DoT chalks out road map for WiMax rollout

The Department of Telecom (DoT) has laid out a road map for wireless broadband (WiMax) roll out in the country, which is at variance with the recommendations of the telecom regulator, Trai, but conforms to the frequency preference of the World WiMax Forum.

It has proposed that WiMax launch be initially restricted to only three players who will operate this service in the 2.5 Ghz frequency band. DoT has also proposed that one of the three slots be reserved for state-owned BSNL/MTNL, which would imply that private telecom operators and Internet Service Providers (ISPs) will have to compete for just two slots. The proposal now awaits
final clearance by telecom minister A Raja.

The DoT committee studying telecom regulator Trai’s recommendations on spectrum allocation and pricing for wireless broadband rollout, in its report, has said the base price for auction for WiMax spectrum be set at 25% of the amount for 3G spectrum. This implies, for metros like Delhi and Mumbai and ‘A’ category telecom circles, the base price for bidding will be Rs 40 crore. The same committee has proposed that for 3G spectrum, the base price be Rs 160 crore for Category ‘A’ circles, Rs 80 crore for Category ‘B’ circles and Rs 30 crore for Category ‘C’ circles. (India has 23 telecom circles, which are divided into 3 different categories — A, B and C).

While the DoT committee’s report to offer WiMax in 2.5 GHz frequency is in line with the global scenario, it contradicts the recommendations of telecom regulator Trai. Trai had suggested that wireless broadband be rolled out in 3.3-3.4 GHz and 3.4-3.6 Ghz frequencies and up to 13 players be allocated spectrum to offer WiMax services.

At the same time, the DoT committee has also added that other service providers would be offered WiMax spectrum in the frequencies recommended by Trai at a later stage after compatibility is established. Currently, the 3.4 GHz-3.6 GHz frequency is used by satellite-based services and broadcasters. Spectrum availability in this frequency for WiMax will only be known after the ongoing trials are completed. The trials relate to co-existence of both WiMax and satellite-based services in this brand.

With regard to the 3.3 GHz-3.4 Ghz frequency, the DoT panel has implied that equipment will not be available for the spectrum preferred by India. Additionally, the committee has also added that other frequencies such as 2.4 GHz and 5.8 GHz were already de-licenced and any operator could avail these bands for free to provide WiMax services in rural India.

DoT’s logic behind restricting the players initially is because only about 70 units of spectrum will be available in the 2.5 Ghz band, as this frequency is used by India’s Insat satellite series. With DoT planning to allocate 20 units of spectrum to each player, only about three operators can be accommodated in this band.

Last year, the global WiMax Forum had cautioned that India could miss the wireless broadband revolution and get isolated from the rest of the world, unless the country allocates spectrum in the 2.5 GHz-2.69 GHz for these services. The WiMax Forum has told the government here, including Trai and DoT, that India was better off allocating a different spectrum band for its satellite services, rather than risk isolation in the global stage.

The WiMax forum had also raised objections to Trai’s recommendations that each player be allocated 15 units of spectrum for offering wireless broadband services, and said the country should opt for 20 units which was the minimum channel requirement. Besides, the Forum had also added that globally, WiMax equipment is configured to work on 20 Mhz channels.DoT’s road map for wireless broadband addresses all the concerns raised by the global WiMax Forum.

RCom plans largest wireless network in the world

Reliance Communications has grand plans. The Anil Ambani-led telecommunications major aims to have the single largest wireless network in the world by year-end, covering over 900 million Indians.

The company will invest Rs 16,000 crore (Rs 160 billion) for network expansion in FY08, said RCom chairman Anil Ambani on Tuesday in Mumbai.

RCom is looking at inorganic growth route across the world. The company will cover 23,000 towns, or every single Indian habitation with a population of over 1,000 persons, he said. The company will cover almost 100 per cent of all rail routes, all national highways, and 84 per cent of all state highways, he added.

The company has more than 1 million retail customers in the United States, the largest for any Indian company across any sector, a media release from RCom said.

RCom has launched virtual international calling and voice content services in the US, Canada, UK, Australia and New Zealand. The company is one of the leading providers of international connectivity and data services to telecom operators, content providers and Internet communities.

RCom Offers Free Internet Data Card

Reliance Communications (RCom) is offering it's NetConnect customers across the country a mobile Internet data card at no additonal cost.

Elaborating on the scheme, S P Shukla, chief executive officer of personal business at Reliance Communications, said that customers can choose from a wide range of options, including getting a free data card against a 12-months subscription.

Under the 24-month subscription Freedom Plan, free usage of up to 1GB is available every month, whereas under the Swift 50 plan, users can avail up to 40 hours free usage every month.

Alternatively, customers can purchase the mobile Internet data card by making an upfront payment of Rs 2,850 for the USB data card, and Rs 2,990 for the PCMCIA data card.

Shukla said the company has already entered into alliances with laptop manufacturers to bundle the NetConnect Data cards.

Reportedly, there are over 10-million Reliance NetConnect customers across the country. With this offering, they will be able to access the Internet at any time and from any where, RCom said.

Trai hauls up operators for poor service

The Telecom Regulatory Authority of India (Trai) today said it summoned eight telecom operators for poor quality of service across the country.

“We have called four operators yesterday and will call another four tomorrow individually for their quality of service,” Trai member AK Sawhney said today. HFCL, MTNL, Idea, Hutch, Airtel and Aircel were among these operators, he said.

“We have told them to meet the quality of service regulation 2005 parameters by next quarter ending September or otherwise face actions like penalty and even recommendation for cancellation of licences,” Sawhney said.

Trai in its own internal audit found that the telecom operators had failed to meet quality of service regulations. There are 159 licences and 23 circles.

In the QoS regulation, Trai pointed several service quality benchmarks. In case of points of interconnection congestion, it allows 0.5 per cent or one in 200 calls. Congestion in points of interconnection is a major reason for call drop. However, congestion level had rose from 389 in December 2006 to 499 in March.

Trai has found discrepancies in the quarterly report filed by telecom operators and internal report of Trai. On this, Sawhney said they were given 15 days to explain.

BSNL employees go on strike

Telecom services across the country are expected to be hit following BSNL employees' indefinite strike from Wednesday, demanding immediate placement of equipment orders for expansion of its mobile network.

"Strike started at 0600 hours. Workers of all the associations, unions are on strike. The strike is a complete success," said V A N Namboodiri, joint convener of BSNL and MTNL employees forum.

BSNL has 3.5 crore fixed lines and 2.4 crore mobile subscribers and is the largest telecom operator with operations in regions except Mumbai and Delhi.

Talks fail

The employees went ahead with their decision to go on strike following failure of its talks with the company management, Telecom Minister A Raja and Department of Telecom.

The Union wanted a written assurance from DoT that its demands of placing the contract for laying 45.5 million GSM lines should be placed to the selected vendors.

But the DoT letter did not seem to have lived up to the expectation of the union as it apparently did not mention two crucial issues - that BSNL should go for 3G network and immediate placement of order for 45.5 million lines.

The employees are likely to hold a meeting with Raja on Wednesday along with the top brass of BSNL and DoT secretary.

The problem of the PSU is expected to be compounded with this strike as it struggles to increase its GSM capacity through tenders, which has been mired in controversies and delays.

Airtel, RCoM DTH to offer broadband

Telecom majors Bharti Airtel and Reliance Communications (RCOM), which are set to make their Direct To Home (DTH) foray by the year-end, plan to have a key differentiator from existing players in this space. Bharti and RCOM are looking at providing satellite-based broadband internet services along with their DTH offerings. Globally, a number of DTH majors, especially in the US have adopted this strategy. Bharti’s and RCOM’s move may also prompt Dish TV, country’s largest private DTH player to enter this space in the coming months.

“Satellite internet is a North American model. There are a lot of areas where Bharti would possibly never lay copper cable as it does not make economic sense. In these areas, Bharti will look at a offering broadband through Wi-Max or through DTH,” Bharti Airtel president, broadband and telephone services, Atul Bindal told ET.

Similarly, RCOM’s DTH venture, which is called BlueMagic is also looking at satellite internet services as one of the key differenciators. RCOM sources said that along this facility, the company was also looking at an entire gamut of voice and data services, including facilities like video on demand to offer higher interactivity to subscribers using its digital TV platform.

If Dish TV chooses to offer this facility, it has an added advantage in the fact that its promoters, the Essel Group already has a 50:50 JV with the Shyam Communication (called Essel Shayam Communication) which offers broadband satellite communications solutions in India.

Satellite internet is considered as ideal solution for rural users who want broadband services, but do not have access to telephone lines and cable systems. A combined offering with DTH also makes satellite internet economical. This is because, standalone satellite internet services works out to be expensive proposition as it requires a satellite dish for two-way (upload and download) data communications.

Despite 2007 being labelled as the ‘year of broadband’ by the department of telecom (DoT), high-speed internet services have hardly taken off in India. The country had a total of 2.46 million broadband connections as of May end. “During May 2007 there is addition of 0.04 million connections compared to 0.13 million added during April 2007. This indicates negative growth pattern for broadband subscribers,” telecom regulator Trai said in its latest report. India is also set to fall shot of its target of nine million broadband users by 2007 end by a huge margin.