Reliance Jio's 4G service launch

Reliance Jio's 4G service launch

LTE service bands in India:

There are two type of LTE service bands.
FDD:    LTE Band#3, LTE Band#5
TDD:    LTE Band#40

LTE Band#3 is also known as 1800 MHz band [UL 1710 ~ 1785, DL 1805 ~ 1880 MHz]
LTE Band#5 is also known as 800 MHz band [UL 824 ~ 849, DL 869 ~ 894 MHz]
LTE Band#40 is also known as 2300 MHz band [UL 2300 ~ 2400, DL 2300 ~ 2400 MHz]

Spectrum Auction 2015:

Department of Telecommunication notified auction of telecommunication spectrum in Feb,2015 and this auction procedure has been completed by April, 2015. 800 MHz, 900 MHz, 1800 MHz and 2100 MHz spectrum was on auction. which mean LTE B3, B5 spectrum was too on auction. These auctioned spectrum is licensed to winner till year 2035 (for 20 years).

When were B40 spectrum auctioned?
LTE B40 spectrum (2300 MHz) was auctioned in 2010 and purpose of this spectrum was Wireless Broadband. and Fact is that it was auctioned on dirt cheap price compare to current price.

If 2300 MHz was for BWA then how it can be used for LTE?
Originally 2300 MHz spectrum was auctioned for BWA services in India. Qualcomm, Infotel and many other companies got this spectrum. Qualcomm based company sold its spectrum later to Airtel. Infotel (which suppose to be Reliance's dummy company?) acquired by Reliance after 6 days of result announcement. [10 June 2010 spectrum result out and 16 June 2010 RIL acquired it].

Meanwhile then telecom ministry came up with Unified Telecom Service License policy, which mean it does not matter for which service you got spectrum; operator can provide any telecom service on any spectrum (owned, any band). [This was one of the part of Telecom Ghotata, which was not highlighted]

What Reliance got after acquiring (so called acquiring) Infotel?
Infotel had 20 MHz bandwidth spectrum in all 22 telecom circles. Now this spectrum can be used to provide LTE service pan-India.

What is problem/ technical issue with B40?

LTE B40 is 2300 MHz ~ 2400 MHz TDD spectrum.

1. Due to higher frequency, its propagation is lower. That mean signal can travel for lesser geographical area. It mean to cover a geographical area more tower & network setup is require. Due to these reasons, operator has high CAPEX and OPEX.
2. LTE B40 has indoor penetration issue. Which mean signals are not coming through walls. It directly means poor or no signal quality inside building.

Due to these two reasons RJIL is not able to launch LTE service in India; though it has 20 MHz bandwidth spectrum in all 22 circles. To overcome this situation, RJIL has to have FDD LTE bands B3, B5 spectrum.

RJIL got B3, B5 spectrum in few circles in 2015 spectrum auction. RJIL won B5 in 10 circles (~5MHz BW in these circles). B3 in 6 circles. RJIL has B5 in 10 circles and B3 in 16 circles (5 ~ 6 MHz BW in almost all 16 circles).

But...
This spectrum is Not Continuous. It is fragmented in many circles.

Reliance Jio:

Reliance Jio is a RIL company with main focus on telecommunication and digital broadcasting business. RJIL has invested huge money since last 3-4 years to launch 4G service in India. In recent AGM, Mr. Mukesh Ambani announced that RJIL will commercialize 4G LTE service by Dec 2015.


What are short comings to launch pan-India LTE service?

• B40 is not good to launch LTE services due to technical and higher CAPEX & OPEX.
• B5 spectrum is only in 10 circles and that too only 5MHz BW
• B3 spectrum is in 16 circles and that too has BW aprox 5~6 MHz in these circles
• If we union B3 + B5 spectrum owning circles still it does covers pan-India.
• B3, B5 spectrum is fragmented, it is non-contiguous in many circles.

DoT, Govt. of India has minimum requirement of 5MHz bandwidth in a circle to launch LTE service in that circle by new operator. 5MHz BW is not sufficient enough to provide full grade of service. (e.g. eMBMS can not be happen on 5MHz FDD)

What is Spectrum Swapping and Spectrum Trading?

After 2015 auction results Department of Telecommunication, Government of India has given hint that they can allow spectrum swapping. Which mean service provider can exchange their spectrum with other service provider.
Literal Example: RJIL can exchange 1.4MHz block spectrum with Airtel. Business understanding, money exchange is between RJIL and Airtel. DoT, Govt. of India will receive licence fee for swapping.

Why Govt. of India has given NOD to do spectrum swapping & trading?
DoT, Government of India states that swapping & trading of spectrum will help service providers to re-align their spectrum and to get chance to manage contiguous spectrum.

Who will be main beneficial?
Questions?

1. Does spectrum swapping allow only in intra-circle?
2. Will Inter-Circle spectrum swapping not increase chance of cartel & anti-trust policy?
3. Will it not impact on future auctions? Service provider will pre-fix and will not compete each other for specific spectrum. Because they can swap / trade spectrum later. Loss of Government of India and trade benefit of service providers.

It is known fact that RJIL is going to launch 4G LTE service soon.

• Even a dumb can predict who is most beneficial of spectrum swapping and trading?
• Reliance has to launch Pan-India 4G service on 2010 auctioned spectrum by June 2015? Why Government of India is liberal on that?

What is difference between NDA's Modi Government and UPA's Manmohan Singh's goverment w.r.t to spectrum & telecom policy?