The Hindu Business Line : Wireless broadband policy announced

High-speed connection
Operators will have to pay a minimum base price of about Rs 500 crore for a pan-Indian WiMax spectrum
BSNL and MTNL will be given 20 Mhz without having to participate in the auction

Our Bureau

New Delhi, Aug. 1 In a bid to give a boost to broadband services in the country, the Communications Minister, Mr A. Raja, on Friday announced the policy for deploying broadband wireless technologies such as WiMax.

This technology, which offers high speed data connectivity, could be an option for those operators who fail in the 3G auction process or who do not have the deep pockets for bidding for 3G.

Base price

According to the policy announced today, operators will have to pay a minimum base price of about Rs 500 crore for a pan-Indian WiMax spectrum. In comparison, 3G operators will have to pay at least Rs 2,020 crore.

While broadband wireless technologies can also provide similar services such as 3G, it still has to establish itself as global standard. Only a few operators globally have deployed WiMax giving higher economies of scale to 3G technologies. However, some of the global technology companies such as Intel, Motorola and Nortel are betting big on this technology.

Analysts said that WiMax combined with 3G technologies will take the broadband to the next level of growth. There are only 4 million broadband subscribers in the country after 2 years of launch. The Government is planning to allocate 20 Mhz of spectrum for broadband wireless to each of the successful bidders. State-owned BSNL and MTNL will be given 20 Mhz without having to participate in the auction. However, they will have to pay an amount that is equal to the highest bidder.

Department of Telecom has also imposed roll out obligations on operators who win the auction. Broadband wireless operators will have to cover 90 per cent of Metro circles and 50 per cent of rural areas within 5 years. Operators will also have to pay a spectrum charge of 1 per cent of their annual revenues from the second year of their operation.

Similar charges have also been specified for 3G services. A number of large Internet Service Providers such as Sify and telecom operators including Reliance Communications, Tata Communications are expected to bid for broadband wireless spectrum.

Total number of operators which will be selected from the auction process will be notified later once there is clarity on the quantum of spectrum available.