Tuesday, December 30, 2008

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.

Monday, December 29, 2008

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.

Thursday, December 18, 2008

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.


Wednesday, December 17, 2008

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.

Monday, December 15, 2008

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.