Wednesday, May 28, 2008

BSNL seeks free WiMAX entry

NEW DELHI: State-owned BSNL has sought that telecom regulator TRAI exempt it from paying any entry fee or licence fee for its upcoming WiMAX (Worldwide Interoperability for Microwave Access) as it planned to provide these services largely in rural India. For private telecom operators and internet service providers, BSNL has sought that the government auction WiMAX spectrum and set a reserve price of Rs 10 crore, Rs 5 crore and Rs 2 crore for A ,B and C circles, respectively.

BSNL was replying to the Trai consultation process to determine the allocation and pricing methodology for new WiMAX frequencies—2.3-2.4 GHz, 2.5-2.69 GHz and 3.3-3.6 GHz bands. BSNL also wants Trai to lay a framework that will allow both telcos and ISPs to bid for WiMAX spectrum.

Telecom regulator Trai too favours a reserve price of Rs 10 crore, Rs 5 crore and Rs 2 crore for A, B and C circles, respectively, for WiMAX spectrum. Trai had arrived at this figure by basing the reserve price for WiMAX auction to be a fourth of that for the 3G spectrum auctions. The world’s largest chip manufacturer Intel and telecom network majors too have also written to Trai endorsing their support for the reserve price proposed by Trai for WiMAX spectrum auctions.

However, other private operators GSM through their industry association — The Cellular Operators Association of India — have told Trai that regulator cannot discuss the pricing and allocation of spectrum in these new WiMAX bands until there is ‘complete clarity on the quantum of radio frequencies available’.

“It is also not clear at this stage how much is the quantum of spectrum that is expected to be available in each band, both in the short as well as medium term. It may be appreciated that the time frame for the availability of spectrum as also its quantum, would be relevant both for issues related to pricing as well as for determining the future plans of the operators,” the COAI said.

WiMAX is an evolving technology that is considered a threat to telecom services, especially third generation mobile services. As per global industry experience, WiMAX offers data speeds that are 10-30 times faster than 3G.

Source: EconomicTimes

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