Presentation to
The Expert Committee on Spectrum
Date: 26th Nov 2007
Presentation Flow
1. About RCOM
2. What is the real issue?
3. Spectrum Allocation
4. Spectral Efficiency innovations & TEC Report
5. Re-farming, Re-alignment of Spectrum & Capital Efficiency
Measures
6. Summary & Recommendations
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Reliance Communications

Largest fully integrated private sector communications
company in India

5th largest company with market cap of over Rs. 1,50,000 Cr

Second largest customer base serving 40 Mn customers.

Only operator providing both CDMA & GSM services

CDMA Pan India

GSM 8 circles mainly in Eastern India

Received approval for pan India GSM rollout services

Paid an additional fee of Rs. 1650 Cr. for GSM services


RCOM has paid the highest fee – Rs 3100 crore for operating
mobile services.
India’s largest and only Next Generation & IP based network
pan India
Fully committed to the Nation’s telecom growth in the entire value chain
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RCOM – Exponential Growth Plan
Current
Year
March 08
Aggregate
Parameter
UoM
Last 4
years
Population
Covered
% / Nos.
Crs.
50 %
55
40%
44
90%
99
Towns
Covered
Nos.
10,000
13,000
23,000
Sites
Nos.
14,000
26,000
40,000
Investment
Rs.Crs.
32,000
20,000
52,000
RCOM’s Growth Plans – Significant contributor to India’s GDP Growth
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Widest Coverage Plan for 07-08
Coverage
UoM
Oct - 07
Mar-08
Towns
Nos.
10,000
24,000
Villages
Nos.
300,000
500,000
%
55
90
Key Religious
Sites
Nos.
333
677
Railway Track
Kms
%
48,000
65 %
63,000
85 %
National Highways
Kms
%
35,000
60 %
55,000
95 %
State Highways
Kms
%
85,000
45 %
153,000
80 %
Population
Largest
USO Roll ou
7230 sites
Rs. 20,000 Crs Capex
Worlds largest Wireless Network Rollout in a year
Will cover all locations with over 1000 population with Voice & Data
confidential
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What is the real issue?
What is the real issue?
What GSM Operators got / want
1.
2.
3.
4.
5.
Received spectrum above 4.4 MHz almost with out any policy guidelines till 2006.
Received spectrum above contracted spectrum of 6.2 MHz
Continued to enjoy spectrum free
The March 06 WPC criteria was too low, necessitating revision
Both TRAI & TEC criteria in 2007, based on scientific inputs, now being contested - for
cornering & hoarding spectrum, & restricting competition.
6. Forcing the current framework to maintain oligopolistic interest.
What India needs
Adoption of spectrum allocation criteria which:
1. Promotes spectral efficiency
2. Maintains and ensures the quality of service
3. Increases competition leading to achieve government targets.
Need of the hour – Scientific approach for Spectrum Allocation norms
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Spectrum Allocation
Evolution of allocation criteria

February
2002


April 2002
No SUBSCRIBER CRITERIA till Feb.02 – Adhoc Approach
Spectrum Charges Policy issued for 4.4 MHz and 6.2 MHz.
Spectrum allocated up to 6.2 MHz without any policy framework
almost free till Feb.02.

Spectrum Charges Policy issued for 8 MHz and 10 MHz.

Spectrum allocated up to 10 MHz without any policy framework
almost free till Mar.06.

Spectrum allocation linked to Subscriber Criteria based on Metro &
Circle Category .
March 2006

Criteria abysmally low - Operators continue to serve 2-5 times more
subscribers vis-a-vis the criteria, without difficulties.

Over 50 Million subscribers added by the private dominant GSM
players within 18 months, without any additional spectrum.
No policy and lenient criteria led to cornering of spectrum
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Evolution of allocation criteria
First time
Scientific approach
Oct.2007
Aug.2007
Allocation
Criteria
Revised & tightened
by TRAI
Further revised by TEC Report
Case for
Refund@
To refund 32 MHz*
excess spectrum
To refund 56 MHz**
excess spectrum
Spectrum
Availability
Start-Up Spectrum available for 3-4 new operators.
*Based on TRAI Norms
@ Across all Circles by all operators
**Based on TEC Report
Adoption of TEC Criteria at the minimum – Right way forward
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Spectrum allocation without Policy
Operators allotted 6.2 MHz with out
policy framework
S.N.
Operator
Circle
Date w.e.f
1
Aircel
Haryana
Jan-01
2
Aircel
Rajasthan
Jan-01
3
Aircel
UP(East)
Jan-01
4
Bharti
AP
Apr-00
5
Bharti
Chennai
Aug-99
6
Bharti
Delhi
7
Bharti
8
Operators allotted 10 MHz with out policy
framework
S.N.
Operator
Circle
Date w.e.f
1
Aircel
Tamilnadu
Dec-04
2
Bharti
Delhi
Jul-03
3
BPL
Mumbai
Sep-04
4
Vodafone
Delhi
Oct-03
Aug-99
5
Vodafone
Mumbai
Oct-03
Karnataka
Apr-00
6
Bharti
Mumbai
Jan-06
BPL
Mumbai
Aug-99
7
Bharti
Karnataka
Jan-04
9
Aircel
Chennai
Mar-00
8
Vodafone
Gujrat
May-05
10
Spice
Karnataka
Apr-00
9
Idea
Maharastra
Apr-04
11
Spice
Punjab
Apr-00
Arbitrary & Adhoc approach allowed cornering & hoarding of
spectrum beyond eligible & contracted 6.2 MHz
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WPC Criteria v/s Actual Subs.
Subscriber / MHz
…2 to 5 times higher
than WPC criteria
VLR:80% of subs
Leading
operator
Customers
(Lakh)
Spectrum
MHZ
VLR Criteria
Subs (Lakh) /
MHz
Actual vs
WPC
Criteria
Delhi
Airtel
36
10
1
2.9
Mumbai
Vodafone
30
10
1
2.4
Chennai
Aircell
16
8.6
0.5
3.0
Kolkota
Vodafone
16
9.8
0.6
2.2
UP (E)
Vodafone
38
8
0.8
5.0
Maha.
Idea
38
10
1.4
2.2
Leading Operator - Mumbai
Leading Operator - Delhi
30
Subs (mn)
25
3
20
4
40
3.5
35
3
30
2.5
20
2
15
2
15
1.5
1.5
10
1
5
0
Mar'05
Mar'06
Subs (Lakh)
Subs (mn)
30
Subs (mn) / MHz
35
4
36
3.6
3
25
2.5
20
20
15
2.1
2
16
1.6
1.5
10
0.5
5
0
0
Oct'07
1
0.5
0
Mar'05
Subs (Lakh)/MHz
3.5
Subs (mn) / MHz
Key
Circles
Mar'06
Subs (Lakh)
Oct'07
Subs (Lakh)/MHz
WPC criteria outdated, to be replaced at least by TEC Report norms
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Myths Propagated by GSM
operators related to Spectrum
1. Poor network QoS due to paucity of Spectrum
2. Low ARPU and operators unable to afford additional capex
3. Indian operators require more spectrum as
a) Have lesser spectrum relative to Global Operators
b) Higher MOU per sub in India
c) already deployed available spectral efficiency enhancing technologies,
All the above continue to lead to excess & ineligible allocation of Spectrum
to private dominant GSM operators
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Myth 1 - Propagated
by GSM operators
Poor network QoS due to paucity of spectrum
Reality
100

95% operators meet the benchmark

In Metros, 100% of the private operators
have met benchmarks

QoS parameters needing attention are
POI congestion & Help line, which are
not related to spectrum
80
On the Contrary, QoS showing improving
trend over last 8 quarters
60


Spectrum availability is only one of the
many factors for QoS improvement
90
70
Accumulated down
time (<24 hrs)
CSSR (>95%)
Service access delay
(<15 secs)
SDCCH / Paging
channel congestion
(<1%)
TCH congestion (<2%)
Call drop rate (<3%)
50
Jul- Oct- Jan- Apr- Jul- Oct- Jan- AprSep- Dec- Mar- Jun- Sep- Dec- Mar- Jun05
05 06
06
06
06 07
07
% connections with
good voice quality
(>95%)
QoS has improved over last 8 quarters due to availability of Spectrum
Source: Network QoS report by TRAI – Sep 2007
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Myth 1 - Propagated
by GSM operators
Lowest
7 dimensions of QOS
Site Database Audit
& correction.
Spectrum is one of the low priority
requirements to determine QoS
Priority
Availability of spectrum
Implementation of new features
to improve network quality and capacity
Optimal Frequency Plan using
Adhoc Technique
Network Optimization – Drive Testing/ Analysis & Corrective action
Network Planning to meet Coverage & Capacity Objective
Highest
Availability of Skilled Man power for Planning & Optimization
Network Performance Requirements
Spectrum Availability is a low priority criteria for maintaining QOS.
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Myth 2 - Propagated by GSM operators
Low ARPU and operators unable to afford additional capex
Reality
EBIDTA Margin Comparison

developed countries in the world e.g. UK, USA, Hong
40%
Kong, Brazil, Australia, Spain.
35%

30%
EBITDA(%)
EBIDTA margin in India higher than any of the
Highest EBIDTA expansion in the world during 20032007. 17%-38%
25%

Analysts forecast future EBIDTA margin expansion in
spite of falling ARPU
20%

15%
Indian Telecom Companies highly valued with
EV/EBIDTA multiple of ~15 by analysts - UBS,
10%
2003
Australia
2004
Hong Kong
2005
India
UK
Macquarie, Lehman Bros, Merrill Lynch
2006
US
Brazil

Wireless industry this year as Outlooks are healthy
EBIDTA Margins (Q2, FY07-08)
RCOM
Airtel
Over Rs. 50000 crore committed capex spends by
: 43%
: 43%
Indian TelCos – valuations & EBIDTA margin among top 5 in the world
Source : ML wireless Matrix, Q 4 2006
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Myth 3
Indian operators have relatively lesser spectrum, higher MOU per sub & have
already deployed available spectral efficiency enhancing technologies, hence
require more spectrum
Myth


In France, Netherlands, Germany, Spain, UK have 100 MHz amongst 3-4 operators
China has 60 MHz among 2 operators
Reality





Timing of network rollout & innovation availability & outlook different for developed markets & India
India needs to deploy spectrally efficient solutions more aggressively due to low teledensity and its
unique demographic profile
Indian telecom market is growing when technology is available for increasing spectral efficiency
many folds.
Operators in USA, Hong Kong with lesser spectrum serve markets with much higher traffic density
Higher CAPEX can be easily afforded by operators.
GSM operators want to enrich themselves at the cost of national objectives by demanding more
spectrum
Source : Interconnect associates, Telecordia
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Bharti Case Study
Bharti
S
Circle
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
AP
Gujarat
Karnatka
Maharashtra
Tamil Nadu
Haryana
Kerala
MP
Punjab
Rajasthan
U.P.(E)
U.P.(W)
WB
Assam
Bihar
HP
J&K
North East
Orissa
Delhi
Mumbai
Kolkata
23 Chennai
Subsribers as
on Eligibility
Current Spectrum
date as per
Spectrum issued
WPC criteria
held
date
for next
tranche (Mn)
Subscribers
added without
Spectrum Additional
additional
in excess Spectrum
spectrum as
beyond as per WPC
per current
6.2 MHz
criteria
criteria
(Mn)
3.16
1.6
7.2
1.06
3.8
3.33
3.6
5.2
2.47
8.8
2.16
6.2
0.08
1.8
0.56
3.8
1.48
6.2
1.65
1.6
7.2
2.11
8.8
1.61
6.2
0.55
3.8
1.11
5.6
0.21
1.8
2.45
1.8
7.0
0.20
1.8
0.24
1.8
0.10
1.8
0.56
1.8
4.4
1.60
3.8
5.0
0.15
3.0
3.2
0.72
1.8
4.4
7.8
6.2
9.8
6.2
6.2
6.2
6.2
6.2
7.8
6.2
6.2
6.2
4.4
6.2
8.0
6.2
6.2
4.4
8.0
10.0
9.2
8.0
Feb-04
Apr-02
Jan-04
Apr-02
Mar-02
Apr-02
Mar-02
Apr-02
Feb-04
Aug-00
Mar-05
Apr-02
Mar-04
Mar-05
Mar-06
Sep-03
Mar-06
Dec-04
Mar-06
Jul-03
Jan-06
Jan-05
1.8
1.0
2.6
1.0
1.0
0.8
0.8
0.8
1.3
0.8
0.8
0.8
0.4
0.5
0.9
0.5
0.5
0.3
0.8
2.0
2.0
0.8
8.6
Jan-06
0.8
0.62
2.4
3.8
23
28
21
110
Average 7
MHZ
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Criteria
MHz
TEC
21
TRAI
11
WPC
110
WPC+25%
78
WPC+50%
58
Refund*
Additional
Allocation*
Demand
*Across all Circles
28 Mn subscribers added over a
base of 23 Mn subscribers
(120% of base) added without
additional spectrum in last over
18 months
Demand for additional Spectrum – Invalid
Fit case for refund of 21 Mhz
confidential
Vodafone Case Study
Vodafone
S
Circle
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
AP
Gujarat
Karnatka
Maharashtra
Tamil Nadu
Haryana
Kerala
Punjab
Rajasthan
U.P.(E)
U.P.(W)
West Bengal
Delhi
Mumbai
Kolkata
16 Chennai
Subsribers as Subscribers
on Eligibility added without
Date of
Spectrum Additional
additional
Current Spectrum Eligibility for date as per
in excess Spectrum
spectrum as
current
next tranche
Spectrum issued
beyond as per WPC
per current
as per current criteria for
date
held
criteria
6.2 MHz
criteria
next tranche
criteria
(Mn)
(Mn)
1.09
1.0
Jul-06
Mar-02
6.2
1.8
2.66
2.6
May-06
May-05
9.8
5.2
3.6
0.62
1.8
Apr-07
Jan-05
8.0
1.8
0.87
1.0
Oct-06
Dec-99
6.2
1.8
1.19
1.0
Mar-07
Dec-99
6.2
1.8
0.31
0.8
Mar-07
Jan-01
6.2
0.80
0.8
Nov-06
Dec-99
6.2
1.8
0.73
0.8
Jul-06
Jan-04
6.2
1.8
1.55
0.8
Jul-06
Jan-01
6.2
3.8
2.48
1.3
Feb-06
Jan-06
8.0
4.4
1.8
1.52
0.8
Jun-06
Mar-05
6.2
3.8
1.75
0.4
Jan-06
Mar-04
4.4
5.6
0.99
2.0
Aug-06
Oct-03
10.0
2.4
3.8
0.99
2.0
Mar-06
Oct-03
10.0
3.8
0.36
1.3
Mar-07
Jul-06
9.8
0.2
3.6
8.0
Average
7.35 MHZ
Jun-06
May-07
0.8
0.21
1.8
19
18
20
34
Criteria
MHz
TEC
20
TRAI
9
WPC
73
WPC+25%
50
WPC+50%
34
Refund
Additional
Allocation*
Demand
*Across all Circles
18 Mn subscribers
added over a base of 19
Mn (100% of base)
added without additional
spectrum in last over 18
months
Demand for additional Spectrum – Invalid : Fit case for refund of 20 MHz
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Idea Case Study
Idea
S
Circle
No.
1
2
3
4
5
6
7
8
9
10
AP
Gujarat
Maharashtra
Haryana
Kerala
MP
Rajasthan
U.P.(E)
U.P.(W)
HP
11 Delhi
Subscribers
Subsribers as
added without
on Eligibility
Spectrum Additional
additional
date as per
in excess Spectrum
spectrum as
current criteria
beyond as per WPC
per current
for next
6.2 MHz criteria
criteria
tranche (Mn)
(Mn)
Sep-04
Mar-07
1.8
0.83
1.8
4.4
Aug-00
Mar-06
1.0
1.15
3.8
Apr-05
Dec-06
2.6
1.25
3.6
5.2
Dec-99
Jan-07
0.8
0.08
1.8
Mar-05
Oct-06
1.3
0.99
1.8
4.4
Nov-06
Nov-06
1.3
1.11
1.8
4.4
Dec-05 Not Eligible
Not Eligible
Feb-06 Not Eligible Not Eligible
Not Eligible
Jan-06
Sep-06
1.3
0.69
1.8
4.4
Mar-02 Not Eligible
Not Eligible
Date of
Eligibility
Current Spectrum
for next
Spectrum issued
tranche as
held
date
per current
criteria
8.0
6.2
9.8
6.2
8.0
8.0
6.2
6.2
8.0
4.4
8.0
Average
7.2 MHZ
Dec-05
Nov-06
1.3
0.52
1.8
2.0
11
7
13
30
Criteria
MHz
TEC
13
TRAI
11
WPC
30
WPC+25
%
14
WPC+50
%
12
Refund
Additional
Allocation*
Demand
*Across all Circles
7 Mn subscribers
added over base of 12
Mn (60% of base)
added without
additional spectrum in
last over 18 months
Demand for additional Spectrum – Invalid : Fit case for refund of 13 MHz
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BPL Case Study
Criteria
BPL
S
Circle
No.
1 Mumbai
Subscribers
Subsribers as
added without
on Eligibility
Spectrum Additional
additional
date as per
in excess Spectrum
spectrum as
current criteria
beyond as per WPC
per current
for next
6.2 MHz
criteria
criteria
tranche (Mn)
(Mn)
Not Eligible
Not Eligible
0.00
3.8
0.0
Date of
Eligibility for
Current Spectrum
next tranche
Spectrum issued
as per
held
date
current
criteria
10.0
Sep-04
MHz
TEC
3.8
TRAI
3.8
WPC
0
WPC+25%
0
WPC+50%
0
Refund
Additional
Allocation*
Demand
Fit case for Refund of 3.8 MHz
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Reliance GSM Case Study
Criteria
RTL
S
Circle
No.
1
2
3
4
5
6
7
8
MP
West Bengal
Assam
Bihar
HP
North East
Orissa
Kolkata
Date of
Eligibility for
Current Spectrum
next tranche
Spectrum issued
as per
held
date
current
criteria
6.2
6.2
6.2
8.0
6.2
6.2
6.2
6.2
Average
6.4 MHZ
Jan-01
Feb-04
Oct-03
Oct-06
Aug-05
Jan-06
Sep-01
Mar-02
Oct-06
Dec-06
Jun-07
Oct-06
NE
NE
Jul-07
NE
Subscribers
Subsribers as
added without
on Eligibility
Spectrum Additional
additional
date as per
in excess Spectrum
spectrum as
current criteria
beyond as per WPC
per current
for next
6.2 MHz
criteria
criteria
tranche (Mn)
(Mn)
0.8
0.44
1.8
NE
0.5
0.15
1.8
0.8
0.56
1.8
4.4
NE
NE
0.5
0.12
1.8
NE
Total 1.3
1.82
10
MHz
TEC
1.8
TRAI
1.8
WPC
9.8
Refund
Additional
Allocation*
Demand
*Across all Circles
WPC+25
%
7
WPC+50
%
3.8
1.3 Mn subscribers added
over a base of 4 Mn (32%
of base) added without
additional spectrum in last
over 18 months
Willing to return excess spectrum in Bihar in line with policy framework applicable to all
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Reliance CDMA Case Study
RCOM
S.N.
Service Area
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Andhra Pradesh
Gujarat
Karnataka
Maharashtra
Tamil Nadu
Haryana
Kerala
Madhya Pradesh
Punjab
Rajasthan
U.P.(E)
U.P.(W)
West Bengal
Bihar
Himachal Pradesh
Jammu & Kashmir
Orissa
Chennai
Delhi
Kolkata
Mumbai
Additional
Spectrum
Current
Spectrum
in excess
Spectrum
as per
beyond 5
held (MHz)
WPC
MHz
criteria
5.00
3.75
3.75
5.00
5.00
3.75
5.00
5.00
3.75
3.75
5.00
5.00
3.75
5.00
2.50
2.50
3.75
5.00
5.00
5.00
5.00
1.25
1.25
1.25
1.25
1.25
0.00
0.00
0.00
0.00
1.25
1.25
0.00
0.00
2.50
0.00
0.00
0.00
0.00
1.25
0.00
1.25
Average
4.35 MHz
13.8


RCOM - CDMA
Does not hold beyond 5
MHz contracted spectrum in
any of the circles
RCOM willing to consider its
claim to forego 13.75 MHz
of spectrum as per WPC
criteria
No additional Spectrum granted
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Tata CDMA Case Study
Tata
S.N.
Service Area
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
17
18
19
20
21
Andhra Pradesh
Gujarat
Karnataka
Maharashtra
Tamil Nadu
Haryana
Kerala
Madhya Pradesh
Punjab
Rajasthan
U.P.(E)
U.P.(W)
West Bengal
Bihar
Himachal Pradesh
Orissa
Chennai
Delhi
Kolkata
Mumbai
Additional
Spectrum
Current
Spectrum
in excess
Spectrum
as per
beyond 5
held (MHz)
WPC
MHz
criteria
3.75
3.75
3.75
3.75
2.50
3.75
3.75
3.75
3.75
3.75
3.75
3.75
2.50
3.75
2.50
2.50
3.75
5.00
3.75
5.00
1.25
0.00
0.00
1.25
1.25
0.00
0.00
0.00
0.00
1.25
0.00
0.00
1.25
1.25
0.00
1.25
0.00
2.50
1.25
0.00
Average
3.63 MHz
12.5


Tata - CDMA
Does not hold beyond 5
MHz contracted spectrum in
any of the circles
Eligible for 12.5 MHz of
spectrum as per WPC
criteria
No additional Spectrum granted
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Comparison: TRAI to WPC criteria
Multiple : TRAI to WPC
Circle
6.2 MHz
8 MHz
10 MHz
Metro( D/M)
1.6
2.5
2.0
Metro (C/K)
2.5
3.8
3.3
A
2.0
3.8
3.6
B
2.7
5.0
5.0
C
3.0
5.0
6.7
TRAI criteria is 1.6 times to 6.7 times of WPC March 06
Average 4 times of WPC criteria
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Comparison: TEC to TRAI criteria
Multiple : TEC to TRAI
Circle
Category
Metro
(DL/MU)
6.2 MHz
Range
1.2 to 1.4
8 MHz
Average
1.3
Range
1.3 to 1.5
10MHz
Average
1.4
Range
1.7 to 2
Average
1.9
Metro
(CH/KOL)
1.0 to 1.2
1.1
1.1 to 1.3
1.2
1.5 to 1.8
1.7
A
1.1 to 1.7
1.5
1.0 to 1.4
1.3
1.0 to 1.5
1.3
1.2
0.4 to 1.4
1.0
1.2
0.3 to 2.0
1.2
B
C
0.5 to1.6
0.3 to 2.0
0.4 to 1.5
0.3 to 2.8
1.0
1.2
TEC criteria lower than TRAI in 6 circles- HR, KL, PJ, HP, J&K, NE
TEC criteria is Average 1.2 times of TRAI criteria
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Global practices for excess spectrum

UK



USA
Argentina
/ Chile /
Peru


In October 2007 Ofcom has initiated the re-farming of 15 MHz to 20 MHz
of spectrum in 900 MHz band from Vodafone & O2. This spectrum was
allocated in 1985
Returned Spectrum will be allocated to new / other eligible operators
Value of returned spectrum estimated at Rs. 50000 Cr (£ 6 Bn)
Re-farming of 10 MHz inter-se operators is practiced and implemented
In 2004, Regulator directed spectrum re-farming between AT&T & TMobile in New York & California states
Excess Spectrum 20 to 35 MHz held by MovieStar was directed to be
returned in 2005.
Internationally, Regulators have taken back / reallocated spectrum
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Summary – Spectrum Allocation

At the minimum, subscriber allocation criteria recommended by TEC be
accepted or appropriately revised upwards based on further scientific
inputs.

Existing dominant GSM operators have been allocated spectrum without a
policy framework and are using excess spectrum which is also beyond
contracted amount of 6.2 MHz. Should be directed to refund the spectrum.

All new licensees or licensees having paid the prescribed fee for the
alternate technology should be allocated start up spectrum of 6.2 MHz.
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Summary – Spectrum Allocation

The available spectrum will allow commencement of services by minimum
4 operators/ licensees. This will yield for the Government of India
-
Rs 6500 Cr as Entry Fee
-
Upto Rs 20000 Cr as direct and Indirect taxes on full rollout of network
by new operator

The increased competition will benefit the country and consumers.
-
Accelerated growth in telecom penetration
-
Lower tariffs
-
Better coverage including rural coverage.
-
Better quality of services
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Spectral Efficiency Innovations & TEC Report
TEC subscriber criteria
Justified ?
Liberal ?
Stringent ?
Let us examine in light of available spectral efficiency technology innovations
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Spectral Efficiency –Basic Principle
 Cooper’s Principle on Wireless Networks:
 Capacity enhancement is coming through reduction in Cell size
Shrinking Cell Size provides
2700 times more capacity as
compared to additional
spectrum which provides
only 15 times capacity
enhancement
Continuous increase in teledensity will require deployment of more BTS, leading to increase in network
capacity, without additional spectrum
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Spectral Efficiency –Basic Principle
 Shannon’s Principle:
 There is a limit to capacity
Capacity increase can be achieved by reducing interference by using spectral efficiency enhancement
techniques
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Parameters for determining
Subscriber based spectrum allocation criteria
1. Morphology
- Dense urban / urban / Sub-urban / Rural
2. Subscriber / traffic density distribution in
different morphology
3. Spectrum allocated
4. Number of sites to cater specified traffic
5. BTS capacity utilization
6. Inter site distance
7. Spectral efficiency innovations
Quantum of Spectrum allocated is just one of the parameters
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TEC work flow chart Subscriber Based Spectrum Criteria
Metro / Circle Morphology Distribution as per
Satellite Image (Km²)
U
SU
RU
DU
Allocated Spectrum
4.4MHz 6.2MHz 8MHz 10MHz 12.4MHz
Sub Density Ratio
Estimated BTS configuration with Capacity
DU U
Traffic
Distribution
7 Key
Technology
Innovations
Sync N/W
DFCA
6 sector
AMR
SAIC
Femto Cell
IBS
BTS Utilization
per Morphology
No
No. of subs
per site
DU w %
U x%
SU y %
RU z %
Required No. of
sites & Estimated
Subs per
Morphology
Excluded by TEC
while framing Subscriber
based Criteria policy
Source: TEC “Presentation on Spectrum Efficiency. Dtd 20.09.07”
Target
Subs as per
Recommendations
Metro D & M
Metro K & C
Yes
S332
S444
S566
S778
SU RU
Class A Circle
Class B Circle
Class C Circle
Inter-Site distance per
morphology.
Subs Density
TEC Criteria can be further improved when gains due to spectral efficiency innovations are included
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Spectral Efficiency Innovations
1. Synchronized Network
2. DFCA (Dynamic Frequency & Channel Allocation)
3. 6 Sector BTS
4. AMR (Adaptive Multi Rate)
5. SAIC (Single Antenna Interference Cancellation)
6. Femto cell solution
7. In Building Solution
India can’t afford to ignore use of these innovations
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Technology Innovation - 1
Synchronized Network
BTS 1
Asynchronous Network

BTS are synchronized using GPS or software.

TDMA Bit Offset of BTSs are aligned with each other.

Improvement of C/I by 3~5dB.
BTS 2
25
26
BTS 1
Synchronous Network
BTS 2
25
26
Source: Huawei ,Ericsson and Nokia-Siemens
Enhances Radio Network Capacity by 20%.
Pre-requisite to use features like DFCA for further capacity gains.
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Technology Innovation - 2
DFCA (Dynamic Frequency & Channel Allocation)
Conventional Frequency and Channel Allocation
Dynamic Frequency and Channel Allocation
0
0
F1
F1
1
0
2
1
F2
3
2
4
3
5
F3
0
6
5
7
6
1
2
0
0
1
1
1
2
2
3
3
0
F1
2
4
3
3
5
4
4
4
6
5
5
5
7
6
6
6
6
7
7
7
7
F2
2
3
F3
6
7
F1
3
1
4
0
1
F2
2
F2
4
F3
5
4
F3
5
7
Parameter
Frequency Collision
Possibilities
Synchronization required
Conventional
DFCA
Yes
No
No
Yes
Co and Adjacent frequencies
reuse in Adjacent Cell
Not possible
Possible
Frequency Hopping
Fixed pattern
Dyanacmic based on mobile
location
Thru
Software
upgrade
Enhances Radio Network Capacity by 60 ~ 90%.
Source: Huawei and Nokia-Siemens
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Technology Innovation – 3
6 Sector BTS
1
9
5
3
11
4
7
2
10
1
6
1
3

Improvement due to use of Asymmetric antenna which have
more then 30dB front to back ratio for 1800 azimuth.
9
11
4
7
11
4
7
12
8
12
2
8
2
6 sector BTS provides twice the capacity of 3 sector BTS at
same spectrum.
5
9
5
3

12
8
10
6
10
1
6
9
5
3
11
4
7
12
8
2
10
6
Spectrum
(MHz)
3 Sector BTS
1
1
19
5
7
8
4
12
11
73
12
6
1
1
19
10
62
5
7
7
3
11
5
73
4
12
11
84
6
2
10
12
84
6
Traffic
(Erlang)
TRx
(No)
Traffic
(Erlang)
4.4
3
45
3
89
100%
6.2
4
66
4
131
100%
8
7
129
6
245
90%
10
8
149
8
298
100%
9
73
8
4
12
11
2
10
TRx
(No)
51
9
51
3
11
Capacity
incerase
(%)
84
2
10
1
1
19
6 Sector
9
51
3
11
3 Sector
1
1
19
10
5
9
51
7
12
10
62
62
3
11
8
4
12
11
73
8
12
84
2
10
6
10
62
6 Sector BTS
Reliance CDMA has over 200 six sector sites operational & in Reliance GSM network at
Guwahati.
Vodafone has in Hyderabad.
Enhances Radio Network Capacity between 90% to 100%.
Source: Ten XC, Canada
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Technology Innovation – 4
Adaptive Modulation Rate (AMR)
AMR Penetration & Capacity Increase
TCH FER Based Capacity Gain

All handsets manufactured since
2003 are AMR enabled.

AMR penetration level of 60% has
resulted in 70% increase in capacity.
Soon to increase to 100%

60-75% of current traffic is generated
by AMR enabled handsets.

Over 110 Mn AMR enabled handsets
are in use
160
Capacity Gain [%]
140
120
100
80
60
40
20
0
0
25
50
75
100
AMR Penetration [%]
100% AMR penetration will result in nearly 150% Radio Network capacity increase at zero cost – expected by
2009
Source: GSM,GPRS AND EDGE PERFORMANCE by Halonen,Romero,Melero of Nokia (John Wiley & Sons)
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Technology Innovation – 5
Single Antenna Interference Cancellation (SAIC)
SAIC Penetration & Capacity Increase



SAIC Handsets are available in
market from 2004

Majority of Nokia phones are
SAIC compatible. Nokia market
share is ~ 70%
SAIC is a software feature in the handset for increasing
downlink spectrum efficiency of GSM networks.
Ultra Low
end
handset
SAIC uses technique to cancel or suppress interference
by means of signal processing without using multiple
antenna. Source: Nokia-Siemens and 3GPP TR 45.903 V7.0.1 (2007-08)
Provides 50 ~ 60% additional capacity gain with 100% penetration of SAIC mobiles at no cost
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Technology Innovation – 6
Femto Cells

Small form factor and affordable price point will
ensure mass deployment

Size ~ 200 x 140 x 40 mm, 0.2kg
Small Form Factor
Over 100 Million
Femto cells are projected
by 2011
GSM
Backhaul: ADSL, Ethernet
FEMTO cells improves spectral efficiency by release of BTS capacity for outdoor use.
Source: Ericsson & ABI-Research
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Technology Innovation – 7
In Building Solutions

As per TRAI survey 70% calls in a
cellular network are from In Building
Splitter / Coupler

Seamless indoor and outdoor
coverage
RF Feeder

In building coverage generates traffic
and revenue
Antenna
Splitter / Coupler
Base Station
In Building solutions help in offloading the traffic from outdoor base stations
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Technology Innovation
Summary
1. Synchronized Network: Improves
capacity by 20%
* At
Zero
cost
2. DFCA (Dynamic Frequency and
Channel Allocation): Enhances
Capacity by 60 ~ 90%.
3. 6 Sector*: Enhances capacity up to
100%
SAIC/SN*
4. AMR: 100% AMR mobile penetration
will improve the network capacity by
150%.
DFCA
5. SAIC (Single Antenna Interference
Cancellation): SAIC improves
capacity by 50 ~ 60%.
AMR*
6. Femto Cell*: Unlimited capacity for
SOHO segment.
7. In Building Solutions*: Offloads
traffic from outdoor BTS
Basic GSM
* 100 % SAIC and AMR considered with Synchronous network
Capacity increases by 7 times by using 4 of the Technology innovation.
Further improvements feasible on use of 6-sector, Femto & IBS.
Source: Nokia-Siemens and 3GPP TR 45.903 V7.0.1 (2007-08)
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Technology Innovation
Deployment Status in India
Techniques


Conventional




Advanced





Innovative




Used by
Synthesized Frequency Hopping (SFH)
Tighter Frequency Reuse Plan (TFR)
Discontinuous Transmission (DTX)
Dynamic Power Control
IBS & Micro Cell
Dynamic SDCCH
Intelligent Directed Retry (IDR)
AMR-HR
Antenna Hopping - One Operator
Synchronized Network
Dynamic Frequency and Channel Allocation
(DFCA)
6 Sector BTS
Single Antenna Interference Cancellation (SAIC)
Interference Rejection Combining (IRC)
Femto Cell
All OPERATORS
5 OPERATORS
Under Trial Stage
Innovative techniques grossly under-deployed in Indian market.
Source: COAI submission to TRAI and from various GSM vendors.
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Increase in TEC Subscriber criteria
Due to technology Innovations


Morphology & traffic
distribution as outlined
by TEC.
Technology
innovations like Femto
& IBS not considered
in mathematical
modeling.
20.0
Subs Capacity (in Mn)
GSM Case study for Delhi
15.0
TEC
30% AMR-HR
10.0
Technology Innovations
5.0
0.0
4.4
Spectrum
Allocation
(MHz)
6.2
8
10
Spectrum Allocation (in MHz)
12.4
No. of Times Subscriber
Capacity w.r.t TEC
No. of
Sites
Site to Site
distance
(in Mtr.)
30% AMR-HR
Technology
innovation
4.4
1,500
538
1.40
3.0
6.2
2,000
466
1.36
3.0
8
2,400
426
1.37
2.8
10
2,509
416
1.36
2.6
12.4
2,560
412
1.34
2.6
TEC Criteria can be enhanced by over 3 times using Technology innovation
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Technology Innovations - CDMA
New Techniques which will improve the spectral efficiency.
1.
6 Sector BTS
2.
4 GV vocoder
3.
Pilot interference cancellation
4.
Femto cell solution
5.
In Building Solution
CDMA operators should accelerate deployment
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Increase in TRAI Subscriber criteria (CDMA)
Due to technology Innovations – Case study for Delhi

Capacity of CDMA
for 2.5MHz spectrum
is 6 times than that
projected by TRAI
Similar observation
is for other
allocations.
25.00
Subs Capacity (in Mn)

20.00
RCOM Estimate
15.00
4GV Vocoder
10.00
Innovation Techniques
5.00
0.00
2.5
3.75
5
6.25
Spectrum Allocation (in MHz)
Spectrum
Allocation
(MHz)
TRAI
Criteria
2.5
Subscriber Nos.
( in Mn)
No. of times w.r.t
TRAI Criteria
4GV
Vocoder
Innovation
Techniques
4GV
Vocoder
Innovation
Techniques
0.5
1.6
3.1
3.2
6.2
3.75
2.0
7.1
13.7
3.6
6.9
5
3.0
9.5
18.3
3.2
6.1
6.25
5.0
11.8
29.0
2.4
5.8
TRAI Criteria can be enhanced by more than 5 ~6 times using Technology innovation
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Summary - TEC subscriber criteria
The TEC criteria is liberal
It can be further increased with gains by use of spectral
efficiency technology innovations
TEC subscriber criteria to be revised upward by over 3 times leading to increased availability of
spectrum
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Re-farming, re-alignment of spectrum
and
Capital efficiency measures
900 MHz Vs1800 MHz Spectrum –
Anomaly & imbalances
Delhi
Mumbai
Chennai
Kolkata
AP
Gujarat
Karnataka
Maharashtra
TN
Haryana
Kerala
MP
Punjab
Rajasthan
UP (E)
UP (W)
WB
Assam
Bihar
HP
J&K
NE
Orissa
Airtel
8
6.2
6.2
7.8
Spectrum in 900 MHz
Hutch
Idea
8
6.2
8

For a new operator, initial National Coverage
with 900 MHz spectrum can be achieved with
30,000 BTS sites as against 60,000 BTS sites
of 1800 MHz

Initial Capex saving of Rs. 15,000 Cr

Opex saving of Rs.1500 Cr per Year

On ongoing basis a 900 Mhz network provides
Capex advantage of Rs. 3,000 Cr & annual
Opex savings of Rs. 300 Cr as compared to
1800 MHz network

Spectrum beyond 4.4 MHz in 900 MHz band
does not give any additional advantage

Cap of 4.4 MHz to be introduced in 900 MHz
band
RTL
6.2
7.8
6.2
6.2
7.8
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
4.4
6.2
6.2
4.4
4.4
6.2
6.2
6.2
6.2
4.4
7.8
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
4.4
4.4
6.2
Existing GSM Operators with up to 8 MHz spectrum in 900 MHz bad have an unfair advantage over new entrants
Spectrum in 900 MHz Band should be re-farmed & equally allocated to existing as well as new Operators
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Re-farming spectrum
Inter-se 900 MHz– 1800 MHz

Both existing and new operators as per policy are to be given level playing
field in non-discriminatory manner

This necessitates correction of current anomaly and imbalance of allocated
spectrum in 900 &1800 MHz


Need to cap allocation of spectrum in 900 MHz to each operator – both
existing and new entrants
Internationally re-farming has been implemented
Policy framework to be implemented to achieve non discriminatory level playing field for all operators
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Global practices of re-farming of spectrum

UK



USA

In October 2007 Ofcom has initiated the re-farming of 15 MHz to 20 MHz
of spectrum in 900 MHz band from Vodafone & O2. This spectrum was
allocated in 1985
Returned Spectrum will be allocated to new / other eligible operators
Value of returned spectrum estimated at Rs. 50000 Cr (£ 6 Bn)
Re-farming inter-se operators is practiced and implemented .
In 2004, Regulator directed spectrum re-farming between AT&T & TMobile in New York & California states
Internationally, Regulators have re-farmed spectrum to ensure non discriminatory level playing field &
consumer benefits
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Realignment of spectrum
880 – 890 MHz Band
 Realignment of Spectrum – 4 Carrier Scenario
870.03
871.26
872.26
873.99
875.22
877.95
876.45
879.18
880.41
881.64
883.67 MHz – 890 MHz
1.4 MHz
GB
BSNL
GB
TATA
RCOM
GB
6.33 MHz
890 MHz
879 MHz
869 MHz
 Realignment of Spectrum – 3 Carrier Scenario
870.03
871.26
872.26
873.99
876.72
875.22
877.95
879.18
881.21 MHz – 890 MHz
1.4 MHz
BSNL
869 MHz
GB
TATA
GB
GB
RCOM
8.80 MHz
890 MHz
879 MHz
Note: All the frequencies are in MHz
RCOM & TATA’s to also offer GSM,
Realignment will Improve availability of spectrum
confidential
Capital Efficiency Measures
recommended

Mandate passive infrastructure sharing with price cap

TRAI recommendations of Apr 2007 on sharing of active infrastructure
to be accepted & implemented

DOT to make reference to TRAI for sharing of spectrum
- Internationally active infrastructure sharing & spectrum sharing is done
to deploy network in rural areas to reduce CAPEX,

DOT to make reference to TRAI Mandate Inter & Intra circle roaming in
GSM and CDMA
These measures will be in further overall interest of consumers
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Summary –
Re-farming & Capital Efficiency measures



Inter-se re-farming of spectrum in 900 & 1800 MHz bands.
Realignment within 800 MHz band
To improve capital productivity, capital efficiency measure such as
- Sharing of passive and active infrastructure and spectrum sharing
Improves availability of spectrum
Optimum utilization of spectrum
Promotes quality
Accelerates with increased competition
Achieves capital productivity
Win-Win-Win for all stake holders – Customers, Government & Operators
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Summary - Recommendations











Reliance fully supports TEC criteria for spectrum allocation
TEC criteria should be the base & further tightened
Start up spectrum of 6.2 MHz to be allocated to all new GSM entrants
Refund of excess spectrum by the existing operators as determined by TEC
and beyond contracted 6.2 MHz
Inter-se re-farming of spectrum in 900 & 1800 MHz bands
Allocate maximum 4.4 MHz of spectrum in 900 MHz band to all existing
operators & new entrants.
Realign spectrum within 800 MHz band to increase the availability of
spectrum for GSM for RCOM & TATA’s
Annual spectrum charges should be increased at least to the level
recommended by TRAI to ensure efficient use of spectrum – scarce resource.
Mandate passive infrastructure sharing
Accept TRAI recommendation on active infrastructure sharing.
DOT to make reference to TRAI for sharing of spectrum and Mandate Inter &
Intra circle roaming in GSM and CDMA
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Thank You
Back Up Slides
RCOM estimation on TEC Subscriber Criterion’s
Calculation Process - Delhi Case study
Morphology
Area
(in Km²)
Traffic
Density
(w.r.t. DU)
Traffic Ratio
Sites
(Area * Traffic Distribution No. of Sites
Density)
(in %)
Subs
Capacity
(in Mn)
Resulting
Subs
Intersite
cell range
density (Per
Distance (Km)
(Km)
Km²)
Dense Urban
37.7
100%
12%
10%
235
0.43
0.29
0.430
11517
Urban
188.3
40%
24%
20%
470
0.77
0.45
0.680
4095
Sub Urban
753.2
12%
29%
40%
940
1.35
0.64
0.962
1792
Rural
903.8
12%
35%
30%
705
0.58
0.81
1.216
640
Total
1883
100%
100%
2,350
3.13
0.55
0.823
1664
Various deliverables as outlined in the workflow diagram of TEC recommendation
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Spectral Efficiency in Cellular network
1. Address the capacity demand with
available spectrum
4. Avoid site
acquisition related
delays for capacity
built-up.
Spectral
Efficiency
Benefits
2. Maintain desirable
QoS for the growing
Network.
3. Optimized Capex & Opex due to
addition of new sites.
Spectrum efficiency techniques should be implemented voluntarily by the operators rather then being enforced by
Regulatory Authority .
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Technology Innovation – 2 (Cont.)
DFCA (Dynamic Frequency and Channel Allocation)

Commercial Deployment:
- Key operators who have implemented DFCA commercial network.





T-Mobile (USA),
AT&T (USA)
Conecell (Ecuador)
China Mobile
Telefonica (Columbia)
- Typical improvement statistics shown in table. (Huston)
KPI
Asynchronous
Synchronous
DFCA
Effective Frequency Load
12%
16%
21%
Total max Traffic/sector
68.5
90.9
113
Capacity Gain wrt Asynchronous
Network
-NA-
33%
65%
In live commercial network capacity enhancement of 65% observed.
Source: Nokia-Siemens
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Increase in TRAI Subscriber criteria (CDMA)
Due to technology Innovations – Case study for Delhi

Capacity of CDMA
for 2.5MHz spectrum
is 6 times than that
projected by TRAI
Similar observation
is for other
allocations.
25.00
Subs Capacity (in Mn)

20.00
RCOM Estimate
15.00
4GV Vocoder
10.00
Innovation Techniques
5.00
0.00
2.5
3.75
5
6.25
Spectrum Allocation (in MHz)
Spectrum
Allocation
(MHz)
TRAI
Criteria
2.5
Subscriber Nos.
( in Mn)
No. of times w.r.t
TRAI Criteria
4GV
Vocoder
Innovation
Techniques
4GV
Vocoder
Innovation
Techniques
0.5
1.6
3.1
3.2
6.2
3.75
2.0
7.1
13.7
3.6
6.9
5
3.0
9.5
18.3
3.2
6.1
6.25
5.0
11.8
29.0
2.4
5.8
TRAI Criteria can be enhanced by more than 5 ~6 times using Technology innovation
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Technology Innovation
Application on 4.4MHz
Standard
2001
Advanced
2007
Innovative
Q2 2008
 Uplink/downlink DTX
 Uplink frequency scan
 Uplink interference band
measurement
 Dynamic power control
Dynamic MAIO
SAIC
Tight BCCH Reuse
Synchronized Network
AMR FR/HR
DFCA
Antenna hopping
AMR 100%
 Frequency hopping
Interference Counteract Combining
Repeated FACCH /SACCH
Advanced Power control
Peak Configuration:
S2/2/2
Peak configuration:S3/3/3
25 Erlang /site
99 Erlang/site
Peak configuration:S4/4/4
143 Erlang/site
6times capacity improvement in 4.4MHz band.
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International Case StudyRe-farming spectrum to reduce from 20MHz to 10MHz
No of Sites in 20MHz
No of Sites in 10MHz
2,000
1,800
1,600
BTS configuration
not applicable for
10MHz.
No of Sites
1,400
1,200
T-Mobile (NY) was serving
3 million subs using 20 MHz .

10 MHz be surrendered
owing to contractual obligations

1,000
800
600
400
T-Mobile had no option but
to opt for innovative techniques
to support the growing subscriber
base.

200
0
2/2/2
4/4/4
6/6/6
8/8/8
10/10/10
BTS Configuration
Solutions Implemented :
100% AMR-HR introduction
Introduction of Synchronized Network
SAIC
12/12/12
Re-farming of the Spectrum can be implemented seamlessly
Source: T-Mobile, USA
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900 band spectrum advantages over
1800 band Spectrum
Higher Range : (Better Coverage)

- ‘Lower the radio frequency, higher the transmission range’
- Achievable by GSM 900 cell is double of GSM 900 cell1
Less no. of Sites: (Substantial reduction in Capex)

- For equivalent coverage, site requirement with GSM 1800 is 4 times of GSM
9002.
Better Indoor coverage: (Improve QoS)

- much better in 900 Mhz than 1800 Mhz , to provide equivalent levels of deep,
dense urban coverage, more cells are required at 1800 MHz than at 900
MHz1
Better Operation at high speed1: (Improve QoS)

- The specifications for GSM 900 and GSM 1800 include an upper ‘speed limit’
for the handset, above which the radio connection is not guaranteed. For
GSM 900 this is 250km/h, and for GSM 1800, 125km/h.
1.
OFTEL
2.
Denmark Regulator
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Spectrum charges




It is almost impossible for regulation to keep pace with technology
advancement
In addition to appropriate spectrum allocation criteria, there is need for
mechanism to ensure efficient spectrum utilization on ongoing basis.
Current recurring spectrum charges as well spectrum charges recommended
by TRAI have lower per MHz charges beyond 8 MHz
Spectrum charges for 900 MHz band spectrum should be 20% higher than
charges for 1800 band spectrum
Spectrum in MHz
Existing Charges
Charge/MHz
4.4
2%
0.45%
6.2
3%
0.48%
8
4%
0.50%
10
4%
0.40%
12.4
5%
0.40%
15
6%
0.40%
TRAI Recommended 2%
Charge/MHz
0.45%
3%
0.48%
4%
0.50%
5%
0.50%
6%
0.48%
7%
0.47%
Proposed
Charge/MHz
3.0%
0.48%
8.0%
1.00%
10.0%
1.00%
12.4%
1.00%
15.0%
1.00%
2.0%
0.45%
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