Behura told DNA Money on Wednesday that DoT’s objective is to remain consistent with the regulator’s views.

“We don’t want to go against or beyond the Trai recommendations,” Behura said, replying to a query on Misra’s letter to him earlier this week.

“DoT would be completely consistent and in conformity with the views of Trai,” he said.

Misra had pointed out in his letter to Behura that higher slabs of spectrum allocation (beyond 7.2 MHz) had been removed by DoT in its recent order, even though Trai had recommended up to 10 MHz of spectrum slab for GSM operators.

But Behura told DNA Money that higher spectrum slabs would also be announced by DoT “within a day or two”.

He admitted that while announcing the new spectrum allocation criteria, DoT should have clarified that a statement on higher frequency slabs was to follow shortly.

However, responding to Misra’s objection that the frequency slab after 6.2 MHz has been fixed by DoT at 7.2 MHz for the same subscriber base that Trai wanted for 8 MHz, Behura said that DoT’s interpretation was that the norm was in sync with the regulator’s recommendation.

However, “we (DoT) will clarify to Trai” if there is a need, he said.

On whether the government was planning to withdraw the extra spectrum that was allocated beyond the current norms to some of the mobile operators, Behura said, “it is premature to talk about it now.”

On the issue of revision of spectrum usage charges to be paid by telcos, the DoT secretary said that the Telecom Commission was examining the matter.

There’s a possibility of these charges going up from the current level of 2 to 6% of their annual gross revenue for spectrum between 4.4 MHz and 15 MHz.

Trai had recommended hiking the spectrum charges, and an internal committee in DoT recently proposed a revenue-share rate of 8% of AGR for up to 5 MHz and an additional 1% for every MHz.

The Telecom Commission is expected to decide on the new spectrum charges on January 22.

Meanwhile, leading mobile player Bharti Airtel on Wednesday said it expects the government to allot additional spectrum to existing operators as per Trai’s recommendation.

“They (government) have no choice but to allot additional spectrum to existing operators as per Trai’s recommendations,” Bharti Airtel chairman Sunil Bharti Mittal said on the sidelines of a summit here.

In his letter to Behura earlier this week, Misra had said, “the DoT decision (on spectrum allocation criteria) is not as per the authority’s recommendation.”

Misra added that the authority is of the opinion that the DoT’s averment that Trai’s recommendation on allocation of spectrum has been accepted will not be correct.

DoT had recently announced that it had accepted the Trai recommendation on revising the subscriber-linked spectrum allocation criteria.

The DoT, in an affidavit before telecom dispute tribunal TDSAT, had also said that, as an interim decision, spectrum is to be allocated based on Trai’s recommendation.

But, while Trai recommended allocation of 8 MHz of spectrum after the 6.2 MHz slab, the new DoT norm has fixed the highest slab for GSM operators at 7.2 MHz.

However, DoT wants telcos to have the same subscriber base for 7.2 MHz frequency slab, as Trai had recommended for 8MHz.

Misra stated that although DoT had accepted the Trai recommendation for allocation of up to 10 MHz of spectrum to GSM operators in a service area, the new order has kept the ceiling at 7.2 MHz.

This is “contrary” to the earlier DoT decision, “and will create an atmosphere of uncertainty and non-level playing field in the sector,” according to Misra.

source :: http://www.dnaindia.com/report.asp?newsid=1145618

[kesav 127]

As promised DoT has released the final spectrum allocation chart.

DoT has issued norms for additional spectrum allocation, reports CNBC-TV18. The spectrum norms are in line with TRAI recommendations and not in complete conformity. Additional spectrum will be issued in blocks of 1 mhz up to 15 mhz.

These are new norms for additional spectrum allocation. On January 9, DoT issued a fresh set of norms. But they a were a bit confusing because for the GSM operators. There was no roadmap for spectrum allocation beyond 7.2 MHz. That seems to suggest that GSM operators will not be given spectrum beyond 7.2 MHz.

Some operators like Bharti Airtel and Vodafone are already sitting on 10 mhz of spectrum, in circles like Delhi and Mumbai. It was a question whether they would have to vacate.

The Telecom Regulator shot off a letter to the Telecom Secretary saying that the norms put out are not in conformity with TRAI recommendations. DoT had, of course, filed an affidavit in the court saying that as far as additional spectrum allocation is concerned, TRAI norms will be adhered to.

So, what we are seeing now is the final version of spectrum allocation norms, especially additional spectrum allocation norms. These are in conformity with the TRAI norms. They have been presented a little differently. On first glance, they look confusing. But sources in DoT and the industry said that they are largely in in conformity.

The only catch is that it is going to be allocated in blocks of 1 mhz, as against TRAI recommendations, which were for additional allocation and blocks of 1.8 to 2.4 mhz.

The only reason where GSM operators are still upset is because technically, DoT has not completely adhered to TRAI norms.

On the face of it, it is marginal relief for GSM operators, because the order on January 9 was a bit of a shocker for them. So, they can take a bit of a relief with this piece of news.

As of now, they don’t see spectrum allocation beyond 15 mhz, which has been a stated government position. So, the order is very categorical saying that, as and when spectrum is made available, it will be given to operators and in certain circles. The process of allocating has already begun.

This criteria is still a lot harsher than the existing norms, which were in place since 2006. So, a lot of circles and GSM operators have not reached the benchmark.

It is learnt from analysts that, for example, Bharti Airtel would have reached these benchmarks now on at least six-seven circles. We can expect an allotment of GSM spectrum for Bharti Airtel in at least seven circles and that could happen in about a month from now.

source :: http://www.moneycontrol.com/india/news/bus...n-/13/48/321953

[kesav 127]

Here are official links

http://www.wpc.dot.gov.in/DocFiles/GSM%20Subscribers.doc

http://www.wpc.dot.gov.in/DocFiles/CDMA%20Subscribers.doc

[Arun 795]

Advantage Reliance Communications

Business Standard - Mumbai January 19, 2008

While GSM mobile phone firms Bharti Airtel and Vodafone-Essar remain locked in battle with the ministry of telecommunications for extra radio spectrum to run their operations, CDMA mobile phone firm Reliance Communications can finally expect to steal a march over them now that it has also been given GSM spectrum in all 22 telecom circles across the country.

Of the 85 million new mobile connections of all types (both GSM and CDMA) added in the country between November 2006 and November 2007, nearly 27 per cent were accounted for by Bharti Airtel as compared to a mere10 per cent by Reliance and 13 per cent by fellow CDMA mobile provider Tata Teleservices, underscoring Reliance’s need to begin offering the more popular GSM mobile services.

Beginning GSM mobile services is also critical since the Average Revenue Per User (ARPU) is much higher for GSM firms which, on average, earn Rs 275 per month as compared to Rs 173 for all the CDMA mobile firms. So far though, Reliance has managed to show an operating profit margin equal to Bharti’s due to the lower operational and capital costs of CDMA mobiles. In the second quarter of 2006-07, Bharti’s turnover was 1.2 times Reliance’s and this rose to 1.4 in the second quarter of 2007-08. In terms of operating profits, this difference rose 1.3-1.4 times in the same period.

What’s important for Reliance’s GSM foray is that it has a big advantage over the two or three newcomers who are also expected to begin operations in the GSM mobile space. Not one to waste time, Reliance has already reportedly placed orders for 80-100 million lines to be set up over a period of about three years.

The Reliance advantage is two-fold. Bharti Airtel and Vodafone-Essar’s quality of service is declining with the existing spectrum over-stretched, so if Reliance gets its GSM mobile network up and running fast, it can hope to attract several of their customers. If it gets the companies’ older subscribers, this will hike its ARPU even more — in general, older subscribers, generally in the metros, pay a higher ARPU than non-metro users and are often heavier users of value-added services as well.

In the thick of the fight between the GSM mobile phone firms and the telecom ministry, Telecommunications Minister A Raja had announced that number portability would be introduced from April this year — this will allow Reliance to attract customers of existing GSM mobile phone firms.

With the Telecom Regulatory Authority of India (Trai) increasing the subscriber requirements two to three times for spectrum allocation, existing GSM mobile phone firms may be in a position to improve the quality of their services. In spite of several of them soon qualifying for fresh spectrum in some circles, they may still not get it.

The new subscriber norms notified by the ministry include allocation of spectrum till just 7.5 MHz, while firms like Bharti Airtel and Vodafone-Essar already have 10 MHz and will soon qualify for 12.4 MHz!

This is the reason why Trai chief Nripendra Misra has written letters of protest to the Department of Telecommunications (DoT). Misra has said that while he had prescribed a subscriber-linked path for the allocation of up to 15 MHz of spectrum, the DoT had notified a path of just up to 7.5 MHz.

In comparison with the new GSM-mobile players who’ve just been given their licences/spectrum, Reliance Communications has a cost advantage of anywhere between 20 and 40 per cent. As Romal Shetty, consulting firm KPMG’s executive director, points out, 60-70 per cent of Reliance’s existing CDMA infrastructure (the towers) can be used for its new GSM network.

A good way to illustrate this is to look at the country’s expected mobile phone subscriber base of 500 million by 2010. If Reliance is to get 20 per cent of this market, it needs to get around 65 million more subscribers. Assume all of these are to come from GSM mobile services and not from CDMA that Reliance offers at the moment.

To service such a market, a newcomer would have to set up 65,000 towers (assuming one tower can service an average of 1,000 customers) which could cost around $4bn and another $2.5bn or so for the electronics.

Reliance, however, already has 22,000 towers, according to company officials. So, while it will need to spend around $2.5bn on the electronics for GSM services, it will need to build just 43,000 new towers — this reduces its overall capital costs by around a fifth (given that Reliance has transferred all its towers to a separate business, Reliance Telecom Infrastructure Limited (RTIL), the capital costs talked of refer to RTIL — the point, however, remains since the revenues Reliance Communications will pay RTIL will depend upon the overall cost the latter incurs).

Reliance officials, however, claim that they will have 40,000 towers up and running by the end of this fiscal. Though rivals argue it is not possible to ramp up so fast, it is useful to see the impact of this on its costs. If the company has 30,000 towers, and needs to build just 35,000 more, its capital costs will fall to $4.7bn or nearly 30 per cent less. If the company has 40,000 towers, the capital costs go down by over 35 per cent.

In the first year of operations, however, Reliance’s savings will be a lot more since it can use its 22,000 existing towers first and simply instal the GSM electronics required on them — for the first 22 million or so subscribers that these towers can accommodate, Reliance’s capex costs will be a mere $35-40 per subscriber, according to Shubham Majumder, associate director-research, who tracks telecom at Macquarie Capital. This is in comparison to the $100 or so that newcomers will have to invest in capex per subscriber.

Obviously, existing mobile phone firms such as Bharti Airtel and Vodafone-Essar will also be able to expand at $30-40 per subscriber since they can use their existing towers and just need to add in electronics — but if the firms don’t get additional spectrum, such comparisons are meaningless. This is the crux of the current tussle between the GSM mobile firms and the ministry of telecom.

While many believe it will be difficult for Reliance to offer both CDMA mobile and GSM mobile services at the same time, there are some precedents for this. Vivo, the largest operator in Brazil and the country’s only CDMA operator, moved to a GSM network three years ago and 70 per cent of its net additions came from GSM services. For now, it is definitely advantage Reliance.

[kesav 127]

Tata Tele blames TRAI for GSM bias

New Delhi, Jan 19 Tata Teleservices on Friday said that the stance taken by the Telecom Regulatory Authority of India on spectrum was discriminatory and favoured GSM operators.

In a letter to the Department of Telecom, the company said: “ We are pained, distressed to note that TRAI’s concerns on DoT’s implementation of interim spectrum allocation norms are relating to GSM operators who are already holding more spectrum than the contracted amount under their licence and who are admittedly not using the spectrum efficiently.”

Mr Anil Sardana, MD, Tata Teleservices, said: “TRAI has acknowledged that a fully loaded GSM network has similar spectral efficiency as that of CDMA network… But in spite of that, TRAI’s recommendations to double the spectrum to GSM is highly discriminatory and loaded in favour of existing GSM operators.”

The Association of Unified Telecom Service Providers of India has also written a letter to the Minister of Communication supporting the decision to issue letters of intent to new operators.

“An impression is also being created that the entry of new operators is limited by the amount of spectrum availability… The issue of spectrum to any licensee is always subject to the availability and this is so provided in the licence agreement itself which provides for a separate specific authorisation and licence. It would, therefore, be incorrect for anybody to claim that no licenses can be issued without the spectrum.”

source :: http://www.thehindubusinessline.com/2008/0...12050960500.htm

TRAI and DoT should be clearly know that what has been suggested now[till 15 MHz in increments of 1MHz] is just intermediate arrangement as suggested by DoT's committee.

DoT should immediately form technical committee to study whether TEC recommendations can be feasible in field as recommended by DoT committee.

The committee should also be assigned task of formulating the path for returning excess spectrum.

TRAI and DoT's endeavour should be make operators deploy most spectrum efficient technologies in India.

Just because Reliance got GSM spectrum should not turn the tables upside down. TEC recommendations are not something which just come out of dream its based on many technologists' work. When everybody accept if its theoretical possible then what's prohibiting in giving life to it in field. Let the new technical committee being formed answer this question.

I request sincere parliamentarians to press for this issue since now all the operators will be against it since Reliance and TATA has got GSM spectrum.

Edited January 20, 2008 by kesav

[Arun 795]

GSM firms ready to launch services with less spectrum

Business Standard - Mumbai January 21, 2008

In a desperate attempt to grab spectrum and start operations in new circles ahead of rivals, leading GSM operators have informed the government that they are willing to start services with less than 4.4 MHz spectrum.

Vodafone Essar has intimated its willingness to start operations in new circles where the availability of spectrum is less than 4.4 MHz.

According to informed sources, other service providers like Bharti Airtel and Aircel Communications too have expressed their readiness to start operations with lesser spectrum.

This is in variance with current norms, where operators need to have at least 4.4 MHz of spectrum to kick off their services. This, experts said, would also compromise the quality of their services.

The initiative comes at a time when the Telecom Regulatory Authority of India (Trai) is looking at ways to improve the quality of mobile telephone services in the country. The current plans of the GSM operators will require special permission from the telecommunications ministry.

“A lot of GSM operators have informed us that they were willing to commence operations where initial spectrum is less than 4.4 MHz.

At present there are a lot of circles in the country where the availability of initial spectrum is much less than 4.4 MHz,” an officer in the Department of Telecommunications told Business Standard.

He pointed out that these circles where the GSM operators want to start their services include certain metros where higher bands have been allocated, and border areas where spectrum of just around 3 MHz is available.

When contacted, the Cellular Operators’ Association of India (COAI), the lobby group for GSM operators, confirmed the development.

COAI Director General TV Ramachandran said: “Starting the services is our primary concern and we are ready to commence operations with lower frequencies in circles where higher frequencies are not available. We want the services to take off.”

[kesav 127]

DoT spectrum norms under CVC scanner

The CVC has now raised questions over DoT’s recent norms on license as well as spectrum issues and wants DoT to furnish replies before January 24 followed by ministry officials appearing before it by January 28.

The CVC wants to know reasons behind allocation of spectrum beyond 6.2MHz and reasons for not auctioning the spectrum beyond 6.2MHz.

The CVC has also raised questions on two of DoT’s decisions made in 2002. The first one raises question on the continued practice to allot spectrum upto 10MHz and the other raises concern on DoT decision to allot spectrum upto 8MHz if the operator’s subscriber base touched 5 lakhs.

It asked DoT why it has followed a uniform spectrum policy for all the circles where as in reality India is a country with diverse geographical conditions and population density.

Never ending drama.......

source :: http://www.telecomtiger.com/fullstory.aspx?storyid=448

[Chirag Thakkar 4]

Huawei bags RCom’s $600 mn GSM contract

22 Jan, 2008, 0020 hrs IST,Joji Thomas Philip & Deepshikha Monga, TNN

NEW DELHI: Telecom major Reliance Communications (RCom) is learnt to have awarded a nationwide GSM rollout contract for electronics valued at about $500-600 million to Chinese telecom network major Huawei. The contract is for the 14 circles for which the telco recently received GSM spectrum.

When contacted, an Rcom spokesperson declined to comment. However, according to sources, advanced negotiations went on over the past weekend and the announcement on the contract is expected shortly.

Rcom’s equipment contract to Huawei would be the first nationwide GSM rollout contract for electronics and more contracts for various equipment categories are expected to be signed over the next couple of weeks. Under its GSM rollout plans, Rcom plans to invest over Rs 6,000 crore in GSM electronics alone.

Rcom got GSM licence in December 2007 and the department of telecom (DoT) allotted it spectrum for 14 circles early this month. The GSM operators’ body, Cellular Operators’ Association of India (COAI), continues to oppose DoT’s move to allow dual-technology operations and is currently involved in a legal battle with the telecom department over the same.

Rcom has been allotted 4.4 MHz of start-up spectrum in the 14 circles by DoT. Reliance, through its wholly-owned subsidiary, Reliance Telecom, already offers GSM services in the remaining eight circles.

Rcom had earlier floated the tender for 80-100 million GSM lines, valued at around $6-billion and touted as the country’s largest order for telecom equipment and one of the largest worldwide. The order, spread over a three-year period, is likely to be finalised in the next few weeks. The order will have both 2G and 3G components.

It would be a major win for Huawei too, which lost out on the BSNL tender for 45.5-million GSM lines. The BSNL tender was later halved to 22.75 million GSM lines and was bagged by global equipment majors Ericsson and Nokia-Siemens.

Rcom will roll-out GSM services in the 14 circles within the next couple of months and is expected to offer tariffs that are up to 30% lower than the prevailing GSM call rates.

Rcom said the rollout of GSM services would help it target the fast-growing subscriber additions of 6 million GSM subscribers every month and address the telecom requirements of the existing 172 million GSM customers with the launch of nation-wide GSM network in addition to its CDMA network.

Source:

http://economictimes.indiatimes.com/News/N...how/2719292.cms

[kesav 127]

DoT to start allotting spectrum to new players in some circles

NEW DELHI: The government will soon ink the telecom license agreement with nine firms that have been issued Letters of Intent earlier this month, followed by allotment of start-up spectrum in some circles.

License agreements are expected to be signed with all the nine LoI holders in the next two days and spectrum would be allotted subsequently, to begin with, in those circles where it is available readily, telecom ministry officials said.

Four firms have got LoIs for pan-India operations while others have got for additional circles. The nine companies are Unitech, Datacom, Shyam Telelink, Loop Telecom, S Tel, Swan Telecom, Spice Telecom, Idea and Tata Teleservices.

Officials said that Department of Telecom (DoT) is also having consultations with the Defence Ministry for early release of spectrum so that the same could be allotted to new players to start mobile services.

This would intensify competition in the mobile telephony and would lead to fall in tariffs.

A decision has been taken and licence pacts would be signed with all the companies, they said. Although some of the companies have approached telecom tribunal TDSAT and Delhi High Court to stall spectrum distribution, the process has not been stayed so far.

The DoT has been saying that entry of 5-6 new pan-India operators would bring mobile tariffs down by at least 50 per cent within a year of their starting services.

In fact, telecom minister A Raja is understood to have prepared a road map for bringing down mobile tariffs to just 25 paise a minute for a local call and that could be done only by bringing new competition to the existing players.

All the nine companies had deposited the requisite fee and bank guarantees on the day of getting LoIs, literally vying with each other to become the first applicant to get spectrum.

The DoT has decided to follow a first-come-first-serve policy for allocation of spectrum, meaning those who paid the fees first - be it even by a fraction of a second - would get spectrum first.

Asked whether there was scope for mobile tariffs to come down further, as most of the existing operators have been claiming that tariffs in India were the lowest in the world, the official said going by the purchase power parity, tariffs were still very high and can be lowered by over 50 per cent.

This would be possible only by allowing new operators to start services and this would not only make telecom services more affordable, but also improve quality as existing firms were lacking in quality parameters in most of places.

Officials also said that next step should be immediate implementation of number portability that would help improve quality of services, as the operators would upgrade their networks to retain subscribers.

Although some players have cried foul over the seniority list prepared by the DoT, the department was of the view that most companies were expected to be accommodated for spectrum allocation. Some of the firms are of the view that frequency should be distributed simultaneously to avoid any controversy.

Asked which are the circles (states), where spectrum is currently available, the official declined to give details but sources said the frequency scenario was not that bad in places other than in metros, especially Delhi and Mumbai.

http://economictimes.indiatimes.com/DoT_to...how/2740638.cms

I'm also eagerly waiting for announcement from DoT to get back excess spectrum and constitution of technical committee to study the feasibility of implementing TEC spectrum recommendation in detail.