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Tag: Department of Telecom

  • Spectrum auctions next month, DoT issues notice and sets quantity on offer

    Spectrum auctions next month, DoT issues notice and sets quantity on offer

    NEW DELHI: The Government has decided to allot the right to use certain spectrum for 20 years through Spectrum Auction to be conducted next month.

    The Notice Inviting Applications (NIA) for Auction of Spectrum has already been uploaded by Department of Telecom on its website www.dot.gov.in  today.

    The Government believes that this will provide a great opportunity to the existing service providers as well as new entrants. The existing service provider may acquire additional spectrum so as to match international level of spectrum holding.   

    A single auction will be conducted in Simultaneous Multiple-Round Ascending (SMRA) format for seven bands: 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz and 2500MHz bands together.

    1 Spectrum put on offer is as follows;

    http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/large/public/mib.jpg?itok=MPhbJbiI

    2 The total quantity of spectrum put to auction is 2354.55 MHz. This includes 197 MHz of additional spectrum in 1800 MHz band and 37.5 MHz in 800 MHz band released due to harmonization of spectrum in these bands. 
    3 Rates of SUC for the access spectrum held or/and to be acquired through the forthcoming auction by various access service providers in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz & 2500 MHz bands shall be as follows:-

    (i) Spectrum acquired in forthcoming auction in 700, 800, 900, 1800, 2100, 2300 & 2500 MHz band is to be charged at the rate of 3% of AGR excluding the revenue from wire line services.

    (ii) The weighted average of SUC rates across all spectrum assigned to an operator (whether assigned administratively or through auction or through trading) in all access spectrum bands including BWA spectrum obtained in 2010 auction shall be applied for charging SUC subject to a minimum of 3% of AGR excluding revenues from wireline services. The weighted average is to be derived by sum of product of spectrum holdings and applicable SUC rate divided by total spectrum holding. The Weighted Average Rate should be determined operatorwise for each service area.

    (iii) The amount of SUC payable by the operators during 2015-16 at weighted average derived after taking into consideration the spectrum acquired in the coming auction and excluding the spectrum in 2300 MHz/2500 MHz band acquired/allocated prior to 2015-16, be treated as the floor amount of the SUC to be paid by the operators. Further, in case there is a reduction in AGR of the service provider, the floor amount of SUC shall be reduced proportionately.

    4 The option of making payment either full upfront or through deferred payment option has been retained.

    5 In case of deferred payment option, the quantum of upfront payment in case of over 1GHz band i.e. 1800 MHz, 2100 MHz, 2300 MHz & 2500 MHz has been slightly modified w.r.t. 2015 auction from 33% (NIA 2015) to 50% of the bid amount. However, in case of below 1 GHz band i.e. 700 MHz, 800 MHz & 900 MHz there is no change w.r.t 2015 auction and has been kept same as 25% of bid amount.
    6 The spectrum will be assigned to the successful bidder within 30 calendar days from the date of receipt of due payment under both options.

    7 For the successful bidder, the Lock-in period of equity in the company has been reduced to one year instead of earlier stipulation of minimum period of 3 years or completion of roll out obligation, whichever is later.   

    8 There is no change in the eligibility condition. All existing Access Service providers and the entity that are eligible to acquire Access Service authorisation are eligible to participate in this auction.

    9 In case of deferred payment option the same methodology of making part payment as upfront and balance payment in 10 yearly instalments after 2 year of moratorium is retained

    10 The interest rate for the deferred payment option has been prescribed at the prevailing SBI base rate of 9.3% (it was 10% in 2015 auction).

    11 The method of calculation of spectrum cap w.r.t. previous auction has been modified. The spectrum surrendered has also been included in the calculation of spectrum cap apart from the spectrum put to auction and assigned spectrum. The spectrum cap shall not be reduced in case spectrum is allocated for non-commercial use after auction.

    12 The department recognise that in case of mobile system, coverage is to be complemented by capacity augmentation. There are many other steps that had been taken for ease of doing business and speedy roll-out of the network. Such as;

    (i) Submission of self-certification of completion of roll-out obligation to the tune of 90%.

    (ii) The roll-out obligation has been further eased out. Now the roll-out obligation shall be treated as fulfilled once the required numbers of district headquarters or block headquarters are covered by use of any technology in any band.

    (iii) The frequency allocation process has been further streamlined so as to facilitate bidder to have maximum quantity of contiguous spectrum provided it does not disturb the block of 5 MHZ for other bidders.

    13 The various stakeholders have been consulted and after publication of this NIA, a pre-bid conference is also planned to be organised by 13th August, 2016 to have further interaction with the stakeholders and answer their queries. Further bidder has the opportunity to submit its queries by 19th August, 2016 and the department will issue clarification by 29 August 2016.

  • Spectrum auctions next month, DoT issues notice and sets quantity on offer

    Spectrum auctions next month, DoT issues notice and sets quantity on offer

    NEW DELHI: The Government has decided to allot the right to use certain spectrum for 20 years through Spectrum Auction to be conducted next month.

    The Notice Inviting Applications (NIA) for Auction of Spectrum has already been uploaded by Department of Telecom on its website www.dot.gov.in  today.

    The Government believes that this will provide a great opportunity to the existing service providers as well as new entrants. The existing service provider may acquire additional spectrum so as to match international level of spectrum holding.   

    A single auction will be conducted in Simultaneous Multiple-Round Ascending (SMRA) format for seven bands: 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz and 2500MHz bands together.

    1 Spectrum put on offer is as follows;

    http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/large/public/mib.jpg?itok=MPhbJbiI

    2 The total quantity of spectrum put to auction is 2354.55 MHz. This includes 197 MHz of additional spectrum in 1800 MHz band and 37.5 MHz in 800 MHz band released due to harmonization of spectrum in these bands. 
    3 Rates of SUC for the access spectrum held or/and to be acquired through the forthcoming auction by various access service providers in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz & 2500 MHz bands shall be as follows:-

    (i) Spectrum acquired in forthcoming auction in 700, 800, 900, 1800, 2100, 2300 & 2500 MHz band is to be charged at the rate of 3% of AGR excluding the revenue from wire line services.

    (ii) The weighted average of SUC rates across all spectrum assigned to an operator (whether assigned administratively or through auction or through trading) in all access spectrum bands including BWA spectrum obtained in 2010 auction shall be applied for charging SUC subject to a minimum of 3% of AGR excluding revenues from wireline services. The weighted average is to be derived by sum of product of spectrum holdings and applicable SUC rate divided by total spectrum holding. The Weighted Average Rate should be determined operatorwise for each service area.

    (iii) The amount of SUC payable by the operators during 2015-16 at weighted average derived after taking into consideration the spectrum acquired in the coming auction and excluding the spectrum in 2300 MHz/2500 MHz band acquired/allocated prior to 2015-16, be treated as the floor amount of the SUC to be paid by the operators. Further, in case there is a reduction in AGR of the service provider, the floor amount of SUC shall be reduced proportionately.

    4 The option of making payment either full upfront or through deferred payment option has been retained.

    5 In case of deferred payment option, the quantum of upfront payment in case of over 1GHz band i.e. 1800 MHz, 2100 MHz, 2300 MHz & 2500 MHz has been slightly modified w.r.t. 2015 auction from 33% (NIA 2015) to 50% of the bid amount. However, in case of below 1 GHz band i.e. 700 MHz, 800 MHz & 900 MHz there is no change w.r.t 2015 auction and has been kept same as 25% of bid amount.
    6 The spectrum will be assigned to the successful bidder within 30 calendar days from the date of receipt of due payment under both options.

    7 For the successful bidder, the Lock-in period of equity in the company has been reduced to one year instead of earlier stipulation of minimum period of 3 years or completion of roll out obligation, whichever is later.   

    8 There is no change in the eligibility condition. All existing Access Service providers and the entity that are eligible to acquire Access Service authorisation are eligible to participate in this auction.

    9 In case of deferred payment option the same methodology of making part payment as upfront and balance payment in 10 yearly instalments after 2 year of moratorium is retained

    10 The interest rate for the deferred payment option has been prescribed at the prevailing SBI base rate of 9.3% (it was 10% in 2015 auction).

    11 The method of calculation of spectrum cap w.r.t. previous auction has been modified. The spectrum surrendered has also been included in the calculation of spectrum cap apart from the spectrum put to auction and assigned spectrum. The spectrum cap shall not be reduced in case spectrum is allocated for non-commercial use after auction.

    12 The department recognise that in case of mobile system, coverage is to be complemented by capacity augmentation. There are many other steps that had been taken for ease of doing business and speedy roll-out of the network. Such as;

    (i) Submission of self-certification of completion of roll-out obligation to the tune of 90%.

    (ii) The roll-out obligation has been further eased out. Now the roll-out obligation shall be treated as fulfilled once the required numbers of district headquarters or block headquarters are covered by use of any technology in any band.

    (iii) The frequency allocation process has been further streamlined so as to facilitate bidder to have maximum quantity of contiguous spectrum provided it does not disturb the block of 5 MHZ for other bidders.

    13 The various stakeholders have been consulted and after publication of this NIA, a pre-bid conference is also planned to be organised by 13th August, 2016 to have further interaction with the stakeholders and answer their queries. Further bidder has the opportunity to submit its queries by 19th August, 2016 and the department will issue clarification by 29 August 2016.

  • Assembling imported parts not ‘Make in India’ says Broadband Forum

    Assembling imported parts not ‘Make in India’ says Broadband Forum

    NEW DELHI: Observing that assembling in India goes against the very principle of Make in India, the Broadband India Forum has criticized the decision to roll back import duties levied on mobile phone components and said this “is a step not in sync with encouraging manufacture of these items in India.”

    BIF, a dedicated Forum with representation from Telecom Service Providers, Technology Providers, R&D and Chip Design Companies, System Integrator, Project Management, Service & Solution Provide, MSO and DTH, Satellite & VSAT Service Providers, in its appeal to the Communication and Information Technology ministry has requested immediate withdrawal of the import duty rollback on populated PCBs and phone accessories in the interest of ‘Design in India’ as these equipments provide maximum opportunity for design and R&D.        

    In its recent Notification of 5 May 2016, the government decided to roll back import duties levied on components of mobile phones in the Union Budget 2016. The notification brought down the duty on chargers, batteries and headsets from 29 percent to 12.5 percent (at par with that of imported handsets) and lowered the duty on populated PCBs (printed circuit boards) to 0 percent from 2 percent (instead of raising it to 12.5 percent).

    In ia note to the Department of Industrial Policy and Promotion and the Department of Telecom,  the BIF has highlighted that no entity will design and invest in R&D in India if the PCB continues to be imported from China at 0 percent (zero) duty in fully-manufactured form. Though the increase in duty on imported handsets by 12.5 percent has increased manufacturing intensity of mobile phones in India from 5 million/year (50 lakh/year) to 100 million/year (10 crore/year), the local value addition is hardly 1 to 2 percent. Therefore, increasing duty on populated PCBs is the next logical step.

    BIF president T V Ramachandran remarked, “While the industry was hoping the government moved ahead with its 2015 initiative, this recent announcement has pushed the country back to the days of phone assembly, instead of progressing to a phased-manufacturing regime. This notification goes against the letter and spirit of the stated intent of the government, which is to gradually reduce the electronic imports and achieve ‘Net Zero Imports’ by 2020 under ‘Make in India’, as part of the Digital India action plan. Therefore, we request the government to withdraw this notification immediately.”

    The mere assembly of PCBs in India will immediately increase value addition to 10 percent from the current 1 percent, with scope of increasing it further with investment in ‘Design in India’ and R&D. It will also raise the quality of jobs and prevent these moving to other markets (in case they provide better economic conditions than India), and encourage component manufacturing in India by enabling components to be consumed in India (most components used in mobile phones are housed in PCBs).

    In its request, BIF also highlighted that India faces a unique challenge in terms of compulsion to encourage and initiate indigenous design and manufacturing or ‘Make in India’ with higher local value addition. Accordingly, it is imperative to work towards reduction of the exponentially increasing Import Bill for electronics/telecom equipment and services – an expense expected to surpass the oil import bill by 2020 (estimated at $ 400 billion).

     

  • Assembling imported parts not ‘Make in India’ says Broadband Forum

    Assembling imported parts not ‘Make in India’ says Broadband Forum

    NEW DELHI: Observing that assembling in India goes against the very principle of Make in India, the Broadband India Forum has criticized the decision to roll back import duties levied on mobile phone components and said this “is a step not in sync with encouraging manufacture of these items in India.”

    BIF, a dedicated Forum with representation from Telecom Service Providers, Technology Providers, R&D and Chip Design Companies, System Integrator, Project Management, Service & Solution Provide, MSO and DTH, Satellite & VSAT Service Providers, in its appeal to the Communication and Information Technology ministry has requested immediate withdrawal of the import duty rollback on populated PCBs and phone accessories in the interest of ‘Design in India’ as these equipments provide maximum opportunity for design and R&D.        

    In its recent Notification of 5 May 2016, the government decided to roll back import duties levied on components of mobile phones in the Union Budget 2016. The notification brought down the duty on chargers, batteries and headsets from 29 percent to 12.5 percent (at par with that of imported handsets) and lowered the duty on populated PCBs (printed circuit boards) to 0 percent from 2 percent (instead of raising it to 12.5 percent).

    In ia note to the Department of Industrial Policy and Promotion and the Department of Telecom,  the BIF has highlighted that no entity will design and invest in R&D in India if the PCB continues to be imported from China at 0 percent (zero) duty in fully-manufactured form. Though the increase in duty on imported handsets by 12.5 percent has increased manufacturing intensity of mobile phones in India from 5 million/year (50 lakh/year) to 100 million/year (10 crore/year), the local value addition is hardly 1 to 2 percent. Therefore, increasing duty on populated PCBs is the next logical step.

    BIF president T V Ramachandran remarked, “While the industry was hoping the government moved ahead with its 2015 initiative, this recent announcement has pushed the country back to the days of phone assembly, instead of progressing to a phased-manufacturing regime. This notification goes against the letter and spirit of the stated intent of the government, which is to gradually reduce the electronic imports and achieve ‘Net Zero Imports’ by 2020 under ‘Make in India’, as part of the Digital India action plan. Therefore, we request the government to withdraw this notification immediately.”

    The mere assembly of PCBs in India will immediately increase value addition to 10 percent from the current 1 percent, with scope of increasing it further with investment in ‘Design in India’ and R&D. It will also raise the quality of jobs and prevent these moving to other markets (in case they provide better economic conditions than India), and encourage component manufacturing in India by enabling components to be consumed in India (most components used in mobile phones are housed in PCBs).

    In its request, BIF also highlighted that India faces a unique challenge in terms of compulsion to encourage and initiate indigenous design and manufacturing or ‘Make in India’ with higher local value addition. Accordingly, it is imperative to work towards reduction of the exponentially increasing Import Bill for electronics/telecom equipment and services – an expense expected to surpass the oil import bill by 2020 (estimated at $ 400 billion).

     

  • Do not cut spectrum already allocated to TSPs if more needed for Defence or non-commercial purposes: TRAI

    Do not cut spectrum already allocated to TSPs if more needed for Defence or non-commercial purposes: TRAI

    NEW DELHI: Noting that only 1800 MHz spectrum is likely to be affected for diversion for Defence or non-commercial use, the Telecom Regulatory Authority of India (TRAI) has said no TSP should be asked to surrender any spectrum, which it already holds if a level playing field amongst TSPs has to be ensured.

    In a clarification to the Department of Telecom, TRAI reiterated that the same spectrum cap may be made applicable for all the TSPs in a particular local service area (LSA).

    Responding to a letter from the DoT, the Authority said, “Even in case of 1800 MHz also, after the harmonisation exercise with the Defence, additional spectrum will be made available for commercial usages, as Defence has been occupying more than 20 MHz of bandwidth agreed as per Memorandum of Understanding between DoT and the Ministry of Defence. Therefore, the situation, as raised by DoT, is unlikely to arise.”

    This was particularly so in view of the fact that Defence band had already been notified and it was unlikely that any spectrum that was hitherto assigned for commercial use will be assigned for non-commercial use. In the case of 1800 MHz band, frequency harmonisation is required to be taken place amongst TSPs and Defence, implying that Defence and commercial chunk of spectrum are placed in their respective allotted slots.

    In its Recommendations “Valuation and Reserve Price of Spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands” dated 27 January, 2016, the Authority has recommended that DoT should ensure that this exercise gets completed before the next auction. It is also mentioned that after completion of this exercise it is expected that additional spectrum of about 200 MHz will be made available for assignment for commercial use.

    There is no other spectrum band where any rearrangement of spectrum with Defence is immediately foreseen.

    In its letter, DoT had sought views of TRAI on modalities to operate two different spectrum caps – one declared at the time of auction and other published as soon as some spectrum is assigned for non-commercial use; and whether existing spectrum holding of operators should be protected as an exception consequent to reduction in band as well as overall cap due to assignment of spectrum for non-commercial use after the auction.

  • Do not cut spectrum already allocated to TSPs if more needed for Defence or non-commercial purposes: TRAI

    Do not cut spectrum already allocated to TSPs if more needed for Defence or non-commercial purposes: TRAI

    NEW DELHI: Noting that only 1800 MHz spectrum is likely to be affected for diversion for Defence or non-commercial use, the Telecom Regulatory Authority of India (TRAI) has said no TSP should be asked to surrender any spectrum, which it already holds if a level playing field amongst TSPs has to be ensured.

    In a clarification to the Department of Telecom, TRAI reiterated that the same spectrum cap may be made applicable for all the TSPs in a particular local service area (LSA).

    Responding to a letter from the DoT, the Authority said, “Even in case of 1800 MHz also, after the harmonisation exercise with the Defence, additional spectrum will be made available for commercial usages, as Defence has been occupying more than 20 MHz of bandwidth agreed as per Memorandum of Understanding between DoT and the Ministry of Defence. Therefore, the situation, as raised by DoT, is unlikely to arise.”

    This was particularly so in view of the fact that Defence band had already been notified and it was unlikely that any spectrum that was hitherto assigned for commercial use will be assigned for non-commercial use. In the case of 1800 MHz band, frequency harmonisation is required to be taken place amongst TSPs and Defence, implying that Defence and commercial chunk of spectrum are placed in their respective allotted slots.

    In its Recommendations “Valuation and Reserve Price of Spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands” dated 27 January, 2016, the Authority has recommended that DoT should ensure that this exercise gets completed before the next auction. It is also mentioned that after completion of this exercise it is expected that additional spectrum of about 200 MHz will be made available for assignment for commercial use.

    There is no other spectrum band where any rearrangement of spectrum with Defence is immediately foreseen.

    In its letter, DoT had sought views of TRAI on modalities to operate two different spectrum caps – one declared at the time of auction and other published as soon as some spectrum is assigned for non-commercial use; and whether existing spectrum holding of operators should be protected as an exception consequent to reduction in band as well as overall cap due to assignment of spectrum for non-commercial use after the auction.

  • Enforcing Net Neutrality: A continuous monitoring challenge

    Enforcing Net Neutrality: A continuous monitoring challenge

    NEW DELHI: Participants at a discussion on net neutrality feel that the Department of Telecom’s (DoT) recommendations on the subject are ‘soft approaches’ for bigger violations that impact principles of Net Neutrality.

     

    Furthermore, it was felt that there seem to be no recommendations on quantum of penalty or punishments in case of deliberate violations on Net Neutrality.   

     

    The Indian Legal Foundation (TILF) – a New Delhi based Think Tank organization – in association with Grandmasters India conducted the Brainstorming and Forum Discussion focusing on the various aspects of Net Neutrality with participants from corporates, government, politics, NGOs and startups.

     

    Even as the DoT panel lead by A K Bhargava released its report on Net Neutrality, there still remained concerns among the free Internet proponents about the enforcement of principles of Net Neutrality.

     

    The DoT panel suggestions on enforcing Net Neutrality included enacting a law, amending licensing conditions, creating a DoT monitoring cell and also creating training institutions to monitor Net Neutrality violations.

     

     “While we appreciate the overall intent of DoT report, but where does it talk about penalties, like we saw in the recent AT&T case in United States,” asked TILF chairperson, government affairs Renu Jha.

     

    Jha further said, “We need to create a regulatory body with powers to impose fine and punishments. It is a necessary step towards creating and regulating Net Neutrality in India.”

     

    While welcoming DoT recommendations, Samsung general counsel Rajendra Sharma said, “There still needs to be a lot of work in creating an appropriate legislation around the governance of Internet in India. We need to incorporate best practices from EU and United States to ensure freedom of Internet in India.”

     

    The Think Tank Event was presided over by Member of Parliament and mediaperson Tarun Vijay, who is among the most vocal proponents of free Internet in India and has equated net neutrality to Human Rights of Digital Age. 

     

    “Net Neutrality is core and essential to the government programme on skill development, Digital India and Make In India. Government and Indian parliament is committed to Net Neutrality. Any apprehension on recent DoT recommendation will be debated and government will fight for democracy of Internet,” said Vijay.

     

    The event was also marked by a number of startups concerned about their growth in case telcos are allowed to disseminate discriminatory tariffs or bandwidth to users.

     

    “Will it not be a classic case of crony capitalism if startup applications are discriminated as they are unable to cuff up extra bug for telcos,” asked Yogesh Kochar, a social media start up for school students in India. Agreeing with young startup entrepreneurs, Jha stated, “India is hub of startups for quality software and mobile applications. Any pricing or accessibility discrimination against newer applications by Telcos will certainly kill their growth and stifle innovation.”

     

    The Government’s hypothesis needs to be supported – “Good” regulations are better than “No” regulations at all. We do not want Indian Government or DoT to be silent on this important subject. If they remain silent and do not positively support Net Neutrality, ISPs on a later date can disrupt access to websites that do not pay them or compete with their interests. Indeed, the survival of Internet depends on DoT and Government of India and it’s implementation and enforcement of principles of Net Neutrality.

  • FICCI Frames: Internet has increased distribution pipe but lacks monetization

    FICCI Frames: Internet has increased distribution pipe but lacks monetization

    MUMBAI: India is going through a sea change when it comes to content and technology and the country is still grappling with the changes. With sudden boom of multiple distribution systems, the internet and satellites have started playing a larger role in distribution of content. The traditional distribution system has also undergone change and this is not only in the area of production and distribution, but also in the space of marketing.

     

    With the increase in the number of distribution platforms, what the country is witnessing is convergence of businesses. “While we have been talking about convergence in telecom and entertainment for over two decades, it is now that we see it is becoming more relevant,” said Department of Telecom, Government of India special secretary Rita Teaotia in her opening remarks, on day two of FICCI Frames 2015.

     

    According to Teaotia, one of the most important feature of convergence is the heightened significance of the internet in actually delivering content. “This has led to increased choices to consumers, which in turn has led to changed consumer behaviour. They are no longer captive audience,” she said, while addressing the keynote for the session ‘Dancing or Dueling? – the Interplay of Content and Carriage in a Converged World.’

     

    Convergence has also seen a fragmentation around the value chain. While there are a number of players, including the telecom, cable TV, broadcasting stations, equipment vendors, content distribution owners, content owners among others, one can see blurring of boundaries of those in the value chain.

     

    Teaotia pointed out that the huge explosion for demand of data had led to the transformation of existing networks. “So broadcasters are looking at broadband to offload content, mobile networks are converging with fixed networks and alternate platforms are being developed to speed up the process of delivering content,” she said, adding that there was increasing competition between mobile, fixed network operators and broadcasters for content delivery.  

     

    With convergence has come challenges. “One of the major concerns is how to respond to the new regulations and regulatory challenges emerging from convergence and ensure that customers continue to obtain full benefit of the emerging technologies,” questioned Teaotia.

     

    While traditionally there has been a clear division for regulation of telecom networks and broadcasting content with separate regulatory regimes, content regulation has been focused largely to address movie and TV content over traditional broadcasting platforms. “The blurring which we are seeing now of the vertical supply chains for production and delivery of content and new business models for monetizing it have generated new and complex regulatory issues and questions about how effective our current regulation are,” pointed out Teaotia.

     

    Content Monetisation in Converged Environment

     

    Even with more and more content being distributed using different pipes, there is little or no monetization opportunity in the country. “Monetization is still a suspect in the short term, in the long term we have to see how traditional media evolves in India. The big money is still in traditional media and if you want to monetize the content, you will have to rely on traditional media,” said Indiacast Media Distribution group CEO Anuj Gandhi.

     

    According to Gandhi, the industry needs to evolve. “We need to get a structure to the windowing business we do. Everybody will need to have access. As we see more screens and content, we will have to monetize the content on each window opportunity and I think that will become a reality,” he opined.

     

    The industry, needs to come up with a formula for clever windowing. “The west has done it effectively where consumers pay a premium to watch content first and then the cost keeps coming down with advertisements,” pointed out Gandhi. 

     

    India: A Global Entertainment Superpower

     

    With the huge amount of content being created in India, IT industry establishing a strong footprint globally with almost 55 per cent market share globally and the entertainment industry growing from Rs 1 lakh crore in 2014 at 40 per cent to Rs 2 lakh crore by 2019, India is right on the path of becoming a global entertainment superpower. However, while this seems a very natural ambition, is it that simple?

     

    Answering the same was NASSCOM president R. Chandrashekhar. “With convergence, there is blurring of lines between businesses. But with this, you have to worry about competition not just within your business, but from other businesses as well, which can wipe out everything,” he said.

     

    The advent of internet as an extremely dominant medium for distribution of content, has lowered the many barriers that content producers faced in the past to distribute their content.

     

    According to 9.9 Media CEO and founder ISB Ashoka University founder Pramath Sinha, convergence has helped in bringing down the barriers to distributing content. “Not only this, it has also led to lowering of the cost of distribution,” he said.

     

    Chandrashekhar, however said that while distribution of content has become easier, its discovery in the huge space could be a challenge. “We need to find out who the gatekeepers are who are standing between finding that content and how is interplay between the gatekeepers being managed,” concluded Chandrashekhar.

     

  • Spectrum bid: Six e-auction rounds held; bidders commit Rs 60,000 crore

    Spectrum bid: Six e-auction rounds held; bidders commit Rs 60,000 crore

    NEW DELHI: Six rounds of bidding were completed in the auction of spectrum in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands, which began today. 

     

    The bidding has taken place in all bands, according to the Communications and Information Technology Ministry.

     

    At present, a value of approximately Rs 60,000 crores has been committed by bidders against the value (at reserve price) of around Rs 49,000 crores of provisionally won spectrum.

     

    However, spectrum is still available and bidding for this will re-commence tomorrow.

     

    The estimated revenue from the auction of spectrum is targeted at Rs 64,840 crore (excluding 2100 MHz spectrum) of which Rs 16,000 crore is expected to be realized in the current financial year.

     

    The reserve price approved is Rs 3646 crore pan-India per MHZ in 800 MHz, Rs 3980 crore for 900 MHz band pan India excluding Delhi, Mumbai, Kolkatta, and Jammu and Kashmir; Rs 2191 crore pan India (excluding Maharashtra and West Bengal) in 1800 MHz band.

     

    A meeting of the Union Cabinet chaired by Prime Minister Narendra Modi had, early in January, approved the proposal of the Department of Telecom to proceed with auction in 800, 900 and 1800 MHz bands.

     

    The quantum of spectrum to be put to auction was 103.75 MHz in 800 MHz band in all service areas, 177.8 MHz in 17 LSAs in 900 MHz band and 99.2 MHz in 15 LSAs in 1800 MHz band. Thus a total of 380.75 MHz in 800,900 and 1800 MHz was being put to auction. 

     

    Payment terms, eligibility criteria and auction objectives shall be as in the previous auction of February 2014.

     

    The Cabinet had also decided that intent to put 2100 MHz to simultaneous auction may be announced along with auction of other bands. Details of this will be announced later.

     

    Later that month on 15 January, the Telecom Regulatory Authority of India opined that clubbing the 2100 MHz band spectrum with the spectrum of other bands for auction in February will be defeated if sufficient spectrum is not made available in the 2100 MHz band.

     

    “A split auction of 2100 MHz (one in February 2015 and remaining say, in December 2015 after availability from Defence Ministry) will artificially increase the market price of 2100 MHz in February because of the severe supply constraint. The 15 MHz of spectrum in the 2100 MHz spectrum being vacated by the Defence Ministry should be auctioned in view of the in-principle agreement reached with MoD, even if it is not available immediately,” TRAI had said.

     

    The Authority reiterated that in the auction of 2100 MHz band spectrum, an auction-specific cap should be placed that no bidder would be permitted to bid for more than two blocks in a local service area if three to four blocks are available in that local service area.

     

    TRAI had said there was no change in the reserve prices for spectrum in the 2100 MHz bands from what were recommended earlier.

     

    It said that the Department of Telecom is responsible to ensure that the spectrum being auctioned is either interference free or to share information upfront about the areas where interference is likely to occur so that the telecom service providers participating in the auction can take informed decision.

     

    These views were given to the DoT in Clarifications/Reconsideration of Recommendations on ‘Valuation and Reserve Price of Spectrum: 2100 MHz Band’.