MIUI News Team

Rank: 6Rank: 6

Credits
21366
Device
Redmi 3S Prime
Online time
399 Hours
Send PM

Mi Power BankUnlock MedalMi T-ShirtMijia Smart ShoesMi  BunnyYi Action CameraMi BandMijia 360° Panoramic CameraNinebot MiniMi WiFi RouterMi HomeMi Notebook AirMi Bluetooth HeadsetNinety Degree LuggageAnTuTuI Love MIUIAwesome!MIUI Devices ContestSuper Sunday2 Million Forum Members1st AnniversaryMIUI SMIUI Lucky FridayHappy Singles' DaySuper SaturdayMIUI World TourMid-Autumn FestivalMIUI Forum AppMIUI Marathon MedalFan Of MIUI IndiaMIUI PXiaomi 6th AnniversaryPuzzle MasterMIUI Happy MedalWomen's Day Medal5 Million Forum App Installs10 Million Forum PostsSuper MondayMIUI 9Rocket to FutureHappy Valentine's DayGamer Mi BunnyMiPopMIUI 8th AnniversaryMi DropHeart to Heart10 Million Forum MembersMIUI Weekly Devices QuizMIUI Halloween 201813 Million Forum MembersIndia Independence DayScroll Of Wisdom2017 Annual AwardsMIUI 10Dual CameraStar Wars7 Million Forum MembersMIUI Halloween 2017Master Of TechnologyHumor Master8 Million Forum MembersMi TalentSurpriseOTA FeedbackForum Contest LoverMIUI FB FollowerMIUI KingMi Story TellerXiaomi 8th AnniversaryDebate MasterMi Lover MedalBlack SharkAndroid GuruStar Of TechnologyPioneer of MIUI English Forum 25 Million StrongDie-hard MIUI FanApp StarMost Active MIUIerMIUI Quick DiscussionMIUI FollowerNougat9 Million Forum MembersQuick Survey

[News] Trai, DoT must rationalise spectrum reserve prices for 5G

[ Promote]
286 1 |
00:48, Sep-16-2018 | From Redmi 3S
|
|
Go to reply no.
This post was edited by 1654363262 at 22:22, Sep-15-2018

images_1536726404608.jpeg


August 2018, the Telecom Regulatory Authority of India (Trai) released recommendations for the auction of, and the reserve prices for, the 700, 800, 900, 1800, 2100, 2300, 2500, 3300-3400 and 3400-3600 MHz bands of telecom spectrum. The recommendations have important implications for the sector, not only because Trai is considering making more spectrum available but, more significantly, new 5G bands (3300-3600 MHz) will be auctioned for the first time.

In the last auction held in 2016, the 700 MHz, a highly prized band because of its ability to provide cost-effective coverage, did not attract any bids. Other bands also had a lukewarm response, despite the relatively lower amount of spectrum held by Indian operators with respect to global operators. The final bid prices were very close to the reserve price. The high reserve prices were cited as reasons for the outcome.

Historically, both market and reserve prices of spectrum in India have been high compared to other developing countries. A recent report from the industry body GSMA that tracked and analysed 1,000 spectrum assignments across 102 countries during 2010-17 has revealed that developing countries have higher spectrum costs and lower mobile service levels.

While high spectrum auction prices contribute to government revenues, in India, past auctions have contributed revenues below expectations and have created a high debt burden for the sector estimated at $76.9 billion. This has slowed the deployment of networks and technologies.

Trai’s method of arriving at the reserve price in many cases is based on linking it to the bid price in the previous auction. But the valuation and, hence, auction prices in subsequent years are not necessarily going to be higher than in the previous rounds. There are several factors that determine the valuation of spectrum, including the amount of spectrum available in different bands, expectations from the next round of auctions, band characteristics, amount of spectrum held by the bidder, state of the technology ecosystem, the business strategy and regulation such as spectrum caps per band or overall caps, rollout obligations, etc.

Right of Entry Reserved


Another aspect of Trai’s determination of reserve price is linking it with technical efficiency with respect to some other band, as was done for the 3300-3600 MHz band. Similar logic has been applied to estimating the 700 MHz reserve price, which is set at two times that of 1800 MHz.

However, auction prices are determined by considering more than just the technical efficiency of different bands. This is evident from the spectrum auction outcomes in other countries. For example, the per-MHz price in 700 MHz was lower than that in both 1800 MHz and 900 MHz bands in Germany in the auctions concluded in June 2015, and it was half the price of the 800 MHz band in auctions in Iceland in May 2017.

Another dimension of reserve price determination has been linking it to the winning bid of 1800 MHz band. While 1800 MHz is an important band for 4G LTE deployments, operators are actively acquiring the 3300-3600 MHz band as it allows for coverage-capacity tradeoff. Not only does 3300-3600 MHz provide for better capacity than the existing bands, it also allows higher coverage in comparison to other 5G pioneer bands in higher frequencies.

Consequently, countries seeking to encourage the offtake of 5G have kept low reserve price for this band. In India, the reserve price of this band, both in purchasing power parity terms and exchange rate, is higher than that in countries like Ireland, Spain, UK and South Korea — which had the highest reserve price — where auctions have concluded recently.

Given that the operators in most countries already have higher total bandwidth than with those in India, high spectrum costs are an additional burden for the latter. This is because, to manage with smaller bandwidths, operators have to deploy more equipment, in order to provide similar throughput or coverage. Additionally, the lower GDP/ capita for India will make it more difficult for Indian operators to be commercially viable.

Further, the lower smartphone penetration, at around 30%, albeit increasing, and the regulatory burden in terms of spectrum usage charges (SUC), and other levies that constitute nearly 30% of the revenues constrain the competitiveness of Indian operators.

The regulatory burden could be reduced by a variety of means. Recognising that the ecosystem in various bands has not reached similar levels of maturity, some governments are contemplating less onerous payment terms. For example, in Italy, in the auctions this month, winning bidders are expected to pay only 20% of the 700 MHz price upfront. The remaining is staggered with payments due in 2022, which is the estimated year when the ecosystem is expected to stabilise.

Auction Action


Additionally, since an important objective of auctions is to arrive at a market-discovered price, the reserve price should be kept at a fraction of the last auction price to allow for competitive bids. Lower SUC charges also reduce the regulatory burden.

With the existing high debt burden, and just three private operators, the market price for spectrum is likely to be subdued. It is imperative that Trai and the department of telecom rationalise the reserve prices.



Source:- VISIT

Disclaimer: This is a reproduced article and the copyright rests with the original author. The views in this article are not from MIUI News Team, or MIUI Global Forum. If there is any disagreement, please contact the Forum Management Team to delete it.
Favorite Share

Supreme Member

Rank: 7Rank: 7Rank: 7

Credits
83307
Device
Redmi 4
Online time
1175 Hours
Send PM

Mi Notebook AirMi TV 70Mi BoxMi  BunnyMi Power BankMijia 360° Panoramic CameraMijia Smart ShoesMijia Walkie TalkieMi MIXMi ScaleMi WiFi RouterMijia Smart PTZ CameraMi HeadphonesMijia Electric ScooterMi T-ShirtYi Action CameraMi BandNinety Degree LuggageMi Bluetooth HeadsetMi HomeNinebot MiniMijia VR Play 2Magic CubeMi Kids WatchMi VRMijia Story TellerMi Band 2Unlock MedalMi Bluetooth SpeakerXiaomi 6 LaunchXiaomi 7th AnniversaryAwesome!Fantastic!AnTuTuI Love MIUIMarshmallowFlashholicMIUI 8MIUI Devices ContestRedmi 2Redmi 4XMi Max 2Mi Pad 2Mi TVMi 4iMi 5XMi 5Mi Max Redmi Note 3Redmi ProRedmi 3SRedmi 4/Prime/4AMi Pad 3Xiaomi Mi 4Redmi Note 4Redmi Note 4X4 Million Forum MembersXiaomi Mi 63500K Forum MembersSuper MondaySuper ThursdaySuper FridayMIUI Happy Medal2 Million Forum MembersSurge S1MIUI Lucky FridayRooster Year of 2017300K Forum MembersHappy Singles' DayFan Of MIUI AustraliaMIUI Weekly PollMIUI World TourMIUI Fan From IndonesiaSuper SundayRingolicious MedalRocket to FutureMIUI 2017Puzzle MasterMIUI Font LoverSuper SaturdayMIUI Forum App5 Million Forum App InstallsSuper WednesdaySuper Tuesday10 Million Forum PostsHappy Holi MedalFan Of MIUI RussiaMIUI 9Happy DiwaliMIUI PMIUI Marathon Medal90000 Forum MembersFan Of MIUI IndiaXiaomi 6th AnniversaryMIUI 7th AnniversaryMIUI Fan From PhilippinesAtaturk MourningFan Of MIUI GreeceMIUI SMIUI 20 Million UsersHappy Valentine's DayMid-Autumn FestivalHappy New YearMIUI 50 Million UsersFan Of MIUI SpainMerry ChristmasFan Of MIUI BangladeshDiwali MIUI Fan from Turkey100k Forum MembersHilal Ramadan 1st AnniversaryMIUI Philippines Fan MeetupXiaomi 5th AnniversaryMIUI 100 Million UsersWomen's Day Medal500K Forum MembersI Love Mi BunnyGamer Mi BunnyAlpaca Mi Bunny MiPopSummer Mi BunnyMIUI ReviewMIUI Halloween 2018MIUI Weekly Devices QuizRedmi Note 5/ProHeart to Heart8 Million Forum MembersMIUI Quick Discussion13 Million Forum MembersPOCO F1MIUI FB FollowerHumor MasterDual Camera9 Million Forum MembersApp StarMIUI 8th Anniversary10 Million Forum MembersBlack SharkQuick SurveySurprise5 Million Forum MembersMi DropOreoMIUI 10Xiaomi 8th AnniversaryMIUI Weekend GiveawayDiscuss HereMIUI KingMIUI Halloween 2017Mr. DependableMIUI SuperstarMIUI G+ FollowerRingtone ExpertIndonesia Independence DayRedmi Quiz MasterMi Bunny Game Master India Independence Day25 Million StrongRedmi Note 5A/PrimeRedmi Y1/Lite7 Million Forum MembersRedmi 5/PlusMi A1Redmi 5AStar Wars6 Million Forum MembersMIUI Twitter Follower2017 Annual AwardsMi 5XMi MIX 2MIUI Medals CollectorMIUI Android 4.4 KitKatMi TalentRingtone Star Scroll Of WisdomDie-hard MIUI FanAndroid ElfMaster Of TechnologyDebate MasterAndroid GuruYouth PledgeForum Contest LoverMIUI ExpertMost Active MIUIerMi Lover MedalTechnology GuruStar Of TechnologyUpdates LoverPioneer of MIUI English Forum Theme TalentMost Popular Forum UserMi Story TellerNougatOTA FeedbackMIUI Follower

11:55, Sep-16-2018 | From Redmi Note 4X
|
Thanks for sharing

Credits Management

Quick Reply Top Return to the list