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It was broadband data that made operators bid fiercely for the 1,800-MHz band spectrum in the auction that ended on Thursday.
As a result, prices of 1,800-MHz band crossed that of the 3G auction (held in 2010) in five circles, came close to the 3G auction prices in three others and crossed 80 per cent of the 3G auction prices in six circles.
Globally, 1,800 MHz is already a proven band for fourth-generation (4G) services to provide high-speed data. The 1,800-MHz spectrum has so far been used to offer only 2G voice services in India but with the government liberalising spectrum, operators now have the option to deploy 4G network on the 1,800 MHz band.
| SEAMLESS STREAM ON 1,800MHZ |
Bharti Airtel: All 22 circles Reliance Jio: All 22 circles Vodafone*: 5 circles — Mumbai, Delhi, Kolkata, Karnataka and Kerala Idea Cellular: 8 circles — Kerala, Maharashtra & Goa, Andhra Pradesh, Karnataka, Madhya Pradesh & Chhattisgarh, Punjab, Haryana and the Northeast
*Vodafone is already offering 4G on 1,800 MHz in Australia, Fiji, Greece, Italy, Malta, New Zealand, Portugal, Romania and Spain |
Globally, 108 operators have commercially launched 4G services on the 1,800-MHz band in 58 countries, either as a single-band operator or within a multi-band deployment, according to a study by The Global mobile Suppliers Association or GSA. At present, the 1,800-MHz band covers 44 per cent of the total long-term evolution (LTE) or 4G networks globally.
The hurdle for the commercial rollout of 4G or LTE services in the 2,300-MHz band was that the device ecosystem was not ready. China is the only country to evaluate LTE on the 2,300-MHz band and even Bharti Airtel’s 4G services in India are restricted to data dongles and a few thousand customers.
As LTE services on the 1,800-MHz band are already being adopted in many countries, including most European countries, there are around 1,200 devices and 400 terminals available in the market, which work seamlessly on the 1,800-MHz band LTE. There are 144 smartphones for LTE on 1,800 MHz as well.
For deployment of 4G or LTE services on 1,800 MHz, operators would require about 30 per cent less number of towers compared to the 2,300-MHz spectrum band, said an executive of an operator intending to offer 4G services on the 1,800-MHz band. For deployment of 4G or LTE services across the 22 circles in India, the infrastructure cost is estimated at Rs 10,000-15,000 crore. The number would definitely vary for multi-band deployment.
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The rationale behind aggressive bidding for the 1,800-MHz spectrum was also clarified after the auction with two new operators — Vodafone India and Idea Cellular — which had earlier decided not to acquire broadband wireless access (BWA) spectrum when it was auctioned in 2010.
On the other hand, Reliance Jio Infocomm, which acquired 20 MHz of BWA spectrum (in the 2,300-MHz band) across 22 circles in India in 2010 but is yet to launch 4G or LTE services to date, has also acquired an average of more than 5 MHz spectrum in 14 circles in the 1,800-MHz band. This will help it deploy a multi-band network, with the option to use the 1,800-MHz airwave for both voice and data.
Bharti Airtel, the only operator in India to commercially roll out 4G or LTE services in five circles, has bought 97 MHz of 1,800 MHz spectrum in 15 circles. “The company plans to roll out high speed 4G networks in various circles using FD-LTE (frequency division LTE) technology in the 1,800 MHz band besides its existing TD-LTE (time division LTE) rollout in the 2,300 MHz band, giving it a pan-India 4G footprint,” Bharti said after the auction.
Vodafone, which has commercially launched LTE services in Australia, Fiji, Greece, Italy, Malta, New Zealand, Portugal, Romania and Spain, said on Thursday it would commercially launch 4G services on the 1,800-MHz band in Mumbai, Delhi, Kolkata, Karnataka and Kerala circles, accounting for half of its data revenue. “We have also opened the door to the next generation of mobile technology, 4G, by buying 1,800-MHz spectrum in places where we expect this market to take off first,” said Marten Pieters, managing director and chief executive of Vodafone India.
Idea Cellular has also officially said it will offer 4G services using the 1,800-MHz band in eight circles — Kerala, Maharashtra & Goa, Andhra Pradesh, Karnataka, Madhya Pradesh & Chhattisgarh, Punjab, Haryana and Northeast.
Reliance Jio, which now has the highest quantity of liberalised spectrum across India with longest residual life, now plans to offer seamless 4G services using FDD-LTE on 1800MHz and TDD-LTE on 2300MHz through an integrated ecosystem.
“The company aims to provide unparalleled high quality access to innovative and empowering digital content, applications and services,” Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said, in a statement.
But, it was Videocon who made the first move announcing plans to roll out 4G on 1800MHz band after it had acquired spectrum in November 2012 in a few circles. However, the company is yet to launch services.
While all operators are set to lock horns for high-speed data services, the fact is that India, at present has just a little more than 60 million data users across 2G, 3G and 4G. So, the scope is immense.
