Centre Announces Guidelines For 3G, BWA Services

Union Minister of Communications and Information Technology, Thiru A Raja, has announced the detailed guidelines for 3G and BWA services laying down the road map for rolling out these services in the country.

With the introduction of these services, the quality of voice telephony will be improved as 3G spectrum would enable service providers to provide good quality services to a larger number of subscribers. Further, additional value added services will become widely available to the public. BWA services will ensure quick roll out and enhanced penetration of broadband especially in rural areas, where there is problem of last mile connectivity. It will facilitate availability of e-governance services like telemedicine, e-medicine, e-ticketing, e-education etc, through broadband to a large section of rural population.

Auctioning of 3G and Broadband spectrum will be done through e-auctioning by a specialised agency separately. New players would also be able to bid, thus, leading to technology innovation, more competition, faster roll out and ultimately more choice for customers at competitive tariffs.

Guidelines for 3G Services

System of Allocation

The 3G spectrum would be allocated through a simultaneous, ascending e-auction process, which shall be conducted by a specialised agency. A separate auction would be done for each telecom service area.

Eligibility

Any person

(i) who holds a UAS licence or
(ii) who fulfils the eligibility criteria for obtaining a Unified Access Service Licence (UASL) as per Department of Telecommunications guidelines dated 14.12.2005 and has previous experience of running 3G telecom services

can bid for 3G spectrum.

Spectrum to be Allocated

Spectrum shall be auctioned in blocks of 2x5 MHz in 2.1 GHz band (1920-1980 MHz paired with 2110-2170 MHz). The number of blocks to be auctioned would vary subject to the availability of spectrum in different telecom service areas. In exceptional cases of non-availability, the number of blocks may be less than five in a telecom service area. The actual number of blocks to be auctioned in each telecom service area will be announced well before the auction.

Ø Spectrum shall be auctioned in the 450 MHz band, in 800 MHz band for EVDO services, and in 1900 MHz band (1900 – 1910 paired with 1980-1990 MHz) when it becomes available. UASL CDMA telecom service providers may have the option to seek 2x1.25 MHz in 800 MHz band subject to availability at a price equivalent to the highest winning bid in 2.1 GHz auction prorated to a per 2x1.25 MHz price. The seniority for allotment shall be the subscriber base in a telecom service area.

Ø One block shall be allocated to MTNL in Delhi and Mumbai/Metro Service Areas and BSNL in other Service Areas at a price equal to the highest bid in the respective service area.

Reserve Price

Ø The ‘Reserve Price’ for a 2 x 5 MHz block of spectrum for each of (i) Mumbai, Delhi Metro and Category ‘A’; (ii) Kolkata Metro and Category ‘B’ and (iii) ‘C’ service areas shall be Rs 160 cr, Rs 80 cr and Rs 30 cr. respectively. This is twice the price recommended by TRAI initially.

Annual Spectrum Usage Charge

Ø No annual spectrum charge shall be payable for 3G Telecom services in the first year from the date of allotment of spectrum. The licencee will have to pay annual spectrum charge of 1 percent of AGR after a period of one year.

Roll Out Obligations

Ø There will be roll out obligations to avoid spectrum hoarding. If any licencee does not achieve its roll out obligations, it shall be given one year to do so on payment of 2.5 percent of its successful auction bid (i.e. spectrum acquisition price) per quarter or part thereof. If licencee does not complete roll out obligations even within this one-year, the spectrum assignment shall stand withdrawn.

Guidelines for BWA Services

System of Allocation

Ø The BW licences would be granted through an e-auction process, which shall be conducted by a specialised agency. Auction of 3G and BWA services would be done separately.

Eligibility

Ø Any person (i) who holds a UAS licence or (ii) any person

Ø who fulfils the criteria for obtaining a UAS licence as per DOT guidelines dated 14.12.2005 and has previous experience; (iii) ‘A’ and ‘B’ category Internet Service Providers (ISPs) can participate in the auction.

Spectrum to be Allocated and Reserve Price

Spectrum shall be auctioned in the 2.5 GHz and 2.3 GHz bands for data services. Each successful bidder can get 20 MHz in 2.3 and 2.5 GHz bands in a telecom service area. The number of blocks shall be two in 2.3 GHz band and two in 2.5 GHz band. The reserve price per MHz in 2.3 GHz and 2.5 GHz bands shall be 25 percent of the 3G reserve price.

Spectrum in 700 MHz and 3.3-3.6 GHz bands shall be auctioned as and when it becomes available.