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India's spectrum auction plans for WiMAX released
Two bands will be auctioned for broadband wireless and Tata Communications announces deployment progress and expansion goals.
After much anticipation, the government of India has published policy and
guidelines for initial 3G and WiMAX licenses.
Spectrum will be
auctioned in the 2.3 and 2.5 GHz bands for broadband wireless data services.
Entities eligible to bid for the spectrum include those holding or qualified for
a Universal Access Services license or licensed category 'A' or 'B' ISPs.
Licenses will be valid for 15-years with licensees paying 1% of gross revenues
starting in during the second year. Two 20 MHz blocks in each band will be
auctioned per telecom service area with a reserve price per MHz set at 25% of
the 3G reserve price. Government telecom providers MTNL and BSNL were
automatically granted one of the 20 MHz blocks (MTNL in the Delhi and
Mumbai/Metro service areas; BSNL in all other service areas) at a price matching
the highest auction bids in those service areas.
Provisions were also established for future auctions of the 700 MHz and 3.3-3.6
GHz bands when they become available. Now that guidelines have been
communicated, roll-outs in the new broadband wireless bands are expected to
occur in the middle of 2009.
Shortly after the government announcement, India's Tata Communications announced
it will grow its WiMAX roll-out from 60 to 115 towns in its next fiscal period.
As a result of the additional spectrum licenses coming to auction, the operator
is considering additional coverage for Indian cities. "Once the spectrum
is alloted, we plan to take the broadband-WiMax services to four-five cities,"
Tata Communications CEO and MD N Srinath told shareholders. Backhaul
connections for rural WiMAX are currently using an underground cable network,
which the carrier expressed concerns over quality. As a result, the
provider plans to invest US$2 billion over the next three years to laying
sub-marine cable systems in addition to its WiMAX service expansion.
By Jeff Orr, ORR Technology, LLC
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