Tag Archives: 3G-Spectrum-Auction

Largest Telecom Spectrum Auction – Operators to Bid Rationally

Biggest Telecom Spectrum Auction IndiaThe Government is likely to announce the Largest Telecom Spectrum Auction in the History of India in the next couple of months. Notice Inviting Applications is not out yet and sources in DoT indicate a delay of Month.

Of all the spectrums auctioned – 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz and 2300 Mhz, we see more demand for 1800 Mhz (4G) and 2100 Mhz (3G) bands mainly by the top telcos to bridge their 3G/4G gaps. We do not see much demand for 700 Mhz and 2500 Mhz bands given higher pricing / weaker eco-system. Continue reading Largest Telecom Spectrum Auction – Operators to Bid Rationally

2015 Spectrum Auction – Big 3 – Airtel, Vodafone Idea Bet on 3G, Challengers for 4G

Airtel Vodafone Idea Bet on 3GThe Big 3 of Indian Telecom – Airtel, Vodafone and Idea Cellular abide by the tested strategy of maintaining / increasing the 900 MHz portfolio along with increasing 3G/4G FDD footprint. Incumbents A-Vo-Id Group put their strategy as to what their Revenue Model Says – Voice to 3G Mobile Data Transition first and then lets think of disruption by 4G LTE technologies. Challengers led by Reliance Jio Infocomm opted for 800/1800 FDD future technology as I had already predicted much before the Auctions. Continue reading 2015 Spectrum Auction – Big 3 – Airtel, Vodafone Idea Bet on 3G, Challengers for 4G

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 Recommends Auction of Multiple 2100MHz Spectrum Blocks at Lower Reserve Price

TRAIThe Indian Telecom Regulator TRAI, in a bold move has recommended auctioning 15-20 MHz (3-4 blocks of 5 MHz each) of 2100 band spectrum [3G Spectrum] in the upcoming auctions along with 900 and 1800 spectrum. TRAI expressed strong disagreement with not auctioning 2100 spectrum at all or auctioning a lower quantum (one block only in 17 out of 22 circles), the other two options indicated by the DOT in its communication to the TRAI.

The Ministry of Defence Continue reading TRAI Recommends Auction of Multiple 2100MHz Spectrum Blocks at Lower Reserve Price

2100MHz Spectrum Auction – Open House by TRAI – Reserve Price & Bidding

2100 MHz Spectrum Auction Open HouseThe Telecom Regulatory Authority of India – TRAI hosted an Open House discussion on valuation and reserve price of the upcoming auction of 2100MHz spectrum band. This event was part of TRAI’s consultation process before finalizing its recommendation to the Department of Telecommunications (DoT) over the next few weeks. Continue reading 2100MHz Spectrum Auction – Open House by TRAI – Reserve Price & Bidding

Spectrum Auction – 900MHz up 84%, 1800MHz up 22%

2G Spectrum Auction Bidders IndiaSpectrum auctions in India continued to drift along the lines we have seen in the past few days. The blended prices of 900MHz now up 84% above reserve price levels. Pan-India 1800 prices have now moved up 22% above reserve price levels with excess demand continuing in a few circles. Continue reading Spectrum Auction – 900MHz up 84%, 1800MHz up 22%