Is Auction the Key?

Comment

Digg

Del.icio.us

Ensuring that the convergence between telecom and broadcasting is indeed happening in the communications sector, the recently announced draft recommendations on mobile TV have many advantages.

First, the government is set to add some more funds to its already swollen kitty from the communications industry. Second, the telecom regulator has re-emphasized that it prefers a technology neutral environment. But auction is not a good option for many players, who have already expressed their apprehension when they submitted their suggestions.

Neutral Technology
The TRAI draft recommendation says that the technology should be digital and the service provider will be able to select the technology according to the operators' wishes. However, selection of technology have to be based on standards prescribed by the International Telecommunication Union/Telecom Engineering Center of India (TEC) or any other international standards organization. Interestingly, both the broadcasting and telecom industries should comply with the ITU standards in the case of mobile TV.

Consumers will continue to hog the limelight, as mobile TV operators will be forced to ensure that subscribers are able to migrate to any other operator using the same technology standards and without changing the handset, if the handset has been given by the mobile TV operator.

Thanks to the rollout obligations, there will be no misuse of licenses, and customers will get the services within the stipulated time. It has also put a rollout obligation of one year for satellite-based operators. Terrestrial transmission-based operators should commence services in at least one city having a population of more than one million within one year from the date of getting the license. In the second phase, the operator should roll out in all the cities with a population of more than one million within a period of four years.

Spectrum Allocation
The telecom regulator has recommended allocation of carriers in the UHF Band V (585 MHz-806 MHz) for terrestrial mode of mobile television transmission, and S-Band for satellite mode of mobile television transmission.

Apart from Doordarshan, private operators may be assigned at least one slot of 8 MHz each for mobile TV operation using terrestrial systems. For satellite-based systems also, apart from Doordarshan, private operators may be allocated a bandwidth of at least 8 MHz for mobile television services.

TRAI has advocated sharing of mobile TV infrastructure. The telecom regulator is of the view that sharing of terrestrial transmission infrastructure of the government-run Doordarshan should be permitted on a mutual agreement basis in a non-discriminatory manner. Besides, mobile TV operators should share infrastructure with others in the fray.

Though there are not too many takers for the auction, the TRAI draft recommendation says, "Licenses should be granted through a closed tender system on the basis of one-time entry fee quoted by the bidders. Allocation of spectrum should be automatic for successful bidders and should not require any further selection process." Hope this would reduce the hurdles.

TRAI has also put a net worth criteria of Rs 40 crore for satellite-based mobile TV ventures and Rs 3 crore for each service area in terrestrial mobile television licenses. The tenure of both types of mobile television licenses should be ten years. The licensee fee should be charged at 6% of gross revenue for each year or at 10% of the reserve one-time entry fee limit for the concerned license area, whichever is higher.

Baburajan K
baburajank@cybermedia.co.in