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  • Trai proposes radio audience measurement on lines of Barc

    Trai proposes radio audience measurement on lines of Barc

    NEW DELHI: The Telecom Regulatory Authority of India (Trai) has come out with a set of recommendations on radio audience measurement (Ram) in India setting limits on ownership of stakeholders in the ratings agency, but there is no limit on the number of such agencies.

    In a preface, the regulator said there is a need to prescribe “a soft touch, conducive, forward looking, growth oriented framework” for Ram, which protects the interests of all stakeholders.

    The guidelines for rating agencies will be notified by the Ministry of Information and Broadcasting (MIB) based on the recommendations of Trai and there will be no ceiling on the number of rating agencies.

    Trai has a recommendatory role on such issues as final decisions rest with nodal ministries like MIB, Department of Telecoms (DoT) and Department of Space (DoS). In the past, many recommendations of the regulator had not been implemented at all or done so partially by the Ministry concerned.

    The Ram proposed guidelines mandatorily cover registration, eligibility norms, cross-holdings, methodology for conducting radio rating, complaint redressal, sale and use of ratings, audit, disclosure, reporting requirements and penal provisions for rating agencies.

    This will be very similar to the existing policy guidelines for television rating agencies issued by MIB under which Barc operates.

    Trai suggested the ratings agency should have adequate and equal representation from the three associations concerned — Association of Radio Operators for India (AROI), Indian Society of Advertisers (ISA) and Advertising Agencies Association of India (AAAI).

    The salient features of the TRAI recommendations are as follows:

    (i)Guidelines for rating system to be notified by MIB.

    (ii)Any agency meeting eligibility conditions can apply and get registered with MIB for doing the rating work. No cap on number of rating agencies has been prescribed.

    (iii)All rating agencies, including industry led body are required to comply with the guidelines.

    (iv)Guidelines to cover registration, eligibility norms, cross-holding, methodology for conducting rating, complaint redressal, sale and use of ratings, audit, disclosure, reporting requirements and penal provisions.

    (v)Voluntary code of conduct by the industry for maintaining secrecy and privacy of the listeners included in the rating process.

    (vi)Restrictions on ‘substantial equity holding of 10% or more’ between rating agencies and broadcasters/advertisers/advertising agencies have been prescribed.

    (vii)The rating agency to set up an effective complaint redressal system.

    (viii)Data/reports generated by the rating agency to be made available to all interested stakeholders in a transparent and equitable manner.

    (ix)The rating agency to get its entire methodology/processes audited internally on quarterly basis and through an independent auditor annually. All audit reports to be put on the website of the rating agency.

    (x)Penal provisions for non-compliance of guidelines.

    Since All India Radio (AIR) has a large geographical and population coverage and is not a member of AROI, representation of AIR should be ensured in the technical committee formed within the industry led body for guiding and supervising various radio rating processes.

    Trai said in its report that once guidelines are issued and implemented by MIB, these will be made applicable to all the rating agencies including the industry-led body.

    An independent rating agency, carrying out the rating process, can also outsource the field work, data collection and processing to third parties. The guidelines will not be applicable to the entities which have been contracted to carry out the field work, data collection and processing.

    At present, radio audience measurement in India is conducted by AIR and TAM Media Research.

    The full TRAI recommendation can be obtained at http://www.trai.gov.in/WriteReadData/WhatsNew/Documents/Recommendations_15_September_2016.pdf

  • Govt defers mega spectrum auction to Oct 1

    Govt defers mega spectrum auction to Oct 1

    NEW DELHI: The Indian government has deferred to Oct 1, 2016 mega sale of mobile frequencies that are aimed at ushering in quality telecoms services, including 4G services capable of delivering hi-speed broadband speed for easy video delivery.

    “For start of the auction 29th September READ start of the auction 1st October,” PTI quoted a revised government communication inviting application for spectrum auction as saying.

    As per an earlier schedule, bids for airwaves was scheduled to start from September 29 that fell during the ‘shradh’ period considered inauspicious to start new ventures as Indians pay homage to departed souls during this period.

    Telecom operators had demanded that the spectrum sale, which is the biggest ever auction, should begin with the start of Navratra festival, considered auspicious, the PTI report states.

    Department of Telecoms (DoT) has put on the block a total of 2,354.55 megahertz of mobile frequencies for auction in bandwidths of 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz and 2300 Mhz.

    All the radiowaves being put for auction can be used for high speed 4G services.

    Recently during Vidnet2016, an OTT-specific conference organised by Indiantelevision, Star India’s chief of digital initiative (Hotstar) Ajit Mohan had opined that for platforms like Hotstar high data cost and low quality bandwidth were major challenges.

    At base price, the sale of all spectrum would fetch bids worth Rs 5.63 lakh crore. Of this, spectrum in premium 700 Mhz band alone has potential to attract bids of Rs 4 lakh crore.

    Industry experts, however, have cast doubts over success of the spectrum auction due to high base price of mobile airwaves, but DoT has expressed confidence saying buyers of airwaves in the most expensive frequency band 700 Mhz would be able to save 70 per cent of the cost they will spend on rolling out infrastructure, the PTI reports states.

  • Govt defers mega spectrum auction to Oct 1

    Govt defers mega spectrum auction to Oct 1

    NEW DELHI: The Indian government has deferred to Oct 1, 2016 mega sale of mobile frequencies that are aimed at ushering in quality telecoms services, including 4G services capable of delivering hi-speed broadband speed for easy video delivery.

    “For start of the auction 29th September READ start of the auction 1st October,” PTI quoted a revised government communication inviting application for spectrum auction as saying.

    As per an earlier schedule, bids for airwaves was scheduled to start from September 29 that fell during the ‘shradh’ period considered inauspicious to start new ventures as Indians pay homage to departed souls during this period.

    Telecom operators had demanded that the spectrum sale, which is the biggest ever auction, should begin with the start of Navratra festival, considered auspicious, the PTI report states.

    Department of Telecoms (DoT) has put on the block a total of 2,354.55 megahertz of mobile frequencies for auction in bandwidths of 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz and 2300 Mhz.

    All the radiowaves being put for auction can be used for high speed 4G services.

    Recently during Vidnet2016, an OTT-specific conference organised by Indiantelevision, Star India’s chief of digital initiative (Hotstar) Ajit Mohan had opined that for platforms like Hotstar high data cost and low quality bandwidth were major challenges.

    At base price, the sale of all spectrum would fetch bids worth Rs 5.63 lakh crore. Of this, spectrum in premium 700 Mhz band alone has potential to attract bids of Rs 4 lakh crore.

    Industry experts, however, have cast doubts over success of the spectrum auction due to high base price of mobile airwaves, but DoT has expressed confidence saying buyers of airwaves in the most expensive frequency band 700 Mhz would be able to save 70 per cent of the cost they will spend on rolling out infrastructure, the PTI reports states.

  • TRAI sticks to earlier position of flat regime rather than a slab-based one for spectrum

    TRAI sticks to earlier position of flat regime rather than a slab-based one for spectrum

    NEW DELHI: The Telecom Regulatory Authority of India has reiterated its earlier “consistent position” that the Spectrum usage charge (SUC) must transition from a slab-based regime to a flat ad valorem regime.

    The ease of implementation, level playing field, encouragement to bidders to participate in the auction are key rationales for such a position being taken, the regulator has said in its response to a letter received from the Department of Telecom following TRAI’s earlier recommendations of 27 January this year.

    TRAI points out that the trading of spectrum is now happening and would gain momentum in due course. It said merger and acquisition would also take place in the sector in the near future going by recent media reports. All this would make the SUC regime more complex and would need an intricate and large system for smooth implementation, it reiterates.

    The Cellular Operators Association of India has also supported a flat rate instead of a slab-based one.

    At the same time, TRAI has suggested a separate formula for computation of the charges according to the weighted average method, as against the one considered by the Telecom Commission.

    “While the optimal solution in the view of the Authority is to move to a flat rate regime, we are constrained to limit ourselves to examine the weighted average solution as suggested by the Attorney General and proposed by DoT,” Trai said in its letter to the Department of Telecommunications (DoT).

    The Attorney-General had said “the contract which emerged after the 2010 auction and which is legally binding on both parties, does not permit the Government to change the SUC for BWA unilaterally.” As the Revenue cannot be segregated for each band, there is difficulty in finding a multiplicand for the SUC rate for that band. As an alternate solution, the Attorney General recommended that the Weighted Average of SUC rates across all spectrum bands, including BWA Spectrum obtained in the 2010 auction, should be employed on an operator-wise basis to calculate the SUC in a legally valid manner.

    Trai has recommended that the DoT should also include several alternate factors such as last market-determined price and technical efficiency of spectrum bands to arrive at the weighted average for computing the SUC. The telecom watchdog said that if the spectrum quantity in a band was the only weightage for calculating weighted average formula, it may lead to certain shortcomings.

    “Part of this shortcoming is based on the fundamental difficulty of using a proxy – any proxy, on which a weighted average computation is based, will not exactly map the revenue earned by each TSP (telecom service provider) from each band,” Trai said in its letter.

    The Telecom Commission had cleared a proposal to use weighted average formula for calculating spectrum SUC based on the total spectrum holding, for all bands allocated to telecom operators.

    DoT had requested the Authority to provide recommendation on SUC in the context of valuation and reserve price of spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz spectrum bands.

    In January, TRAI had recommended rates for auction of spectrum in the 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz bands.

  • TRAI sticks to earlier position of flat regime rather than a slab-based one for spectrum

    TRAI sticks to earlier position of flat regime rather than a slab-based one for spectrum

    NEW DELHI: The Telecom Regulatory Authority of India has reiterated its earlier “consistent position” that the Spectrum usage charge (SUC) must transition from a slab-based regime to a flat ad valorem regime.

    The ease of implementation, level playing field, encouragement to bidders to participate in the auction are key rationales for such a position being taken, the regulator has said in its response to a letter received from the Department of Telecom following TRAI’s earlier recommendations of 27 January this year.

    TRAI points out that the trading of spectrum is now happening and would gain momentum in due course. It said merger and acquisition would also take place in the sector in the near future going by recent media reports. All this would make the SUC regime more complex and would need an intricate and large system for smooth implementation, it reiterates.

    The Cellular Operators Association of India has also supported a flat rate instead of a slab-based one.

    At the same time, TRAI has suggested a separate formula for computation of the charges according to the weighted average method, as against the one considered by the Telecom Commission.

    “While the optimal solution in the view of the Authority is to move to a flat rate regime, we are constrained to limit ourselves to examine the weighted average solution as suggested by the Attorney General and proposed by DoT,” Trai said in its letter to the Department of Telecommunications (DoT).

    The Attorney-General had said “the contract which emerged after the 2010 auction and which is legally binding on both parties, does not permit the Government to change the SUC for BWA unilaterally.” As the Revenue cannot be segregated for each band, there is difficulty in finding a multiplicand for the SUC rate for that band. As an alternate solution, the Attorney General recommended that the Weighted Average of SUC rates across all spectrum bands, including BWA Spectrum obtained in the 2010 auction, should be employed on an operator-wise basis to calculate the SUC in a legally valid manner.

    Trai has recommended that the DoT should also include several alternate factors such as last market-determined price and technical efficiency of spectrum bands to arrive at the weighted average for computing the SUC. The telecom watchdog said that if the spectrum quantity in a band was the only weightage for calculating weighted average formula, it may lead to certain shortcomings.

    “Part of this shortcoming is based on the fundamental difficulty of using a proxy – any proxy, on which a weighted average computation is based, will not exactly map the revenue earned by each TSP (telecom service provider) from each band,” Trai said in its letter.

    The Telecom Commission had cleared a proposal to use weighted average formula for calculating spectrum SUC based on the total spectrum holding, for all bands allocated to telecom operators.

    DoT had requested the Authority to provide recommendation on SUC in the context of valuation and reserve price of spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz spectrum bands.

    In January, TRAI had recommended rates for auction of spectrum in the 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz bands.

  • Separate Broadcasting Policy, use last mile operator for broadband spread: TDSAT seminar

    Separate Broadcasting Policy, use last mile operator for broadband spread: TDSAT seminar

    NEW DELHI: There should be a separate Broadcasting Policy analogous to the National Telecom Policy, and the existing laws and regulations should be enforced more stringently before drafting new ones.

    This was one of the recommendations on regulatory issues in broadcasting and distribution sector at a seminar by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) held early this year.

    The last mile cable network should be leveraged to provide broadband services, according to the recommendations placed on the website of TDSAT yesterday.

    A general consensus also said the government needs to ensure that the amendments in existing regulations do not lead to confusion and ambiguity with regard to the original objectives of the legislations.

    A more effective consultation process should be designed so that the stakeholders do not need to resort to the adjudicatory system, and there should be a more pro-active approach on the implementation of recommendations of the policy makers, the recommendations relating to broadcasting said.

    The seminar on the ART (Adjudication, Regulation, Telecommunication) of Convergence on 6 and 7 February 2016 was attended by government, policy makers, adjudicatory body, and service providers to deliberate suggestions to prepare for challenges that arise with a converging digital environment.

    The seminar was inaugurated by Information and Broadcasting Minister Arun Jaitley, Supreme Court’s Justice J. Chelameswar presided over the function, and Attorney General Mukul Rohatgi was the guest of honour.

    Jaitley stressed the need for an adjudicatory mechanism for telecommunications and broadcasting which is agile and responsive to deal with emerging challenges.

    The seminar was held with the support of Department of Telecommunications (DoT), Department of Telecommunications and Information Technology (DeitY), Telecom Regulatory Authority of India (TRAI), Justices from the Supreme Court and High Court, and representatives of the industry. Ernst and Young was the knowledge partner for the seminar.

    Regulatory and Licensing Regime in a converged environment

    The conclusion was the need to frame a simplified, resilient and comprehensive convergence law and regulation encompassing all activities and sections of the industry, which are currently governed by myriad laws and regulations.

    Separate mechanisms are needed for content and carriage regulation, with independent bodies for each of them. There needs to be converged licensing regime for telecommunications and broadcasting.

    It was also stated that there needs to be a clear and well-defined separation of regulatory and adjudicatory powers, with the adjudicatory powers vested in an independent authority. Strategic spectrum should be under the control of the government, while the commercial spectrum should be under the control of the regulator.

    The governance mechanism should be digitized and the processes should be made simpler to use. The existing laws should be amended keeping in mind their compatibility with other regulations and processes. Legislations should be made technology agnostic to provide a level playing field for all the stakeholders.

    Adjudicatory mechanism — issues and way forward

    It was stated that the law needs to be amended to bring more clarity regarding jurisdictional powers of TDSAT mandated in the TRAI Act apropos writ jurisdiction of the High Courts.

    A separate mediation centre is required for resolving minor cases, both pre-trial as well as post-trial, which do not require the specialized expertise of the judges of the Supreme Court.

    The original character of the TDSAT needs to be restored; in addition whether certain types of disputes should be entrusted to TRAI for resolution in order to improve the efficacy of the overall adjudicatory mechanism.

    There should be a fully integrated electronic tribunal and innovative technologies should be used to deal with cases rapidly and efficiently, the recommendations said.

    Training should be provided to all the stakeholders in the sector to eliminate the digital divide. Regulations need to be updated in accordance with the changing technology.

    Content distribution in next generation networks

    There should be clear, defined and uniform regulations for broadband, net neutrality, advertising, patents, and competition and pricing matters.

    There was unanimity that net neutrality should be ensured to safeguard the interest of all stakeholders in the internet ecosystem.

    A suitable patents and copyright system should be developed for India keeping in mind the specific concerns of the domestic industry.

    It was felt that the industry should not be over-regulated as this would dis-incentivize stakeholders and hamper the interests of both the content creators and the consumers.

    The behaviour of the stakeholders in the industry should be regulated instead of the economics of the industry, since regulation of the latter destroys business models while the former adds to both the consumers’ and the industry’s welfare.

    “I-way of the Future”

    It was felt that the challenge of slow implementation should be overcome through enhanced co-ordination among the stakeholders and the policy makers.

    A broadband highway needs to be built that ensures accessibility of high speed internet for everyone.

    Cyber security and privacy issues that arise due to the cross sector convergence and have standardized legislations for dealing with it needs to be addressed.

    A pro-active approach needs to be followed in policy making to speed up the creation and adoption of the next generation highway infrastructure.

    There should be a conducive business environment through policies that incentivize entrepreneurs and private participation. The expertise of the private sector should be leveraged. Start-ups needs to be encouraged to develop their capabilities and help build a compact, connected and coordinated network of smart cities.

  • Separate Broadcasting Policy, use last mile operator for broadband spread: TDSAT seminar

    Separate Broadcasting Policy, use last mile operator for broadband spread: TDSAT seminar

    NEW DELHI: There should be a separate Broadcasting Policy analogous to the National Telecom Policy, and the existing laws and regulations should be enforced more stringently before drafting new ones.

    This was one of the recommendations on regulatory issues in broadcasting and distribution sector at a seminar by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) held early this year.

    The last mile cable network should be leveraged to provide broadband services, according to the recommendations placed on the website of TDSAT yesterday.

    A general consensus also said the government needs to ensure that the amendments in existing regulations do not lead to confusion and ambiguity with regard to the original objectives of the legislations.

    A more effective consultation process should be designed so that the stakeholders do not need to resort to the adjudicatory system, and there should be a more pro-active approach on the implementation of recommendations of the policy makers, the recommendations relating to broadcasting said.

    The seminar on the ART (Adjudication, Regulation, Telecommunication) of Convergence on 6 and 7 February 2016 was attended by government, policy makers, adjudicatory body, and service providers to deliberate suggestions to prepare for challenges that arise with a converging digital environment.

    The seminar was inaugurated by Information and Broadcasting Minister Arun Jaitley, Supreme Court’s Justice J. Chelameswar presided over the function, and Attorney General Mukul Rohatgi was the guest of honour.

    Jaitley stressed the need for an adjudicatory mechanism for telecommunications and broadcasting which is agile and responsive to deal with emerging challenges.

    The seminar was held with the support of Department of Telecommunications (DoT), Department of Telecommunications and Information Technology (DeitY), Telecom Regulatory Authority of India (TRAI), Justices from the Supreme Court and High Court, and representatives of the industry. Ernst and Young was the knowledge partner for the seminar.

    Regulatory and Licensing Regime in a converged environment

    The conclusion was the need to frame a simplified, resilient and comprehensive convergence law and regulation encompassing all activities and sections of the industry, which are currently governed by myriad laws and regulations.

    Separate mechanisms are needed for content and carriage regulation, with independent bodies for each of them. There needs to be converged licensing regime for telecommunications and broadcasting.

    It was also stated that there needs to be a clear and well-defined separation of regulatory and adjudicatory powers, with the adjudicatory powers vested in an independent authority. Strategic spectrum should be under the control of the government, while the commercial spectrum should be under the control of the regulator.

    The governance mechanism should be digitized and the processes should be made simpler to use. The existing laws should be amended keeping in mind their compatibility with other regulations and processes. Legislations should be made technology agnostic to provide a level playing field for all the stakeholders.

    Adjudicatory mechanism — issues and way forward

    It was stated that the law needs to be amended to bring more clarity regarding jurisdictional powers of TDSAT mandated in the TRAI Act apropos writ jurisdiction of the High Courts.

    A separate mediation centre is required for resolving minor cases, both pre-trial as well as post-trial, which do not require the specialized expertise of the judges of the Supreme Court.

    The original character of the TDSAT needs to be restored; in addition whether certain types of disputes should be entrusted to TRAI for resolution in order to improve the efficacy of the overall adjudicatory mechanism.

    There should be a fully integrated electronic tribunal and innovative technologies should be used to deal with cases rapidly and efficiently, the recommendations said.

    Training should be provided to all the stakeholders in the sector to eliminate the digital divide. Regulations need to be updated in accordance with the changing technology.

    Content distribution in next generation networks

    There should be clear, defined and uniform regulations for broadband, net neutrality, advertising, patents, and competition and pricing matters.

    There was unanimity that net neutrality should be ensured to safeguard the interest of all stakeholders in the internet ecosystem.

    A suitable patents and copyright system should be developed for India keeping in mind the specific concerns of the domestic industry.

    It was felt that the industry should not be over-regulated as this would dis-incentivize stakeholders and hamper the interests of both the content creators and the consumers.

    The behaviour of the stakeholders in the industry should be regulated instead of the economics of the industry, since regulation of the latter destroys business models while the former adds to both the consumers’ and the industry’s welfare.

    “I-way of the Future”

    It was felt that the challenge of slow implementation should be overcome through enhanced co-ordination among the stakeholders and the policy makers.

    A broadband highway needs to be built that ensures accessibility of high speed internet for everyone.

    Cyber security and privacy issues that arise due to the cross sector convergence and have standardized legislations for dealing with it needs to be addressed.

    A pro-active approach needs to be followed in policy making to speed up the creation and adoption of the next generation highway infrastructure.

    There should be a conducive business environment through policies that incentivize entrepreneurs and private participation. The expertise of the private sector should be leveraged. Start-ups needs to be encouraged to develop their capabilities and help build a compact, connected and coordinated network of smart cities.

  • DoT takes on record spectrum sharing pact between RCom and RTL IN 800 MHz

    DoT takes on record spectrum sharing pact between RCom and RTL IN 800 MHz

    NEW DELHI: The Department of Telecommunications has taken on record 800 Mhz Spectrum Sharing in seven circles of Reliance Communications Ltd (RCom) and two circles of Reliance Telecom Limited (RTL), wholly owned subsidiary with Reliance Jio Infocomm Limited (RJIL).

    Giving this information to Bombay Stock Exchange, Reliance Communications Ltd said this was with effect from 21 April 2016.

    The development was with reference to the earlier letter dated 18 January 2016 informing sharing of spectrum in 800 MHz with RJIL.

    The Company and RTL are now able to share spectrum with RJIL in nine circles:  Mumbai, Uttar Pradesh (East), Madhya Pradesh, Bihar, Orrisa, Haryana, Himachal Pradesh, Assam and the North East.

    The DoT had in February approved sharing of active infrastructure like antenna used for transmitting mobile signals.

    It is learnt that RCom has already paid Rs 5,383.84 crores to liberalise its spectrum in 16 circles which include Delhi, Mumbai, Punjab, Himachal Pradesh, UP East and West, Gujarat, Madhya Pradesh, Kolkata and Bihar.

    A liberalised spectrum allows telecom operators to use any technology to deliver mobile service like 3G and 4G. Besides, it allows introduction of new technologies and sharing and trading spectrum with other operators for its efficient use.

    The Cabinet has earlier cleared liberalisation of spectrum allocated without auction to telecom companies – at prices recommended by the Telecom Regulatory Authority of India with the balance being collected after deriving market rate through bidding

  • DoT takes on record spectrum sharing pact between RCom and RTL IN 800 MHz

    DoT takes on record spectrum sharing pact between RCom and RTL IN 800 MHz

    NEW DELHI: The Department of Telecommunications has taken on record 800 Mhz Spectrum Sharing in seven circles of Reliance Communications Ltd (RCom) and two circles of Reliance Telecom Limited (RTL), wholly owned subsidiary with Reliance Jio Infocomm Limited (RJIL).

    Giving this information to Bombay Stock Exchange, Reliance Communications Ltd said this was with effect from 21 April 2016.

    The development was with reference to the earlier letter dated 18 January 2016 informing sharing of spectrum in 800 MHz with RJIL.

    The Company and RTL are now able to share spectrum with RJIL in nine circles:  Mumbai, Uttar Pradesh (East), Madhya Pradesh, Bihar, Orrisa, Haryana, Himachal Pradesh, Assam and the North East.

    The DoT had in February approved sharing of active infrastructure like antenna used for transmitting mobile signals.

    It is learnt that RCom has already paid Rs 5,383.84 crores to liberalise its spectrum in 16 circles which include Delhi, Mumbai, Punjab, Himachal Pradesh, UP East and West, Gujarat, Madhya Pradesh, Kolkata and Bihar.

    A liberalised spectrum allows telecom operators to use any technology to deliver mobile service like 3G and 4G. Besides, it allows introduction of new technologies and sharing and trading spectrum with other operators for its efficient use.

    The Cabinet has earlier cleared liberalisation of spectrum allocated without auction to telecom companies – at prices recommended by the Telecom Regulatory Authority of India with the balance being collected after deriving market rate through bidding

  • TRAI says it favours auctioning of entire spectrum in any LSA

    TRAI says it favours auctioning of entire spectrum in any LSA

    NEW DELHI: The Telecom Regulatory Authority of India has told the Department of Telecommunications that holding back some of the spectrum in 700 MHz (i.e. 15+15 MHz) from this auction and selling it after a gap of certain period of time from now would lead to non-utilization of this scarce natural resource for that period, though it has the potential to be reused and reallocated.

    Responding to a lengthy note by the DoT on various issues relating to auction of spectrum, the TRAI has by and large stuck to its original recommendations on most questions raised before it.

    It said any delay in award of spectrum or non-utilization of spectrum would turn into irreversible loss to the Government (in the form of levies and taxes) and to the society (in the form of better services, contribution to other related activities etc.).

    Even if it is assumed that greater revenue can be generated by auctioning a part of spectrum in 700 MHz band in future, deferring the revenue receipts now may not be of economic prudence keeping in view the impact of telecom services on the other sectors and overall GDP growth. Telecom connectivity is now the basic infrastructure in any society for networking, conveying important economic and social benefits.

    The Authority emphasised that the broadband connectivity is the first pillar of ‘Digital India’ Programme of the government, which can be fulfilled quickly if sufficient quantity of spectrum is made available. Further, National Telecom Policy-2012 envisages making available additional 300 MHz spectrum by the year 2017 and 500 MHz by the year 2020 for IMT services. If all the available spectrum is put to auction, it will result in increased availability of spectrum which will result in serving larger subscriber base, increased data speed as well as growth and overall increase in economic and other networked activities. This will result in more recurring revenue to the government in terms of license fee, spectrum usage charges, service tax, etc.

    Spectrum being a scarce resource, auction of spectrum is primarily to solve the allocative problem in an open, transparent manner and revenue maximization cannot be (and should not be) the only objective of auction where the Government is an auctioneer. The government has to a strike a balance between its fiscal targets and its responsibility to promote and encourage growth of the telecom sector.

    Presently, India is way behind in the broadband penetration and the internet speeds in the world and 700 MHz band can prove to be a vital band for proliferation of broadband in the country. In view of the above, the authority is of the opinion that entire spectrum in the 700 MHz band is required to be made available for commercial use without any delay. Accordingly, the authority reiterates its earlier recommendation that entire available spectrum (2x35MHz) in the 700 MHz band should be put to auction in the upcoming auction.

    The authority has been in favour of auctioning of all the available spectrum in entire LSA(s). However, the authority had recommended that partial spectrum available in Bihar, Rajasthan and North-East LSAs should not be put to auction till such time it becomes available in at least 75% of total number of districts of the LSA including the state capital(s). As 1.0 MHz of spectrum in 1800 MHz band is available in entire service area of Rajasthan it should be put to auction. Moreover, DoT is carrying out process of harmonisation of spectrum in this band, therefore, issue of partial spectrum may not arise.

    It said telecom service providers feel that the escalation in the number of mobile drops, especially in urban and metro areas, can also be attributed to spectrum related issues, including shortage of spectrum supply. In order to serve the telecom needs of ever increasing subscriber base, the authority has recommended to DoT, from time to time, for making additional spectrum available in existing as well as new bands for commercial use. Further, in all the spectrum auctions held since 2012, the authority has been recommending to put to auction the entire available spectrum with the DoT. I

    As stated in the recommendations dated 27 January 2016, 700 MHz band is a sought after band for LTE deployment around the world due to its efficiency and higher penetration inside buildings. Due to lower frequency, it provides wider coverage which reduces number of towers required for setting up the LTE network and thus significantly cuts down capital expenditure involved in making the network live. In 42 countries commercial networks have been deployed in this band. After the assignment of spectrum in this band in India, it is expected that there will be an accelerated deployment of device eco-system due to ‘economies of scale’ that will be delivered on account of large subscriber base.

    The authority is of the view that if a service provider is not utilizing the administratively assigned spectrum without any justification, the licensor should take back the assigned spectrum.

    The DoT may take the legal opinion on the above issue and start the process of withdrawal of the spectrum separately. As soon as this spectrum becomes available, the same should be put to auction.

    The authority is of the opinion that there is no need for any modification in the provisions of the latest NIA with respect to block size and minimum quantum of spectrum that a new entrant/existing licenses/expiry licensee is required to bid for in 900/1800 MHz band. However, due to limited availability of spectrum in some LSAs in 900/1800 bands minimum spectrum, that a bidder is required to bid for, has been amended in these LSAs.