ITV

Tag: LSA

  • 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.

  • 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.

  • 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.

  • TRAI sticks to its recommendations on reserve price

    TRAI sticks to its recommendations on reserve price

    NEW DELHI: Even as Communications Minister Kapil Sibal said the reserve price for the spectrum auction would go down in December auction, the Telecom Regulatory Authority of India has said the Reserve Prices for 1800 MHz and 900 MHz will remain unchanged and at the level already recommended by the Authority.

     

    Since the recommendations on the reserve price obtained for different LSAs follow, in logical sequence, from the valuation through adoption of different economic methodologies, the authority did not find any scope to “reconsider” the reserve price, as suggested by the Department of Telecommunications.

     

    TRAI had sent its recommendations on “Valuation and Reserve Price of Spectrum” on 9 September to the Department of Telecommunications which had on 11 October sought clarifications/ reconsideration on some of the recommendations.

     

    After considering the comments given by the DoT, the Authority has furnished its response to the Government. The authority has reiterated its earlier recommendations with detailed reasoning.  Thus TRAI has reiterated its recommendation regarding no reservation/priority in the 900/1800 MHz band in order to have an open, transparent, objective, responsive, unrestricted and successful auction of 900 MHz and 1800 MHz spectrum and to ensure a level playing field amongst bidders.
    Other recommendations reiterated by TRAI are:

     

        In order to correct the present urban-centric bias in the roll-out obligations as also to harmonise the roll-out obligations with the objectives of NTP 2012, the authority has reiterated its recommendations on roll-out obligations to enhance rural coverage.

        The DoT has conveyed its in-principle acceptance on spectrum trading. Accordingly, the authority will shortly work-out the detailed guidelines on spectrum trading.
        On auction of 800 MHz spectrum, the Authority has again recommended that the Government must first explore the feasibility of adoption of the E-GSM band before reaching any hasty conclusion.  

        On Spectrum Usage Charges (SUC), the Authority has reiterated its recommendations for a graduated transition from the existing regime with its many limitations, to a more balanced, equitable and rational system.