7, జనవరి 2012, శనివారం

4G battle


Along with the 3G spectrum, auction took place for BWA (Broad band wireless access) spectrum (4G spectrum) in 2010. BSNL and Infotel  ( Subsequently acquired by  Reliance Industries Limited) got the BWA(4G) for all the circles. The American Company Qualcomm got it for 4 circles. Aircel, Airtel, Tikona and Augere companies got it for 2, 4, 4, and 1 circles respectively. For the BWA spectrum for all the circles BSNL and Infotel paid Rs 8000 crore each, to the Government.

Thus BSNL and Infotel got the 4G spectrum for all the circles. But BSNL faced a problem. It was allotted 2.6 GHz band while all others were allotted 2.3 GHz band. The band allotted to the BSNL is suitable for Wi-Max technology only and it requires more investment since costly equipment is needed for it. It gives less physical coverage.  But the  the band allotted for the private operators is  suitable for Wimax technology as well as the LTE (Long Term Evolution) platform which is the upcoming , highly  potential and competitive platform and it requires less investment. This LTE is the 4G spectrum.  The commitment of the Government to give extensive coverage of wireless broadband in rural areas will suffer since it will be more costly with this band of BWA spectrum allotted to BSNL. Thus the BWA spectrum band allotted to BSNL will be loss making in rural areas and cannot with stand the competition in the urban areas. This makes it difficult for BSNL to survive in the competition. BSNL wrote to DoT to surrender the BWA spectrum it got in all other circles except 4 circles and it was agreed in principle by DoT.

Now the RIL (Reliance Industries Limited) is planning to start 4G services using the BWA spectrum in the quality band allotted to it. It will provide high capacity wireless broadband 4 G services that will have a speed of 50-100 Mbps in testing, which is 3 times higher than the fastest 3G services. RIL will invest Rs 25,000 crore  in the first two years for rolling out  its 4G network through out the country. Its plan is to provide video services with high speed and dead cheap cost and to develop platform-neutral technology to stream high speed content (video and data) on your 4 screens-mobile, computer/tablet, TV and bill boards (Outdoor advertisement structures on traffic routes). The owner of the RIL is Mukesh Ambani and is talking with Rcom (Reliance Communications) owned by his brother Anil Ambani to see whether RIL can use the well established network of RCom to provide broadband services as well as to provide voice calls. RIL already got preferential access to all of the Network 18’s TV, Internet and digital content across all languages. It is also talking with other media and entertainment companies like UTVsoftware  (Walt Disney’s Indian venture)  for online gaming and entertainment content.  It acquired 38.5% in Extrmarks Education, a company focussed on school education and digital learning.  It is learnt that it is planning to bundle data services at about 10 paise per GB, which is one tenth of the current 3G prices. It is also learnt that it is planning to bundle this with entry level tablets(small hand held computer/mobile phone) powered by Google’s Android operating system that will cost Rs 3000-8000.

While RIL acquired BWA spectrum for giving 4G services all over India, Airtel, Vodafone,Qualcomm, Aircel, Tikona as said above got BWA (4G) spectrum for a few circles only and hence will not have pan India presence. For that matter, in case of 3G spectrum also, the Vodafone, Airtel and Idea do not have it in all the circles. Each of them has the 3G spectrum in some circles only. But they signed among themselves an illegal intracircle roaming so that each of them can provide 3G services all over India even in the circles where they do not have the 3G spectrum, by allowing the subscriber of the non-3G holding operator in the circle to roam on the 3G network of the partner having 3G spectrum in the concerned circle. Recently the DoT issued notice to them to terminate these illegal intra circle roaming agreements. They immediately filed a petition before TD SAT (Telecom Disputes Settlement and Appellate Tribunal) and got stay.

The Airtel, Vodafone and some other private operators have taken 4G (BWA) spectrum for some circles only on the assumption that they can provide the 4G services in other circles by similar intra circle roaming agreements. If the intra circle 3G roaming agreements resorted to by these private operators is held as illegal by the TD SAT finally, their 3G roaming agreements have to be terminated and they also cannot resort to such intra circle roaming agreements for 4G services.

Hence hectic pressure is there on the Government to allow spectrum sharing in the new telecom policy to be announced in a few months so that they can go for the intra circle roaming agreements after announcement of the new policy and provide the 3G/4G services throughout the country including in the circles where they do not have the 3G/4G spectrum. The draft new telecom policy proposed by the Communications Minister already agreed to allow spectrum sharing and trading.

Thus it is clear that there is a battle going on among the telecom services companies on the issue of 4G spectrum also pending the finalisation of the new telecom policy. While the Goveernment has damaged BSNL by allotting poor quality BWA spectrum that compelled it to propose for surrendering it, it allotted quality BWA spectrum to the private operators. But among thee private operators, the RIL purchased the BWA spectrum for all the circles where as other private operators took it for some circles only on the assumption that they can provide 4G services in all the circles by the intra circle roaming agreements. Therefore now thae battle going on the issue of 4G spectrum is:

a)     BSNL surrenders its BWA spectrum in all circles except 4, and hence not going to start the services in all other circles except the said 4 circles. It is looking for early refunding of the amount paid by it for the BWA spectrum.

b)    RIL has purchased the BWA (4G) spectrum for all the circles by paying Rs 8000 crores and going ahead with its plans to rollout its net work and start giving the 4G services by the end of this year.


c)     Airtel, Vodafone etc are struggling to see that their intra circle roaming agreements are not cancelled so that they can extend 4G services all over the country even in the circles where they do not have the 4G spectrum.

d)    Government, as the well wisher of the private operators, has already announced spectrum sharing in its draft new telecom policy and intending to allow it in the new policy to be finalized in a few months, so that, atleast from the date after the announcement of the new policy, the private operators who have not taken 3G/4G spectrum for all the circles will be allowed to provide 3G/4G services by sharing the 3G/4G spectrum of the other operatos who are having the spectrum in the concerned circles.


e)     Till the policy is finalized, the private operators like RIL having spectrum in all circles will be against intra circle roaming and they will pressurize the Government accordingly.

f)      The trade unions of BSNL and MTNL  are fighting for cancellation of the intra circle 3G roaming agreements and demanding that the spectrum sharing should not be allowed in the new policy.



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