impact of trai recommendations on tenancies and … of trai recommendations on tenancies and loading...

Impact of TRAI recommendations on tenancies and loading Pankaj Agrawal, Neha Aggarwal

12 September 2013

Discussion document

2

Impact of spectrum re-farming / liberalization: Incumbent with existing 900 MHz spectrum [e.g. Airtel in Delhi]

Spectrum acquisition in auction Incremental

900 MHz 1800 MHz Deployment plan Loading (co-location) Tenancy Comments

1 5 MHz -- •  GSM on 900 MHz band •  Nil •  Nil •  No impact as existing 900 grid

2 10 MHz -- •  GSM on 5 MHz

•  HSPA on 5 MHz

•  Nil •  Marginal increase for infill sites esp. if use 2100 for DC HSPA

•  Use MSR1 base stations

3 5 MHz 5 MHz •  GSM on 1800 MHz

•  HSPA on 900 MHz

•  Additional from antenna slots (if not multi-modal)

•  Marginal increase for infill sites esp. if use 2100 for DC HSPA

•  Replace existing 900 GSM BTS with MSRs

4 -- 5 MHz •  GSM on 1800 MHz •  Nil •  Marginal increase as the ISD2 is already less than 300 meters in Metros

•  Replace existing 900 GSM BTS with MSRs for 1800 MHz

5 -- 10 MHz •  GSM on 5 MHz of spectrum

•  LTE on remaining 5 MHz

•  Nil •  Marginal increase as the ISD2 is already less than 300 meters in Metros

•  Replace existing 900 GSM BTS with MSRs for 1800 MHz

Note: 1. MSA: Multi-Standard Radio 2. ISD: Inter-site distance Source: Capitel Partners, TRAI

3

Impact of spectrum re-farming / liberalization: Incumbent with existing 1800 MHz spectrum [e.g. Idea in Delhi]

Spectrum acquisition in auction Incremental

900 MHz 1800 MHz Deployment plan Loading (co-location) Tenancy Comments

1 5 MHz -- •  GSM on 900 MHz band •  Nil •  Nil •  Grid based on 1800 so no new sites / replace BTS

2 10 MHz -- •  GSM on 5 MHz

•  HSPA on 5 MHz

•  Nil •  Nil •  Grid based on 1800 so no new sites / replace BTS

3 5 MHz 5 MHz •  GSM on 1800 MHz

•  HSPA on 900 MHz

•  Loading only if do not use MSR BTS

•  Nil •  Replace existing 1800 GSM BTS with MSRs for HSPA and GSM

4 -- 5 MHz •  GSM on 1800 MHz •  Nil •  Nil •  -

5 -- 10 MHz •  GSM on 5 MHz of spectrum

•  LTE on remaining 5 MHz

•  Loading only if do not use MSR BTS

•  Marginal increase for in-fill coverage and capacity sites

•  Optional replacement of existing 1800 GSM BTS with MSRs

Note: 1. MSA: Multi-Standard Radio Source: Capitel Partners, TRAI

4

Impact of spectrum re-farming / liberalization: Entrant without any existing spectrum [e.g. Telenor in Delhi]

Spectrum acquisition in auction Incremental

900 MHz 1800 MHz Deployment plan Loading (co-location) Tenancy Comments

1 5 MHz -- •  GSM on 900 MHz band •  Nil •  Deploy MSRs for coverage

•  New tenancies

2 10 MHz -- •  GSM on 5 MHz

•  HSPA on 5 MHz

•  Nil •  Deploy MSRs for coverage and capacity

•  New tenancies

3 5 MHz 5 MHz •  GSM on 1800 MHz

•  HSPA on 900

•  Loading only if do not use MSR BTS

•  Deploy MSRs for coverage and capacity

•  New tenancies

4 -- 5 MHz •  GSM on 1800 MHz •  Nil •  Deploy MSRs for coverage

•  New tenancies

5 -- 10 MHz •  GSM on 5 MHz of spectrum

•  LTE on remaining 5 MHz

•  Loading only if do not use MSR BTS

•  Deploy MSRs for coverage and capacity

•  New tenancies

Note: 1. MSA: Multi-Standard Radio Source: Capitel Partners, TRAI

5

Spectrum management

Approach Recommendation Operator impact Towerco impact

1 Spectrum Trading •  Allow transfer of ownership and usage of full spectrum holdings with a 1% administrative fee payment

•  Spectrum caps applicable

•  Regional footprint for 2100MHz in selective markets -  Generally operators have 2100MHz

in their high RMS /and 900MHz) markets – can use 2100MHz along with existing 900MHz to offer DC HSPA+ in major data markets

-  Other options include using 900MHz for HSPA and 1800MHz for GSM in which case only opportunistic purchase of 2100MHz

•  Opportunistic purchase of 2300MHz spectrum for wireless capacity / offload integration with FD LTE later

•  Need to understand RJiO RcoM potential spectrum trading arrangement

•  Iniitial view is that operators do not have 2100MHz in circles wher they currently operate on 1800MHz – if they buy 2100MHz in these circles, this will result in incremental loading rather than tenancies

•  Loading from 2300MHz sites esp. if purchased by incumbents – can result in tenanciesi if 2300MHz acquired by entrant (with potential FD LTE on 700MHz)

2 Spectrum Sharing •  TRAI has recommended that DoT should provide detailed guidelines

•  Ability to offer services in areas where they do not have spectrum (3G, 4G)

•  Increase spectum utilization by sharing excess spectrum in areas where it is under-utilized

•  Operators such as Videocon may look at sharing for offering voice (data on 1800MHz FDLTE 5MHz)

•  Thoeretically result in a reduction in incremental tenancies, however the impact will depend on operator data plan and spectrum bands

Capitel Partners Level 12, Tower c, Building no 8, DLF Cyber City Gurgaon India 122002 Phone: +91 124 469 6602 Fax: +91 124 469 6970

Pankaj Agrawal pankaj.agrawal@capitelpartners.com Mobile: +91 9958901085

Neha Aggarwal neha.aggarwal@capitelpartners.com