Wireless Federation

AT&T lashes out at FCC over lack of spectrum (USA)

On 01.30.12, In Mobile, By Editor

AT&T America-based wireless carrier AT&T is still fuming over the Federal Communications Commission’s (FCC) decision to reject the merger with T-Mobile. Randall Stephenson, CEO, AT&T, has lashed out saying that the FCC has made it abundantly clear that they will not allow significant M&A to help bridge these delays in clearing up new spectrum.

He said that that the primary issue for the company continues to be spectrum, and in the absence of options operators have taken the logical step to make smaller transactions to acquire the spectrum required to meet demand. However, he added, that even the smallest and most routine spectrum deals are receiving intense scrutiny from this FCC, often times taking up to a year and sometimes longer for these to be approved.

Stephenson also said that in such a capacity-constrained environment they will manage usage-based data plans, increased pricing and manage the speeds of the highest volume users, as these are all logical and necessary steps to manage utilization.

He added that the deployment of LTE does give them a 30-40 percent lift in network efficiency, but at current growth rates that equates to only a year’s growth in traffic. Thus, LTE is important but it is not the silver bullet in terms of capacity planning, and so they need to continue with their spectrum push in order to meet customer demand.

Filed under:Mobile Tagged with: AT&T • CEO • data prices • Federal Communications Commission (FCC) • LTE • Randall Stephenson • spectrum • T-Mobile • USA

Airtel indicates rise in tariffs if additional spectrum is charged (India)

On 01.27.12, In Mobile, By Editor

India’s leading telecom operator Bharti Airtel, has hinted at an increase in the call rates in the event that the government decides to charge the operators for the additional spectrum allocated to them.

According to reports, Sunil Mittal, Chairman, Bharti Airtel, has said that if the government decides in their wisdom that this industry needs to be taxed heavily in the form of high spectrum charges, whether it’s one time or recurring, that has to result in higher tariff regime.

As per sources, the Telecom Regulatory Authority of India (TRAI) has proposed a significant hike in the 2G spectrum price along with a charge for any additional spectrum to be allocated beyond the 6.2 MHz limit. Mittal said that if the government finally decides that they want higher charges both upfront and ongoing, the result of that should be higher tariffs.

He added that India already boasts of having the lowest telecom rates which have been affecting their profit margins, as cost of operations remains high. He said if there is going to be more load, that is going to put pressure on margins, which would mean the industry will have to force their hands to raise the tariffs to get the margins back.

Filed under:Mobile Tagged with: Bharti Airtel • Call Rates • India • spectrum • Sunil Mittal • tariff hike • Telecom Regulatory Authority of India (TRAI)

Indian finance ministry proposes spectrum as collateral for loan (India)

On 01.27.12, In Mobile, By Editor

The Indian finance ministry has proposed a new policy according to which mobile operators can use their spectrum holdings as collateral for a loan, as reported by ET. The move comes as an attempt to smoothen the functioning of the banking sector as well as help the telecom industry meet its credit requirements.

According to the report, the new policy will enable banks to seize an operator’s airwaves in the event of default or termination of mobile licences. Airwaves are leased to mobile operators by the government for a period of 20 years.

The banking industry has been reluctant to provide loans to mobile operators owing to depleting earnings and slow growth. Further, with the debt faced by the telecom sector mounting up to US$ 56 billion, the finance minister is hopeful that the new regulation will infuse the wireless industry with funds required by operators to increase their business.

Filed under:Mobile Tagged with: Airwaves • collateral • Finance Ministry • India • Loan • spectrum

Vodafone seeks to acquire additional spectrum and raise data revenue (India)

On 01.13.12, In Mobile, By Editor

Vodafone India is reportedly planning to acquire additional spectrum in an attempt to triple its data revenue in the Indian market. According to BN, Samaresh Parida, Director (Strategy), Vodafone India, said that the company expects data to account for 10 percent of the unit’s total revenue in two years, up from 3 percent end September last year.

He added that the company requires additional spectrum in order to expand its data services and accomplish its goals. Currently, Vodafone India accounts for an average of 5 to 6 MHz spectrum in most of the nine zones where it holds a licence, as compared to the 22 MHz average held by the Vodafone Group’s units in other countries.

Parida also claimed that Vodafone may also increase its spectrum holding by acquiring its competitors once the government eases the merger and acquisition rules. Sources reveal that Vodafone India acquired the 3G and 4G spectrum in the 2010 auction at a price of US$ 2.2 billion.

Filed under:Mobile Tagged with: 3G • 4G • data revenue • India • Samaresh Parida • spectrum • Vodafone India

Taiwan aims to auction 4G licenses by 2013 (Taiwan)

On 11.09.11, In Mobile, By Editor

The Taiwanese government is planning to commence its 4G auction schedule two years ahead of schedule, by 2013 in an attempt to enable operators to launch their LTE services by 2015, as suggested by reports. Sources reveal that these allocations are expected to be in either the 700 MHz or the 2.6 GHz bands and may be released together with the 900MHz and 1.8GHz spectrum.

According to reports, the ministry would need to reach an agreement to replace the 700-MHz band as the spectrum is currently allocated to the military. As revealed by sources, the advance in Taiwan’s LTE schedule may hint at the country’s shift in focus from Wimax technology to LTE.

Filed under:Mobile Tagged with: 4G • Auction • LTE • spectrum • Taiwan • WiMAX

Finnish Ministry proposes auction for 800 MHz frequencies (Finland)

On 11.08.11, In Mobile, By Editor

According to reports, the Ministry of Transport and Communications in Finland has proposed to auction mobile communication frequencies in the 800 MHz spectrum band. As per reports, the auction is expected to be held by the end of 2013.

According to sources, the winning operators in the spectrum auction will need to construct their networks within three years from the start of the licence period. Further, reports suggest that the draft also proposes that the Ministry of Education and Culture be granted a one-off sum of US$ 7.5 million to compensate for expenses incurred to wireless microphone users from switching to alternative frequencies. Sources claim that the deadline for comments on the draft is 29 November whereas a public hearing on the resolution is expected to be held on 14 November.

Filed under:Mobile Tagged with: Finland • mobile communication frequencies • spectrum

BTRC puts different spectrum utilization fee for operators (Bangladesh)

On 03.24.11, In Mobile, By Editor

If reports are to be believed, the new 2G spectrum licence proposal from the Bangladesh Telecommunication Regulatory Commission (BTRC) has baffled the operators.

According to the draft 2G licence renewal guideline, radio spectrum prices per Megahertz (MHz) are set at Tk 300 crore for the 900 MHz band, Tk 150 crore for the 1,800 MHz band of GSM technology, and Tk 150 crore for the 850 MHz band of CDMA technology.

However, the spectrum utilization charges differ per operator based on their subscriber bases. According to the draft, Grameenphone would have to pay BDT 55.04 in spectrum fees, followed by Robi which would pay BDT 30 billion, Banglalink which would pay BDT 29.94 billion, and Citycell would pay BDT 6.20 billion. The licence renewal fee for 15 years would be BDT 100 million.

Grameenphone chief corporate officer, Mahmud Hossain called the different spectrum utilization fees discriminatory and unfair. Furthermore, the government has failed to explain the exact method of calculation of the utilization fees.

Filed under:Mobile Tagged with: Bangladesh • Bangladesh Telecommunication Regulatory Commission • BTRC • Chief corporate officer • CityCell • GrameenPhone • GSM • Mahmud Hossain • operator • Robi • spectrum • utilization fee

ICASA approves Cell C’s application (South Africa)

On 03.04.11, In Mobile, By Editor

South African regulator, the Independent Communications Authority of South Africa (ICASA) has reportedly approved Cell C’s application for additional spectrum in the 2100MHz frequency band.

The spectrum will be used to boost the cellco’s HSPA+ network, which was launched in September 2010.

According to reports, Cell C CEO, Lars Reichelt has indicated that the spectrum will be used for capacity and in-fill wherever needed.

Filed under:Mobile Tagged with: Cell C • CEO • HSPA • Icasa • Independent Communications Authority of South Africa • Lars Reichelt • Mobile • South Africa • spectrum

New spectrum policy to create level playing field: TTSL (India)

On 01.31.11, In Mobile, By Editor

Tata group firm Tata Teleservices (TTSL) has welcomed Telecom Minister Kapil Sibal’s announcement of delinking spectrum from licence, stating that the move will create a level-playing field for all operators.

According to TTSL Executive President (Mobility Business) Deepak Gulati, the company compliments the telecom minister for his announcement, which they are sure, is the first of many that will work toward ushering in a level-playing field in the industry.

Telecom Minister Kapil Sibal had announced that spectrum would not come bundled with the licence as per the new telecom policy. The contract limit of spectrum has also been reduced to 4.4 MHz for new operators, while for the old operators, the limit has been retained at 6.2 MHz.

According to Gulati, they are confident that this will now end the delay that occurred earlier in the grant of 6.2 MHz spectrum, as also even start-up spectrum in key Circles like Delhi and many other districts, to players like TTSL.

To the decision that henceforth all spectrum, initial as well as additional, would be given at market driven price, Gulati was of the view that operators, who have excess spectrum are charged for the same, preferably retrospectively, to bring all operators to a level-playing-field.

He added that consequent to bringing the level-playing field, the spectrum beyond 6.2 MHz and up to the limits specified by TRAI in May 2010 could be charged by DoT in line with the telecom regulator’s recommendations.

Filed under:Mobile Tagged with: Deepak Gulati • Delhi • Executive President (Mobility Business) • Kapil Sibal • level-playing field • Licence • Mobile • spectrum • Tata Teleservices (TTSL) • Telecom Minister • Trai

Indian Government to unveil New Telecom Policy 2011

On 01.05.11, In Mobile, By Editor

Telecom Minister Kapil Sibal has announced that formulation of a new and comprehensive National Telecom Policy 2011 will be clear and transparent.

According to Kapil Sibal, eleven years have passed since NTP’99 and many changes have taken place thereafter. Action will be initiated to formulate a comprehensive NTP 2011. He, however, did not elaborate if changes would be made to the existing NTP’99 policy in respect of allocation of spectrum on the basis of first-come first-served.

According to sources revenue share would continue to be the regime for payment of licence fee by operators.

The Department of Telecom (DoT) will hold consultations with key stakeholders to evolve a clear and transparent regime covering licencing, spectrum allocation, tariffs/pricing, linkage with roll-out performance, spectrum sharing, trading and mergers and acquisition.

According to him, three elements — reasonable revenue for government, affordable services to users and robust growth of the sector — would be kept in mind while framing the new policy. They need to balance all these three elements, the government should not get revenue at the cost of industry while industry should not make super normal profits at the cost of consumers by keeping tariffs high.

He also highlighted that spectrum needs to be made available to meet the demand and the DoT would initiate a dialogue with the Department of Space, Ministries of I&B and Defence to get the spectrum vacated for civil use.

Filed under:Mobile Tagged with: Department of Space • Department of Telecom (DoT) • linkage with roll-out performance • Ministries of I&B and Defence • National Telecom Policy 2011 • NTP'99 • spectrum • Spectrum Allocation • spectrum sharing • tariffs/pricing • Telecom Minister Kapil Sibal • trading and mergers and acquisition