China’s Ministry of Industries and Information Technology (MIIT) plans to allocate a total of 500MHz of spectrum for 5G. Although this is only similar in total spectrum size to the current 2G/3G/4G allocation for the three Chinese telcos, which is 507MHz, the major difference is that the 5G spectrum being planned is contiguous spectrum (300MHz contiguous spectrum between 3300 and 3600MHz, and 200MHz contiguous pectrum between 4800-5000MHz), while the current allocation is split into small parcels between 800MHz and 2600MHz. The ITU suggested a minimum contiguous spectrum size of 100MHz for genuine 5G services, and it is very difficult for most countries to find such spectrum at a low frequency level (below 3GHz). That is why 5G will, in most cases, take place at a higher frequency level and Continue reading How China Plans to Allocate 5G Spectrum ?
The Executive strategy team at Idea Cellular acquired capacity bands, citing two reasons: 1. They wanted to be competitive in their leadership circles and offer best services. 2. In the non-leadership circles, they were able to acquire spectrum by spending a modest Rs. 5-7bn, which enables them a good hedge for small spends.
On 2500MHz ecosystem, Idea Cellular said that since now China has allocated 2500MHz, the deployment is expected to be fast. Additionally, they want Continue reading What was Idea’s idea behind procuring 2500 MHZ Spectrum ?
Vodafone has primarily focused on enhancing its 4G footprint. With its significant acquisition of spectrum in 2500MHz, 2100MHz, and some in 1800MHz, it has 4G coverage in 17 circles, which cover 91% of its revenues and 94% of mobile‐data revenues. Vodafone has faced capacity issues of late, and this addition was expected; nevertheless, Vodafone’s acquisition in 2500MHz, which does not have the evolved handset ecosystem of 1800MHz or 2100MHz (3G), surprised us.
Airtel’s spending, at Rs 142bn, was significantly higher than expectations. It acquired Continue reading Vodafone’s Surprise Buy of 2500Mhz Spectrum in Big Spectrum Auction 2016
India’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
For the forthcoming Biggest Wireless Spectrum Auction, Idea Cellular has re-iterated its strategy of “Just in Time” [JIT] procurement which it has mastered and executed well over the past few years. To prove this point, in Q2-2016, Idea has exited 3G Roaming Arrangements in six of the seven circles as it rolled out its own network. [Recall, the first 3G Spectrum Auction was conducted in 2010 after the Spectrum Scam and Idea Cellular then decided to skip bidding in non-strategic circles and bought the same in 2014 & 2015 auction]
The spectrum bids will be rational and Idea will adopt a circle-wise approach based on requirements. The focus will Continue reading Big Spectrum Auction – Idea Cellular Reaffirms JIT Strategy+ Rational Bidding
The 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 ?