It's Official: 3G Auction Postponed

The DoT has published a revised timetable for the much-awaited auction of 3G spectrum. As per the latest announcement, the key dates are as follows:

Last date for applications: 15/01/09
Publication of ownership details: 16/01/09 (19/01/09)
Bidder ownership compliance certificate: 20/01/09 (21/01/09)
Pre-qualification of bidders: 22/01/09
Mock auction: 27-28/01/09
Start of 3G auction: 30/01/09
Start of BWA auction: 2 days after the end of 3G auction

Note that the dates in brackets are for BWA only.

3G Auction Postponed

According to news reports, the Govt has decided to postpone the 3G auction by two weeks. No official notification has bee issued yet, but the COAI Director General has been quoted as saying that the auction will now take place at the end of January, instead of the earlier date of January 16. The reason being given is the large number of requests from various parties for more time to study the DoT memorandum on 3G and BWA spectrum auction. At the same time, it appears that the Cabinet Committee on Economic Affairs is yet to approve the 3G policy. Note that any delay in auctioning 3G spectrum automatically delays BWA spectrum auction as it's to be held only after 3G auction is over.

A delay of two weeks is not such a big deal given the extended delay in finalising 3G spectrum auction for different reasons. However, any further delay beyong January may lead to the whole process being frozen until a new govt takes shape after the general elections, expected to take place in the spring.

More Questions about DoT's 3G/BWA Policy

The DoT memorandum regarding 3G and BWA spectrum is fairly detailed and has a lot of useful information. A careful reading reveals some interesting points. A total of 80 MHz of BWA spectrum is available in 2.3 and 2.5 GHz bands, of which 20 MHz has already been given to the state-owned operators MTNL and BSNL in their (mutually exclusive) respective areas of operation. In the 2.3 GHz band, all the circles have 2 contiguous blocks of 20 MHz each but their location within this band is not the same across all circles. In the 2.5 GHz band, most circles again have 2 contiguous blocks of 20 MHz each but in 3 circles (Maharashtra, Gujarat and AP), paired spectrum is being offered in the form of two 10 MHz blocks with 100 MHz separation between them. What's even more interesting that the same 20 MHz contiguous block (2535-2555 MHz) that is being offered for BWA in most circles is split into two 10 MHz bands (2535-2545 MHz and 2545-2645 MHz) and paired with 10 MHz blocks in the 2645-2655 MHz range in the three circles mentioned above.

This clearly has implications for both impending deployments as well as any future auctions in the 2.5 GHz band. In particular, BSNL wants to use the paired 2x10 MHz spectrum in FDD mode. It means that another operator who gets BWA spectrum in the 2.5 GHz band in any Gujarat/Maharashtra/AP will either have to use FDD as well or risk a high degree of interference in case it uses the spectrum in TDD mode. Quite expectedly, objections are already being raised.

Another cause for confusion is the policy regarding new 3G operators. DoT is allowing entities that currently do not have a UAS license to bid for 3G spectrum and the license will be awarded to them, in case they are successful in the auction. In the past, UAS licensees have been considered automatically entitled to 4.4 Mhz of GSM spectrum (or 2.5 MHz of CDMA spectrum). It's not clear whether the same rule will be followed in this case. TRAI has asked for more clarity regarding this.

3G in the Enterprise

Here comes a reality check regarding the supposed high demand for 3G in the enterprise. According to a survey conducted by the 'Voice and Data' magazine, only 13% of respondents in the enterprise segment see 3G as a broadband wireless solution. Two reasons were mentioned for such a negative response: lack of awareness on what 3G means in terms of services and the fear that it will take a long time for 3G adoption.

Need for More Clarity on 3G and BWA services

The stage is set for spectrum auctions for 3G and BWA services next month. With less than a month to go for the D-day, there is still not enough clarity on what is the DoT definition for '3G' and 'BWA' services. As per the memorandum available on the DoT website,

"3G systems represent the next step in the evolution of mobile cellular communication. 2G systems focus on voice communication, while 3G systems support increased data communication. They allow high speed data transfer of at least 144 kbps, mobile Internet access, entertainment, and triple-play converged communications services, and have markedly greater capacity and spectrum efficiency than 2G systems."

"BWA technologies enable high-speed data communication over wireless links. BWA may offer significant advantages over wireline broadband systems based on cable network or DSL in terms of better coverage, speedy deployment, high scalability, lower maintenance and upgrade costs, and phased investment to match market growth."

It is clear that EVDO, UMTS, HSPA, LTE meet 3G service definition and can operate in 2.1 GHz band. In other words, CDMA operator can bid for 3G spectrum in the 2.1 GHz band and use it to deploy EVDO. At the same time, all of the aforementioned technologies plus WiMAX also fulfil BWA service requirements. Since the proposed BWA spectrum is unpaired, UMTS-FDD, HSPA and EVDO are automatically ruled out but it's still possible to deploye UMTS-TDD in the 2.5 GHz band.

This lack of clarity on what consitutes 3G and BWA can potentially lead to contoversy before and after the auctions.

3G Watch

The long-drawn 3G spectrum game seems to be coming to an end. According to the latest announcement from DoT, 3G auction will start on January 16, 2009. Details of the whole process are provided in a document posted on the DoT website. As per the timetable, the final date for submitting applications is 5th of January. Pre-qualification of bidders will be announced on January 9 and a mock auction will take place on 12th and 13th January. BWA auction will begin two days after the 3G auction is over.

3G spectrum is to be auctioned in the 2.1 GHz band. The amount varies from circle to circle due to limited availability. 4 blocks (2x5 MHz each) will be auctioned in Mumbai and Kolkata whereas Delhi will have only 2 blocks. UP (West) and HP have only 3 blocks available whereas only 2 blocks will be auctioned in Gujarat. A single block is available in West Bengal but there is no 3G spectrum right now in Rajasthan and North-East circles. Rest of the circles have 4 blocks each. Note that these numbers exclude the spectrum already allocated to BSNL and MTNL (1 block each in their respective service areas).

In case of BWA, each service has 3 blocks (20 MHz each) up for auction. MTNL and BSNL have already been allocated BWA spectrum. Of the 4 blocks per circle for BWA, 2 are in 2.3 GHz band and 2 in the 2.5 GHz band. Since unpaired spectrum is being made available for BWA, it is obvious that only TDD-mode deployments will be possible.

Impact of mobile number portability

We have been hearing for the past few months regarding the introduction of Mobile Number Portability (MNP) in India. DoT has now opened the tender for providing MNP services. Names of the winners will be announced in February 2009. So it's unlikely for the service to be active anytime soon. Nevertheless, MNP will be a big boon to Indian mobile users, as it will free them from the tyranny of mobile operators. At the moment, someone who wishes to change his/her mobile operator has to surrender the existing mobile number and get a new one. This has been a big deterrent to those who want to switch operators. Despite initial opposition, the incumbent operators have now agreed to support MNP. If, as expected, MNP is launched in the second half of 2009, the new 2G operators and prospective 3G operators will benefit the most as they seek to create churn from the incumbents. End users will also finally have real choice. However, it must be noted that they will be expected to pay a fee to get the number ported.

3G Watch

According to Mr. A. Raja, India's Minister for Communications and IT, auction of spectrum for 3G services will finish by mid-Jan 2009. He also mentioned that BSNL and MTNL have already been given 3G and WiMAX spectrum and rollout of services is expected within the next couple of months.

In a related development, the CDMA Development Group (CDG) announced that it's holding discussions with the Indian Govt. for releasing spectrum for EVDO services in the 450 MHz band. As per the current plan, CDMA operators are expected to get 3G spectrum in the 800 MHz band only.

Finally, there is speculation that the roll-out norms for new operators might be relaxed.

Another Twist

While the wait for auction of 3G spectrum goes on, the DoT has yet again made changes to the 3G guidelines issued in August. This time it's to do with spectrum fee to be paid by potential 3G operators. The Telecom Commission has approved DoT's proposal to charge greenfield 3G operators 3% of their Annual Gross Revenue (AGR) as annual spectrum fee. This will affect those entities that do not currently operate a 2G network in the country. An incumbent 2G operator will have to pay an additional 1% of the AGR on top of the current spectrum fee that it pays to the DoT, if it is alloted 3G spectrum after the auction. Note that the current spectrum fee ranges from 2-6% of the AGR, depending on the amount of spectrum held by the operator. The rationale behind the new policy is to maintain a level playing field between new and incumbent operators. Earlier, DoT had proposed that operators split the revenues accrued from 2G and 3G services, and pay separate spectrum fees for each.

Politics of Spectrum

When the government issued new telecom licenses earlier this year, the move was expected to improve penetration of mobile communications services, especially in suburban and rural areas, thereby increasing the teledensity. With increased competition in each circle, tarrifs were also expected to come down. Among the new licensees were 5 new operators. The DoT decided that 4.4 MHz of starting spectrum will be provided to each licensee without any auction. The rationale given for this approach was that the same process had been applied until now and changing it would be unfair to the new players.

In Sept 2008, Etisalat of UAE bought 45% stake in one of the new operators, Swan Telecom, for nearly $900 million. Swan paid Rs Rs 1,537 to get license for operating in 13 of the 22 telecom circles in the country. In October 2008, the Norwegian operator Telenor paid Rs 6120 crore to acquire 60% stake in another new operator, Unitech. Note that the latter paid Rs 1,650 crore as fee for getting a pan-India licence. Neither Unitech nor Swan Telecom has actually started operating although they have obtained spectrum in some of the circles for which they have license. Now, a big political storm has now erupted in the wake of these deals with opposition politicans alleging that the the national exchequer lost a huge amount of money by not auctioning the 2G spectrum, instead of virtually giving it for free alongwith the license. The concerned Minister, Mr. A. Raja has defended his actions and even threatened to resign. The Minister has hit back at his detractors by hinting at a criminal investigation into allegations that existing operators formed a cartel to prevent the entry of new players.

These events, coming in the wake of postponement of the 3G spectrum auction and the controversy over determination of revenue split between 2G and 3G services (for computing the spectrum fee to be paid by potential 3G spectrum owners), once again illustrates pitfalls of the current ad hoc approach of DoT towards spectrum allotment. In order to avoid such controversies, the government needs to adopt a well-defined policy for all future spectrum allocations, following best practices adopted internationally.

Delhi Targeted Again

Looking back at history, one can say that no city in the world has seen so much bloodshed as Delhi. Once again, bomb blasts rocked the Indian capital, leaving 20 dead (as per latest reports) and scores injured. Unsurprisingly, the self-style 'Indian Mujahideen' group claimed responsibility, ostensibly carrying out this murderous assault in 'the name of Allah'. May Allah 'reward' them with the severest of retributions in the hereafter for sullying His name. Many people in my community still want to bury their heads in the sand by blaming everyone else for these attacks but the time has come to fight this enemy within. There is a real problem facing the Muslim community and unless we act now, there will be far-reaching consequences. At the same time, the Govt also has the responsibility to make policing more effective and improve the intelligence network. After each such tragedy, the authorities claim to have busted the so-called SIMI network but the bombs keep coming. Maybe the police and intelligence agencies should talk less and act more discreetly to keep the enemy guessing!

DoT Amends 3G and BWA Policy

In the wake of the debate triggered between various stakeholders (and Govt depts) after DoT announced the long-awaited 3G and BWA sepctrum policy, a number of changes have been announced.

With regards to 3G, the eligibility criteria has been strengthened by stipulating that a non-UASL entity aiming to bid for spectrum must have prior experience in running 3G services. Spectrum for EVDO will also be allocated via auctions thus reversing the earlier position of giving spectrum to CDMA operators based on subscriber criteria. The reserve price for 2x1.25 MHz in 800 MHz band has been set at 25% of the 3G reserve price (following the pro-rata calculation). Finally, the annual spectrum fee will not be calculated on the incremental revenue earner from 3G services. This is going to be a tricky one, separating revenue earned from 2G and 3G services. The formula for determining the incremental revenue will be specified later.

As for BWA services, CMTS licence holders are now also eligible to bid for spectrum. The spectrum in 2.3 and 2.5 GHz band will be allocated for TDD mode only. The reserve price has now been doubled, such that it becomes 50% of the 3G base price (for a paired 2x5 MHz block). The roll-out conditions have also been changed. Now, 90% of a metro service area must be covered within 5 years and 50% of rural SDCAs must be covered in Category A, B and C areas during the same period.

The full set of amendments are available on the DoT website.

DoT to Allow Spectrum Sharing?

It's been reported by Economic Times that the Indian Government may let mobile operators share spectrum. If indeed this turns to be correct, this will be significant development. Note that in the recently released 3G and BWA policy, the DoT did not explicitly rule out trading and/or sharing of spectrum. Spectrum sharing may alleviate the spectrum shortage being felt in dense areas by operators.

DoT Guidelines for 3G and BWA Spectrum

The DoT announced its policy for allocation and pricing of 3G and BWA spectrum in August 2008. The 2.3 and 2.5 GHz bands have been earmarked for BWA with 700 MHz and 3.3-3.6 GHz to be considered later subject to availability. For 3G services, the 2.1 GHz band (1920-1980 MHz paired with 2110-2170 MHz) has been identified. In addition, CDMA operators can get spectrum for EVDO services in 450 MHz, 800 MHz and 1900 MHz bands, depending on availability. Any entity that already has a UAS license or fulfils the criteria for getting it is eligible to bid for 3G and BWA spectrum. In case of BWA, Category A and B ISPs will also be allowed to bid.

3G spectrum is to be auctioned per service area in the form of 2x5 MHz blocks, with 5 to 10 such blocks in each service area, depending on availability. Each operator can bid for only one block in a specific service area. CDMA operators can apply for 2x1.25 MHz in 800 MHz and allocations will be made (subject to availability) on the basis of subscriber base in the service area. The price will be equivalent (on a pro-rata basis) to that paid for a 2x5 MHz block by the highest bidder in 2.1 GHz band. The reserve price has been set as follows:

• Mumbai, Delhi and Category A – Rs 160 Crore
• Kolkata, Chennai and Category B – Rs 80 Crore
• Category C – Rs 30 Crore

It has also been stipulated that for future auctions, the reserve price will be same as the highest bid in the upcoming auctions. A controlled, simultaneous, ascending e-auction will be used for 3G spectrum allocation. Note that BSNL and MTNL automatically qualify to get spectrum in the services where they currently operate. Nevertheless, they will have to pay the same price as the highest successful bid.

All licensees will have to pay 1% of AGR as spectrum fees annually from the second year onwards. The spectrum allocation will be for a period of 20 years and non-UASL entities that get spectrum will be granted UASL licenses (upon paying the appropriate UASL entry fees). DoT has mandated that within 5 years of getting the spectrum, 3G operators in metros must cover 90% of the respective service area and 50% of the DHQs/cities in Category A, B and C circles for which they have a license. In the latter case, 15% of the covered DHQs should be rural SDCAs.

In case of BWA, a maximum of 20 MHz can be obtained by a successful bidder across both the bands (in the form of two 5 MHz blocks in each band). The reserve price for auction has been set to one-fourth of the 3G price. The auction process will be same in for 3G spectrum. In case of a tie between two bidders who happen to be UASL operator and Category A/B ISP respectively, preference will be given to the former. If the tie is between two entities with similar license, then subscriber base will be deciding factor. As with 3G spectrum, BSNL and MTNL will automatically get 20 MHz in their respective services areas by paying a price equal to the highest bid during the auction process.

All licensees will have to pay 1% of AGR as spectrum fees annually from the second year onwards. The duration of spectrum ownership will be 15 years. Same considerations apply for new entrants (without UAS/ISP license) as with 3G. BWA service providers in metros will have to cover 90% of their respective service areas within 5 years of getting spectrum. In Category A/B/C circles, 25% rural SDCAs must be covered within 2 years and 50% within 5 years.

Note that DoT has not explicitly ruled out trading and/or sharing of spectrum. As per the guidelines, these, if allowed, will be subject to Government policy. This is in contrast to the guidelines issued earlier in February which clearly stated that “no trading/ reselling of spectrum is allowed”.

3G Guidelines Coming Soon ?

There are reports that the Department of Telecommunications (DoT) will set out the 3G policy for India later this week. The Minister for Communications and IT, Mr. A. Raja is expected to make an announcement on Friday, August 1, 2008. Such speculation is not new and many such false dawns have occurred before. However, given that the UPA governmet survived the trust vote recently, it must surely be feeling emboldened to push through some long-pending policy initiatives before the next general election. More on this at GigaOm.

TRAI Recommendations on BWA Spectrum

The Indian telecom regulator, TRAI launched a consultation paper in May 2008 on allocation and pricing of spectrum in 2.3-2.4 GHz, 2.5-2.69 GHz and
3.3-3.6 GHz bands which have been earmarked for BWA services. TRAI finally released its recommendations to the Department of Telecom (DoT).

On the question of eligibility, TRAI recommended that UASL, CMSPs and Category A and B ISPs should be allowed for bid for spectrum in these bands.

The DoT was advised to convert the existing city-specific licenses for spectrum in 3.3-3.4 GHz to circle-wide licenses (as used for mobile networks). TRAI also suggested that licensees with spectrum in both 2.5 and 3.3-3.4 GHz bands should move to 3.3-3.4 GHz and the remaining spectrum in this band should be auctioned in 2x7 MHz blocks only to those who don’t already own spectrum in this band or existing licensees with less than 2x7 MHz holdings (provided they vacate existing spectrum if they win). On the contentious question of choice between TDD and FDD, although TRAI favored the former option but it decided to leave the choice to the operators.

For the 2.3-2.4 GHz and 2.5-2.69 GHz bands, TRAI recommended that spectrum should be auctioned in 5 MHz blocks with a maximum of 15 MHz per service provider (combined total of allocations in both bands). In addition, the TDD mode was favored for allocations in the 2.3-2.4 GHz band. The DoT was advised to get additional spectrum in 2.5-2.69 GHz vacated within pre-defined time duration in coordination with the Dept of Space. In case, additional spectrum (in addition to the currently available 40 MHz) becomes free, then DoT may decide to allow both TDD and FDD modes as per the internationally accepted band plan, otherwise, the spectrum may be given for TDD in 5 MHz blocks.

On the issue of pricing, TRAI recommended that the reserve price and bank guarantees should be the same for all the three bands (RP for 15 MHz should be 60, 30 and 10 Crore Rupees for Metro & Category A, Category B and Category C circles, respectively). Service providers already having spectrum in 3.3-3.4 GHz band should be asked to pay the same price as new licensees. In addition, annual spectrum fee of 1% of AGR should be charged from all BWA service providers.

TRAI recommended that a simultaneous ascending e-auction should be organised for 5 MHz blocks such that each bidder can go for 1, 2 or 3 blocks (needs to be specified beforehand). It was suggested that successful bidders can choose to have contiguous blocks by paying a 25% premium on the highest bid value for each contiguous 5 MHz block.

This is, by no means, the end of the debate on how to allocate and price BWA spectrum. Immediately prior to the release of TRAI's recommendations, the DoT wrote to TRAI that spectrum should be allocated in 10 MHz blocks. However, TRAI decided to publish its recommendation for 5 MHz block size. It must be noted, though, that TRAI's others recommendations more or less matched DoT's thoughts.

TRAI Consultation on Allocation and Pricing of BWA Spectrum

The recent consultation paper from the Telecom Regulatory Authority of India (TRAI) on “Allocation and Pricing of Spectrum in 2.3-2.4 GHz, 2.5-2.69 GHz and 3.3-3.6 GHz bands” drew more than 30 responses from various stakeholders.

Opinions were sharply divided on the issue of reserve price for 3.3 GHz band. Many respondents (Reliance, Sify, Ortel, WiMAX Forum, Intel, and Telsima) opposed linking the pricing of 3G and BWA spectrum because of differences in range of services and potential returns. However, some (Nokia, Qualcomm, Ericsson, ComFirst and COAI) wanted the same reserve price for all the bands (including 2.1 GHz assigned for 3G) arguing that the same set of services can be provided in all the bands.

For auctioning 3.3 GHz spectrum, the earlier TRAI recommendation was acceptable to most although some (ISPAI, Sify, Spectranet, Ortel and Reliance) opposed auctions because of fears that it will inflate the price. The ISPs favoured allocation based on first-come-first-serve approach with priority to existing licensees while Reliance suggested using the ‘Beauty Parade’ option. BSNL wants to be exempted from paying entry and license fees. Zee Networks and BPL Mobile felt that the reserve price should be increased as the current figure is too low. For the reserve price of the 2.3 GHz and 2.5 GHz bands, three options were suggested:

1. Same as 3.3 GHz band (Reliance, AUSPI, WiMAX Forum)

2. Same as 2.1 GHz band (BPL, COAI, Ericsson, Nokia, Qualcomm)

3. Determined via market-discovery mechanisms (Aircel, Tata Teleservices, Tata Communications, Intel, WiMAX Forum, Zee Network)

A majority of respondents wanted only existing UASL holders and Category A ISPs to be eligible for BWA spectrum in 2.3 GHz and 2.5 GHz bands but some (BPL Mobile, Tata Communications, Ortel Communications) wanted Category B ISPs to be included as well. On the other hand, COAI wanted only UASL operators to be eligible while Tata Teleservices suggested that UASL operators have priority in spectrum allocation. In contrast, Zee Networks proposed that cellular operators should be excluded and MSOs and broadcasters included. The ISPs (and ISPAI) felt that they should be allowed to retain spectrum currently allocated to them in 2.5 GHz and/or 3.3 GHz bands and also get priority in getting additional spectrum in these bands.

The suggested size of spectrum blocks for auction ranged from 5-20 MHz. Similarly, suggestions for minimum and maximum amount of spectrum holding varied quite a bit although there was consensus on the need for allocating spectrum in contiguous blocks. 30-40 MHz was deemed sufficient in the ideal case by most while 15-20 MHz appeared to be acceptable in case only limited amount is to be auctioned initially. Suggestions for upper limit on cumulative spectrum held by a licensee across the three bands (2.3 GHz, 2.5 GHz and 3.3 GHz) ranged from 20 to 45 MHz.

For allocations in the 2.5 GHz band, most respondents favoured the technology neutral approach, allowing both TDD and FDD systems, as per international best practices and related ITU recommendations. However, some (Reliance, AUSPI, Telsima) suggested allocation for TDD only, if limited amount of spectrum is available initially.

Divergent views were expressed on the question of future refarming spectrum in 2.5 GHz band if initial allocations are for TDD only. A few (BSNL, Telsima) felt that it is feasible from both technical and economic perspectives to refarm spectrum at a later date but others wanted to rule it out on various grounds:

· Technical and/or economic infeasibility (BPL Mobile, Reliance, COAI, Ericsson, Nokia)

· Not required as TDD only is not ruled out by the ITU band plans (Tata Communications, WiMAX Forum, Intel)

· Not possible due to license conditions, viz validity period (Tata Teleservices)

· Improve investor confidence by avoiding uncertainty (Cisco, Nokia)

The response of TV broadcasters, satellite services providers and cable operators was limited to the use of 3.3 GHz band for BWA services and they strongly opposed it for fear of disruption to their operations

Spectrum Saga Goes On

The Indian 3G spectrum saga rumbles on and there still seems to be little sign of auctions happening anytime soon. The latest from the Communications and IT minister, Mr. A Raja, is that guidelines will be issued in June. The DoT already released initial 3G and BWA spectrum allocation guidelines in February. For BWA, it was stated that only existing UASL and ISP Category 'A' licensees will be eligible to bid for spectrum but nothing was said about eligibility for 3G licenses. The CIT minister has repeatedly stated that foreign players will be allowed whereas the Indian regulator, TRAI has been opposed to the idea and wants only incumbent operators to get spectrum.

In the meanwhile, TRAI recently launched a consultation paper on allocation and pricing of spectrum in 2.3-2.4, 2.5-2.6 and 3.4-3.6 GHz bands. Judging from the responses of the different stakeholders, the two hot topics were pricing of BWA spectrum and the co-existence of TDD and FDD systems in the 2.6 GHz band. Most respondents want differential pricing (vis-a-vis 3G and BWA spectrum) to be used, by setting the base price for auction of BWA spectrum much lower than that for 3G spectrum. On the question of TDD-FDD co-existence, a majority of respondents favor the idea and have quoted studies done by the UK regulator Ofcom as well as its guidelines for allocating spectrum in 2.6 GHz band in support. However, there is a significant difference between the Indian and British scenarios as in the case of UK, a total of 190 MHz is on offer whereas in India, it's unlikely that there will be more than 40-50 MHz available in the 2.6 GHz band in the near future.

Adios Arun Sarin

It's being reported that the Vodafone CEO, Arun Sarin is to resign. This will come as a big shock to industry watchers as Arun Sarin is credited with rescuing Vodafone. On the face of it, he is moving to greener pastures altough conspiracy theorists may have different ideas.

Arun Sarin was instrumental in making a big push for Vodafone's expansion into emerging markets and the takeover of the Indian operator Essar is one example. Now, Vodafone-Essar is aggressively expanding in the Indian market, opening new flagship stores and increasing its coverage base as well.