3G SPECTRUM

ASHA M. TIKUDIA 4217

SHIVANI A. TRIVEDI 4218

KHUSHBU JADAV 4171

What is spectrum?

Radio spectrum refers to a range of radio frequencies. The bandwidth of a radio signal is the difference between the upper and lower frequencies of the signal.

For example, in the case of a voice signal having a minimum frequency of 200 hertz (Hz) and a maximum frequency of 3,000 Hz, the bandwidth is 2,800 Hz (3 KHz).

How is 3G different from 2G and 4G?

1G networks used are analog, 2G networks are digital and 3G technology is used to enhance mobile phone standards.

Simultaneously transfer both voice data (a telephone call) and non-voice data (such as downloading information, exchanging e-mail, and instant messaging.

The amount of bandwidth needed for 3G services could be as much as 15-20 MHz, whereas for 2G services a bandwidth of 30-200 KHz is used

Video telephony

4G technology - the future standard of wireless devices

How do 3G services help you?

Video broadcast and data-intensive services

What is Trai's recommendation on 3G pricing?

Reserve price of Rs 1,050 crore.

What are frequency bands and quota for CDMA?

TRAI has recommended three sets of frequency bands – 450 Mhz, 800 Mhz and 2.1 GHz.

For CDMA players 1.25 MHz each is offered.

What are the issues regarding 3G for providers and users?

High spectrum licensing fees for the 3G servicesHuge capital required to build infrastructure for 3G

services.Health impact of electromagnetic wavesPrices are very high for 3G mobile services.2G users will take time to switch over to new

technology.

What are the issues regarding 3G pricing?

Spectrum auctions ran into billions of Euros in Europe.

Huge investments required to build 3G networks

Which companies have applied for 3G license?

BSNL, MTNL , Bharti and HutchNational Frequency Allocation PlanGSM players operate on 900 MHz and 1,800

MHz, while CDMA players operate on 800 MHz

What is the pricing issue in India?

Tata’s have welcomed Trai's Rs 1,400-crore (Rs 14 billion) base price for a nationwide rollout of 3G services

Bharti-Airtel is disappointed with the pricing as they were expecting it to be Rs 300-400 crore.

Cellular Operators Association of India and the Association of Unified Service Providers of India

Where was 3G spectrum first introduced?

Japan was the first country to introduce 3G on a large commercial scale

Downloading music was the biggest draw in 3G services.

In how many countries does 3G exist?

There are about 60 3G networks across 25 countries

In Asia, Europe and the USA, telecom firms use WCDMA technology.

The Whopping Auction

India, the world's fastest-growing wireless market, with about 490 million users, has been adding about 14 million subscribers each month.

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Government expects to generate Rs. 35,000 crore.

Four slots are to be put up for auction in circles for private players. The other player would be BSNL or MTNL.

The auctions shall be carried out in 4 stages i.e. Invitation Stage, Pre-qualification Stage, Auction Stage and Grant Stage.

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IndicativeTime table

The Unfeigned battle

DoT has claimed that the spectrum, the radio frequency that enables mobile communications, belongs to it and has already been given to state-owned Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) which are running their 3G services on it.

Whereas the ministry of defence (MoD) that it has not accounted for 10 MHz of spectrum given to DoT at the end of October in the information memorandum (IM).

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DoT and MoD had signed an agreement under which the defence services would vacate 20 MHz of 3G spectrum by November or December this year.

But MoD failed to keep the promise

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DoT officials claim that they have already accounted for that spectrum because it is being used by BSNL and MTNL and cannot therefore be added in the IM.

MoD in its communication to DoT claimed that 10 Mhz of 3G spectrum in the 1969-1979 MHZ band had already been released. It has also noted that in the revised IM service the amount of spectrum for auction has been indicated but the specific frequency bands have not been mentioned, unlike the earlier IM document released in December 2008.

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Government expects to bridge a fiscal deficit that is expected to be 6.8 per cent of GDP.

The auction of 3G (third generation) licences could be delayed.

Pitroda made a presentation and submitted a working paper on different frequency bands which can be vacated by the defence.

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Telecom Minister A Raja had written two letters to Mukherjee seeking his intervention to get the spectrum vacated from the Defence Ministry.

On Defence Ministry's claim that they had released two slots of 3G spectrum but the same was not disclosed by the DoT, the officials denied any such development.

The actual scene

Pre- bid conference :

The foreign companies stayed away

Whereas Domestic players riddled with doubt

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Airtel, Vodafone Essar, Idea Cellular, Reliance Communications, Tata Teleservices and new licensees like Unitech Wireless, Shyam Sistema, STel, Etisalat DB remained present in pre-bid conference

Leading players - Bharti Airtel and Vodafone Essar - have sought clarity.

Bharti Airtel – confident of the deal.