A serious combat is brewing between telecom operators Bharti Airtel, Vodafone Idea and Reliance Jio on one facet and know-how gamers Google, Microsoft, Apple, Fb, and so on, on the opposite, over a spectrum band that has the potential to supply high-speed broadband providers, particularly in distant areas and for higher in-building protection.
The difficulty that has divided the 2 sides is whether or not spectrum within the band involved ought to be delicensed or ought to be allotted by way of auctions, as is the case for entry providers spectrum.
The telecom operators, below the aegis of their affiliation, Mobile Operators’ Affiliation of India (COAI), have written a letter to the federal government that the spectrum within the band involved ought to be auctioned, as not doing so would result in lack of income to the federal government due to these bands having a really excessive industrial worth proposition. Opposing their stand, the know-how gamers by way of their affiliation Broadband India Discussion board (BIF) have contested COAI’s stand, and written that the spectrum ought to be delicensed and never auctioned, as it’s not the identical as spectrum for entry providers. Questioning the COAI’s stand, BIF has identified that auctioning of spectrum in these bands would go towards worldwide greatest practices.
The spectrum involved is the E and V bands, that are used as backhaul to attach cell the place fibre shouldn’t be accessible.
Sources within the division of telecommunications (DoT) have to this point maintained that public sale is dominated out, however so is administrative task, which suggests allocating spectrum on first-cum-first-served foundation.
What’s probably on the playing cards is a lightweight contact licensing however a closing resolution is awaited.
In actual fact, the Telecom Regulatory Authority of India, which submitted its suggestions to the DoT manner again in August 2014, has additionally favoured a lightweight licensing strategy and never auctioning this spectrum.
The Trai had advisable that each E and V bands ought to be opened with ‘gentle contact regulation’ and allotment ought to be on a ‘hyperlink to hyperlink foundation’. It had stated that E band provider ought to be charged at Rs 10,000 every year per provider of 250 MHz every and there ought to be preliminary promotional low cost of 50% for 3 years from the date of allocation of first provider on this band. In case of charging of V band carriers, it had stated that it ought to be Rs 1,000 every year per provider of 50MHz every. It has stated that costs could be reviewed after 5 years primarily based on deployment and utilization.
The argument towards public sale is on the premise that there’s not a lot the federal government goes to get by doing so, not like entry spectrum. The worth of a spectrum band relies upon upon numerous elements like ecosystem however crucial issue is its propagation traits. The decrease frequency spectrum is extra helpful in comparison with the upper frequency because the radio waves using on the previous travels additional, thereby requiring fewer base stations, which suggests much less operational prices.
The worth of E and V band spectrum is low as a result of they’ve very poor propagation traits as they fall between 71-76 Ghz and 81-86 Ghz (E band) and between 57-64 Ghz (V Band). These bands are like fibre and can be utilized for broadband providers however not for direct cell connectivity.
In line with some analysts, the telecom operators are against the transfer to delicense the E and V bands as they concern that know-how corporations could enter into the broadband market and use the delicensed spectrum, which might come freed from value, to supply providers to customers. This will result in a non-level taking part in area as telecom operators have spent billions of rupees in buying entry spectrum to supply the identical type of providers. Firms like Microsoft, Google, Fb, and so on, have prior to now proven their intent to supply broadband utilizing delicensed spectrum.