TRAI’s proposal may double phone bills for users (India)

Indian regulator TRAI’s (Telecom Regulatory Authority of India) proposals for the new auction prices, which is ten times higher than the amount in 2008, may lead to mobile phone bills doubling, claim Indian operators. The revised auction follows the Indian Supreme Court’s decision to cancel 122 2G licences awarded in 2008, on account of corruption and illegitimate means of acquiring the license.

While the telecom ministry is considering the  proposal, major telecom operators in the nation are lobbying against the same.

According to reports, Airtel CEO Sanjay Kapoor, said that the TRAI recommendations are flawed and retrograde, regressive and uncertain, which will harm consumer interest, and will ring the death knell for the Indian telecom industry. He added that if they were to surrender the 900 MHz spectrum and switch to 1800 MHz, customers will find dark holes inside and in streets and bylanes. They will need to put more towers for 1800 MHz, with more diesel, and this will impact the environment.

Ireland plans to raise US$ 660 million from 4G auction (Ireland)

The Irish government is hopeful of raising approximately US$ 659 million via the spectrum auction for high-speed mobile broadband and 4G services.

According to reports, ComReg (Commission for Communications Regulation), the communications regulator in Ireland, expects a minimum amount of US$ 540 million for 28 lots of radio spectrum, but says that competition levels may lead to an increase in the price.

Reports reveal that a lot of 1800 megahertz spectrum will be charged at a minimum price of $ 13.2 million while a lot of 800 megahertz and 900 megahertz spectrum will be sold at a minimum of $ 26.3 million each.

Telecom operators Vodafone, 3, O2 and Meteor, are expected to bid for the licence. The process is expected to complete by the end of July 2012.

Hong Kong’s 2.3GHz spectrum auction raises over US$ 60 million (Hong Kong)

Hong Kong’s regulatory authority, The Office of the Telecommunications Authority (OFTA) announced that two existing mobile network operators and one new entrant have successfully bid for a total of 90 MHz of radio spectrum in the 2.3 GHz Band, raising over US$ 60 million.

As per a press release by OFTA, a spokesperson has said that over the past two years, mobile data service has continued to grow at a spectacular rate.  As a result, the industry finds it necessary to continually provide for additional network capacities in order to meet the market demand.  With the assignment of the radio spectrum through the spectrum auction, the successful bidders will be able to deploy state of the art mobile broadband technologies and provide the necessary network capacities to maintain the momentum of growth of the booming service.

The report reveals that 21 ViaNet Group Limited and Hutchison Telephone Company Limited bid an amount of US$ 19.34 million for the spectrum while China Mobile Hong Kong Company Limited bid a little higher at US$ 21.93 million.

Further, the acquired spectrum will be assigned under a 15-year unified carrier licence.  The licensees will be required to provide a minimum coverage of 50 per cent of population of Hong Kong as regards its mobile services, or a minimum coverage of 200 commercial and/or residential buildings as to its fixed services within five years from the grant of the licences.

Ofcom revises proposal for LTE auction plans (UK)

Everything EverywhereTelefonicaVodafoneIndependent regulator and competition authority Ofcom, has reportedly made changes to its proposal for the upcoming LTE mobile spectrum auction in an attempt to provide better mobile internet services in many rural and underserved areas.

As per sources, Ed Richards, CEO, Ofcom, has said that they are proposing a significant enhancement of mobile broadband, extending 4G coverage beyond levels of existing 2G coverage – helping to serve many areas of the UK that have traditionally been underserved by network coverage.

Further, reports reveal that the competition authority had initially reserved some portion of the spectrum for Everthing Everywhere which is no longer a part of the revised proposal. Ofcom claims that because of their current spectrum holdings, and/or the much lower risk that these national wholesalers would fail to acquire further spectrum in the auction, they do not consider it necessary to reserve any spectrum for Everything Everywhere, Telefonica or Vodafone.

The regulator also believes it is more viable to reserve some of the available spectrum for a fourth national wholesaler, someone other than Everything Everywhere, Telefonica or Vodafone.

Indian & German spectrum auctions- Where is the value for money?

www.WirelessFederation.com/news: May was the month of auctions and bidding. With two of the biggest spectrum auctions in Germany and India been concluded this month, hundreds of questions have been raised regarding the outcome.

In the second highest revenue-generating spectrum auction for almost a decade, on May 19, the Indian 3G auction concluded, raising EUR 11.7 billion (USD14.6 billion). This was quickly followed by the German auction concluding on Thursday last week, raising EUR4.4 billion (USD5.5 billion). Significant drop in process of the spectrum has been noticed since the 3G auctions in 200001.

Less than expected revenue was generated in the German auction as EUR5.8 billion to EUR8 billion has been expected by the analysts but it only raised EUR4.4 billion (USD5.5 billion). A total of 360MHz (of which 2´145MHz was FDD spectrum) ranging across the 800MHz, 1800MHz, 2.1GHz and 2.6GHz bands had been auctioned by BNetzA. EUR1.3 billion to EUR1.4 billion had been spent by T-Mobile, Vodafone and O2 while E-Plus spent just EUR284 million for 70MHz of spectrum, but it failed to gain any 800MHz spectrum.

The spectrum sold in the Indian 3G auction on the other hand has been viewed as expensive. Three or four 2´5MHz lots in the 2.1GHz band in each of the 22 telecoms circles” across India had been auctioned by the Indian Department of Telecommunications and double the revenue had been generated than what was predicted. This was despite India having a GDP per capita 40 times less than that of Germany.

Vodafone which participated in both the German and Indian auctions spent EUR3.4 billion (USD4.2 billion) while in the UK and German auctions in 2001, it spent EUR18.3 billion. At the end, Indian auction might seem to be expensive but when it comes to value for money, German auction surly scores points, especially in the high frequency bands.

India’s broadband auction attracts bid of $500m on first day

www.WirelessFederation.com/news: On the very first day of an auction for licenses to offer faster wireless broad band for computers nationwide, Indian government got bids totaling 23.5 billion rupees ($500 million). Bandwidth slots in each of 22 regional zones have been auctioned in the world’s second-largest wireless market by subscribers, India thus attracting almost all the big players of the country.

Qualcomm Inc. which is the world’s biggest maker of mobile-phone chips, and Vodafone Group Plc, the largest mobile carrier by sales are in the race along with nine other companies. A company would have to win bids in all 22 zones in order to ensure nationwide spectrum. 509.7 billion rupees ($11 billion) for licenses to offer third-generation mobile-phone services have been bid by the nine companies last week. However, none of the telecom operators were successful in acquiring the rights to national 3G coverage by winning licenses in all 22 regions up for auction, not even Bharti Airtel Ltd., India’s biggest wireless operator, and Vodafone.

Analysts now feel that these operators will now bid in the broadband spectrum auction in order to fill in the gap caused by not acquiring 3G bandwidth. According to an analyst, considering how heated bidding was in 3G, and the fact that there are only two slots this time, there are possibilities of the  prices to go three or four times the base price, at least.

34 percent rise in the closing bids for licenses to offer broadband wireless in the entire nation’s service zones has been noticed by the Department of telecommunication, which went up from the base price of 17.5 billion rupees set by the government initially. Daily updates are issued by the telecommunications department on bidding and all data collected from bidders will be made public after the auction is over.

Indian govt expects $13b from 3G auctions

www.WirelessFederation.com/news: $13 billion is expected to be raised by the Indian government from the ongoing auctions of radio frequency spectrum for third generation (3G) telecom services and for rolling out broadband wireless internet services in the country. Earlier, $10.1 billion was expected to be raked in from the auctions.

Monday witnessed the conclusion of eighty-two rounds of 3G spectrum auction and the provisional winning price for a nationwide license reached Rs.8,382.48 crore. According to Communications Minister A. Raja, the revenue from 3G alone will touch Rs 40,000 crore and putting both 3G and broadband spectrum together, govt hope to get Rs.50,000-55,000 crore of revenue while describing the comparison between 3G and 2G baseless he cited that 3G services is supposed to be for those who require value-added services while 2G services are for the common man.

The government provisionally hopes to get at least Rs.33, 894.62 crore from the auction apart from the fee that will be eventually paid by the two state-run enterprises for the licenses. Bharti Airtel, Reliance Communications, Vodafone Essar, Idea Cellular, Tata Teleservices, Aircel, Etisalat, S Tel and Videocon Telecommunications are the nine telecom companies participating in the auction.

Dutch telco KPN objects to 2.6GHz spectrum auction

www.WirelessFederation.com/news: Injunction is prepared to be seeked by telecom operator Royal KPN against an upcoming Dutch wireless spectrum auction. As a reason the telco has revealed that it would allow market newcomers to acquire more spectrum than existing operators.

According to the telco, the country’s mobile market already has numerous mobile service providers, high quality services and relatively low prices.

The auction which was supposed to take place for 2.6GHz spectrum has already been delayed several times.

9 applications for 3G & 11 for BWA auction received by Indian govt

www.WirelessFederation.com/news: Eleven applications for the BWA spectrum auction along with nine applications for the upcoming 3G spectrum auction has been received by the Indian government.

Aircel, Bharti Airtel, Etisalat, Idea Cellular, Reliance Telecom, S Tel, Tata Teleservices, Vodafone Essar, and Videocon Telecommunications are included in the list of the bidders for 3G spectrum.

The list of applicants for BWA spectrum include Aircel, Augere, Bharti Airtel, Idea Cellular, Infotel Broadband Services, Qualcomm, Reliance WiMax, Spice Internet Service Provider, Tata Communications Internet Services, Tikona Digital Networks, and Vodafone Essar.

April 5 and 6 has been planned as the dates for mock auctions while on April 9, actual bidding process will take place. Two days after the completion of the 3G spectrum auction, auctions for BWA license will be conducted.

UK to wait till 2011 for 2.6GHz spectrum auction

www.WirelessFederation.com/news: UK will have to wait until 2011 at the earliest for the auction of Long Term Evolution (LTE) spectrum. The comment came from Independent Spectrum Broker, Kip Meek, after O2 UK, UK’s largest mobile operator by subscribers, announced the completion of its LTE trials in Slough, recording download speeds of 150Mbps during the pilot.

According to Meek, the delay in the sale of 2.6GHz spectrum stems partially from reluctance from the market’s major players to get involved now while the operators are focusing on trialling the provision of 3G services over the 900MHz band, as they claim this will help them assess how much they would be willing to pay for spectrum in the debated band.