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Revamp wireless administration

There is a need to move the Wireless Planning and Coordination up in the organisational chart, even placing it in the PMO. The time has come to make this a reality

The recent auction of 900 MHz and 1800 MHz bands garnered R62,162 crore for the government and underscored the value of spectrum for the Indian economy. But the jubilation over revenue collection has to be tempered with a sober reflection of the high level of spectrum prices in India compared to global benchmarks.

The winning bids for 900 MHz in Delhi, Mumbai and Kolkata were, on average, about 75% more than the reserve price and about 1.25 times the price of 3G spectrum auctioned in 2010; at about 3 euros per MHz per population, the prices were about 3 times more than the price discovered in recent auctions for similar bands across many European countries and even in the US.

The high prices for spectrum in India as compared to other jurisdictions, despite much lower per capita incomes, reflects the much lower amounts of spectrum released for commercial use. For instance, of the 75 MHz spectrum block in the International Telecommunications Union (ITU) recommended 1800 MHz range, only 55 MHz is available for mobile services. Similarly in 2100 MHz band (used for broadband services), only 25 MHz is available with the Department of Telecommunications (DoT) while ITU recommends allocating 60 MHz for mobile services. Thus the major portion of spectrum used worldwide is not available for mobile services in India.

In India, the Wireless Planning and Coordination (WPC) wing of the DoT is the National Radio Regulatory Authority?responsible for frequency spectrum management, including licensing?and caters to the needs of all wireless users (government and private) in the country. The WPC is headed by a Wireless Advisor.

The National Frequency Allocation Plan (NFAP) is the key policy document which outlines the allocation of different parts of the frequency spectrum for various services and applications. The process of the formulation of the NFAP is not without its share of disagreements. However, in almost all cases, the WPC is able to resolve the issues. The bottlenecks arise when the WPC has to adjudicate between different ministries who are claimants for the same bands of spectrum assigned by the NFAP for a

given service, for example, mobile communication.

In case the mediation led by the WPC fails, then the matter goes to the Telecom Commission, a committee of secretaries that constitutes the apex decision making body on telecommunications in India. If the issue cannot be resolved at this level either, a GoM is constituted by the Cabinet to address the issue. The GoM examines the issue and presents its recommendations to the Union government. It does not have the power to take a decision. In some cases, an empowered GoM (eGoM) with decision-making power may be formed.

In India, almost every significant decision related to spectrum has had to be escalated to the highest levels. In 1997, when the first wave of mobile operators found themselves unable to pay the prices they had bid, a Spectrum Management Committee was set up under the Prime Minister?s Office. The committee decided to bail out the operators by migrating them to a revenue-sharing agreement. The possible litigation by losers in the auction subsequent to a bailout led to the introduction of another private operator and a government operator. The additional spectrum required was expeditiously requisitioned from Defence on account of the involvement of the Prime Minister?s Office.

The next release of spectrum was related to the crisis following the use of CDMA technology by basic service licensees to provide virtual mobility without possessing the necessary cellular mobile license. The resulting furore led to the formation of a GoM in 2002. The GoM in addition to adjudicating the licensing issue also set out a roadmap for achieving 100 million subscribers by 2006. The target was later revised to 250 million subscribers by 2007. An additional 55 MHz of spectrum in the 1800 MHz band was deemed necessary. The cabinet secretary and the principal secretary to the PM had to get involved to get spectrum released.

The various episodes of spectrum release indicate that escalation beyond the standard governance structure is a necessary condition for significant progress in the release of spectrum. The involvement of the PM through the Prime Minister?s Office or the Cabinet Secretary is the de facto standard procedure in spectrum matters.

The coordination issues related to spectrum are far from over. Currently, the two major unresolved issues include the release of 700 MHz spectrum for 4G services, freed up by the transition to digital broadcasting, and the swapping of 1900 MHz spectrum currently earmarked for commercial mobile use with 2100 MHz held by Defence to be used for enhancing the faltering 3G rollout.

To resolve these issues at the earliest and to keep spectrum price within manageable limits, it is important to move toward an organisational structure that adequately recognises the multi-dimensional role of spectrum in national security, development, and growth. At various stages, including the draft Convergence Bill of 2002, it has been proposed to move the WPC up in the organisational chart, with some recommendations even placing it in the PMO. The time has come to make this a reality.

With inputs from PK Garg, former Wireless Advisor to the Government of India.

Prasad is a professor at MDI and Sridhar is with Sasken Communication Technologies. Views are personal

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First published on: 26-03-2014 at 02:28 IST
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