Reliance Infocomm Ltd.Vijaya Building, 13th Floor,17, Barakhamba Road,

New Delhi

Email:bharat.b.anand@relianceinfo.com

Website:http://www.relianceinfo.com

§ India – a dynamic & vibrant economy - about 7 to 8 % GDP growth

§ Tele density : Risen from less than 2% in 2000 to 8.80 %by Jan’2005

§ Total subscribers base in India 94.92 million by the end of Jan’05.

§ Wireless subscribers at the end of Jan’05 is 49.77 million as against 45.15 fixed line subscribers.

§ Wireless has overtaken Wire line - in line with global trend.

§ Target of 250 million by the end of 2007

Indian Telecom Scene-Current

§ Mobile subscriber base growing about 2 million per month

§ Out of total 49.77 million mobile subscribers as on Jan’2005, the CDMA number is 11.13 million(23%)

§ There are 11 GSM operators operating since1994-95. § Only two major CDMA private Operators started

service in 2002-03.§ BSNL/MTNL are also providing CDMA but not pursuing vigorously.

§ Still the month wise growth in recent months is better for CDMA as compared with GSM.

Indian Telecom Scene-CDMA-vs-GSM

§ CDMA subscribers in India have grown from 5.87 million by the end of 2003 to 11.3 Million in Jan’2005.

§ Almost doubled in a year’s time.

§ In the last few months the growth of CDMA mobile subscribers has been @ 4.3% p/m as compared to 3.5% for GSM.

Indian Telecom Scene-CurrentCDMA-vs-GSM

Indian Telecom Scene-CDMA-vs-GSM

4.70%11.13mn3.26%38.61mnJanuary2005

5.24%10.63mn3.94%37.39mnDecember2004

3.80%10.10mn3.36%35.97mnNovember2004

3.51%9.73mn3.57%34.80mnOctober2004

4.31%3.53%AVERAGE

Growth %CDMAGrowth %GSMMonthYear

Spectrum Requirements

Ø Growth in wireless subscribers in India.Wireless overtaking wireline.

Ø Growth in use of voice/ wireless data traffic.

Ø Wireless Broad Band requirements to bridge the ‘Digital Divide’.

Ø Wireless services - quick ,reliable and relatively less expensive than Land Line.

Ø New technological innovations in Wireless applications.

Spectrum Requirements -Contd..

Ø Requirement of additional spectrum for CDMA operators to:uPlan their networks more efficiently.

uProvide better coverage in remote and inaccessible areas.

uMake it more cost effective and hence affordable for the subscribers.

uProvide quality service compared with international standards.

• Presently spectrum allocation in India is linked with the issue of license

• Licensees are entitled for frequency bands as per the provisions in the license and guidelines for spectrum allocation

• For CDMA operators the spectrum earmarked is 824-844 MHz p/w 869-889 MHz(20 + 20 MHz) {no limit on the number of operators}

• There is a cap of 5 + 5 MHz for each operator• No provision at present for additional spectrum for CDMA

which may stall the growth of CDMA in the country.

Spectrum Allocation In India-status

• There is no equality in spectrum allocation between GSM & CDMA– In GSM allocation goes up to 12.5+12.5 MHz [there is a provision

for 15+15 MHz] as against the allocation of 2.5+2.5 MHz (5+5 MHz in a few cases)for the CDMA.

• Changing policies for CDMA spectrum allocation.– First it was the roll out obligation in terms of coverage of urban,

semi-urban and rural areas in equal proportion and now shifted to the subscriber base.

• Subscriber base as a criteria for spectrum allocation and measure of efficiency -Unique to India

• Punishing efficiency - Unique to India {CDMA more efficient don’t need spectrum}

Spectrum issues in India

• CDMA spectrum allocation against International standards.– International average of spectrum allocation is about 15+15 MHz

In India it is 5+5 MHz even that is also not fully allocated.

• Contributions of CDMA are:– Introduced competition,– Making telephone affordable,reduction of tariff,– Achieving tele-density targets ahead of time,– Reaching mobile phones to the masses,-no longer prerogative of

the elite class of the society.– Better facilities on CDMA –Network-data capabilities

Spectrum issues in India-contd

• The Regulator (TRAI) is considering issues of spectrum allocation, efficient utilisation & spectrum pricing

• Consultation process.– Consultation paper– Open house discussions– Presentations on interference issues

• During consultation, CDMA view point put up.• Non-availability of handsets in bands other than USPCS

band highlighted.• Mis-representation by vested interests about the

availability in future.

Spectrum issues in India-contd

• Interesting /contradictory comments from GSM industry during consultation:

• WARC’92 recommendations are current and that of WARC’2000 are outdated

• IMT-2000 core band is a mandatory requirement for GSM operators.

• Mandating a single standard for IMT-2000 is against the WTO rules, still for 3G in India only IMT-2000 standards should be prescribed.

• Additional requirements for CDMA should be met by assigning a part of IMT-2000 band.

• CDMA five times more efficient –do not need more spectrum.

Spectrum issues in India-contd

• CDMA concerns : • The spectrum constraints should not hamper the growth of

CDMA technology.• Subscriber criteria of efficiency needs to be reviewed.• Allocation in line with world standards.• Allocation of DCS 1800 or IMT- 2000 not suitable.{non-

availability of handsets}• Allocation criteria –same for all.• Dedicated carriers for data-EVDO.

Spectrum issues in India- contnd

Spectrum issues in India-contnd

•CDMA requirements:•Allocate 800MHz and USPCS 1900 MHz for CDMA operators and 900MHz and 1800 MHz for the GSM •in line with International practices..•Allocate minimum of 15+15 MHz of spectrum•There are countries where GSM systems are working in 800/900/1800/1900MHz •But in no country CDMA systems are working in all these bands.•CDMA systems are working in 800 or 1900(USPCS)MHz OR 800 and 1900 MHz bands. •Even in Korea the CDMA systems work in 800 MHz or 1800MHz (Korean PCS) band but not 800MHz and 1800MHz (KPCS) band.

• Opposition from GSM Industry:• No country in the world has deployed 2G systems in 1900

MHz along with 3G / IMT2000 systems.{Incorrect statement}

• All countries have deployed 3G/IMT-2000 in the WRC ’92 recommended core band(1920-1980 p/w 2110-2170MHz ) only.{Incorrect-USA/Canada/Israel used}

• Allocation of USPCS band for CDMA will lead to interference problem with IMT-2000 core band.

• Regulator should stay in line with the existing NFAP provisions for different services/uses.

Spectrum issues in India

• Opposition from GSM Industry-contd:

• Allocation of CDMA spectrum has to be in line with the existing license conditions i.e. DCS 1800 MHz band (1710-1785 paired with 1805-1880 MHz).

• ITU-WRC-92 identified 3G band i.e. 1920-1980 paired with 2110-2170MHz as a core band and this is the only band which should be used for 3G/IMT2000 services.

• Equipment and handsets are available for 1800MHz band for CDMA and this band is being used for CDMA in Korea.

• Handsets will be developed if IMT-2000 band is shared with CDMA.

Spectrum issues in India

• Our response:• The first statement is incorrect, AT&T in July 2004

launched 3G in 1900 MHz band while it had existing 2G services in the same band.

• There is no single spectrum band which can be called IMT-2000 band since ITU recommendation No.M.1036-2 has identified eight (8) different bands or their combinations to be used for IMT-2000.

• ITU permits flexibility to the administrations for the use of bands for different applications.

• 3GPP has already standardized DCS 1800 MHz band for UMTS.

Spectrum issues in India

• Our response:• Korean PCS band{1750-1780 MHz p/w 1840-1870 MHz}

is different from DCS 1800 MHz band {1710-1785 MHz p/w 1805-1880MHz}.Even in

• Korea one operator is using 800 MHz band and other two operators are using 1800 MHz (KPCS) band and there is no mixed band of 800 MHz and KPCS.

• How can such a band combination of 800MHz and DCS 1800MHz or Korean 1800MHz band be used? This would be India specific and against the principles enunciated above.

• Interference issue can be resolved if IMT-2000 is implemented in WARC’2000 recommended other bands.

Spectrum issues in India

Suggestions

• Follow the fundamental principles of Frequency Allocation :

üNo discrimination on the basis of technology usedüEqual opportunity for growth of all technologiesüReview of earlier reservations based on experience of

frequency usedüAdequate and appropriate spectrum.üProper balance between the security needs and needs for

commercial deploymentüNeed for appropriate measure of efficiency and additional

requirements of spectrum(only subscriber base is not the appropriate criteria)

Suggestions- Contd..

üFrequency allocation in bands in which equipment and handsets are readily available.üAvailability from multiple vendors and multiple

regions to avoid dependence on a single vendor or single countryüNo allocation with the hope that in future some

vendor may develop the equipment /infrastructure /multimode handsets.üInternational practices are followed