Broadband Wireless Auction (BWA) Results

[srk006 21]

BWA Auction ends and surprise.... surprise ...

Infotel is the PAN India Winner

Aircel Won 8 circles

Bharti and qualcomm 4 circles each

Tikona 5 won

Augere won 1 circle

and....

Reliance won NONE

Edited June 11, 2010 by srk006

[HetalDP 947]

Reliance Won NONE WOW DUmp this Bad reach 2.3 Mhz TDMA Spectrum

Reliance Please be ready for 700 mhz LTE-4G Spectrum

[csmart 472]

looking at the cost, i think RCOM wise decision. spent heavy on 3G.. and then spending on BWA dont make business sense..

[FEVIN-RAJ 61]

now see the game of Big brother ...

[srk006 21]

Statement from RCOM....

Reliance Communications, India's second-biggest telecoms firm, said it exited the wireless broadband spectrum auction a week back as bid prices significantly exceeded its business case estimates.

The company would focus on wireless broadband through its CDMA network and the 3G spectrum it had won in a recent auction, a company representative said in a statement.

Source

[srk006 21]

ah! here come the real deal

Reliance Industries in talks to buy Infotel Broadband

Reliance Industries, India's largest-listed conglomerate, is in talks to buy Infotel Broadband Services as it looks to enter the telecoms sector, a source with knowledge of the matter said on Friday.

Unlisted Infotel Broadband Services is the only firm to win Indian broadband spectrum in all 22 zones in an auction that ended on Friday.

The firm is paying Rs 12,848 crore ($2.7 billion) for the spectrum, the government says.

Source

[csmart 472]

RIL already in talks with InfoTel, winner of BWA..

Source

Reliance already bought Infotel..source NDTV.com

Edited June 11, 2010 by csmart

[amitnsonu 72]

looking at the cost, i think RCOM wise decision. spent heavy on 3G.. and then spending on BWA dont make business sense..

what about bharti...

they pay highest amount for 3g and still manage to win 4 circles.

but anyway its good for Rcom subscribers, they are already lagging behind in service standard. one more business could have spoil thing more, and they realise it.

[Greatest 55]

Aaya re aaya... Mukesh aaya.. RIL sabki gaa** marne wala hain.. just wait and watch...

[atulaggarwal 0]

News is already out on CNBC TV 18, RIL has acquired majority stake in Infotel broadband.

[amitnsonu 72]

Aaya re aaya... Mukesh aaya.. RIL sabki gaa** marne wala hain.. just wait and watch...

hahaha

:rofl_200:

[srk006 21]

But is it possible to roll-out voice services on this BWA spectrum?

[tarun_kabra 204]

Here is the official media release from Reliance

Reliance Industries Ltd 110610.pdf

[Arun 795]

But is it possible to roll-out voice services on this BWA spectrum?

Yup:

BWA spectrum provides high-speed access to internet, internet telephony and television services. Also the BWA spectrum can be used for voice and high-speed data services.

[csmart 472]

reliance already bought it...Source

Reliance Industries, backed by Mukesh Ambani, has announced that it will acquire Infotel, the company that won the all-India bid for the just-concluded broadband wireless services, the company said in a filing to BSE.

RIL said that it would acquire 95 per cent stake in Infotel for Rs 4,800 crore and Infotel would be its subsidiary after the acquisition.

Infotel, a business venture of HFCL group, won the bid for an all-India total bid amount for all 22 circles for Rs 12,847.77 crore.

Before the demerger of the Reliance empire, Mukesh Ambani had nurtured the group's telecom venture which later became part of the Anil Ambani group.

RIL stock ended 3.2 per cent in a market where the 30-component Sensex finished nearly 1 per cent higher. HFCL stock ended up nearly 5 per cent.

Read more at: http://beta.profit.ndtv.com/news/show/mukesh-enters-telecom-ril-to-buy-infotel-73608?u=1554&cp

[Arun 795]

[kesav 127]

Here is the ranking of the circles as per the revenues yielded by them to Govt. on BWA auctions.

All figures are in Cr INR

1) Mumbai --> 6878.85

2) Delhi --> 6723.06

3) Tamil Nadu --> 6208.35

4) Karnataka --> 4629.75

5) Andhra Pradesh --> 3177.36

6) Maharastra --> 2746.92

7) Gujarat --> 1841.55

8) Kolkata --> 1569.6

9) Punjab --> 996.81

10) Kerala --> 776.01

11) UP(W) --> 551.61

12) UP(E) --> 427.5

13) Madhya Pradesh --> 373.98

14) Haryana --> 359.7

15) Bihar --> 297.84

16) Rajasthan --> 291.96

17) West Bengal --> 212.91

18) Orissa --> 190.89

19) Assam --> 99.06

20) North East --> 63.81

21) Jammu&Kashmir --> 63.81

22) Himachal Pradesh --> 61.98

[kesav 127]

Here is the ranking of the operators as per the revenues yielded by them to Govt. on BWA auctions.

All figures are in Cr INR

1) Infotel --> 12847.77 --> 22 circles

2) Qualcomm --> 4912.54 --> 4 circles

3) Aircel --> 3438.01 --> 8 circles

4) Airtel --> 3314.36 --> 4 circles

5) Tikona --> 1058.2 --> 5 circles

6) Augere --> 124.66 --> 1 circle

[amitnsonu 72]

But is it possible to roll-out voice services on this BWA spectrum?

Yup:

BWA spectrum provides high-speed access to internet, internet telephony and television services. Also the BWA spectrum can be used for voice and high-speed data services.

I m very confused here..

if BWA can be used for voice as well as data, why 3g auction held ?

if this is the case, operators who invest highly in 3g auction are totally fool, they should be more concentrated on BWA auction.

can anybody elaborate?

like 3g, aircel again play mindgame: more circles in less money.

1) Infotel --> 12847.77 --> 22 circles

2) Qualcomm --> 4912.54 --> 4 circles

3) Aircel --> 3438.01 --> 8 circles

4) Airtel --> 3314.36 --> 4 circles

[kesav 127]

Here is the official media release from Reliance

As noted earlier this 4G auction clearly gives a chance for green-field 4G alone pan-India operator.

RIL has captured that oppurtunity fantastically.

:clap: :clap:

RIL's statement clealry mentions that they'll be deploying LTE(TDD) in the spectrum.

Qualcomm would be very happy for the RIL's LTE(TDD) annoucement although they didn't win much except for Mumbai & Delhi.

WiMAX has become a much hyped non-starter in India.

Even Airtel played the game safe with acquiring the key and pairing circles(Maharastra(for pairing Mumbai),Kolkata(for pairing West Bengal) & Punjab) which they've missed in 3G for deploying close to pan-India data n/w(probably LTE).

Only in Karnataka, they've an overlap.

[kesav 127]

Here is the ranking of the operators based on total revenue(3G & 4G) yielded by them to Govt.

All figures are in Cr INR.

1) Airtel --> 3314.36(4G) + 12295.46(3G) = 15609.82

2) Infotel --> 12847.77(4G)

3) Vodafone --> 11617.86(3G)

4) Aircel --> 3438.01(4G) + 6499.46(3G) = 9937.47

5) Reliance --> 8585.04(3G)

6) TATA --> 5864.29(3G)

7) Idea --> 5768.59(3G)

8) Qualcomm --> 4912.54(4G)

9) Tikona --> 1058.2(4G)

10) Stel --> 337.67(3G)

11) Augere --> 124.66(4G)

--------------------------------------------------------

Total --> 76663.91

BSNL --> 8313.8(4G) + 10186.58(3G) = 18500.38

MTNL --> 4533.97(4G) + 6564(3G) = 11097.97

---------------------------------------------------------

Grandtotal --> 106,262.26

If you include BSNL and MTNL in the ranking then BSNL will take pole position (numero uno) and MTNL will take position 5(behind BSNL, Airtel, Infotel and Vodafone).

Auctions look like curse on PSUs since they don't have either choice on technology or circles.

Edited June 12, 2010 by kesav

[kesav 127]

It's high time for other winners( read as Aircel, Airtel, Tikona, Augere) to announce the technology platform(WiMax or LTE(TDD)) which they would like to deploy for 4G.

It'll help the ecosystem(handsets, telecom infrastructure, applications etc.,) to develop faster.

In the meantime we're also anxiously waiting to know whether 3G winners will deploy HSDPA or LTE(FDD) in their 2.1 GHz spectrum.

[sunbiz 0]

Its quite crazy pricing... Which is exactly why RComm and Tata have both found it unaceptable. I very much agree and wonder how these companies who have paid such a heavy price tag are going to get back the investment.

[kesav 127]

BWA Auction - Final Results

BWA Auction - Payment Methodology

[kesav 127]

Is this end of the road for WiMax in India?

The results of the auction for the broadband spectrum have thrown up a situation wherein there could be a greater number of operators betting on the Long Term Evolution (LTE) technology, rather than WiMax. Reliance Industries backed Infotel, the only operator to get a pan India licence, has announced that it is betting on LTE. USbased chip maker Qualcomm, which has won spectrum in the two key cities - Mumbai and Delhi - is also rolling out an LTE-based network. On the other hand, operators like Tata Communications, which has an existing WiMax network and is expected to fight harder, did not win any spectrum.

"With Reliance Industries declaring publicly that they will use LTE, it seems that the industry momentum is turning in that direction," said Mr Kunal Bajaj, Director of Analysys Mason India.

LTE is considered to be a fourth generation (4G) technology which allows users to access data at speeds of 10 Mbps.

Mr Prashant Singhal, Telecom Industry Leader, Ernst & Young, reckons that India could be in a position to drive change towards LTE in the global telecom eco-system. "Though the eco-system for TD LTE is at least two years away, winners are widely expected to use India as a test market which could provide it sufficient scale and, hence, lower device costs for further deployment in global markets."

But Mr C.S. Rao, Chairman, Wimax Forum in India, is confident that WiMax will be the preferred technology. "Any operator who wants to get faster return on investments, especially after paying so much money for spectrum, will go for a technology that is available now. LTE is years away before it can be commercially deployed," said Mr Rao. Among the spectrum winners, only Tikona and Augere are known to be WiMax players.

The strategy of Bharti and Aircel is not yet clear but since these two operators also have 3G spectrum they might move to LTE.

Even Reliance Communications which lost out in the auction said it prefers LTE standard as it offers a single evolution path for both CDMA and GSM networks "WiMAX ecosystem has weakened after WiMAX operators such as Clearwire and Yota moved to LTE," said RCOM.

source :: http://www.thehindubusinessline.com/2010/06/12/stories/2010061250500502.htm