Note of caution: HSPA, WiMAX, LTE comparisons

There is feverish speculation in the media regarding the BWA plans of RIL. Among the many articles in the media, one in particular caught my eye. DNA India carried a report, apparently based on an investor briefing from Reliance. According to this article:

“HSPA carries 2.88 bits per hertz, whereas Wimax carries 5.6 bits and (the future) LTE would carry 16.32 bits per hertz,” RIL said.

These numbers should be treated with caution for several reasons. Firstly, peak data rates vary between different releases of the same technology. It's quite obvious that the HSPA rate quoted above is for Rel-6, the very first generation of HSPA systems. Since then, advanced versions of HSPA have been developed and normalized data rates as high as 8.1 bits per second per Hertz are now supported (in HSPA Rel-8). Secondly, the peak rate calculation depends on a number of factors such as antenna configuration, modulation scheme, code rate etc. The figures quoted above for LTE are most probably for a 4x4 MIMO configuration whereas for WiMAX, these are surely for 2x2 antenna configuration. Hence, a direct comparison is not really meaningful.

BTW, the correct units are bits per second per Hertz!

So much rubbish on LTE/WiMAX in Media

Ever since the 3G/BWA auctions started, the media has been hyper-excited and reporters are making outlandish claims regarding what 3G/BWA technologies can (and can't) do. Yesterday, after the BWA auctions were over, mainstream business and news channels had so-called experts still talking as if BWA and WiMAX are one and the same thing. Then, I happened to see some news articles which I found some amusing stuff.

Sample 1: Economic Times

LTE is a technology patented by Qualcomm, like CDMA for cellular telephony which is what Reliance chose when it started services under Mukesh Ambani. Reliance Communications has since launched parallel services in GSM.

Using this technology the company will needs to deploy fewer base stations, or points from which wireless signal is emitted because a single point covers 50 km on an average. “RIL will save on both tower leasing costs and electronic equipment cost,” said a regional telecom head at an international research firm.

Sample 2: Business Standard

LTE would have faster data speeds as compared to WiMax. Besides, voice services can also be launched through LTE and it would have a wider coverage area.

Sample 3: Business Standard

As BWA spectrum ensures higher speeds, it can support even voice calls. The high bids indicate broadband is not the only objective. “The bidding is being done for the spectrum as a whole, with just a BWA business plan now,” said Mrityunjay Kapoor, country head, Protiviti India. Experts also believe that using BWA spectrum for voice can lead to more efficient use of the spectrum.

This is just a small sample and such nuggets of information are spread all across the news pages. Is this down to lazy journalism or do we have a shortage of real experts on wireless technologies?

Re-defining Broadband?

The new TRAI Chairman, Dr J. S. Sarma, has been quoted as saying that "the target set for roll out of broadband by the Government can be achieved only if the definition of broadband is redefined and resources from USO fund are utilised." As per these reports, the minimum broadband speed will be increased to 2 Mbps instead of the current 256 Kpbs limit.

It's debatable whether re-defining broadband service characteristics can increase penetration. If the TRAI and DoT are really serious about achieving government targets, then a better idea would be to expedite spectrum auctions for 3G and BWA services. Both HSPA and WiMAX are very much capable for providing wireless broadband access to a large part of the country, especially where it's difficult to provide DSL and cable.

I have the feeling that we are going back in time as far as wireless technologies are concerned. Just like the CDMA vs GSM war a few years back, the government is again getting caught up in the war between HSPA/LTE and WiMAX proponents. What really matters is that India gets access to broadband services just like everyone else does in other countries. What technology/technologies are used to do so should be left to the market.

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.

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.

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.

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