Tag Archives: 1800MHz-spectrum-auction

India’s Biggest Telecom Spectrum Auction – Tepid Demand

indias-biggest-telecom-spectrum-auctionIndia’s and possibly World’s Biggest Telecom Spectrum Auction will go live on Oct 1st, 2016 amidst tepid demand from existing Indian operators. Global Telcos give it a miss due to fresh memories of Spectrum Scam and constantly changing policies with motive of massive corruption. The spectrum bands put to auction include 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz, and 2500MHz, constituting a total of 2,355MHz of spectrum, with the largest chunk in the most sought after 700MHz band suitable for 4G and 5G Wireless Broadband.

Barring few circles, we expect most of the spectrum to be sold at current Continue reading India’s Biggest Telecom Spectrum Auction – Tepid Demand

Will Lower Spectrum Charges Make Biggest Spectrum Auction Attractive ?

Spectrum Charges Biggest Auction India 2016The Government has announced that Spectrum Usage Charge (SUC) will be a weighted average rate of individual rates for different bands, including 3% for spectrum won in the 2016 auction. The change is positive for Bharti, since telcos having 2300MHz that carries just 1% rate will benefit from its inclusion in the weighted average. Reliance Jio will have the lowest SUC, having the highest Continue reading Will Lower Spectrum Charges Make Biggest Spectrum Auction Attractive ?

2015 Mega Spectrum Auction – Will Reliance Jio Bid for 800Mhz / 900Mhz Spectrum ?

Evey body was caught with a surprise when DoT revealed the earnest money deposits for the 2015 Mega Spectrum Auction as Reliance Jio turned out to be the highest depositor. Mukesh Ambani led Reliance Jio Infocomm already has a) Pan India 4G-BWA Spectrum in 2300 MHz band of 20 Mhz block bought 5 years ago and is yet to launch operations. Subsequently, Videocon backed by Mukesh Ambani bid in the b) 1800 Mhz spectrum band in 2012 auction and managed to win some circles. In 2014, Reliance Jio once again surprised every body by c) winning 1800 Mhz spectrum in more circles. All the Spectrum bought in an Auction is Liberalized (Deploy any technology for commercial use) The following map shows the Spectrum bought by Videocon & Reliance Jio Infocomm in the 1800 Mhz Band of at least 5 Mhz bandwidth mapped on to the Geographical Map of India. rjio-videocon

Why is Reliance interested 1800 Mhz Spectrum ?

The 1800 Mhz band is commercially viable for FDD-LTE and has deployments across the globe in several countries far more than the 2300 Mhz band. With 1800 Mhz they can also have 2G Voice call coverage which is made possible by CSFB. Reliance Jio has quietly accumulated spectrum for the forthcoming decade of mobile broadband boom. From the above map it is clearly evident that Reliance Jio Infocomm will be a serious bidder for 1800 Mhz Spectrum in Rajasthan and Himachal Pradesh where the availability is more than 5 Mhz.

Agreed!!! But why such a massive $800 million deposit for just 2 circles of 1800 Mhz ? We were the first one to think and publish that Reliance Jio would bid for 900Mhz in the previous 2014 auction, but they let go the spectrum in India’s most profitable circles Delhi NCR & Mumbai. So this time around we are of the opinion that Reliance Jio will bid for the 800 Mhz Spectrum.

Is 800 Mhz Spectrum Best suited for Reliance Jio ?

800 Mhz spectrum is priced cheaper compared to 900 Mhz band, inconsistent with the Physics & Mathematical model of Spectrum efficiencies. 800 Mhz is best suited for running a LTE network with less CAPEX and High Coverage. One of the conditions laid out by the DoT is a new Entrant will have to bid for a Min of 5 MHz wherever available. We think it is the least, an operator must have to offer Mobile Data services and thus Reliance Jio would end up bidding in the circles highlighted on the Geographical Map of India.
Reliance-Jio-Bid-Map

Why won’t Reliance Jio Bid for 900 Mhz ?

The 900 spectrum put to auction is renewal spectrum of incumbents and they are unlikely to let it go. 900 band is best suited for 2G Voice & 3G mobile data but not for 4G LTE. Idea has openly declared 4G is few years away, implies the thrust is on 3G mobile data for now. However, low EMD leads to think that Idea has 2 bid scenarios on mind. Additionally, the difference between 900 Mhz and 2100 Mhz reserve price is not considerable, thus incumbents have developed models where the threshold until which they can chase 900 band or switch to 2100. In this backdrop, if Reliance Jio does bid and win 900 band spectrum, it will end up paying a FORTUNE. Incumbents will switch to 2100 band and the battleground will shift to 3G mobile data pushing 4G LTE couple of years ahead.

We really never know what works in India as evident from – “It happens only in India” messages 🙂 So Airtel could experiment by bidding for a circle of 800 Mhz spectrum to deploy LTE as it is the only service provider which provisions differently based on customer needs delivering high QoS. Anxiety is running high, let the Auction conclude soon and pave way for a highly connected India. What say ?

TRAI Wants BSNL’s 900MHz Spectrum & 1800Mhz Spectrum from Defence

India Mobile Spectrum AvailabilityOne of the best recommendations of TRAI ahead of the 2015 Telecom Spectrum Auction is to take back Spectrum to the tune of 1.2MHz in 900MHz band from BSNL on a PAN India Basis which could be used by other operators for 3G services. In return, BSNL should be given 1.2MHz in 1800MHz frequency band wherein the operator’s holding is less than 3.8MHz (i.e., Gujarat, Rajasthan and West Bengal) All efforts should be made to make available spectrum in contiguous fonn. In its recommendations, the Authority demonstrated how such contiguity can be achieved in 7 LSAs in the 900 MHz band. Nevertheless, the entire available spectrum should be put to auction. The DoT should take a completely fresh look at the implementation of E-GSM band. Continue reading TRAI Wants BSNL’s 900MHz Spectrum & 1800Mhz Spectrum from Defence

TRAI Recommends Roadmap for Spectrum, Base Pricing Higher than Last Auction

TRAI has released recommendations/ suggestions for next round of spectrum auctions expected to be conducted in Q1CY15. Key highlight of the recommendation paper is that the authority expects government to make available additional 900MHz and 3G spectrum from government agencies, and have a roadmap for spectrum supply in 700 / 800/ 900 / 1800 / 2100MHz frequency bands, before conducting next round of auctions.

Guidelines for Auction of 1800/900MHz Spectrum

Views on 1800Mhz & 900Mhz Spectrum Sale – Operators Strategies for 3G vs 4G

2014 Spectrum AuctionThe great Telecom Spectrum Auction in 1800Mhz and 900Mhz band which has given some clarity and stability to the Telecommunications sector on the policy front has met with mixed views amongst global institutional investors . Here are some views of the key analysts at various research entities,

Jefferries in a Report said,

the duration and aggression shown by operators has taken everyone by surprise. With clarity on prices and quantum of spectrum finally emerging, one can now Continue reading Views on 1800Mhz & 900Mhz Spectrum Sale – Operators Strategies for 3G vs 4G