Dot Plans Separate 3g Policy For Cdma Players

[Arun 795]

New Delhi, July 28

The Hindu Business Line

The Department of Telecom is planning to formulate a separate policy for third generation services by CDMA operators.

The move comes as a relief to CDMA players including Reliance Communication and Tata Teleservices which had expressed concern that the proposed 3G policy had no mention of spectrum allocation for CDMA operators. Until now DoT’s draft policy guidelines had specified plans to auction spectrum only for GSM-based cellular services providers.

However, DoT has put up a new note for approval by the Ministry of Communication which mentions auctioning spectrum for CDMA players in the 450 Mhz and 800 Mhz frequency band.

This means that seventy one million CDMA mobile subscribers can also look forward to availing third generation mobile services.

The 800 Mhz and 450 Mhz bands are frequencies used by CDMA operators globally for 3G services. Third generation mobile services promises to bring high speed data connectivity on handsets apart from improving the quality of voice calls.

Consumers will be able to get services like streaming video, mobile TV and community specific value added services.

While GSM based operators will evolve to using the WCDMA technology for offering this service, CDMA players will use the EVDO technology.

Each of these technologies operates best in a specific frequency band.

“Spectrum shall be auctioned in the 450 Mhz band and in 800 Mhz band for EVDO services when it becomes available, for which guidelines shall be issued separately,” said the DoT note.

Reliance Communications, Tata Teleservices, Sistema backed Shyam Telelink and State owned Bharat Sanchar Nigam Ltd are the major CDMA operators in the country.

An earlier DoT draft guideline had said that the spectrum for these operators will be treated differently wherein they will be asked to pay a fraction of the amount quoted by the GSM counterparts for 3G services. However, the problem is that DoT has only 2 slots in the 800 Mhz band and there are four operators. Therefore DoT has now proposed to go for an auction.

GSM auction

For GSM players, DoT is making plans to auction spectrum for at least 5 operators in each circle. Senior DoT officials said that though the Government has spectrum available to accommodate 10-12 players in each circle, all of it may not be released by the defence forces at one go.

Therefore the auction will be done in phases wherein chunks of 20-25 Mhz will be auctioned with each operator getting not more than 5 Mhz.

DoT officials said that though some circles have about 60 Mhz of unused spectrum, the allocation will depend on when the Defence will release it.

[Honest 836]

^^^

Oh, thats really a big relief for Reliance and all other CDMA operators my dear friends.

Regards.

[rajat8676 0]

The 3G policy is being formulated for years. Its high time DoT speeds up the process and let India have 3G on its mobiles by the end of this year.

[KumaarShah 143]

^^^

Wait or rather sleep tightly till end 2009. thats when we can expect 3G when the world will be using 5G.....

[kshah 452]

Every one including telcos want to do frequency hopping, cdma do not require any spectrum for 3G.

[KumaarShah 143]

DoT ditches the 3G Auction for CDMA Players, new policy to decide their future

Posted by pre**** on July 29th, 2008.

If all the recent activity, that’s happening with India’s Telecom Market, is any indication, the Department of Telecom (DoT) has surely been busy with their decision making abilities. India’s ever increasing mobile market, which saw a remarkable growth of (upto) 9 million in the month of June, has been lagging behind when it comes to mobile internet technologies. While the world is happily surfing streaming media and mobile TV content, parts of India are yet to see EDGE on their networks while the subscribers in the major metros of the country have to be content with EDGE speeds on their mobile phones.

DoT’s recently announced 3G policy comes as a ray of hope, bringing the technology even more closer to reality. However, not everyone is happy in the telecom land. It seems that the major GSM players will get to dance in the sun, while the CDMA operators wait in the dark alleys. Preferential treatment by DoT? Not really. Unfortunately, there is no spectrum available to allocate for the CDMA players. As a result, the DoT has now taken a bold decision and apparently decided to scrap the auction for the 3G spectrum for the CDMA players.

Does this mean it is the end of the road for the 71 million CDMA subscribers in the country? Not at all. The DoT is quickly planning to bring out a fresh new policy exclusively for the country’s major CDMA players viz. Reliance, Tata, Shyam Telelink and State-owned BSNL. Though it may not be the end of the road, the subscribers will sure need to wait a while longer compared to the GSM counterparts.

The CDMA players will be relying on the EVDO technology for its 3G services which operates best in the 800Mhz or 1900Mhz frequency band, the GSM players will ride the back of the WCDMA technology which works best in the 2.1Ghz frequency band. The 3G auction, which is planned to take place soon, would be the auction for spectrum in the 2.1Ghz band since the DoT’s newly drafted policy made no mention of any bandwidth available in the 800Mhz band. Interestingly, all the four CDMA players have some excess spectrum in the same frequency band, which is currently utilized by them to provide 2G services to the subscribers. While the players are willing to use some of the spectrum for 3G, the DoT has refused them to do so, citing that it will disturb the playing field with the GSM players.

Even with the new policy which is being planned for these CDMA players, the DoT will still have a tough time making decisions. Apparently, there are only 2 slots available in the 800Mhz band, while the DoT has 4 key players to accommodate. The new policy is currently pending an approval from the Ministry of Communication.

At the same time, the Association of Unified Service Providers of India (AUSPI), a collective CDMA lobby, has written to the Prime Minister of India proposing that a one-time fee be levied on cellular service providers who hold excess spectrum in the country. The same has been proposed by Samajwadi Party leader, Mr. Amar Singh. On the other hand, the Cellular Operators Association of India (COAI) has written to the Prime Minister saying that a cap on the spectrum allocation was only applicable for new players who receive initial start-up spectrum. If the AUSPI has it their way, two of the leading operators in the country will have to empty their pockets shelling out upto a few thousand crores, while the government is expected to make nearly Rs. 10,000 crores.

The other thing that’s keeping the DoT busy is the Mobile Number Portability (MNP) issue. Neglecting the Telecom Regulatory Authority of India (TRAI)’s recommendation of having only one centralized player, the DoT now plans to rope in two major players for the implementation service. Mobile Number Portability, once implemented, will allow any subscriber to change his service provider, without having to let go of his mobile number. MNP has already been successfully implemented in various countries across the world. DoT has planned the implementation of the service in the country’s metros by the end of the year.

Link: http://www.watblog.com/2008/07/29/dot-ditc...e-their-future/

[Honest 836]

No 3G auction for CDMA players

Business Line

New Delhi, Aug. 2 CDMA-based mobile operators can get third generation spectrum without having to participate in any auction.

The policy announced on Friday stipulates that CDMA operators including Reliance Communications and Tata Teleservices can seek one slot in the 800 Mhz, which is the most efficient and cost effective frequency band for 3G services as far as CDMA is concerned.

The catch, however, is that Communications Ministry has decided that spectrum in this band will be allocated to the operator with most number of subscribers in a circle.

4 players

There are 4 pan-India CDMA players at present – Reliance Communications, Tata Teleservices, State-owned BSNL and the new entrant Sistema-backed Shyam Telecom.

However, there are only two slots available in the 800 Mhz frequency band. Of these, state-owned PSUs MTNL and BSNL will get one slot, leaving space for only one more operator in this band.

According to the subscriber-related data (for June 2008) put up on the Web site of the Association of Unified Telecom Service Providers of India (AUSPI), which is the industry body for CDMA operators, Reliance Communications has the most number of subscribers in almost all the circles across the country except Delhi and Maharashtra, where Tata Teleservices is the number one player.

This means that Reliance Communication will probably be the only private operator to get bandwidth in the lucrative band in most circles unless the Department of Telecom manages to convince the Defence to release more.

First mover advantage

Even if the Defence does agree to release additional spectrum, it will take at least a year more to set up an alternative medium of communication for the armed forces. By that time, Reliance Communications would have launched its services.

While the DoT has made additional provision for allocating spectrum in the 450 Mhz and the 1900 Mhz bands for CDMA operators, technical experts confirmed that these bands are inferior compared to the 800 Mhz band.

Rolling out 3G services in bands other than the 800 MHz band could be more expensive and also less efficient.

DoT is yet to get clearances from the Defence forces for allocating 450 Mhz and 1900 Mhz bands. The CDMA player will have to pay a fee proportionate to the amount quoted by the highest bidder during the auction for GSM-based 3G services. For example if a GSM player bids Rs 5,000 crore for 5 Mhz spectrum, the CDMA player will have to pay Rs 1,250 crore for 1.25 MHz in the 800 MHz band.

Rival operators said that they would be taking up the issue with the Communications Ministry. One option being suggested is to permit all CDMA operators to use their existing spectrum for rolling out 3G service.

[Honest 836]

CDMA cos too must bid for 3G: TRAI

13 Aug, 2008, 0132 hrs IST, ET Bureau

KOLKATA/NEW DELHI: Cracks have surfaced in the recently announced 3G spectrum policy. Telecom regulator TRAI has said the government’s decision to allot third generation (3G) spectrum to CDMA players without an auction is against the principles of equality.

This is because the policy gives CDMA operators ‘one’ slot in the 800 MHz band — the most efficient and cost-effective frequency for CDMA players to offer high-end services — with a rider that the largest operator in a circle would get it. This means Reliance Communications, with the largest subscriber base in all circles, except Delhi and Maharashtra, will be given 3G spectrum ahead of other CDMA players Tata Teleservices, BSNL, MTNL and Shyam Telecom in the 800 MHz frequency band.

DoT currently has 3G frequencies in the 800 MHz to accommodate only one CDMA player. ET has also learnt that it will take over a year for the defence forces to free additional frequencies in the 800 MHz band. This means other CDMA players will have to wait for over a year and the position can change only if there’s an auction. On the other hand, GSM players like Bharti Airtel, Vodafone Essar and Idea Cellular will have to go through a global auction to get 3G spectrum.

Earlier this month, communications minister A Raja had unveiled the 3G policy which would help telecom operators to offer high-end services such as video conferencing, faster downloads of music and movies, interactive gaming and high speed internet.

TRAI chairman Nripendra Misra in a August 8, 2008 communication to DoT secretary S Behura has said: “Since various service providers have been given licences in different service areas at different time periods, TRAI believes that keeping the subscriber base as the criterion for deciding the priority of spectrum allotment shall go against the level-playing field and the principle of equity.”

Additionally, Mr Misra also said RCOM and Tata Teleservices apart, several other players such as BSNL, MTNL and Shyam Telecom have been given the licence to offer CDMA services. “So, the government must take the auction route to allot 3G frequencies in the 800 MHz band for CDMA players as well.”

Further, to drive home the issue’s seriousness, Mr Misra has used firm words to emphasise the need for a review of the policy: “Spectrum in the 800 MHz should be auctioned among applicants with the highest bid price received for the auction of 2.1 GHz spectrum as the reserve price. The subscriber base of the CDMA network of a service provider in any service area is a result of different environments, and cannot muster the test of fairness if it was to become the basis of priority.”

Mr Misra’s communication is likely to come as a major embarrassment to the DoT and communications minister A Raja, since both have been maintaining that the government would provide equal opportunities to all players to bid for 3G frequencies.

“RCOM will have a clear and distinct advantage. Other CDMA operators may have to wait a long time,” said an executive with a private CDMA operator who did not wish to be named.

When it was pointed out that CDMA players had the options of bidding for 3G frequencies in the 450 MHz and 1900 MHz bands, the executive said: “The best band is 800 MHz. Since CDMA players already offer 2G in this frequency, the migration to 3G would be easy. The 450 MHz band is largely for rural India. As for the 1900 MHz band, there is no timeframe when this will be made available. The policy is therefore tailormade for the largest CDMA operator.”

When contacted on the issue, Mr Misra said the regulator had sent its views to the DoT on the recently unveiled policy and added, “We are only saying that allotting 3G spectrum based on the number of subscribers is not feasible. Different operators got CDMA licences at different times and therefore the subscriber base cannot be compared.”

[vmsanghrajka 0]

I feel, TRAI is the only government agency which ensures fair level playing field.. Its a welcome move which will ensure fair practice.. Whoever pays high gets the spectrum.. I just hope that this new controversy doesn't postpone auction further..

[situ1962 21]

Anil's proximity to Amar Singh is apparent in this separate 3G policy for CDMA.always the reliance people have got the policy makers to bend in their favour.this time also it's not different.

[rajat8676 0]

Anil must have got this deal through Amar Singh voting for the UPA govt. It is obvious that Congress cannot buy the MP's with its own money, it has to come from some industrial houses. Have a feeling that Reliance will get the license before the next general elections in 2009.

[KumaarShah 143]

^^^

Bang on target!!!! You are absolutely right. There has to be some quid pro quo obviously.

[peterparkar 0]

ya this point is really work for them.

good thought

[kesav 127]

DoT is yet to get clearances from the Defence forces for allocating 450 Mhz and 1900 Mhz bands. The CDMA player will have to pay a fee proportionate to the amount quoted by the highest bidder during the auction for GSM-based 3G services. For example if a GSM player bids Rs 5,000 crore for 5 Mhz spectrum, the CDMA player will have to pay Rs 1,250 crore for 1.25 MHz in the 800 MHz band.

Rival operators said that they would be taking up the issue with the Communications Ministry. One option being suggested is to permit all CDMA operators to use their existing spectrum for rolling out 3G service.

The point raised is vaild. Giving 1.25 MHz of spectrum to the operator of higer subscriber base is illegal since starting date of license of each operator is higly different and that's the main reason why each operator has different subscriber base currently.

The best way out is to auction the available 1.25 MHz among all CDMA operators.

The other important task is to force Defense to vacate the 800 Mhz band immediately before the start of the e-auction.

Allowing the CDMA operators to use the existing spcetrum is not a valid argument since it'll hamper them in future when they start acquiring more subscribers.

[Honest 836]

DoT panel to fix 3G allotment for CDMA cos

22 Aug, 2008, 0220 hrs IST, ET Bureau

NEW DELHI: In a potential setback to Reliance Communications (RCOM), the department of telecommunication (DoT) has constituted a committee to decide the methodology for allotment of 3G radio frequencies for CDMA players. The government had earlier decided to allot 3G spectrum in the 800 MHz to the CDMA player with the highest subscriber base provided it was willing to pay the same price that the highest GSM operator was paying in that particular circle.

The decision to set up a committee follows telecom regulator TRAI’s observation that allotting spectrum without auction is against the principles of equality. DoT, meanwhile, has brushed aside the regulator’s concerns about directing successful 3G bidders to apply for UASL licences without providing them start-up 2G spectrum that so far automatically came with the licence.

As among CDMA players, RCOM has the largest subscriber base in all circles except Delhi and Maharashtra, this effectively gave the company the right of first refusal (RoFR) for offering 3G services in the 800 MHz band, which is the most efficient and cost-effective frequency for CDMA players to offer high-end services.

DoT’s move to review the policy therefore brings some relief to other CDMA operators like Tata who may now get to bid for the coveted 800 MHz band. At present only one operator can be accommodated in this band as the rest of the band is occupied by the defence services, who will take at least one year to vacate it.

Existing guidelines also make it mandatory for successful 3G bidders to buy UASL licences for Rs 1,651 crore but do not provide them with 2G spectrum. Traditionally, an UASL license holder is entitled to 4.4 MHz of second generation radio frequencies. TRAI had questioned the concept of an UASL license without 2G spectrum, saying, “this would require changes to the licensing conditions for which its (TRAI’s) recommendations were necessary”.

ET has learnt that DoT has rejected TRAI’s concerns on this issue. Its logic: UASL holders can provide voice, data and video and since these services can be offered via 3G radio frequencies, the government is not mandated to give 2G spectrum to successful bidders. It added that 3G service providers were not a new category of licences, but would be offering high-end services under the existing UASL. TRAI’s recommendations were not required on the issue, DoT added.

But DoT has accepted several suggestion to the recently-unveiled policy for auction of third generation (3G) and WiMAX radio frequencies made by TRAI. For instance, it has decided to change the WiMax policy to include radio frequencies in both the 2.3 GHz and 2.5 GHz which will be allotted through an auction process.

[kshah 452]

CDMA operator going for 450 Mhz will be foolishest amongst the lot.

EVDO works best in 450 Mhz but handsets are pathetic.

[Honest 836]

3G spectrum auction for CDMA players

26 Aug, 2008, 0103 hrs IST, ET

NEW DELHI: The Telecom Commission has modified its policy on allocation of spectrum for third generation (3G) mobile communications using the CDMA technology platform. The Telecom Commission has decided to auction 3G radio frequencies for CDMA players in the 800 MHz band.

This would deny Reliance Communications (RCOM) automatic entry into CDMA 3G on the strength of its subscriber base, as envisaged in the policy earlier. The decision was taken during Telecom Commission’s meeting on August 21 and incorporates telecom regulator Telecom Regulatory Authority of India’s (TRAI) recommendation.

The government, in its 3G policy announced earlier this month, had decided to allot 3G spectrum in the 800 MHz to the CDMA player with the highest subscriber base, without taking resort to auction as mandated for GSM players, provided it was willing to pay the same price that the highest GSM operator was paying in that particular circle. This gave RCOM, which has the largest subscriber base in all circles, except Delhi and Maharashtra, the right of first refusal (RoFR) for offering 3G services in the 800 MHz band. This band is the most efficient and cost-effective frequency for CDMA players to offer high-end services.

However, Telecom Commission’s move to have an auction now implies that other CDMA players such as Tata Teleservices, Shyam, BSNL and MTNL as well as new players who want to enter India on the CDMA platform now stand a chance to get radio frequencies in the coveted 800 MHz band. Currently, only one operator can be accommodated in this band, as the rest of the band is occupied by the defence services, which will take at least one year to vacate it. As and when the defence forces vacate more spectrum in this band, more operators would be able to bid for and acquire spectrum to offer 3G services.

The Telecom Commission, which is the apex decision-making body of the Department of Telecom (DoT), has also said that the base price for 3G frequencies in the 800 MHz will be Rs 40 crore for metros and category A circles, Rs 20 crore for category B circles and Rs 7.5 crore for category C circles. The base price has been fixed at a fourth of what GSM operators will pay for 3G frequencies. This is because CDMA players can bid only for 1.25 MHz of radio frequencies in the 800 MHz band while GSM players will bid for 5 MHz of 3G spectrum in the 2.1 GHz band.

The DoT was forced to review the 3G policy after TRAI pointed out that the government’s decision to allot 3G spectrum to CDMA players without an auction is against the principles of equality.

TRAI chairman Nripendra Misra, in a communication to DoT secretary S Behura on August 8, 2008, had said: “Since various service providers have been given licences in different service areas at different time periods, TRAI believes that keeping the subscriber base as the criterion for deciding the priority of spectrum allotment will go against the level-playing field and the principle of equity.”

Mr Misra had also demanded that CDMA players too be subject to an auction. “Spectrum in the 800 MHz should be auctioned among applicants with the highest-bid price received for the auction of 2.1 GHz spectrum as the reserve price. The subscriber base of the CDMA network of a service provider in any service area is a result of different environments, and cannot muster the test of fairness if it was to become the basis of priority,” he had added.

[situ1962 21]

This is certainly a setback for reliance as it hoped to get spectrum without going through the auction process with the help of the govt.now it has to age for it and there is no certainty of winning it.any way,Let's wait and watch.

[HetalDP 947]

A good move from DOT

everybody should get equal right to Bid

[Honest 836]

3G auction to also include CDMA: Raja

28 Aug, 2008, 1842 hrs IST, ET

NEW DELHI : The Govt has decided to auction CDMA licences for 3G services, a change in policy that means Reliance Communications and Tata Teleservices will have to bid for spectrum they were previously guaranteed of getting.

No. 2 mobile operator Reliance Communications and sixth-ranked Tata Teleservices are the only operators with major CDMA operations in India, where the GSM platform dominates.

At the start of August, the government announced plans for a global auction of 3G licences. At the time only two CDMA licences were thought to be available, so the plan was that Reliance and Tata would pay a pro-rata price based on the outcome of the GSM auction, telecom minister Andimuthu Raja said on Thursday.

"Now one more operator has been permitted. So again we consulted the TRAI (Telecom Regulatory Authority of India) and took a decision that it can also be auctioned." CDMA and GSM mobile services are provided on different bandwidths.

The government has said the global auction for GSM 3G spectrum would end by December. Current Indian telecoms operators and foreign firms with prior experience in 3G services are eligible to bid.

Reliance Communications has some GSM subscribers, and is expanding its network, but at present more than 80 percent of its customers are on the CDMA platform.

Chairman Anil Ambani has said Reliance would consider providing 3G both on GSM and CDMA. Tata Teleservices has acquired licences for second-generation GSM mobile, but is yet to start services.