savramesh 37 Report post Posted June 19, 2009 Business Standard Friday, Jun 19, 2009 With the defence services agreeing to vacate 10 MHz of additional spectrum immediately across the country, the Department of Telecommunications (DoT) would have enough spectrum in most circles to allow between four and 12 operators (including BSNL and MTNL) for 3G services in some circles. The sole exception would be the Rajasthan circle (which can accommodate only two operators). The West Bengal and North-East circles would be able to accommodate only four operators. The numbers are based on the latest note prepared by the DoT. The availability of spectrum is a key element that determines the auction price of spectrum. Higher availability means a lower price. Communications Minister A Raja has said that he hopes to mop Rs 25,000 crore from these auctions. Metros like Mumbai can accommodate eight operators (each operator gets 5 MHz), Delhi can accommodate five operators, while Kolkata, Karnataka, Andhra Pradesh and Tamil Nadu can accommodate 12 operators each. The analysis of the availability of spectrum by DoT is crucial, as a fierce debate is on between ministries on whether the government should auction the entire spectrum available in one go or limit the number of operators to only four-five players in the initial stage so that there is spectrum available when some of the operators require more than 5 MHz. The DoT note on issues related to 3G auctions take into account the opinion of the Telecom Regulatory Authority of India (Trai) and the Solicitor General of India, who said that all available spectrum should be auctioned. Through this, more service providers can be accommodated, leading to more competition in the telecom sector. However, on the other hand, the auction of all available spectrum would mean that there would be no spectrum left for the future needs of operators. Also, an auction of a large number of blocks would lead to fragmentation of spectrum, which could lead to an inefficient utilisation of spectrum. A SIGNAL FOR MORE CELL OPERATORS Service Area Available 3G spectrum* (MHz) No of blocks earlier No of blocks available now Mumbai 30 6 8 Kolkata 50 10 12 Delhi 15 3 5 North-East 5 1 3 Rajasthan 0 0 2 (*According to the Wireless Planning and Co-ordination wing of the Ministry of Communications) On May 22, DoT and the defence ministry had signed a Memorandum of Understanding (MoU) after a deadlock for over two years over the release of spectrum used by the defence forces. According to the MoU, the armed forces will immediately release 10 MHz of 3G spectrum and 5 MHz of 2G spectrum. The rest will be released according to timelines agreed on by the two ministries, which are contingent upon DoT placing the supply order for setting up an optic fibre cable (OFC) network for the defence services, the supply of the equipment, its installation and commissioning. The defence forces have always been major users of spectrum for various security-related operations like air defence, command and control, information services, communication and early warning. They have spectrum along the border, as well as in the hinterland and mainland, for low-intensity conflicts. The defence ministry’s view has been that it could part with some spectrum by shifting the use of some systems to an exclusive fibre-based network. With the entry of at least six new operators on the Indian telecom scene, the fight for spectrum has only intensified. And, with the average revenue per user (Arpu) on a constant decline, operators want to capitalise on 3G services which will help them to offer high-end data services for higher revenue per user. Share this post Link to post Share on other sites
savramesh 37 Report post Posted June 20, 2009 Mobile operators differ on hike in 3G spectrum base price Business Standard Saturday, Jun 20, 2009 Mobile operators are divided on the consensus reached in the government to increase the base price for 3G auctioning to Rs 4,040 crore. Earlier, the base price for auctioning ranged from as low as Rs 1,020 crore to Rs 2,040 crore. The Cellular Operators Association of India (COAI), the body representing GSM players, has said the auction process for 3G is expected to fail if the government does not come out with a clear 2G spectrum allocation and pricing policy before it goes for 3G auctioning. “The government needs to settle the 2G policy, before it goes for auctioning 3G spectrum, as it is very clear that these services cannot be offered independently but will be an overlay over 2G. If that does not happen, there will be few takers for 3G,” says T V Ramachandran, secretary-general of COAI. Ramachandran also says the government, by looking at hiking the base price substantially, is making 3G more unattractive. “On the one hand, government says they want broadband expansion through wireless, but by fixing such a high price it will not be possible to increase its penetration at all,” he added. The Department of Telecommunications, however, feels a final decision on 2G spectrum policy should be taken only after the 3G auction is completed. Their logic is based on the recommendation of a committee to look into allocation of spectrum, which suggested the pricing of 3G spectrum should be related to that of 2G spectrum. The GSM operators’ view is echoed by the association of CDMA operators. Says S C Khanna of Association of United Telecom Services Providers of India: “We expect the right price should have been Rs 2,000 crore. Any hike in the base price will make it totally unaffordable to the masses and only a few cities can afford the service.” However, many of the newer mobile players, who have just started their service or are about to roll out, say the price is not that unattractive. “It’s a reasonable price, about two and a half times more than a pan-Indian 2G spectrum, and surely no way like what happened in Europe, where it was many times higher. I think there is enough scope to offer services at attractive tariffs and build up volumes. After all, you have better margins in data than voice,” said a director in a leading telco which is about to start its service across the country. Agrees Naresh Singh, Principal Research Analyst, Gartner: “I don’t see doubling of 3G spectrum auction prices as a deterrent, as most of the existing players and new operators would still aggressively bid for the 3G spectrum, as this would be the game changer for the industry. Most of the companies are close to launching advanced data services, with some already announcing aggressive tariffs, for which 3G is a necessity. More important, the prices are still on the lower side, when compared to international markets like Malaysia, South Korea or Italy, where the base prices were much higher.” Share this post Link to post Share on other sites
Greatest 55 Report post Posted June 20, 2009 ^^^ Very Nice..!!! Share this post Link to post Share on other sites
kshah 452 Report post Posted June 20, 2009 Nothing nice about it. I think every one is delaying 3G by changing mind every now and Then. Thinking about 12 operator per circle is ridiculous. In fact no telecom operator is interested in 3G. with such low ARPU after 10 years of cellular services (about 200 and 400 for prepaid and post paid respectively ) I think investing in 3G is certainly not affordable at this revenue level. Also 3G means VOIP too. VOIP is not in hands of cartel so they are delaying 3G. I am sure 3G will not be there in India for another year or so. Share this post Link to post Share on other sites
me_saket 73 Report post Posted June 20, 2009 if service not affordable to me. i won't be going for 3G. Share this post Link to post Share on other sites
KumaarShah 143 Report post Posted June 21, 2009 I too feel the same as KShah... 3g will not see the light of the day for min 1 year. And 12 operators for each circle? Where are the numbers? All data users form a very miniscule minority here. And even expecting the market to add more subscribers in the next 2 to 3 years is just wishful thinking. Because if numbers are not there, cellcos will not bring down tariffs. So its a vicious circle. Rcom has lost all goodwill by their foolishness in changing tariffs every now and then. Just ask 10 of your friends, you will get the feeling that rcom is a chor company and does not represent their name in their dealings. 3g if introduced, will benefit mostly airtel and voda the highest. It is not as if the others are holier than rcom, but the general feeling is that rcom is the biggest chor. Moreover their cc has reinforced this feeling among customers and the top is not bothered about it or are coolly not lending their ears to the goings on in cc. I myself am a victim many times, and the feeling now is inspite of their lowest tariffs, customers feel cheated by wrong charges. I have 2 rgsm and in both gprs does not work despite so many calls and emails to cmo. If this is my experience, will the aam admi trust them? They will just in to airtel or voda.... Mnp will hit rcom very hard if at all, it comes... Share this post Link to post Share on other sites
kshah 452 Report post Posted June 21, 2009 ^^^ Yes, RCOM indeed is loosing their goodwill they earned as torch bearer of telecom revolution. Their pathetic - no authority CC is earning more bad repute for the. Also some how RCOM network is worsening day bay day. I have ISD call card on my connection and its so surprising that since last 3 months I am unable to check balance using *346. I am able to make calls. COnnecting *333 from prepaid connection is again pain in a**. Where as in Airtel, I send mail / call CC, within max 4 hours may queries are resolved / replied. I think we are again going off the topic. With existing revenue 12 operators for 3G + 8 operators for 2G means even if India has 100 % adult teledensity (About 60-65 crore connection) one operator can not ideally have more than 3-4 crore connection and thats peanut Share this post Link to post Share on other sites
@mitJ@in 256 Report post Posted June 21, 2009 *347/8 is the number to check, I think so. Share this post Link to post Share on other sites
