The headline for this PTI report would have you believe, incorrectly, that only those companies with prior 3G experience are allowed to bid for a 3G spectrum in India. That is not the case. The updated guidelines are available for download – for 3G and Broadband Wireless Access.
The Department of Telecommunications (DoT) has modified the 3G guidelines as follows:
– New Applicants Need 3G Experience: Now companies with either a Universal Access Service (UAS) License or a Cellular Mobile Telephony Service (CMTS) License may bid for spectrum. Apart from this, companies with prior 3G experience who give an undertaking to obtain a UAS License may also apply.
– CDMA Spectrum Auction: 2×1.25MHz of spectrum in the 800 MHz band, which was previously going to be made available to CDMA operators at the price-equivalent to the highest bid in the 2.1 GHz band, will now be auctioned as well. However, they’re getting a reserve price for the auction as 25% of the reserve price for the spectrum in 2.1 GHz band.
– Spectrum usage charges lowered: Now, instead of charging companies 1 percent of their Adjusted Gross Revenue after 1 year, as spectrum usage charges, the government will charge 1 percent of incremental revenue due to 3G, after a period of 1 year.
In case of Broadband Wireless Access,
– ISPs Included: Category A and B ISPs can also bid for BWA spectrum
– Reserve Auction Price Increased: The reserve auction price was earlier supposed to be 25 percent of the 3G auction price – Rs. 40 cr for Mumbai, Delhi and Category A circles, Rs. 20 Crores for Kolkata and Category B, and Rs. 10 crores for Category C circles. The new reserve price: Rs. 80 crores for Metro & Category A, Rs. 40 crores for Category B, and Rs. 15 Crores for Category C circles.
– Roll Out Obligations have been relaxed, and licensees in Category A, B & C circles no longer have to 25 percent of rural SDCAs within two years. However, by the end of 5 years, they will still need to ensure 90 percent coverage in metro cities, and 50 percent in Rural SDCAs.
One other interesting change, which leaves the entire auction ready for controversy, if invoked – “The Government of India reserves the right to cancel the bidding process or disqualify any bidder without assigning any reason.
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4 Comments until now.
Is someone willing to take a bet that the top GSM provider gets a license with a bid which is within 5% of the nearest competitor.
Hongkong 2.5/ 2.3 Auctions -a wake up call for WiMAX auctions in India
WiMAX despite over 400 networks successfully rolled out is presently being buffeted by strong winds of a pessimism. Sample this- in the 2.5 GHz and 2.3 GHz auctions which were held in Hongkong in Jan 2009 by the OFTA the only bids which came in were for the 2.5 Ghz-2.6 GHz band. There were no bidders for the 2.3 GHz band which is a prime band for mobile WiMAX with WiMAX forum certified products being available. Not only that, the only successful bids in the 2.5-2.6 GHz band the bidders were mobile companies ( China Mobile HK, CSL and Genius Brand) and have not hidden their intention to use the potential spectrum for LTE. This is despite the fact that LTE, a technology evolution path of 3GPP is still at least 2-3 years away.
As India enters the auctions of 3G and WiMAX portions of spectrum later in march / April 2009, the results of auctions should be a wake up call. We have been pointing out repeatedly that while the air interfaces can be used for WiMAX, the companies are planning to use the LTE based technologies. Continued..
http://www.wimaxbook.net
With the Indian govt and regulators having adopting an Ostrich like attitude believing that the WiMAX spectrum in the 2.3 and 2.5 Ghz bands would be used for growth of broadband wireless in the country, the reality will bite when the auctions are over with a probable repeat of the Hongkong results. The reserve prices of WiMAX spectrum fixed at 50% of 3G prices ( at appox $800 million for 3G and $400 million for WiMAX) making it well out of reach of broadband wireless operators. The only users which could possibly use this new spectrum in the 2.5 GHz bands are likely to be those using 3G-LTE technology. This is owing to the sever spectrum crunch for 2G services and the need to deploy additional spectrum for voice services by a multiplicity of players which makes any possible additional capacity attractive.
hence the policy makers should be under no illusion that just because they are auctioning certain spectrum as WiMAX, it will be used for anything other than LTE. But perhaps they are indeed aware of it. After all the 2.5 GHz band has been vacated by throwing to the wolves the existing WiMAX operators operating in this very band.
http://www.wimax-home.com
WiMAX will be the future of communication, it's just going to take some time to conquer all the challenges.
http://www.acreativedesktop.com/clear-high-speed-...