3G and BWA Auctions Timeline

With the EGoM deciding on the base reserve price for 3G and BWA spectrum, India is all set to see some action on the auction front. The DoT has announced timelines for the entire process. The key dates are as follows:

Pre-qualification of Bidders 27-Nov-09

Mock Auction 03-Dec-09 to 04-Dec-09

Start of the 3G-WCDMA Auction 07-Dec-09

The EVDO and BWA spectrum auctions will start 2 days after the close of the 3G auction.

If the DoT sticks to this schedule, then the auction process will be completed before the end of this year. Actual rollout of services will take at least another 6 months.

The state-owned companies, BSNL and MTNL already have 3G and BWA spectrum and have been offering services for the past few months. They have not met with much success in acquiring a significant customer base, despite having the first-mover advantage. It is widely believed that the entry of private operators will really kick-start the rollout of 3G and BWA services across the country.

It is interesting to note that the BWA spectrum is mostly unpaired which means that only TDD technologies can be deployed. This will favor WiMAX in the short-run, at least.

Price of 3G and BWA spectrum

As the excitement generated by the EGoM decision to increase the reserve price for 3G and BWA spectrum dies down, thoughts have turned to the fairness of pricing. As expected, both COAI and AUSPI are unhappy at the increase in the price (from Rs 2020 crore, set last year). On the other hand, the WiMAX is pleased with the price for BWA spectrum. Given the current economic climate, it is yet to be seen how many operators will bid for the spectrum. It is likely that all the big boys will be in the ring for 3G spectrum in light of the 2G spectrum crunch. However, using 3G simply to augment voice capacity does not sound like a viable strategy when the price of spectrum is so high. The situation with BWA is not that clear yet.

For the attention of: Indian Operators

Wouldn't it be nice if Indian operators could also report their quarterly performance with the same level of detail as DoCoMo? I am rather impressed by the presentation. BTW, they slides include the LTE rollout plan and also mention the Tata-DoCoMo joint venture.

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.

No 'Spectrum Regulator' says DoT

DoT has now clarified that it does intend to create a new regulator for handling spectrum-related issues. More details in this article.