Spectrum Allocation-Shaashi Ahlawat

8/12/2019 Spectrum Allocation-Shaashi Ahlawat

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Spectrum Allocation and Issues

The word spectrum refers to a collection of various types of electromagnetic radiations of

different wavelengths. Spectrum or airwaves are the radio frequencies on which all

communication signals travel, and is used for different types of services like space

communication, mobile communication, broadcasting, radio navigation, mobile satellite service,aeronautical satellite services, defence communication etc.

At international level this very scarce and valuable resource is regulated by International

Telecommunication Union (ITU) and all nations abide by its rules to support trade,

transportation, communications, and mutual protection against interference by incorporating

international roaming facilities, for which allocation of spectrum is done in the common bands

i.e GSM 900/1800 band in which mobile handsets are manufactured.

The Wireless Planning and Coordination (WPC) Wingof the Ministry of Communications,

created in 1952, is the authority responsible for Frequency Spectrum Management in India,including licensing and caters for the needs of all wireless users in the country. It issues licenses

under section 4 of Indian Telegraph Act, 1885 to operate wireless stations. Spectrum usage

charges consist of license fee and royalty charges (PSUs are treated like private bidders).

Frequency bandsallocated to various types of radio services in India are as follows. (There isno need to summarize these figures, given just for having the fine picture; plus many irrelevant

ranges left intentionally)all in MHz

i) 0-87.5 MHz is used for marine and aeronautical navigation, short and medium wave radio,

amateur (ham) radio and cordless phones.

ii) 87.5-108 MHz is used for FM radio broadcasts

iii) 109- 173 Used for Satellite communication, aeronautical navigation and outdoor broadcast

vans

vii) 585-698 Used for TV broadcast

ix) 806-960 Used by GSM and CDMA mobile services

x) 960-1710 Aeronautical and space communication

xi) 1710- 1930 Used for GSM mobile services

xii) 1930-2010Used by defence forces

xiii) 2010-2025Not allocated

xiv) 2025-2110Satellite and space communications


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xviii) 2400- 2483.5 Used for Wi-Fi and Bluetooth short range services

xix) 2483.5-3300 Space communications

xxii) 10000used for satellite downlink for broadcast and DTH services

#those in redwere the bands for which auction took place recently.

The minimum amount of spectrum required for launching GSM services is 4.4 MHz withmaximum allotment of 12.5 MHz of spectrum per operator in each service area.

Allocation in Indiawas earlier based on first-come-first-serve basis but after the scam and other

difficulties auction procedure was adopted for assigning licenses with the objective of raising

revenue and ensuring transparency in allocation of limited number of licenses. Recent auctions

were of multiple (three) rounds of bidding in all circles. Spectrum pricing is being consideredinstead of auctioning as bidders either wins licenses by bidding too low revenue loss for govt

or by putting a price too highresulting in bankruptcy or higher tariffs for customers.

Spectrum for the roll out of 3G services (voice, data and video) will be allotted through auction

in the 2.1 GHz band. However, the spectrum required for the launch of 3G services is yet to bevacated by the defence department. In India significant quantum of radio frequencies required for

telecommunication is used by the defence forces unlike many other countries where NATO band

is employed by defence forces. The telecom and defence ministries are in discussion for

transferring the radio frequencies for telecommunication by providing fibre cable network forarmed forces instead across the country at a cost of Rs 10000 cr. (this will save more spectrum

for the telecommunication, that means more spectrum to bid for and hence more money count ingovernments pocket via auctions to cover up that 10000 cr cost and its deficit + TRAI isspeculating to value the excess 2G spectrum with the operators at the 3G prices, which is

strongly opposed by the GSM operators.)

Understanding Spectrum Allocation with Analogy:

Take analogy of ice-cream brick (total available spectrum) is being auctioned for distribution

among some candidates. There are lines marked on the brick for fair distribution. Suppose 10

suck blocks (spectrum blocks) can be cut out using the lines and there are 4 bidders. After

auction, #1 gets 4 blocks, #2- 3, #3- 2 and #4 is left with just block. Now, when actual cuts aremade on the drawn lines it may occur that a candidate may intentionally or apparently encroach

in the others territory, carving a share out of his part. This is similar to the dispute that may arise

when very fine divisions are made while assigning spectrum blocks to bidders. In real world, we

notice it on FM broadcasts where a channel might still be clearly available even if the frequency

is altered in decimals manually. Hence, it is necessary to provide flexible buffer partition to

avoid interference due to overlapping radio frequencies.


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Challenges faced by Telecom Industry in India:

Due to the erratic power supply and non availability of grid electricity in rural areas,nearly 60% of towers depend on diesel generators. As per new TRAI directions in this

field, telecom industry is bound to meet the timeline (by 2015) for setting up independent

renewable energy companies based on solar energy, fuel cells and other renewablesources -> adding burden to its expenses in though saving million litres of diesel (!) in the

long run.

TRAI is asking 8% of the revenue share from tower companies to be paid to theGovernment by bringing all tower companies under unified licence scheme.

Telecom tower industry is facing public wrath as they are one of the major contributors tocarbon emission in the country

Also general public is getting wary of these towers exceeding SAR limit, leading tohealth risks generated from living in confinement of towers over a long period.

The universal problem in India of multiple clearances; huge delay in grantingpermissions;and certification-fee payments to plethora of local authorities like Municipal

Corporation, panchayat, state government etc.

Domestic and International roaming issues leading to cross-border disputes; spectrumfragmentation and bilateral nature of roaming deals adding complexity.

device incompatibility issue arising at international level as countries not agreeing to onerange and it is likely to create problem for mobile handset manufacturers to build devices

supporting local and roaming bands.

The trade off between cell size and capital expenditure is a headache for telecom industryas for providing service to a large subscriber base within the available bandwidth the cell

size is to be kept small but that would mean more number of cells to cover an area and

thus more towers and finally a large capital expenditure. Also, if large cell size is

maintained to reduce the cost that would need taller antennas which increases the

interference.

Licenses once acquired are not easily transferrable which makes companies scepticbefore bidding for the spectrum. Similarly, rolling out, expanding by buying others share

and license renewal procedure need to be made conducive to encourage fresh

participation.

Way Ahead or Conclusion: The Government should formulate a flexible spectrum policy bearing

in mind that it is spectrum right being auctioned and not the spectrum. An open and transparent

auction format will ensure that the government realizes the best price for spectrum as per the

market forces and at the same time the telecom operators minimize and efficiently use the

spectrum

By Shaashi Ahlawat


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Refernces:

http://www.indiatelecomonline.com/telecom-spectrum-allocation-in-india/

www.indiatelecomonline.com/regulatory-challenges-faced-by-telecom-tower-industry/

http://www.telecoms.com/154582/done-roaming/http://www.iitcoe.in/index.php?option=com_docman&task=doc_download&gid=38&Itemid=20

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Spectrum Allocation-Shaashi Ahlawat