Two months before auction, India deprives WiMAX of 2.5GHz

By CAROLINE GABRIEL
Published: 2 October, 2009

India is poised to be the largest global market for WiMAX - in spite of, rather than because of, the country's regulators. While the government's ambitious broadband vision gives WiMAX a key role in universal broadband and innovative web strategies, the freeing up of relevant spectrum has been less advanced, and now it has hit another roadblock. The Department of Telecom has decided to auction only 2.3GHz spectrum in the upcoming WiMAX auction, leaving the 2.5GHz band off the table for now.

State-owned telcos BSNL and MTNL are already building out WiMAX in both fixed and mobile modes, having been granted early access to spectrum, and by themselves they will soon become the world's largest deployers of 802.16 technologies. But the real potential for WiMAX lies in a competitive market with the private operators creating innovative business models - Bharti, Reliance, Tata and other giants have all conducted trials are are keen to participate in the auction. But the amount of spectrum at their disposal, at least from December when the sale is scheduled, will be less than expected following the DoT's decision.

In its new Information Memorandum, the DoT said: "Two blocks of 20MHz each will be auctioned in the 2.3GHz band. " It said that, although 2.5GHz had been earmarked for broadband wireless too, it will be opened up only after issues with the Department of Space are sorted out. The DoS has always expressed concerns over the use of the 2.5GHz band because of possible interference with space communication systems. Although 2.5GHz was originally used by ISPs, these were ordered to vacate some years ago - but until recently it appeared that the DoS and DoT had managed to come to an accommodation. There is no indication now of when the band, which is one of the primary internationally harmonized profiles for WiMAX and mobile broadband, is likely to be made available.

There are other spectrum options that may be offered for WiMAX in India. In August 2008, the government earmarked 700MHz digital dividend frequencies, and the 3.3GHz band, for broadband wireless.

Meanwhile, India is addressing its dire shortage of wireless capacity by planning to allocate additional 2G spectrum to those operators who win 3G licenses in the forthcoming auction, scheduled to start on December 7. This may also be intended to attract foreign bidders or partners to the sales.

According to the Economic Times, international operators that do not currently have a presence in India are reluctant to enter the 3G market unless they are able to offer the full range of mobile services, which would require 2G spectrum too, for coverage and capacity.

The terms are vague, however, just saying frequencies will be "subject to availability", while there is no indication of where the new 2G spectrum will be found - it may require government bodies (such as the defense forces) to release spectrum. Also, there are about 300 2G applications pending anyway, and there could be intense controversy if foreign entrants are allowed to jump the queue.

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