With smartphone makers slashing prices, India is expected to become one of the major markets for these devices (at 30 million shipments a year currently), tablets and the like. As we speak, the "mobile-only internet" user base has also grown proportionately. In order to realise the target of broadband-on-demand by 2015, and to achieve 175 million and 600 million broadband connections by 2017 and 2020, respectively, as outlined in National Telecom Policy 2012, quality high-speed mobile services hold the key. A paucity of spectrum, however, continues to plague the industry. The minimum carrier of 2×5 MHz released for each operator by the department of telecommunications (DoT) in 2010 for 3G services is likely to face congestion, especially in urban areas. What can we do about it? (PLAYERS IN THE BANDS)
One of the main reasons for the dearth of spectrum is the huge chunk of spectrum holdings for defence and related purposes. In India, there was a pact between the ministry of defence (MoD) and the ministry of communication and information technology to share spectrum in 1,700-2,000 MHz band in such a way that 150 MHz will be given to DoT, and the remaining 150 MHz will remain with defence for its internal use. (The diagram shows how the spectrum is shared across the stakeholders.)
Of the 2×60 MHz spectrum block in the International Telecommunication Union-recommended 1,920-1,980/2,110-2,170 MHz, which is a globally harmonised band for 3G services, such as wideband code division multiple access (WCDMA) and high speed packet access (HSPA/HSPA+), only 25 MHz (1,954-1,979/2,144-2,169) is available with DoT, leading to a severe shortage for wireless broadband services in the country.
Since the 2,100 MHz band is well harmonised worldwide for 3G and 4G technologies (adopted in about 90 countries, more than 200 operators, with more than a billion subscribers), Indian operators will also benefit from its deployment, owing to huge-scale economies and the resultant low cost and price of data services. However, only 2x20 MHz was auctioned in 2010 because of limited availability caused by MoD's holdings, with no road map for the future.
On the other hand, as the diagram shows, under the terms of the agreement, a chunk of 1,900-1,907.5/1,980-1,987.5 MHz was to be handed over to DoT by MoD. The CDMA networks operate in this band (as well as in the 800 MHz band). The inactivity in the auction of 800 MHz in November last year by the CDMA operators clearly indicates that there is little interest in seeking additional spectrum in these bands. An important reason for this inactivity is that the current holding of 2.5-5 MHz in the 800 MHz band might be sufficient for the CDMA operators - most of whom (barring one) are dual-technology operators and have spectrum in the 1,800 MHz and the 2,100 MHz bands.
In April 2012, the Telecom Regulatory Authority of India (Trai) recommended that this 1,900 MHz band should be positioned as the refarming path for the CDMA operators who hold 800 MHz spectrum (much like 1,800 MHz for 900 MHz holders) when most of their licences expire - but that is not for the next seven to 10 years. Moreover, since this band is close to 2,100 MHz, Trai has been concerned about a possible interference since its recommendations in May 2005 about the possibility of assigning this band.
This warrants a closer examination by both Trai and DoT. On one hand an inactive spectrum block in the 1,900 MHz band is being obtained from MoD by DoT, while the more commercially useful block in 2.1 GHz band is being held back by MoD. One option before DoT is to negotiate the release of the 15 MHz spectrum (i.e. 1,939-1,954 MHz) in lieu of 15 MHz in the 1,900 MHz band. This will give a continuous globally harmonised upstream band of 1,939-1,979 MHz for deploying WCDMA and HSPA technologies for mobile-broadband services (subject to DoT supplementing the existing downstream frequencies with a block of 2,129-2,144 MHz, which is not being shared with MoD). This extra spectrum block of 2x15 MHz can either be used to allocate additional spectrum to existing operators or introduce new operators, as the case may be. By the way, this can also earn additional revenue close to Rs 50,000 crore to the state exchequer going by the market prices determined in 2010 auction.
Further, 15 MHz in the 1,900 MHz band can potentially be released by MoD after the alternative optic fibre networks are completed (which should not take 10 years until the expiry of existing 800 MHz licences) for refarming of the 800 MHz band, if that is required at all.
Today, the focal point of regulation of scarce resources, namely spectrum for mobile services, has changed from pure coordination and planning to the creation of a competitive and sustainable environment for various telecom services. Technologies have evolved to accommodate a certain amount of flexibility in spectrum management. Regulatory entities in some countries have recognised this and migrated to allowing flexibility in the management of spectrum resources.
India has taken the first step in delinking licences from spectrum and making spectrum allocation service-agnostic. It is time for Trai, DoT, the Wireless Planning and Coordination and MoD to collaborate and incorporate the kind of flexibility outlined here in the allocation of spectrum, so that the much-dreamt-of broadband society can be nurtured and developed.
(With inputs from Parag Kar)
V Sridhar is Research Fellow, Sasken Communication Technologies; Parag Kar is Vice-President, Qualcomm India.
These views are personal
V Sridhar is Research Fellow, Sasken Communication Technologies; Parag Kar is Vice-President, Qualcomm India.
These views are personal