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By T.R. Dua, Senior Director March 13, 2009 @ New Delhi

DIGITAL DIVIDEND. By T.R. Dua, Senior Director March 13, 2009 @ New Delhi. CONTENTS. INDIAN MOBILE INDUSTRY REQUIREMENT OF DIGITAL DIVIDEND SPECTRUM FOR MOBILE SERVICES IN INDIA STATUS OF DIGITAL DIVIDEND SPECTRUM IN INDIA STATUS IN INDIA COAI’s VIEWS. INDIAN MOBILE INDUSTRY.

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By T.R. Dua, Senior Director March 13, 2009 @ New Delhi

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  1. DIGITAL DIVIDEND By T.R. Dua, Senior Director March 13, 2009 @ New Delhi

  2. CONTENTS • INDIAN MOBILE INDUSTRY • REQUIREMENT OF DIGITAL DIVIDEND SPECTRUM FOR MOBILE SERVICES IN INDIA • STATUS OF DIGITAL DIVIDEND SPECTRUM IN INDIA • STATUS IN INDIA • COAI’s VIEWS

  3. INDIAN MOBILE INDUSTRY

  4. Subs in million SECOND LARGEST WIRELESS NETWORK IN THE WORLD Growing @ > 10 million per month Source: Wireless Intelligence

  5. INDIAN MOBILE – CURRENT STATUS • 144 operational networks, 101 on GSM • Mobile subscriber base ~ 360 mn • 268 mn (~75%) on GSM • Monthly additions @ 10 million every month • > 8 mn GSM additions; > 75% of the new subs choose GSM • Rural subscriber base served by private GSM operators > 73 million by Nov’08, • Growing @ around 3 million every month, i.e. nearly 40% of the GSM subscriber adds are from the rural areas • Lowest tariffs in the world – USD 0.01 Indian Mobile : Sustained Stupendous Growth

  6. Subs (millions) Year ended March GSM CONTINUES TO PLAY A DOMINANT ROLE GSM is the prime engine for growth of mobile services in India

  7. Enhanced Competition Lowering of ADC Reduction in License Fee Infrastructure Sharing Revenue Share ADC Regime 3rd & 4th Cellular Operator Lowering of ADC CPP Introduced USO 1st Phase NTP-99 Introduction of CDMA THE INDIAN MOBILE : CAUSE & EFFECT Forward Looking Policies, Enabling Regulatory Framework & Strong Industry Actions have Yielded Continuing Customer Benefits Source: TRAI and COAI

  8. IMPACT OF TELECOMMUNICATIONS ON ECONOMIC GROWTH IN INDIA • According to a recently published ICRIER (Indian Council for Research on International Economic Relations)Report: • Telecommunications is a critical building block for the country’s economic development. • Indian states with higher mobile penetration can be expected to grow faster, and by 1.2% points for every 10% increase in mobile penetration rate. • Access to communications needs to be seen as a foundation on which other initiatives can be built. • Information via mobile, such as weather reports and market prices, has begun to have an impact on productivity for the agricultural sector.

  9. IMPACT OF TELECOMMUNICATIONS ON ECONOMIC GROWTH IN INDIA • Small and medium sized enterprises (SMEs) and urban slums gain maximum benefits in enhancing their businesses through the use of mobile services. • In under served areas, mobile phones can help to widen markets, create better information flows, lower transaction costs and substitute for costly physical transport • Real benefits of telecommunications only start when a region passes a threshold penetration rate of about 25%. • Many areas have still not attained that level, which indicates the importance of increasing teledensity as soon as possible.

  10. FUTURE GROWTH OF GSM Million Even at this level, there will be a scope for 100% growth

  11. REQUIREMENT OF DIGITAL DIVIDEND SPECTRUM FOR MOBILE SERVICES IN INDIA

  12. INDIAN SPECTRUM ALLOCATIONS FAR BELOW INTERNATIONAL BEST PRACTICES 2G Spectrum Allocations Average- 22 MHz MHz • Shortage of Spectrum also in 2.1 GHz and 2.5-2.69 GHz band • Due to legacy reasons (Portions of bands being utilized by Defence and Department of Space) Source: Vodafone Study

  13. CHALLENGES FOR INDIAN OPERATORS • India has diverse geography • ~ 70% of the population in rural and remote areas. • Despite explosive growth of mobile services in the country, only 30% penetration achieved so far. • Urban teledensity ~ 60% whereas rural only about 10% • Vast population yet to be covered • Huge funds required to reach the un-served areas • Biggest challenge for operators to maintain lowest tariffs along with these investments

  14. ADVANTAGES OF 470- 862 MHZ BAND FOR INDIA • This band especially relevant for India, as majority of future growth expected from rural India. • Because of its good signal propagation characteristics, less infrastructure is required to provide wider coverage • Communication services can be provided in rural areas at lower cost( savings in capex) • Will help to bridge the ‘digital divide’ in India

  15. STATUS OF DIGITAL DIVIDEND SPECTRUM IN INDIA

  16. NATIONAL FREQUENCY ALLOCATION PLAN • NFAP forms basis for development, manufacturing and spectrum utilization activities in the country among all users. • Subsequent to liberalization in telecom sector, NFAP was revised and NFAP 2000 was brought as a public document. • NFAP 2000 was revised as NFAP 2002 which is presently in force. • NFAP 2002 is presently under review in consultation with all stakeholders taking into account the growing needs of services, emerging new technologies and WRC outcomes.

  17. PROVISIONS OF NFAP • As per, NFAP 2002- • 470 – 960 MHz band is allocated for terrestrial broadcasting & mobile services on primary basis. • 700 MHz Band spectrum, which is from 698-806 MHz, is part of the terrestrial broadcasting band. The following spectrum in 470 – 806 MHz band is available for terrestrial TV broadcasting in the country. • As per NFAP-2002: Source: TRAI

  18. ASSIGNMENT IN INDIA • Doordarshan, the public TV broadcaster in India, is using all the channels in the band 174-230 Mhz for analogue operations. UHF Band IV • There are 14 TV channels available in the UHF Band-IV (470 -582 MHz) with 8 MHz channel bandwidth. • Doordarshan is operating about 330 transmitters in this band. • Doordarshan’s three digital TV transmitters at Kolkata, Chennai and Mumbai are also operating on an experimental basis in this band. • Recently Doordarshan has started its Mobile TV service in Delhi (using DVB-H technology) in this band at channel 26.

  19. ASSIGNMENT IN INDIA UHF Band V • In this frequency band, there are 28 channels available with 8 MHz bandwidth in the sub-band from 582 to 806 MHz. • Doordarshan has not been assigned any channel in this sub-band for analogue TV transmission. • However, frequency earmarking has been made in favor of Doordarshan to operate Digital Transmitters in four Metros.

  20. ASSIGNMENT IN INDIA • In UHF band V, Defence and BSNL are operating point to point microwave links in 610 – 806 MHz, • PPDR has some spots earmarked in 750 – 806 MHz • The UHF Band V above 806 MHz is also shared with other users of spectrum such as fixed and mobile services for transmission of data/voice and video. • Spectrum beyond 806 MHz has been extensively assigned to cellular mobile services etc.

  21. FUTURE PLANS • Doordarshan is in the process of planning for up gradation of its 14 analog TV Channels transmission to digital TV transmission. • The requirement for additional spectrum for digital terrestrial transmission can be met within the broadcasting bands. • As projected by Doordarshan and TRAI, during transition period from analog to digital terrestrial transmission, spectrum requirements will increase and will have to be accommodated in 585 – 698 MHz band. • Accordingly, TRAI has recommended that spectrum for Mobile Broadcast TV be allocated in 585 – 806 MHz band. Commercial launch of digital transmission is expected around the forthcoming Commonwealth Games in 2010

  22. COAI’S VIEWS

  23. ALLOCATION FOR MOBILE SERVICES IN UHF BAND • The NFAP 2002 in India is under revision and the draft revised document states: “In the context of frequency band 585-806MHz, bearing in mind that broadcasting services include mobile TV, requirements of IMT and Broadband Wireless Access (BWA) in the frequency band 698-806 MHz may be considered for coordination on case by case basis, as appropriate.” • However, in line with the WRC-07 outcomes, COAI had suggested the following band segmentation to be incorporated in the revised NFAP: 585-698 MHz be earmarked for Mobile TV 698–806 MHz be earmarked for IMT applications

  24. ALLOCATION FOR MOBILE SERVICES IN UHF BAND • Mobile industry needs only 25% (100 MHz out of around 400 MHz) of digital dividend spectrum. • Sufficient spectrum would be available for broadcasters • This spectrum can be used for enhanced coverage, especially in rural areas for affordable mobile broadband to help develop a knowledge based economy. • In future, mobile broadband channel will also be needed & used by TV industry to deliver content. • For better economics: economic output per MHz is estimated at USD 87 mn for mobile compared to USD 35 mn for digital TV. Source: SCF Associates Study Thus, there is a need to allocate 100 MHz of digital dividend band to mobile services

  25. ISSUES FOR CONSIDERATION • The industry is broadly aware of the earmarking in 700 MHz band, However, exact position is not known • Leads to difficulty in future planning • Timelines for digital switchover & the exact availability of spectrum after that is not defined. • There is no channeling plan available to the industry The above issues make it difficult for the industry to make any future plans We request the Government to transparently share the exact usage of this band as well as the planned channeling plans.

  26. THANK YOU FOR YOUR KIND ATTENTION !!!

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