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Draft Report of the PAC on 2G and 3G Spectrum Allocation

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Draft Report of the PAC on 2G and 3G Spectrum Allocation REPORT PART – I CHAPTER - I BACKGROUND 1.1 In recent times, India has emerged as one of the most dynamic and promising and fastest growing telecom markets in the world. It has third largest overall telecom network and the second largest wireless network in the world. Mobile telephony and thus Spectrum have played a vital role in the stupendous growth of the telecom services in India. The word ‘Spectrum’ basically refers to a collection of various types of electromagnetic radiations of different wavelengths. Radio frequency Spectrum is a limited global natural resource with a high economic value, due to its heavy demand in the telecommunication sector. It is a finite but non-consumable natural resource. But it will be wasted if not used efficiently. In India, the radio frequencies are being used for around forty different types of services like space communication, mobile communication, broadcasting, radio navigation, mobile satellite service, aeronautical satellite services, defence communication etc. 1.2 Some of the important and typical characteristics of the radio frequency Spectrum are as below: (i) Radio frequency spectrum does not respect international geographical boundaries as it is spread over a large terrestrial area. (ii) Use of radio frequency spectrum is susceptible to overlapping interference and requires the application of complex engineering tools to ensure interference free operation of various wireless networks. (iii) Unlike other natural resources, radio frequency spectrum is not consumed upon its usage. It is also liable to be wasted if it is not used optimally and efficiently. Radio frequency spectrum usage is, therefore, to be shared amongst the various radio services and must be used efficiently, optimally and economically in conformity with the provisions of national and international laws. -2- 1.3 The limitation of the radio frequency Spectrum is mainly due to the following factors: (i) Propagation characteristics of different types of radio waves. (ii) Availability of technology and equipment for different types of radio frequency spectrum applications. (iii) The suitability of frequency bands for specific applications. 1.4 Spectrum allocation is important and necessary to ensure interference free operation for each radio service. All nations share the electromagnetic Spectrum and reserve their right to its unlimited use. However, with a view to facilitating international telecommunication cooperation to support trade, transportation, communications and mutual protection against interference, all the countries have agreed to an International Telecommunication Convention. Thus, Spectrum frequencies for the use of various countries are allocated by the International Telecommunication Union (ITU) at the ‘World Radio Communication Conferences’ which are held every three/four years. The last conference was held in 2007. Allocations are made on a regional basis and for different types of services. It is mandatory for all the countries to adhere to these allocations. India comes in the region number three. 1.5 For the purpose of Spectrum allocation each member country submits its proposal to the ITU, based on their requirements and priorities for opening of the bands. During the conferences, all the proposals are discussed and decisions are accordingly taken for opening of the bands for new services or extension of the existing bands. These decisions are reflected in the International Frequency Allocation Table of the radio regulation and other regulatory provisions for use of the bands which forms the basis for allotment by the member countries. 1.6 Each frequency band is shared amongst various radio services but the sharing is possible only with the use of similar systems. Sharing is also possible by way of geographical separation, time-sharing through technical solutions like smart antenna and intelligent radio system. In India, the radio frequencies are confined between 9 KHz and 400 GHz. -3- 1.7 The Wireless Planning and Coordination (WPC) Wing in the Ministry of Communications and Information Technology (Department of Telecommunication) created in 1952 is responsible for Spectrum Management, Wireless licencing and frequency assignments. WPC is divided into major sections like Licensing and Regulation (LR), New Technology Group (NTG) and the standing Advisory Committee on Radio Frequency Allocation (SACFA). SACFA makes the recommendations on major frequency allocation issues, formulation of the frequency allocation plan and making recommendations on various issues related to the ITU to sort out the problems referred to the Advisory Committee by various wireless users. 1.8 The National Frequency Allocation Plan (NFAP)–1981 forms the basis for identification of the frequency bands to be allocated for various major users, Spectrum utilization and development and manufacturing of wireless equipment in the country. The NFAP was earlier officially considered as a classified document. But the New Telecom Policy 1999 decided that it should be made a public document and the Spectrum allocation should be made in a transparent manner. On 1st January, 2000 the DoT made the NFAP a public document after due consultations with all the stakeholders. The NFAP is reviewed periodically by the DoT and currently the NFAP, 2008 is in vogue. The Plan contains the service options in various frequency bands for India and also provides the channeling plan in different bands. Frequency bands allocated for certain types of radio services in India are as under: Frequency Band Services Martine, Aeronautical Navigation, Medium (i) 9 KHZ - 525 KHZ - Wave Broadcasting Marine and Aeronautical Navigation, short wave broadcasting, Amateur (Hour) radio and (ii) 525-1625 kHz - Cordless Phones. (iii) 1.6-30 MHz - Fixed, Mobile, Maritime, Broadcasting Fixed Mobile , Broadcasting, Aeronautical (iv) 30 -87.5 MHz - Navigation (v) 87.5 - 108 MHz - FM radio Aeronautical Mobile (R ), Radio Navigation and (vi) 109 - 173 MHz - Outdoor Broadcast vans. (vii) 174 - 230 MHz - Television Broadcasting Radio Astronomy, Fixed Mobile Aeronautical, (viii) 230 - 450 MHz - Radio Navigation, Radio Pegging -4- (ix) 450 - 585 MHz - Broadcasting, (x) 585 - 698 MHz - Fixed Mobile , (xi) 698 - 806 MHz - Fixed Mobile , (xii) 806 - 960 MHz - GSM & CDMA mobile services (2G), Trucking Mobile satellite, Fixed Mobile Radio Location, (xiii) 960 - 1710 MHz - Radio Navigating Satellite, Aeronautical Mobile. (xiv) 1710 - 1930 MHz - GSM Services (2G), Fixed Mobile (xv) 1930 - 2010 MHz - Fixed Mobile (xvi) 2010 - 2025 MHz - Fixed Mobile (xvii) 2025 - 2110 MHz - Satellite and Space Operation, Fixed Mobile (xviii) 2110 - 2170 MHz - 3 G, Fixed Mobile (xix) 2170 - 2300 MHz - Fixed Mobile (xx) 2300 - 2400 MHz - BWA, Fixed, Mobile (xxi) 2483.5 - 2500 MHz - Fixed, Mobile 2500 -2690 MHz - MSS. BWA, BSS (xv) 3300 - 3600 MHz - ISP, Satellite Space research radio navigation, Satellite (xvi) 3600 - 10000 MHz - Communication (xvii) 10000 - 14000 MHz - Satellite Communication and DTH services (xviii) 14000 -23000 MHz - Fixed, Mobile Satellite (xix) 23000 -24000 MHz - Radio Location (xx) 24000 – 27000 MHz - Aeronautical, Radio Navigation (xxi) 2690 -3200 MHz - Radio Location (xxii) 3400 - 7125 MHz - Satellite Communication (xxiii) 7125 – 10000 MHz - Fixed Microwave links, X- Band Radar 1.9 In India the Cellular Mobile Service Providers (CMSPS) use two types of technologies viz. Global System for Mobile Communication (GSM) and Code Division Multiple Access (CDMA). The allocation of Spectrum to the CMSPs depend on the type of technology they use. 1.10 GSM is a digital mobile telephony system which uses a variation of Time Division Multiple Access (TDMA) and is widely used world over. It operates in the 900 MHz or 1800 MHz frequency band. CDMA technology allows many users to occupy the same time and frequency allocations in a given band/space. As its very name implies, CDMA assigns unique codes to each communication to differentiate it from others in the same Spectrum bands. It operates in the 800 MHz and 1900 MHz bands. Presently 25 MHz Spectrum in 900 MHz band (890-915/935-960 MHz) and 75 MHz in the 1800 MHz band (1710-1785/1805-1880 MHz) are earmarked for the GSM -5- services. Spectrum for the rollout of 3G services (voice, data & video were allotted through e-auction in the 2.1GHz (1920-1980/2110-2170 MHz) band. The details of 2G & 3G Spectrum bands are elucidated at Annexure-I. 1.11 All the above bands were historically allotted to the defence for their mobile and point to point communication needs in India. Therefore, their cooperation was also required to make the bands available for commercial use. To facilitate the same, the Government of India have been allocating funds from time to time to provide Optical Fiber Cable (OFC) for use by the defence and consequent vacation of Spectrum for commercial purposes. 1.12 Before the mobile telephony came into existence in India, there was hardly any commercial value of Spectrum, rather it was practically none. That is why in the 1980s, it was allocated to various Departments without any charge. The demand for Spectrum was felt in 1994 when in accordance with the National Telecom Policy, 1994 (Annexure-II), the Telecom service sector was for the first time opened up for Private sector participation to complement the efforts of the Department to raise additional resources through increased international generation and adopting innovative means like leasing, deferred payments etc. The Licensing of Cellular Mobile Services in accordance with the objectives enunciated in NTP–1994 was initially done in two phases. 1.13 In the first phase, two Cellular Mobile Telephone Service (CMTS) licences were awarded in November, 1994 in each of the four Metro Cities of Delhi, Mumbai, Kolkata and Chennai on a Beauty Parade basis which meant that the Spectrum prices to be fixed in such a manner so as to ensure its optimum utilization by awarding it to the user(s) who scored the highest against a group of present criteria such as rural coverage or the fulfillment of the roll out obligations. Licence fee for the above two licences was predetermined. Spectrum Charges and Royalty for use of Spectrum were payable separately.
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