he International 450 Association (IA450, nee NMT Association) says it is ‘…elated…’ to receive the news that Telecom Regulatory Authority of India (TRAI) proposes that spectrum allocation for 3G should include the 450MHz band. Which is understandable given that the IA450 exists to promote the use of CDMA2000 in the 450MHz band.

Towards the end of last month the TRAI released the recommendations entitled ‘Allocation and pricing of spectrum for 3G services and Broadband Wireless Access’. These recommendations were based on the following principles: maximisation of consumer interest, including affordability; responsible and efficient use of spectrum; aiding growth of the sector particularly in rural areas; ensuring technology and service neutrality/convergence; recovery of costs and pricing of spectrum; the orientation of spectrum policy to the future; competition: maintaining a level playing field; and sharing of infrastructure.

In some detail the TRAI advised that:
• in order to provide long-term vision and planning for spectrum availability and its efficient usage, a National Frequency Management Board might be constituted;
• the spectrum identified for 3G should be treated as a standalone allocation and not as an extension of earlier spectrum allocation of 2G;
• the Department of Telecom should realise a spectrum acquisition fee from telecom service providers;
• spectrum for immediate allocation for 3G services should be in the 450MHz, 800MHz and 2.1GHz bands. As per present estimates 2 x 32.5MHz of spectrum will be available in a time scenario of 6 to 9 months for 3G services;
• five blocks of 2 x 5MHz in the 2.1GHz band, one block of 2 x 5MHz in the 450MHz band and two blocks of 2 x 1.25MHz in the 800MHz band would be made available through a prescribed auction procedure;
• rural roll out obligations would be imposed as part of overall roll out obligation;
• the base price for acquisition of spectrum for 3G services was recommended at R800mn for category ‘A’ circles and the Delhi and Mumbai metros, R400mn for category ‘B’ circles and metro Chennai and Kolkata, and R150mn for category ‘C’ circles;
• Broadband Wireless Access (BWA) is to be given a high priority, with the TRAI identifying 200MHz of spectrum in the 3.3 to 3.4 GHz and 3.4 to 3.6 GHz bands with about 13 carriers in contiguous blocks of 15 MHz each;
• on the grounds of non-availability in the short term, and also on account of technical issues particularly in mixed band planning, the TRAI has not immediately taken into account PCS 1900MHz, 2.3GHz, 2.5GHz and 700MHz for 3G and BWA services;
• and there will be stiff penalties for de-hoarding and non-compliance of roll-out obligations.

The TRAI’s 3G findings are published as India’s 2G and 2.5G cell phone market is expanding at an unprecedented rate. TRAI data for September show a gain of 6.07mn wireless subscribers (mobile and wireless local loop) on the previous month. Meanwhile, total wireline numbers have started to decline. TRAI figures for the quarter ended June 2006 had wireline subscribers declining 41.50mn to 41.27mn. Last month saw an additional wireline loss of 0.12mn. At the end of September India’s total wireless and wireline telephony subscriber population stood at 170.26mn – 40.75mn wireline and 129.51mn wireless – for a teledensity of 15.44.
John Williamson