Indian Policies now recognize Mobile WiMAX as an alternative technology to 3G

Sept 12,2008

The newly announced changes to the 3G auction Policy and the WiMAX spectrum auctions now contains elements of recognition that WiMAX is not simply a way to extend wireless but an entirely viable and complete technology in itself. The recognition of the importance of WiMAX to be able to operate as an independent network providing voice, video and data services came in the form of doubling of the minimum reserve price for WiMAX auctions from Rs. 50.5 Billion ( $1.2Billion) to Rs 100.10 Billion ( $2.4 Billion).

Considering the runaway growth of mobile subscribers at over 10 million a month and the consequent shortage of spectrum has led to a wake up call to the government. The 3G, which at one stage was being intended to be given away to existing players at throwaway prices will now be auctioned  to all players including foreign bidders, thus breaking a cozy club which had kept the prices artificially high for roaming and any form of value added services.

The government and the regulator have also recognized the value of the WiMAX spectrum in the prime mobile WiMAX bands of 2.1, 2.3 and 2.5 GHz bands which is slated for auction in the near future. The new revised price is a reflection of the recognition of these bands for providing a range of mobile WiMAX based services including VoIP, broadband internet and video. It may be recalled that earlier in Aug 2008, the regulator had already recommended opening up of VoIP services, previously limited to only fixed line or mobile service licenses to ISPs as well. WiMAX, then had become a natural candidate for the ISPs to potentially provide all services including Mobile Voice using the WiMAX technologies. The new spectrum policy also opens up the 700 MHz band for WiMAX auctions, denying the plea of industry players  to keep this  band reserved for Terrestrial Digital TV. However, once auctioned the new WiMAX players are more than likely to use this band for WiMAX TV services. With capabilities of indoor reception and long cell sizes the band is ideally suited for WiMAX TV.

WiMAX bands of 2.3 and 2.5 GHz are the ones where certified WiMAX devices are already available or will be available by end of the year making these the prime bands for inexpensive deployment of mobile WiMAX networks with ready availability of user devices.

The importance of Mobile WiMAX spectrum and in particular the 2.5 GHz band has increased after the WRC’07 had adopted OFDMA-TDD as one of the approved air interfaces under the IMT2000 implying that the band can be used under the 3GPP architectures. However the initial deployments are likely to use WiMAX networks along with the IP Multimedia system (IMS) as defined under the 3GPP.

While the reserve prices are still a reasonable $2.4 Billion for the whole country, it is expected that the auction process will lead to a price discovery which is at least double of these prices, probably more. This also impacts the state run companies BSNL and MTNL as they need to pay for spectrum at the same rates as the highest bids received. This is likely to impact their cash flows in the absence of sale of equity unlike the private players.  It also has the potential to bring new aggressive players who have started their life as ISPs to enter the lucrative mobile services market.

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Stage Set for Mobile Multimedia Services in India as 3G and MVNO Policies Announced

7 Aug 2008
The announcement by the Govt. of India of the auction of 3G spectrum auction coupled with the announcement of policy for mobile virtual network operators marks the beginning of a new era in the fastest growing telecom market in the world.

The 3G spectrum auction policy has been talked about for the last 3 years and has now finally been announced. This policy ( http://www.dot.gov.in/2008/aug%202008/spectrum_2.pdf) envisages a multistage bidding process for spectrum blocks of 5x2 MHz as paired bands in the 1.9/2.1 GHz bands. A total of 5 to 10 such slots are slated to be auctioned. Spectrum will also be auctioned in the 1900 MHz band for EVDO services providing an upgrade path for the CDMA operators.
The bidding is open to all investors irrespective of whether they hold the 2G licenses or not. This is expected to bring in additional operators who missed the action earlier

However the change of greater significance will be ushered in by the Mobile Virtual Network Operator policy, whereby innovative service provides can buy the resources such as infrastructure or airtime and provide their own offerings of mobile multimedia.
This relieves the mobile operators to meet the network and user growth requirements while it permits a number of new operators to try their own business models for mobile multimedia, Mobile TV, streaming of video and audio and other services based on mobile multimedia such as music stores.

Pipeline Wireless USA gets FCC Nod to rollout Nationwide WiMAX network in the 3.65-3.7 GHz Band

The new frequency band of 3650-3700 MHz has been shrouded in controversy since the last two years, when the reports of WiMAX interfering with the satellite C-Band communications (3700-4200 MHz) and the lower extended C-band communications ( 3400-3700 MHz) had come begun to come in. In fact the interference was reported even though the WiMAX systems under observation were those in the 3400 MHz range. In fact the WRC held in Nov 2007 has also come to the conclusion that WiMAX systems as far as 10 Km away can severely interfere with a satellite receiving station.

Now with the WiMAX being allowed bang next to the C-band, the FCC has embarked on a new frontier. As per FCC regulations for the use of this band, contention based systems (including WiMAX) are explicitly allowed to be used in this band. Also the power which is permitted is quite high i.e. 25 watts EIRP for a base station with 25 MHz bandwidth. All base stations however are required to be registered.
This may put a question on unhindered use of C-band communications in the US in the next 2-3 years as the systems roll out. At present the WiMAX Forum has no profiles for certification in this band for mobile WiMAX, and this may take a while to be in place. The CPEs and base stations will also be available for this frequency band once the investments in the networks begin.
Many countries in Asia have put on hold even the licensing of systems in the 3.5-3.6 GHz range due to interference issues. The new policy of FCC to permit WiMAX in all available bands will open up a new policy debate on the use of C-Band in many countries. C-Band satellite systems have a planning cycle of 3 years and a life of 15+ years. This implies that new systems can impact the deliverable services anytime during the life of a satellite putting a question mark on the valuation of many satellite companies.
Already interference from WiMAX systems has been reported from Australia, New Zealand, Russia and Hongkong amongst others.
The auction of the 700 MHz band made free as a result of the digital dividend by the FCC( which incidentally raised over $19 billion for the three blocks) is also no less controversial in terms of end usage. While the WiMAX Forum had announced the adaptation of future certification profiles in the 700 MHz band in order to be ready to enable systems when companies winning the auction were getting ready to deploy these systems, the news of AT&T and Verizon winning the major blocks and AT&T planning to use these for LTE has left many questions open before policy watchers in other countries. One of the reasons cited for the profiles in the 700 MHz band was that these have much lower losses and are suited for in-building use. However the same argument goes against the use of 3.65 GHz for mobile WiMAX.
Are we really, on a worldwide basis getting ready for technology neutral use of these bands? Are WRC observations, which have been considered sacrosanct so far are to be interpreted as national requirements? We will need to seek an answer to these questions, as at present we do not find any.