The DoT, in close coordination with defense services, is implementing a project for vacation of 2x20 MHz in the 1,800 MHz band, and has also undertaken a plan for vacation of 25 MHz in the 2.1 GHz uplink band. DoT already has 2.1 GHz downlink band and hence there will be spectrum available for telecom service operators to offer 3G services in about 6-9 months time span.

Commenting on TRAI recommendations Parag Kar, director, government affairs, Qualcomm India & SAARC said, “The current 3G recommendation is fair, as it provides equal opportunity to service providers to obtain spectrum in bands where economies of scale exist at market determined prices. This approach is both technology and service neutral, and in line with international best practices. It will also motivate the service providers to adequately value spectrum, which in turn will ensure efficient usage and prevent hoarding and warehousing of spectrum.”

	'The route of auction and high reserve price would be very harmful for reaching the benefits of 3G in an affordable manner to the citizens of India' -TV Ramachandran, director general, COAI
	'India should immediately start with HSDPA as there is no reason why they should not' -Dina Bartels, Director, Business Line Management Wireless Access, Siemens AG
	'The current 3G recommendation is fair, as it provides equal opportunity to service providers to obtain spectrum in bands where economies of scale exist...'-Parag Kar, director, government affairs, Qualcomm India & SAARC

At the same time, more can be done to create a level playing field within the 2G spectrum bands to increase fair competition, he added.

Commenting on auction, Parag Kar said, “Since India is a price sensitive market, it is imperative that auction design is robust, taking into account consumers' interest. It must also be noted that the fourth cellular license was auctioned and did not result in a significant price increase, a clear indication that carefully designed auctions do not result in uncontrolled price changes.”

Regarding the auction route, TV Ramachandran, director general COAI said, “The route of auction and high reserve price would be very harmful for reaching the benefits of 3G in an affordable manner to the citizens of India.”

The authority has recommended a spectrum acquisition fee for each carrier in 800 MHz band given to CDMA for their 3G EV-DO services which is based on pro-rating from the second-highest wining bid in 2.1 GHz auction. This is grossly unfair and incorrect and instead they should be asked to give premium over the highest winning bid in 2.1 GHz, he added. 

The GSM lobby feels that TRAI has discriminated with regards to entitlement for 450 MHz band only for CDMA operators for 3G. And Ramachandran feels that in the interest of level playing field for all, GSM players should be given the option for participating in 450 MHz band, if they so desire.

Even on mixed band allocation, the recent recommendations talk about trials to be conducted to verify practical feasibility of coexistence of mixed band allocations, whereas, earlier, it was decided that it was not possible due to non availability of 1,900 MHz band and interference issues.

Qualcomm feels that mixed band plan allocation is technically and commercially feasible and has been implemented in countries like Indonesia and the Philippines. Even IIT Delhi has expressed its independent view that the issues of interference are not insurmountable.  

Regarding BWA Spectrum charges, Ramachandran feels that the charges are around 1/8th of the reserve price of 2.1 GHz and both should be at a reasonable level or at a slight premium.

It is good to note that the new recommendations promote infrastructure sharing leading to cost reduction in terms of network roll out. Though it is limited to passive infrastructure it can provide benefits to the range of 30–40% on the passive cost.

So, 3G will be a reality in 2007 and a lot needs to be done by service providers, infrastructure vendors and handset vendors to see to it that whenever it is commercially deployed, the cost is not prohibitive enough to discourage people from subscribing to 3G services. The operators have to do a lot of bundling in terms of services and handsets to make 3G affordable to the top end of the customer.

Pravin Prashant
pravinp@cybermedia.co.in