The Spectrum Tussle - Cdma V Gsm

[Honest 836]

^^^

Thats a great step taken by DoT my dear friends.

The benefits must be passed on to the customers.

Regards.

[kesav 127]

Tata Tele’s GSM plans approved, but no visibility on spectrum

New Delhi: The department of telecommunications (DoT) has modified the licence agreement of Tata Teleservices Ltd (TTSL), India’s fifth biggest wireless services firm by subscribers, clearing the regulatory path for launch of the company’s GSM-based phone services, but it is not likely to be given any priority on allocation of spectrum rights among a set of telecom firms.

Spectrum refers to the airwaves that allow communication between wireless devices such as mobile phones and walkie-talkie radios.

Both Reliance Communications Ltd (RCom) and TTSL, India’s top firms using the so-called code division multiple access (CDMA) technology, were allowed by DoT late last year to start phone services using GSM, a rival technology platform that serves around 75% of more than 230 million mobile phone users in India.

Date issues: Managing director of Tata Teleservices Anil Sardana.

The approval enables these firms to compete more effectively against rivals Bharti Airtel Ltd and Vodafone Essar Ltd.

While DoT amended the licence for RCom in October last year, enabling a quick allocation of GSM radio spectrum earlier this year, TTSL’s application got amended just last week.

“We submitted our spectrum application to WPC immediately after the amendment of the licence was issued,” a TTSL spokesperson said.

WPC is short for the wireless planning and coordination wing, a government agency that distributes spectrum rights among different users.

TTSL will be in line for spectrum allocation depending on when it made its application at WPC, which follows a first-come, first-served rule, a senior DoT official said. “We are going to give spectrum based on the date of application made at WPC; there is no preference for companies seeking cross-over radio spectrum,” said the official, who is involved with the allocation of spectrum, asking not to be identified.

Around nine telecom aspirants—STel Ltd, Shyam Telelink Ltd, Swan Telecom Ltd, Loop Telecom Pvt. Ltd (a subsidiary of BPL Mobile Communications Ltd), Spice Communications Pvt. Ltd, Idea Cellular Ltd and TTSL, besides Unitech Ltd and Datacom Solutions Pvt. Ltd (a subsidiary of Videocon Industries Ltd)—have signed more than 100 telecom licences with the government, and have applied separately for radio spectrum at WPC.

However, in order to avoid any debate about the priority of spectrum allocation, the government plans to dole out start-up spectrum to more than nine firms, including TTSL and real estate firm Unitech, in four states.

“By end of March, we should be able to allocate start-up spectrum to all the licence holders in four licensed areas of Andhra Pradesh, Kerala, Orissa and Tamil Nadu,” the official added. These four states have almost 40MHz of excess radio spectrum.

This means that whenever DoT allocates radio spectrum for the remaining 16 service areas, depending upon the availability of spectrum, TTSL will have to wait until other applicants before it are allocated frequency rights. “During the next round of spectrum allocation, we are less likely to have sufficient airwaves to accommodate all companies at one go; that’s when the date of WPC application will count,” the DoT official said.

“If WPC allocates spectrum based on the date of making application at WPC, Tata’s GSM plans would definitely get hit because many others would be ahead of Tata Teleservices,” said Yogesh Kirve who tracks the sector at Mumbai-based Anand Rathi Securities Ltd.

The uncertainty in spectrum allocation could also impact TTSL’s GSM equipment purchase contract for more than 30 million phone lines. “They may want to procure equipment for the four states where spectrum is available, and order more as the roll-out progresses,” said a senior executive at a telecom equipment firm, who did not wish to be identified.

The TTSL spokesperson declined comment on delays in allocation of spectrum, as a decision of the Delhi high court is pending on the issue. The high court has reserved its judgement on the issue of CDMA firms being given GSM spectrum rights and a new subscriber-linked formula for radio spectrum allocation.

source :: http://www.livemint.com/2008/03/12235508/T...M-plans-ap.html

So the people of Andhra, Kerala, Orissa and Tamil Nadu will enjoy more competition than other service areas atleast till this year end.

So lucky guys enojoy...........................

[@ksh@T 20]

Reliance Communication at loggerhead on spectrum issue

NEW DELHI: GSM operators on Thursday asked the government not to entertain Anil Ambani-led Reliance Commuications' request of alloting GSM spectrum in the 900 MHz band, and claimed that existing players have the first right on this band.

Spectrum is the radio frequency used by telecom operators to offer wireless mobile services.

"First, crossover allocation of GSM spectrum to CDMA operators is not permissible... it is submitted that the said CDMA operators (Reliance) was alloted spectrum in 1800 MHz band after due consideration and its request within weeks to swap its spectrum band with 900 MHz is completely untenable and cannot be entertained by the DoT," COAI said in a letter to telecom secretary Siddartha Behura.

GSM operators' lobby COAI also said the policy of crossover spectrum itself is also challeneged in the telecom tribunal and the legality of this policy is yet to be subjected to a detailed judicial scrutiny.

Reliance Communication has been allocated GSM spectrum in 1800 MHz band and has asked the Department of Telecom (DoT) to swap it with 900 MHz, which is much more efficient in terms of servicing the subscribers.

Ambani had earlier raised the issue with the DoT that the spectrum in 900 MHz band has been cornered by the existing GSM operators illegaly and needs to refarmed, a demand compaletely opposed by the COAI.

If accepted, the existng GSM players may have to surrender part of spectrum in the 900 MHz band and may have to settle with 1800 MHz.

[@ksh@T 20]

Spectrum War Round II: GSM, CDMA providers fight over eGSM band.

NEW DELHI: A new round of spectrum battle has broken out between existing GSM operators and CDMA players who are launching GSM services after the government recently approved mobile services on dual technology. This time around, they are battling for the rights to use the ‘eGSM band’.

The ‘eGSM band’ involves radio frequencies of 880-890 MHz paired with 925-935 MHz. The GSM operators’ body, Cellular Operators’ Association of India (COAI), has said that globally this band is used by service providers to offer GSM-based mobile services and all the GSM equipment manufactured worldwide is attuned to operating in this band. In India, however, this band was earmarked for CDMA-based mobile services though it was never allotted to CDMA operators.

Without naming Reliance Communications, the COAI has said that “a large CDMA operator who is desirous of offering GSM-based mobile services, and who, in fact, has also been allocated GSM spectrum in the 1800 MHz band, has represented to the DoT that he be allowed to ‘swap’ his 1800 MHz allocation and instead be allocated GSM spectrum in the eGSM band”. At present, all GSM players offer telecom services in the 900 MHz and 1800 MHz bands.

COAI claims that RCom has approached the department of telecom (DoT) to swap its GSM spectrum in 1800 MHz band in return for spectrum in the eGSM band.

“Without prejudice to our contention that crossover allocation of GSM spectrum to CDMA operators is not permissible, it is submitted that the said CDMA operator was allotted spectrum in the 1800 MHz band after due consideration and its request within weeks, to “swap” its 1800 MHz spectrum allocation with 900 MHz spectrum is completely untenable and cannot be entertained by the DoT,” the COAI said in its communication to the DoT.

The GSM industry association has also said that GSM operators have been making repeated submissions to the DoT to make the eGSM band available for GSM-based mobile services as all equipment imported and used by the Indian GSM operators since 1994 is already attuned to offer mobile services in this band.

It added: “In any event, it is submitted that if and when the eGSM spectrum is made available by DoT for GSM-based mobile services, then it would be the incumbent GSM operators who have been repeatedly seeking access to this spectrum that will have the first right to this spectrum.

It may also be noted that the refarming of the eGSM band is a policy matter and must be decided transparently and equitably and cannot be a matter of bilateral agreements between one (set of) operators and the government.” the COAI communication added.

[u][b]What’s eGSM band? [/b][/u]
It involves radio frequencies of 880-890 MHz paired with 925-935 MHz. 

[u][b]Who uses this band? [/b][/u]
GSM operators’ body, COAI, says that globally this band is used by service providers to offer GSM-based services and GSM equipment manufactured worldwide is attuned to operating in this band. In India, however, this band was earmarked for CDMA-based mobile services but it was never allotted to the CDMA operators. 

[u][b]What does COAI want? [/b][/u]
COAI claims that RCom has approached the DoT to swap its GSM spectrum in 1800 MHz in return for spectrum in the eGSM band. COAI says that crossover allocation of GSM spectrum to CDMA operators is not permissible. It points out that RCom was allotted spectrum in 1800 MHz after due consideration & its request to “swap” its 1800 MHz with 900 MHz spectrum is untenable.

Govt should not delay allotting 3G spectrum: Mittal

NEW DELHI: India should not delay allotting third-generation (3G) radio frequency or spectrum to telecom operators and lose out on its business potential, Bharti Airtel chief Sunil Mittal said here Friday.

"Indian consumers are completely ready for 3G services. The services are ready, the price point is there, but somehow the government is unnecessarily delaying it," Mittal, head of India's largest telecom service provider, told a conclave.

"I hope India puts the 3G spectrum on auction soon. We are already two years late, we cannot afford to delay it more," he added.

Currently, only second generation (2G) spectrum is distributed to telecom operators on first-come-first-served basis. The government is mulling auction of the 3G spectrum.

However, according to the TRAI, the auction should be limited only to the existing leading operators who can provide a more commercially viable 3G service.

The 3G mobile phone services enable users to surf faster than now the Internet and download music, videos and other value added services.

India is the world's fastest growing mobile phone market with the lowest call tariffs of below two US cents. The market has emerged as the cynosure of global telecom giants.

The Richard Branson-promoted Virgin Mobile is the latest to make the foray into the Indian market. It announced its entry into the Indian market last week in partnership with Mumbai-based Tata Teleservices.

The Indian government has set a target of 500 million users by 2010; half of this target, 250 million, was reached last year.

[kesav 127]

New telecom players getting restless over spectrum

Goa, March 27: New entrants in the telecom arena have begun questioning the government's rationale for withholding release of radio frequency, although nine circles have 50-60 Mhz of frequency that is good to meet their requirement.

An official of one of the new telecom licensees said that the frequency or spectrum available in these nine circles, including Maharashtra and Kolkata, was enough to accommodate both new players as well as the need of existing GSM players.

The murmurs have started as any delay in allocation of spectrum would deny them a chance to partake in the telecom growth story, which is seeing addition of more than seven million users per month.

Idling the available resource will give advantage to existing GSM players, as well as Reliance Communications (which has secured GSM spectrum under dual technology clause), besides affect government's revenues and growth of telecom sector, sources contended.

One of the new entrants in the field said that further delay could also spoil the business of new players, who are likely to put in huge investments to roll out networks.

The new players, who have made the required payment for the spectrum more than two months ago, include Videocon promoted Data Com, Shyam Telelink which has partnered with Russian telecom giant Sistema, realty major Unitech, Swan Telecom, B K Modi's Spice Communications and S Tel.

Earlier, the government had indicated that they would start allocating spectrum to new players wherever it is available, while continuing negotiations with the defence ministry for vacation of more spectrum in other states.

For this, the Department of Telecom (DoT) had carried out a feasibility study to ascertain the availability of radio frequency in each state district wise.

According to highly placed sources, DoT is understood to have divided the country into three categories with circles that have spectrum in abundance, little and no spectrum at all.

Asked by when DoT may start allocating spectrum, sources said it may take another month or even more. Some of the new players, who are in favour of floating a parallel lobby to existing GSM body Cellular Operators Association of India (COAI), have alleged that the existing GSM operators were adopting tactics and putting pressure on the government to delay the allocation of spectrum by filing court cases one after another.

But neither telecom tribunal TDSAT nor Delhi High Court has stayed the process of allocation of spectrum. In Delhi, the most crowded market as regards cellular services, only one new telecom player can be accommodated and going by the first-come-first-serve policy of Telecom Minister A Raja, only Swan Telecom would qualify for spectrum.

Sources said that in nine circles -- Andhra Pradesh, Chennai, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Orissa and Tamil Nadu -- about 50-60 MHz of spectrum is available and was sufficient to allocate start up spectrum of 4.4 MHz to all the new players.

The second category include circles other than border states like Haryana, Himachal Pradesh and Mumbai where some spectrum is available and only one or two players can be accommodated, sources said, adding that DoT may wait to get additional spectrum from defence ministry to entertain all the new players simultaneously so that no one could raise the controversial issue who should get it first....

source :: http://www.financialexpress.com/news/New-t...pectrum/289132/

Valid restlessness...................Why Govt. is delaying the allocation on the circles where they can accomodate all the players?

[kesav 127]

New entrants get the code

New Delhi, March 30: New telecom licensees have been allotted five-digit codes as a prefix for 10-digit cellular numbers by the DoT. Spectrum will be distributed soon to start services.

source :: http://www.telegraphindia.com/1080331/jsp/...ory_9077116.jsp

[kesav 127]

Here is the list of UAS licences issued in the month of February & March, 2008.

Check it to find the new operators in your service area.......

Its time for party for consumers.....

http://www.dot.gov.in/uas/2008/List_of_120...nces_signed.pdf

[kesav 127]

2G spectrum for new telcos by April-end

NEW DELHI: The Department of Telecom (DoT) plans to allot start-up spectrum to nine new telecom licence holders by the April-end. However, the catch is that the initial allotment of radio frequencies is likely to be limited to just four telecom circles—Kerala, Andhra Pradesh, Orissa and Tamil Nadu (including Chennai).

ET has also learnt that the DoT is likely to award GSM spectrum to the Tatas on a pan-India basis under the dual-technology licence. The Tatas had got the DoT nod to offer GSM services across India in February, 2008. At present, the Tatas offer CDMA-based mobile services across India, except in Assam, Jammu and Kashmir and the North East circle.

Earlier this year, the DoT had allotted 4.4 MHz of GSM spectrum to Reliance Communications in 14 circles under the dual technology licence. As per the new telecom policy, dual technology licence holders will be allotted spectrum ahead of the other new entrants.

The DoT has also written to all new entrants informing them of their access codes in all circles. Videocon-owned Datacom, Idea Cellular and Unitech (in 12 circles) have been assigned ‘90’ access code — this implies that mobile phone numbers of subscribers who opt for the services of these telcos will begin with 90.

Ruias-owned Loop Telecom, S Tel, Swan and Spice have been alloted the 91 code. In the remaining 12 circles, Unitech has been assigned the 91 access code. These two access codes can together support about 200 million new telephone numbers.

So far, amongst the new players only Datacom has unveiled its plans for its telecom foray. Unitech on the other hand is learnt to be in talks with US telecom major AT&T, Qatar Telecom, Russia’s Altimo and Africa’s MTN for potential JVs. Unitech, which is being advised by Mc Kinsey, will announce its JV partner within the next two months.

Great News for Kerala, Andhra Pradesh, Orissa and Tamil Nadu (including Chennai).

:clap:

source :: http://economictimes.indiatimes.com/3G_spe...how/2918043.cms

See the fun.......Economic Times has named the topic as "3G spectrum for new telcos by April-end" instead of "2G spectrum for new telcos by April-end"

[kesav 127]

Things are getting even murkier........

I thought there is light at the end of tunnel but now I'm realizing its the head-light of incoming train.

Another slew of litigations and no operations........

Govt may allocate just 3.3MHz spectrum to telecom start-ups

DoT mulls lowering the threshold for start-up spectrum from 4.4MHz to accommodate up to six new entrants

New Delhi: India’s department of telecommunications, or DoT, is evaluating whether it should allocate companies waiting to start mobile telephony services 3.3Mhz of radio waves, or spectrum, instead of the 4.4Mhz that is usually done, because there isn’t enough of it to share among the many companies in line.

Nine companies—STel Ltd, Shyam Telelink Ltd, Swan Telecom Ltd, Loop Telecom Pvt. Ltd (a subsidiary of BPL Telecom), Spice Communications Pvt. Ltd, Idea Cellular Ltd, Tata Teleservices Ltd, Unitech Ltd and Videocon unit Datacom Solutions Pvt. Ltd—are waiting for spectrum to start services. Reliance Communications Ltd, or RCom, India’s second largest wireless phone firm, has already been given a licence and spectrum rights to start services nationwide on the GSM technology platform.

The company already serves around 33 million customers on the rival CDMA platform.

With some 20MHz of spectrum expected to be made available by India’s defence forces later this year, DoT currently plans to issue frequency rights to four firms. By lowering the threshold for the so-called start-up spectrum, it will be able to accommodate up to six firms.

Phone firms in India, the world’s fastest growing mobile market that adds some eight million subscribers every month, have been demanding more spectrum to run their networks. Radio spectrum, an increasingly scarce resource, carries voice signals between mobile handsets and enables wireless communication.

“This (reducing the amount allotted) could be a possibility because we need to accommodate all, and also ensure that there is spectrum available to meet the future need of these companies,” said a senior DoT official who did not wish to be identified. “However, we plan to take this issue up with the new entrants.”

In the past, incumbent operators such as Bharti Airtel Ltd and RCom were given an initial chunk of 4.4Mhz for starting phone services.

Meanwhile, the wireless planning and coordination (WPC) wing says any such move could invite another set of litigation against the government.

“There is a need to have a more long-term approach for spectrum allocation and sufficient thought should be given while issuing licences,” said a senior WPC official who did not wish to be identified. WPC is responsible for accepting and processing applications for spectrum allocation.

As of now, going by the spectrum available before release of frequencies used by the defence, phone service aspirants can get radio spectrum in just four licensed areas—Andhra Pradesh, Kerala, Orissa and Tamil Nadu (including Chennai)—as DoT has identified these states with sufficient radio spectrum to have nine start-up service firms which have been invited to set up phone networks.

As reported by Mint on 17 January, India’s most lucrative telecom markets, Mumbai and New Delhi, are unlikely to see any new phone services operator until the country’s defence forces free up spectrum in these cities.

One expert said if the start-up spectrum norms are changed, it could affect the scalability of the new businesses. “Lesser spectrum means lesser capacity and a lower number of customers,” said Prashant Singhal, telecom practice leader at audit and consulting firm Ernst and Young’s New Delhi offices. “If the start-up spectrum is less than 4.4MHz, the specifications of equipment will change.”

source :: http://www.livemint.com/2008/04/02003145/G...just-33MHz.html

[kesav 127]

Here is the news that we've anxiously waited for more than a year (atleast for last 6 months).

Shyam-Sistema get start-up spectrum

New Delhi (PTI): In a major development, the government on Thursday started allocating spectrum to new telecom players, with Shyam-Sistema becoming the first to receive start up radio frequency for starting CDMA services in various parts of the country.

Shyam-Sistema, a joint venture India's Shyam Telelinks and Russia's Sistema, has been given 2.5 MHz (equivalent of 4.4 MHz of GSM) in the seven states of North-East, Jammu and Kashmir and Assam, official sources told PTI.

Commenting on the development, Rajiv Mehrotra, Chairman of Shyam Group, told PTI: "We are delighted that the government has opened up the way for new telecom players to operate telecom services as soon as possible and this is a major step towards offering cost-effective mobile services."

Russian conglomerate has already announced up to five billion dollar (Rs 20,000 crore) investment in the Indian telecom sector. Shyam-Sistema, which currently offers mobile service in Rajasthan, has got licenses for rest of the circles.

Asked about the company's plans to enter GSM arena, company officials said they would be seeking GSM spectrum under the dual technology clause.

But allocation of CDMA spectrum would give advantage to Shyam-Sistema joint venture to start services faster ahead of other new telecom players.

DoT officials said that Communication Minister A Raja has cleared the file for allocating spectrum to Shyam and may start releasing GSM frequency from next week onward.

Apportioning of spectrum among new service providers will pave the way for more competition and cheaper tariffs.

source :: http://www.hindu.com/thehindu/holnus/000200804031741.htm

The first showers goes to our brothers and sisters of NE(including ASSAM) and J&K.

Edited April 3, 2008 by kesav

[kesav 127]

Tata Teleservices gets CDMA spectrum for three circles(NE, Assam and J&K)

New Delhi: Tata Teleservices on Friday became the second company to receive spectrum for north-east, Jammu and Kashmir and Assam, which also makes it the second CDMA operator to have pan-India operations.

The company is also in queue for GSM spectrum under the dual technology clause. Tata Teleservices has applied for GSM spectrum in all 23 telecom circles.

The government had on 3 April started allocating spectrum to the applicants, with Shyam-Sistema becoming the first operator to get radio frequency.

Tata Teleservices was given the license for these three circles last month along with other firms including Videocon promoted Datacom, Swan Telecom, S Tel, Idea, Spice and Shyam Telelink and others.

Tatas have been allotted 2.5 MHz of CDMA spectrum band. The company had earlier objected to government’s policy of distributing less quantity of spectrum to CDMA operators compared to their GSM counterparts.

GSM based operators get 4.4 MHz start-up spectrum while for CDMA services, the Department of Telecom (DoT) gives only 2.5 MHz. The company is also pursuing the case for seeking back extra spectrum beyond 6.2 MHz held by GSM players.

According to Tata Teleservices, the differential treatment in favour of GSM technology was resulting in major advantage for a few big players.

When contacted, Tata Teleservices spokesperson confirmed the development and said the company would start services in the new circles at the earliest.

source :: http://www.livemint.com/2008/04/04171556/T...ts-CDMA-sp.html

[srk006 21]

Reliance had already received GSM spectrum, isn't? Then why this delay in launch of services?

[kesav 127]

Government may release GSM spectrum to new players in 2 days

NEW DELHI: In an exercise that could roil existing GSM operators, Telecom Minister A Raja is likely to start releasing start-up radio frequency to new telecom players in the next two days, starting with Tamil Nadu circle.

"Department of Telecom will start allocating spectrum in four southern states in view of abundant availability in these areas followed by some other states like Maharashtra, Orissa and Bihar," senior officials said.

According to sources, spectrum was available in the range of 50-60 MHz in nine states and was sufficient to accommodate all the new players as well as demand from the existing operators. However, in some important circles like Delhi, only one of the new players could get initial spectrum.

Going by the first-come-first-serve policy announced by Raja, Swan Telecom would be first one to get spectrum in Delhi ahead of others, while Videocon promoted Datacom would be considered if frequency was released by the Defence authorities - a matter that is being pursued by the DoT.

Some of the existing players have objected to the move, saying allocation of spectrum at this juncture would be illegal as the matter is subjudice. But the DoT officials pointed out that neither telecom tribunal TDSAT nor Delhi High Court has stayed the process of allocation of spectrum.

Existing GSM players led by Cellular Operators Association of India had challenged DoT's move to allow dual technology for mobile services which enabled Anil Ambani-led Reliance Communication to pocket GSM spectrum ahead of all others.

Delhi High Court has reserved the judgement, while TDSAT had adjourned hearing on the matter to May.

New entrants had earlier questioned the government's rationale for withholding release of spectrum in circles where it was available and had said that the delay was affecting their business plans.

Idling the available resource will give advantage to existing GSM players, as well as Reliance Communications (which has secured GSM spectrum under dual technology clause), besides affect government's revenues and growth of telecom sector, one of the new players said.

The new players, who have made the required payment for the spectrum more than two months ago, include Videocon promoted Datacom, Shyam Telelink which has partnered with Russian telecom giant Sistema, realty major Unitech, Swan Telecom, B K Modi's Spice Communications and S Tel.

Shyam Telelink, however, has opted for CDMA spectrum and it has already received it in several circles.

Earlier, the government had indicated that they would start allocating spectrum to new players wherever it is available, while continuing negotiations with the defence ministry for vacation of more spectrum in other states.

According to officials, DoT has divided the country into three categories with circles that have spectrum in abundance, little and no spectrum at all.

The new players, who are in the process of floating a parallel lobby to COAI, have already started putting pressure on the DoT for their rights and with the 4-5 new operators joining the fast growing mobile segment, tariffs may fall further from the existing level.

This, however, may take about 6-9 months as rolling out of network would take time, one of the new licensees said.

source :: http://economictimes.indiatimes.com/News_b...how/2934868.cms

[kesav 127]

Govt to allot GSM spectrum to old, new ops in phases

The government plans to allot GSM spectrum in phases to both old and new operators, reports CNBC-TV18. Sources said GSM spectrum in 3-4 circles is to be awarded in the first round. Bharti is likely to get GSM spectrum in three southern circles in Phase 1. Existing operators are to be given priority in spectrum allotment. Bharti is eligible for GSM spectrum in eight circles as per TRAI criteria.

The big surprise is Bharti Airtel. The buzz was that in this round of spectrum allotment, it will largely be to the nine new players that include the likes of Unitech, Datacom, Loop Telecom, etc.

Over the last 2-3 months, we have seen Bharti Airtel report very good monthly subscriber additions. They have been reporting a monthly subscriber addition of about 2.25 million month after month for the last 3-4 months. Now, Bharti is eligible for GSM spectrum allotment in eight circles. It has already got additional GSM spectrum in five circles a few months back and now it’s eligible for spectrum allotment in eight.

Out of the eight, sources said that they will be getting GSM spectrum in three circles. So, in Round 1 of this spectrum allotment, which is likely to commence next week, Bharti Airtel is likely to get GSM spectrum in 3 southern circles apart from all the new operators. This allotment of spectrum is going to happen in multiple rounds. So, Round 2 will see again spectrum being awarded in 3-4 circles. Round 2 will be concluded by the end of April.

DoT sources said that there is enough spectrum available within the department to take care of the needs of all existing and new operators. It has as many as 9-10 circles. But beyond that, DoT will have to knock at the doors of defense, which is something that they have been doing for a while now.

Sources added that defense would vacate spectrum only by the end of this year. So, in the remaining circles, all operators-new and old-will have to wait till possibly the end of this year.

source :: http://www.moneycontrol.com/india/news/bus...es/18/17/333390

[kesav 127]

DoT rings in M&A norms for telcos

NEW DELHI: The DoT (department of telecom) is in the process of signing off fresh M&A (mergers and acquistions) guidelines that will allow new entrants to be acquired by the existing operators — in a way selling the spectrum allocated to them through this route — even though they cannot merge with an existing operator or a new entity.

The DoT recently allocated 120 licences with the promise of 4.4 MHz of startup spectrum to potential 2G mobile service providers. The new guidelines indirectly allow these players to sell out their spectrum, given to them at Rs 1,651 crore (2001 prices), to existing GSM operators or any other entity at a substantial premium. This is because the new guidelines only prevent a merger till rollout obligations are met but are silent on the acquisition route for consolidation.

This is in contrast to Trai's recommendations, which had prohibited both mergers and acquisitions till new entrants met their rollout obligations. The M&A norms are critical as they determine competition and the level of pricing that eventually impacts consumers.

DoT's guidelines for existing cellular and unified operators in general, pertain to intra-service area (same circle) merger of cellular and unified licensees.

This is on condition that the market share of the merged entity does not exceed 40% in terms of subscriber base, separately for wireless as well as for wireline subscribers, or in terms of AGR (adjusted gross revenue). For determination of market power, both subscriber base and AGR in the relevant market will be considered. No M&A shall be allowed if the number of access providers reduces to below four in the relevant market.

Merging licensees will be entitled to the joint spectrum of both entities, subject to the condition that post-merger, the new entity shall, within a period of six months from the date of approval of the merger, meet the subscriber criteria which coincides with the total spectrum, failing which licensees shall surrender the excess spectrum.

Excess spectrum will attract a higher penalty. DoT has rejected Trai's recommendations to increase cross-holding across two licences in the same service area to 20%, retaining the equity cap at the current level of 10% or more.

The duration of the licence of the merged entity will be equal to the remaining duration of the two merging licenses, whichever is less on the date of merger.

Instead of subscriber numbers, exchange data records (EDR) in case of wireline and visitors' location register (VLR) in case of wireless, shall be indicated for calculating subscriber base to compute market share of the merged entity.

http://timesofindia.indiatimes.com/Busines...how/2939186.cms

There is totally incorrect reading done by the reporter saying that norms doesn't speak about acquistion but only about merger.

Merger and Acquistion is different only in terms of compostion of Board and Swap ratio on shares. As for as Market Power, Monopoly, Spectrum usage are concerned both are on the same plateau.

[kesav 127]

CVC seeks more clarifications on allocation of radio waves

New Delhi: The Central Vigilance Commission, or CVC, on Thursday sought additional clarifications from the department of telecommunications, or DoT, about the government’s rationale for not allocating scarce radio spectrum through an auction. It also asked the department to explain its first-come-first-served policy in a week.

In a letter written to telecom secretary Siddhartha Behura, a copy of which was seen by Mint on Thursday, the CVC also questioned DoT’s ability to monitor spectrum hoarded by current operators.

“(The) commission would like the DoT to confirm that they have a system to monitor, and they have verified that no operator is hoarding spectrum unutilized, particularly in areas where there is lack of subscribers, and the operator has not returned the spectrum to DoT,” CVC said in the letter.

According to Mint’s calculations, reported in February, some firms in metros could be asked to return as much as 3.8MHz of spectrum by DoT. For instance, Mumbai-based BPL Mobile Communications Ltd, which had around 1.2 million mobile subscribers in the city with around 10MHz of radio spectrum, may be asked to return 3.8MHz of excess airwaves, since DoT’s January order mandates operators to serve 1.5 million users to qualify for spectrum beyond 6.2MHz.

The CVC also wants the government to either auction the remaining 2G spectrum, or clarify why an auction can’t be held. “The true value of this finite and precious resource needs to be realised,” it said.

DoT officials say holding an auction is difficult. “There are legal and technical issues, which makes it impossible,” said a senior DoT official who did not wish to be identified.

In fiscal 2007, the government collected Rs2,100 crore as one-time spectrum charges from telecom operators, in addition to about Rs6,300 crore as licence fee, according to the Telecom Regulatory Authority of India, or Trai.

CVC’s letter comes at a time when DoT is already processing spectrum allocation to new telecom aspirants, apart from existing operators who need additional spectrum.

Nine firms—STel Ltd, Shyam Telelink Ltd, Swan Telecom Ltd, Loop Telecom Pvt. Ltd, Spice Communications Pvt. Ltd, Idea Cellular Ltd, Tata Teleservices Ltd, Unitech Ltd and Datacom Solutions Pvt. Ltd—are waiting for spectrum to start services.

Reliance Communications Ltd, or RCom, India’s second largest wireless phone firm, has already been given a licence and spectrum rights to start services nationwide on the GSM technology platform. RCom serves about 33 million customers on the rival CDMA platform, and was allowed to offer services through GSM based on Trai’s recommendation on 29 August last year.

“Please clarify ‘combination of technology’ recommendation and the process of allotment of licence and allocation of spectrum under this category,” the CVC letter said. “How were they allotted spectrum, in comparison to others in the waiting list? Was the allotment out of turn?”

source :: http://www.livemint.com/2008/04/11001532/C...ifications.html

[kesav 127]

Sistema Allocated Additional CDMA Radio Spectrum in India

Russia's Sistema has announced that it has received radio frequencies in eight additional Indian circles. India's Department of Telecommunications (DoT) has allocated the 800 MHz radio frequencies to Sistema's subsidiary, Shyam Telelink, in eight Indian circles, Andhra Pradesh, Tamil Nadu, Haryana, West Bengal, Himachal Pradesh, Bihar, Uttar Pradesh and Chhattisgarh.

Together with radio frequencies already obtained in Rajasthan, Jammu and Kashmir, Assam and the North-East, Sistema will be able to start building a full scale CDMA network in 12 Indian circles, which will cover over half of the territory of India.

On January 10, 2008, Shyam Telelink was awarded guarantee letters for the provision of unified telecommunication licenses to provide fixed-line and cellular services in 21 Indian circles. These licenses will allow Shyam Telelink to build mobile networks and provide fixed-line and mobile services. The company now holds licenses, including those already obtained in Rajasthan, to provide pan-Indian telecommunication services.

Great going Sistema.

We expect you to reduce the tariff and increase the quality.

source :: http://www.cellular-news.com/story/30525.php

[kesav 127]

The greatest news arrives here........

Raja allocates GSM spectrum to new players in Tamil Nadu

New Delhi (PTI): The government on Tuesday started allocating GSM spectrum to new telecom players, commencing with Tamil Nadu circle including Chennai, in a move that would infuse more competition in the mobile telephony space.

Five new players -- Videocon-promoted Datacom, Idea Cellular, realty major Unitech, Swan Telecom and Loop Telecom -- have been given start-up 4.4 MHz GSM spectrum in Tamil Nadu circle, official sources told PTI.

Officials of Cellular Operators Association of India (COAI), the lobby group of existing GSM players, could not be contacted for comments.

Sources said that Communication and IT Minister A Raja today signed the file giving the green signal to allocate GSM radio frequency to new players.

The Department of Telecom (DoT) is also looking at other circles where spectrum is available in abundance and can be allocated to all the aspirants simultaneously.

Some of the players, especially Idea Cellular and Spice Communications, had questioned Raja's first-come-first-serve policy to allocate spectrum, saying this should be done on the basis of application and not the payment of required fees.

However, Raja's decision to give spectrum to all at one go would silence critics.

Besides Tamil Nadu, according to sources, spectrum for all is available in circles of Andhra Pradesh, Karnataka, Kerala, Orissa, Bihar, Madhya Pradesh and Kolkata and the minister may distribute it soon.

source :: http://www.hindu.com/thehindu/holnus/000200804151550.htm

so TamilNadu now has 2 new CDMA players (BSNL, Sistema) and 6 new GSM players (Datacom, Idea Cellular, Unitech, Swan Telecom, Loop Telecom and Reliance) with spectrum allocated.

Enjoi............... :Contento:

But there's one sad news.

Most surprising part is there's no news about TATA's GSM spectrum.

[kesav 127]

CVC seeks ‘clear and specific’ replies from DoT over 2G auctioning

Not satisfied by DoT’s earlier replies to its queries on 2G auctioning, the Central Vigilance Commission (CVC) has asked DoT to provide clear and specific replies. The CVC has asked DoT to explain the reasons for not conducting auctioning for 2G spectrum.

The CVC in its letter to DoT said that the reasons given by DoT for not conducting 2G spectrum auctioning are neither convincing nor acceptable.

The CVC also wants to know why Trai’s 2003 recommendations on holding a fresh auctioning for 2G spectrum license where not considered by DoT till now.

source :: http://www.telecomtiger.com/fullstory.aspx?storyid=1564

CVC is hammering DoT

[KumaarShah 143]

^^^

Looks like we are all set for another round of long, longer and longish delays...Was the CVC sleeping all this while? At the fag end of the process, now they want to know why there was no auction? The reason is very obvious to the layest of layman, but not CVC!!!

[srk006 21]

Tatas get GSM spectrum in Tamil Nadu under dual technology

Tata Teleservices on Wednesday became the second major CDMA operator, after Reliance Communications, to get GSM radio frequency under the dual technology along with other new telecom players.

Source: http://economictimes.indiatimes.com/News/N...how/2956577.cms

[kesav 127]

That's a great news....

Now TamilNadu(Including Chennai) has 2 new CDMA players (BSNL, Sistema) and 7 new GSM players (Datacom, Idea Cellular, Unitech, Swan Telecom, Loop Telecom, Reliance and TATA) with spectrum in their kitty.

Good luck Mates............You(ppl of TN) enjoi and we envy........

[KumaarShah 143]

^^^

AFAIK, it will take atleast 6 to 9 months to see a new operator starting shop. By which time, the other circles also will pickup. I foresee that the new operators will start services on a larger scale with more circles rather than one circle at a time. So TN/Chennai will not be the 1st off the block. All the southern states will start at the same time.

[kesav 127]

2-year lock-in, no spectrum trade for telcos

NEW DELHI: The Department of Telecom, which is in the process of finalising new norms for mergers and acquisitions in the sector, is understood to have finalised a two-year lock-in period before a new entrant could exit the business. It is also believed to have barred the trade of spectrum by new players.

Official sources said the move is to discourage the hype about M&As that has led to exorbitant valuations of Indian telcos. The proposed two-year lock-in period will bar any new telecom operator from selling its stake immediately. In case the company wants to exit after two years, the new norms will make mandatory that it meets the roll-out obligations within this period.

The final guidelines are expected in the next 10 days.

Sources said that banning spectrum trade will make the sector less attractive for fly-by-night operators, which have bought licences to sell them at a premium. The sale-out of permit will now be without spectrum and operators have to surrender the radio waves to DoT. The acquirer will only get the licence to operate in the circle where the seller was operating and will have to apply for spectrum separately.

Among other proposed norms the market share of the merged entity should not not exceed 40% of the total subscriber base in the circle and the number of access providers should not fall below four. The maximum cross-holding in the same service area has been retained at a equity cap of 10%.

source :: http://timesofindia.indiatimes.com/Busines...how/2957647.cms

CCEA set to release Rs 1,077 crore for defence network

NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) is likely to approve on Thursday the communications ministry’s request for additional funds to set up an alternate network project for the defence services.

Government sources told ET that the CCEA would clear the DoT’s demand for Rs 1,077 crore to complete the first phase of the alternative fibre network project undertaken by BSNL. Following the completion of this project, the defence forces will switch to their communication requirements to the fibre network and vacate radio frequencies for commercial telephony.

In the first phase, BSNL will build a 5,200 km optic fibre network for the Indian Air Force—it will connect about 160 locations operated by IAF.

ET has learnt that the communications ministry had approached the Union Cabinet after finance minister P Chidambaram had allocated a mere Rs 152 crore for this project in the budget in February, 08. The finmin had allotted Rs 95 crore in the previous year. BSNL has already spent over Rs 500 crore on the project but not received any financial grants from the finmin.

The finmin had earlier proposed that the DoT fund the project by auctioning 2G spectrum to all the new entrants who were awarded telecom licenses recently, but the communications ministry had rejected this recommendation.

The Indian Air Force is expected to vacate as much as 40 MHz of radio frequencies after the completion of this network, and this will help new entrants get pan-India start-up spectrum. Additionally, vacation of spectrum by the armed forces will also enable the DoT to auction 3G radio frequencies.

At present, Cellular companies such as Bharti Airtel, Vodafone Essar and BSNL cannot launch third generation (3G) telecom services such as mobile TV, interactive gaming and high speed internet on mobiles unless 3G spectrum vacated by the defence forces is reallocated to them.

The second phase of the project is estimated to cost well over Rs 1,000 crore and will connect 250 stations of the army, while the third phase will connect about 30 bases of the Indian Navy. The DoT was forced to rework the project last year after the defence ministry had rejected its Rs 980 crore scheme to build an alternate network.

source :: http://economictimes.indiatimes.com/News/P...how/2957857.cms

[vishalkumar 0]

^^^

AFAIK, it will take atleast 6 to 9 months to see a new operator starting shop. By which time, the other circles also will pickup. I foresee that the new operators will start services on a larger scale with more circles rather than one circle at a time. So TN/Chennai will not be the 1st off the block. All the southern states will start at the same time.

That will be great if it starts in all the southern states at the same time. Let us hope for new announcements in the other states soon.