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.