Page 158 - SAMENA Trends - July-August 2022

REGULATORY & POLICY UPDATES SAMENA TRENDS

The government has ordered state-owned telco billion on pan-India 3.5GHz and 26GHz spectrum
Bharat Sanchar Nigam Limited (BSNL) to only work alongside 900MHz (three circles), 1800MHz (six
with domestic vendors for its 4G and 5G projects, the circles) and 2100MHz (six circles) blocks. Regarding
Times of India writes. The localization effort is part its strategy, in particular its decision to eschew the
India of the government’s ‘Make in India’ policy, which aims 700MHz band, Airtel CEO Gopal Vittal was quoted as
saying: ‘This spectrum acquisition … has been a part of
to fuel the growth and development of the country’s
manufacturing industry by encouraging the use of goods a deliberate strategy to buy the best spectrum assets
and services produced in India. During discussions with at a substantially lower relative cost compared to
BSNL’s management, communications minister Ashwini our competition. This will allow us to raise the bar on
Vaishnaw was quoted as saying of the operator’s long- innovation and address the emerging needs of every
delayed network upgrade and expansion plans: ‘We are discerning customer who demands the best experience
infusing so much money (through the revival package) in India.’ Vi’s total spend amounted to INR187.8 billion
because BSNL is as strategic company in a strategic and included the purchase of 5G spectrum in the 3.5GHz
sector. In a strategic public sector undertaking (PSU), band for 17 circles and the 26GHz band in 16 circles. Vi
we will use only trusted inputs and technologies which also acquired additional 4G spectrum in three circles:
are “Made in India” under the ‘Atmanirbhar Bharat’ [self- 1800MHz and 2500MHz spectrum in Andhra Pradesh;
reliant India] program.’ The official went on to dismiss 2100MHz spectrum in Karnataka; and 2500MHz in
doubts regarding the reliability of locally developed Punjab. Finally, Adani paid a total of INR2.1 billion for
solutions, saying that some ‘teething problems’ were to 26GHz licenses in six circles: Andhra Pradesh, Gujarat,
be expected but would be addressed and improved over Karnataka, Mumbai, Rajasthan and Tamil Nadu.
time. The government last month approved a revival (August 2, 2022) www.commsupdate.com
package for BSNL valued at more than USD20 billion,
including funds for the allocation of 4G airwaves and The Department of Telecommunications (DoT) has
the rollout of 4G infrastructure. published a consultation paper on the need for an
(August 15, 2022) www.commsupdate.com overhaul of the legal framework governing the country’s
telecommunications industry. The short document
India has completed its 5G spectrum auction, which saw argues that, in light of the rate of change in the market
the four bidders – Reliance Jio Infocomm (Jio), Bharti in recent years, there is a need for the regulatory
Airtel, Vodafone Idea (Vi) and Adani Data Networks environment to be updated to keep pace with those
– spend a total of INR1.5 trillion (USD18.97 billion) developments. The DoT’s paper provides little in the
on frequencies in the 700MHz, 800MHz, 1800MHz, way of specific proposals and the ministry has invited
2100MHz, 3.5GHz and 26GHz bands. There were comments from industry stakeholders by 25 August
few surprises in terms of bidding, with mobile market 2022. In terms of specific plans, DoT said that the new
leaders Jio and Airtel spending heavily to shore up their law should simplify the regulatory framework whilst
4G spectrum holdings and prepare for their respective providing for continuity of existing rules and guidelines
5G launches, whilst cash-strapped Vi bid more to minimize disruption and promote investment. In
conservatively on 5G airwaves in selected markets, and particular, the new law should not modify terms and
newcomer Adani acquired 5G frequencies in a handful of conditions with retrospective effect in a way that would
selected markets. Notably, the sale saw the Department negatively impact those affected by the change. The
of Telecommunications (DoT) finally offload a portion of new law should also provide for the licensing of new
700MHz frequencies, after its previous two attempts to players within the value chain such as infrastructure
sell spectrum in that band failed due to the high reserve providers, Right of Way (RoW) providers and service
prices set by the government. Prices for the sub-GHz providers. The paper highlights seven key areas that
band were still set too high for most of the participants, need to be addressed, the majority of which have been
however, and only Jio bid for the frequencies, securing contentious issues over the last decade. The topics in
2×10MHz nationwide. Jio’s total spend at the auction question are: spectrum management, which the DoT
was INR880.8 billion, nearly half of which (INR364 says should be more flexible; RoW, with the development
billion) was from its pan-India 700MHz purchase. In of common ducts and an effective dispute resolution
addition to the 700MHz band, Jio also acquired pan- process to be priorities; the scope of the Universal
India spectrum in the 3.5GHz and 26GHz ranges, as Service Obligation Fund (USOF); the development of a
well as 800MHz airwaves in four circles and 1800MHz system to ensure that penalties are proportionate to
in six. In a statement following the auction, Jio said offences; public safety and national security, including
that it was prepared for a rapid 5G rollout: ‘Jio has provisions for national emergencies and an update set
acquired a unique combination of low-band, mid-band of safety standards for equipment; the simplification
and mmWave spectrum, which coupled with our deep of the procedures for mergers and acquisitions; and
fiber network and indigenous technology platforms will provisions for insolvency with regards to continuity of
enable us to provide “5G Everywhere” and “5G For All”.’ service and spectrum rights.
For its part, meanwhile, Airtel spent a total of INR430.8 (July 25, 2022)

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