NEW DELHI: The telecom regulator Trai plans to keep out incumbent mobile telecom companies from the first phase of auctioning of 700-MHz band - considered the 'most efficient and cost-effective' frequency for delivering wireless broadband or fourth generation (4G) services.
The regulator, in its communication to the telecom department last week, said limiting the 700 MHz auctions may offer a level playing field to all operators.
The logic:
Most incumbent telcos provide 2G services or vanilla voice offerings in the 900-MHz band, which is considered to be very efficient. On the other hand, companies such as Tata Teleservices, Reliance Communications, Idea Cellular (in some circles), Aircel (in most circles) and Uninor offer 2G services using the 1800-MHz band resulting in these companies having a higher capital and operating expenditure.
Since the available airwaves in the-900 MHz has been exhausted to incumbents, telcos such as RCOM and TTSL have long been demanding the redistribution of this band. Trai therefore feels that restricting the first phase of the 700-MHz auctions to the companies that do not own any airwaves in the 900-MHz band may even out the advantages enjoyed by the incumbents.
But as more airwaves in the 700-MHz band are freed up for commercial telephony, incumbents such as Bharti Airtel, BSNL and Vodafone will be given frequencies in this band provided they pay the price equivalent to the amount determined in the auctions, Trai added.
But the regulator will take a final call on this after holding detailed consultations with all telcos. "It (Trai) will also consider.... the feasibility of liberalisation of spectrum along with limiting the auction of spectrum in the 700-MHz band initially to those not holding spectrum in the 800/900-MHz bands, subject to the condition that holders of 800/900-MHz spectrum would pay the market price. This is so as to establish a level playing field," Trai's communication to the DoT said.
Trai further said that 'India had lagged behind in the introduction of 3G and needs to catch up with the rest of the world in 4G for which the 700-MHz band offers immense potential', while adding that 'there was adequate spectrum in this band that can be put to commercial use immediately'.
Telcos that use 1800 MHz to offer 2G services, in their representations to Trai, had claimed that incumbent GSM operators jointly enjoyed a capex savings of Rs 15,000 crore as well as annual opex savings of.`2,000 crore by using the 'more efficient and premium' 900-MHz band.
The regulator, in its communication to the telecom department last week, said limiting the 700 MHz auctions may offer a level playing field to all operators.
The logic:
Most incumbent telcos provide 2G services or vanilla voice offerings in the 900-MHz band, which is considered to be very efficient. On the other hand, companies such as Tata Teleservices, Reliance Communications, Idea Cellular (in some circles), Aircel (in most circles) and Uninor offer 2G services using the 1800-MHz band resulting in these companies having a higher capital and operating expenditure.
Since the available airwaves in the-900 MHz has been exhausted to incumbents, telcos such as RCOM and TTSL have long been demanding the redistribution of this band. Trai therefore feels that restricting the first phase of the 700-MHz auctions to the companies that do not own any airwaves in the 900-MHz band may even out the advantages enjoyed by the incumbents.
But as more airwaves in the 700-MHz band are freed up for commercial telephony, incumbents such as Bharti Airtel, BSNL and Vodafone will be given frequencies in this band provided they pay the price equivalent to the amount determined in the auctions, Trai added.
But the regulator will take a final call on this after holding detailed consultations with all telcos. "It (Trai) will also consider.... the feasibility of liberalisation of spectrum along with limiting the auction of spectrum in the 700-MHz band initially to those not holding spectrum in the 800/900-MHz bands, subject to the condition that holders of 800/900-MHz spectrum would pay the market price. This is so as to establish a level playing field," Trai's communication to the DoT said.
Trai further said that 'India had lagged behind in the introduction of 3G and needs to catch up with the rest of the world in 4G for which the 700-MHz band offers immense potential', while adding that 'there was adequate spectrum in this band that can be put to commercial use immediately'.
Telcos that use 1800 MHz to offer 2G services, in their representations to Trai, had claimed that incumbent GSM operators jointly enjoyed a capex savings of Rs 15,000 crore as well as annual opex savings of.`2,000 crore by using the 'more efficient and premium' 900-MHz band.
