Spectrum for Customer Base for 3G Rollout in India

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CDMA camp divided over spectrum allocation

Thomas K. Thomas

The Hindu Business Line

New Delhi , May 28

The subscriber-linked spectrum allocation policy has divided the CDMA camp with Reliance Infocomm joining ranks with the GSM operators in supporting the Government decision.

At a meeting held by the Confederation of Indian Industry to discuss the controversial policy, the other CDMA operator, Tata Teleservices, vehemently opposed the move by the Department of Telecom (DoT) to allocate spectrum according to the number of subscribers.

Industry sources said that except for Tatas and the promoter of CDMA technology Qualcomm, the entire industry supported the subscriber-linked spectrum allocation policy. The others who have voiced their support for the policy during the meeting include Idea, Airtel and Hutch. Equipment vendors such as Nokia and Ericsson also supported the policy. State-owned public sector companies Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd are also in favour of the move.

Sources said the majority who were present during the meeting took a view that though the subscriber-linked spectrum policy was not the ideal decision it was the best given the situation in India where spectrum allocation has not been done systematically over the years. The Tatas on the other hand took a position that operators would exaggerate their subscriber numbers to get additional spectrum.

Coordination team to resolve spectrum row

Maran to meet telecom operators next month on spectrum allocation

The Ministry of Telecommunications has set up a coordination team to resolve the tussle over the allocation of the spectrum between private mobile phone operators and the Department of Telecommunications (DoT).

The ministry's move comes after the spat spilt over to the Prime Minister's office.

The ministry has asked the Telecom Regulatory Authority of India (TRAI) to come out with recommendations on the pricing pattern for release of spectrum to the mobile phone operators.

Dayanidhi Maran, minister for Communications and IT, said that a coordination team has been set up to look into the spectrum issue.

Maran said that his ministry is planning to release 45 MHz of spectrum for the operators. "Spectrum will be cleared by year-end. The telecom regulator will come up with recommendations on the price pattern to release the adequate amount of spectrum," Maran said.

This move is done with the cooperation of the defence ministry.

Maran said that the Group of Ministers is also working on vacating the spectrum from the defence. However, the coordination team will look in to the allocation of it.

"Release of spectrum is crucial to meet the growing connectivity across the country. Defence (ministry) is cooperating with us to vacate some amount for commercial purpose," he added.

The communications minister said that he would meet the telecom operators next month seeking their response on spectrum allocation.

However, on the allocation side, by setting up the recommendation team, the government is planning to end the spectrum war between the CDMA and the GSM operators.

With the government's decision to allocate additional spectrum, maintaining a spectral characteristic factor of 2:1 in favor of GSM players versus CDMA operators, it is quite natural that CDMA players will cry foul.

Ratan Tata, head of the Tata Group, was the first to speak up against shackles binding his company Tata Teleservices. He fired the first salvo addressing a letter to the prime minister and highlighting the issues ailing the industry.

Darryl Green, CEO, Tata Teleservices, voiced his displeasure at the way the spectrum was being allocated. He even went to the extent of terming the current system of allocation as a mechanism for granting favors.

Green vouched for Ratan Tata's idea of charging a special fee for the spectrum rather than providing it for free.

The Tatas are picking up the cudgel against the allocation, as they are among the worst hit players.

The other major CDMA operator, Reliance Infocomm, is largely silent on the issue. Spectrum allocation is also linked to subscriber base, as Reliance Infocomm has close to 19 million subscribers -- more than twice that of Tata Teleservices. Hence, Reliance is maintaining a stoic silence on the issue being content to let Tatas raise the banner of revolt.

There could also be another reason behind this disunity. Last time round, when Reliance was facing the music on providing cellular type services (roaming, etc.) instead of sticking to the stipulations of WLL (wireless in local loop) provisions, Tatas had been unusually silent on the issue that afflicted the industry.

Reliance Infocomm went on to win the battle and Tata Teleservices also benefited.

India adds over 2 million new subscribers to the mobile network every month. A 6-7 month delay in spectrum allocation costs 12-14 million subscribers, which clogs the mobile networks.

Telecom majors Bharti, Reliance Infocomm, Hutch, Idea and Tata are in the queue for getting the allotted amount of spectrum to drive their connectivity in more areas.

Bharti applied for additional spectrum in August (for Delhi) and the application is yet to be cleared. Hutch applied in June 2005 and is still waiting for allocation. Reliance had applied in October 2005.

[Arun 795]

The Spectrum tangle - CDMA v GSM

The Financial Express

Saturday, June 17, 2006 at 0000 hours IST

In India, mobile service operators have always had to scramble for more spectrum allocation. However, in the last two years, the fight for spectrum has further intensified, mainly because the mobile subscriber base has grown at a very fast pace. Spectrum is like oxygen for mobile operators and lack of it leads to call drops (calls being disconnected) and congestion in the network. Tata Group chairman Ratan Tata recently stirred a hornet’s nest by writing to the telecom department and PM complaining about the lack of a comprehensive spectrum policy. Here’s a lowdown on the current controversy over its allocation.

What is spectrum?

Spectrum is the generic term for the range of electromagnetic radiation (electromagnetic waves) in our universe. An electromagnetic wave propagated by an antenna is also known as a radio wave. Radio waves have different frequencies and electronic receivers, like the FM car radio you can tune into for receiving specific signals on its frequencies. The mobile or cellular phone is also a radio receiver, though an extremely sophisticated one, that picks up and transmits radio signals which carry voice, data or even video.

How is spectrum allocated to different technologies ?

In India, allocation is handled by the Wireless Planning & Coordination (WPC) wing of the department of telecommunications (DoT). The two primary technologies in use today are GSM and CDMA. Both operate in different spectrum bands on account of their different technological requirements. The following spectrum bands are in use in India:

GSM: Frequency bands 890-902.5 MHz paired with 935-947.5 MHz and 902.5-915 MHz paired with 947.5-960 MHz has been allocated to GSM technology. Initially, GSM operators are allocated a chunk of 4.4 MHz and subsequent allocations are in multiples of 0.6 MHz. This makes it a total of 25+25 MHz.

CDMA: For CDMA, the frequency band earmarked is 824-844 MHz/869-889 MHz. A total band of 20+20 MHz. The allocation for CDMA, therefore, is slightly lower than that for GSM. CDMA operators are demanding that they be allocated as much spectrum as GSM which the latter is opposing.

What are the criteria for spectrum allocation?

The difference in allotments to GSM and CDMA operators is because CDMA technology is considered more efficient than GSM. The government has adopted an incremental approach to spectrum assignment, with the amount of spectrum assigned based on the number of subscribers.However, this is generally not regarded as the best approach.

How is spectrum allocated in other countries?

In most other countries, the concept of allocating an initial amount of spectrum to an operator and increasing it at a later date is not the normal practice. Operators abroad have typically received the full amount of spectrum they are to be allocated in a specific band when they are first awarded a mobile licence.

Regulators allocate all available spectrum to operators because it promotes the efficient use of spectrum, allows operators to deploy their networks more economically and reduce administrative costs for both the operators and the regulator. Most important, this helps prevent the regulator from making arbitrary decisions on how much spectrum is to be released initially.

Why is there a controversy over allocation of more spectrum?

Since spectrum allocation here is based on technology and subscriber numbers, there are differences between GSM and CDMA players. CDMA operators get half the spectrum GSM operators get because they are more efficient users of spectrum. The Telecom Regulatory Authority of India (Trai) in its recommendations on spectrum allocation has favoured technology-neutral allocation on the grounds that an efficient technology should not be penalised.

With DoT continuing with the technology and subscriber-based approach while releasing additional spectrum recently, Ratan Tata opposed it. He wants spectrum allocation to be done by charging the operators an upfront fee. He’s suggested Rs 1,500 crore. Other operators have opposed this suggestion.

Is there a way forward ?

The defence forces are sitting on most of the spectrum in India and unless they vacate it, mobile operators are unlikely to get as much as is required by them. To sort out the issue of vacation of spectrum by the defence forces and moving them to a separate band, the government constituted a Group of Ministers headed by defence minister Pranab Mukherjee. The GoM, however, has not met even once.

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RCL moots minimum 2x5mhz spectrum for 3G

Zee News

New Delhi, July 07: Favouring the subscriber based allocation of spectrum in 3G services, country's top CDMA player Reliance Communications, has suggested that mobile players should be given a minimum of 2x5 mhz spectrum in appropriate band to start third generation mobile services.

"As per global standards, the bandwidth requirement is 2x15 mhz for each operator, which enables it to plan network more efficiently. However, on account of non-availability of adequate spectrum in the Indian context, a minimum 2x5 mhz spectrum should be allocated in appropriate band at the start of service but one more carrier should be available to the operators on need," RCL said in its presentation to TRAI.

Reliance Communications, which is also planning to expand its GSM operations said frequency band should be capable of providing international roaming.

Rooting for the 1900 mhz band for CDMA operators' 3G services, RCL said with regard to defense not agreeing to part with this band and the government separately looking at the vacation issue, TRAI should not reject the demand of CDMA operators for allocation of 1900 mhz band only on grounds that defense does not agree to give this band.

Considering 2.1 ghz band for 3G is against the ITU proposals and will also lead to a situation where CDMA operators will be put to disadvantage, RCL said, "CDMA operators will not be able to offer 3G services at all, since all compatible dual band handsets and equipment are admittedly not available in 800 and 2.1 ghz band respectively."

If this remains the case then the CDMA operators would have to establish and operate a completely new and separate network for 3G services in 2.1 ghz band and serve only the 3G subscribers in this network. This will push up costs for CDMA based 3G services.

"In order to ensure a level playing field, the authority should consider allocation of 1900 mhz band also to the CDMA players along with 2.1 ghz band for the existing operators so that both the technology operators can simultaneously start services," it said.

In fact there should be complete flexibility to provide 3G services in 800/900/1800/1900/2100 mhz bands and the operators should be allowed to take their own commercial decisions, RCL said.

It said TRAI recognises that for CDMA operators, equipment in 2ghz band and dual band handsets are not readily available in the same volume as that for WCDMA technology (3G service for GSM) in 2ghz band. But the authority still considers 2ghz band for 3G services for CDMA as some vendors have indicated that such dual band handsets of 800 mhz and 2 ghz can be manufactured.

While TRAI has acknowledged that a world body WRC 2000 recognises 900 and 1800 mhz band (presently used by the GSM operators) for 3G services also but as WCDMA equipment is presently not available in these two bands so it is feasible to consider these bands for the allocation of 3G services even if recommended by the International Telecom Union (ITU).

"But on the same ground of admitted non-availability of compatible handsets for CDMA operators on the assumption that so Vednor may come up with handsets in the next six months if there is demand for the same, this stand of TRAI is a major concern for us and needs to be addressed properly.

3G is not a separate service since the license does not specify the speed at which the data can be transmitted whether at 144 kbps or 2 mbps. 2G, 3G or 4G is only an extension of the availability of features and speed of the provision of data services and does not in any way create a new service.

The unified access service license permits provision of all services which do not require a separate license. 3G is not stated to be one of those services which require a separate license, RCL said.

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Government to release 60 MHz of spectrum for 3G by 2007

Business Standard / New Delhi August 28, 2006

The department of telecommunications has prepared a road map for the release of 3G spectrum, under which it would require the defence ministry to vacate 25 MHz by the end of December 2006, and another 35 MHz by 2007-end.

3G mobile services permit high-speed internet access using different wavelengths, and allow operators to offer mobile broadband services like video-and audio-streaming, among other things.

The road map, if implemented, would mean there being not enough 3G spectrum for the eight pan-Indian mobile telecom operators by the end of this year. Telcos require a minimum of 5 MHz each to run 3G operations.

This implies that only five of the eight mobile operators across the country can operate 3G services by the year-end. The main mobile operators include Bharti, Hutchison-Essar, Idea Cellular, BSNL, Reliance Communications, Tatas, Spice Telecom, and Aircel-Maxis (both of whom are going, or will go for an all-India licence).

In the second year, however, there will be enough spectrum for all the existing telcos, and it might be possible to give them even 10 MHz each to run 3G services. Spectrum of 5 Mhz is enough to support over 3-4 million 3G customers per operator, with heavy data applications.

The defence ministry is now using most of the 3G spectrum bands for its own equipment. However, it has agreed to vacate them in phases, for which it requires new electronic equipment. And that is expected to cost over Rs 1,000 crore.

At a meeting cellular operators had with the Telecom Regulatory Authority of India (Trai) a week ago, the discussions centred on how to distribute the scarce resources. One suggestion sought offering the spectrum to five telcos, while the rest shared the infrastructure of the others for the time being.

In that case, customers of telcos that had not been granted 3G spectrum could roam on the networks of the other five operators. This is possible as none of the operators expects to rope in 5 million 3G customers within the next few years.

The selection of the five operators, the COAI suggested, could be based on a parade that took into consideration different parameters — the quantum of investment committed, the cheapest 3G tariffs promised, among other things.

News source: Business Standard

URL: http://www.business-standard.com/iceworld/...02896&tab=r

[Arun 795]

3G launch in India goes begging yet again !

Military throws a spanner in the 3G works

Times News Network - Tuesday, December 12, 2006

India’s Ministry of Defence (MoD) has told the Department of Telecommunications (DoT) that it will not hand over spectrum for 3G services until the regulator addresses security concerns regarding the frequencies it has been offered in return. According to the Economic Times, the MoD currently has ownership of frequencies the DoT wants to allocate to 3G operators. The telecoms regulator has proposed a spectrum swap under which the MoD will be offered space on the existing networks of state-run mobile operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) in exchange for its 3G frequencies. However, the MoD is concerned that the BSNL and MTNL networks are not secure enough for military use and wants the system upgraded. Analysts estimate that making the networks fully secure could send costs spiralling upwards to INR27 billion (USD600 million), almost three-times the original expected outlay. The DoT must now decide whether to acquiesce to the military’s demands and, if so, who will foot the bill. This may put on hold the telecom companies’ plans to roll out 3G services.

BSNL had proposed to provide bandwidth in its existing network to defence forces. It planned to make it secure by implementing a technology called bulk encryption units. Defence forces, however, are not comfortable with implementation of bulk encryption units. They feel that any public network is susceptible to leakage of information. Therefore, they have asked for a parallel network to be established by the two companies.

At present, defence forces use wireless extensively for their communication needs and have been allotted substantial spectrum. The band of spectrum that is being used by defence forces is also required by the telecom operators for providing mobile telephone applications. Therefore, the government has asked the forces to vacate the spectrum. A steering committee comprising officials from the department of telecommunications and the defence forces has been set up for the purpose.