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.