Centre may announce hardware policy soon

Our Bureau

Hyderabad, Oct. 12

The Union Government is in the process of fine-tuning the new hardware policy which is likely to be announced within two-three weeks.

A task force appointed for the hardware policy is in the process of finalising its guidelines as suggestions have been pouring in.

Clusters

Alongside, the Union IT & Communications Ministry is working on a policy framework that would encourage creation of few IT clusters in the country.

Together, these clusters and semiconductor manufacturing companies, would play a larger role in sync for the country’s semiconductor ecosystem, according to Mr M. Madhavan Nambiar, Additional Secretary, Ministry of Communications, Government of India.

There is considerable interest for investments in India and already over $20 billion of investments have been committed in the areas of electronics, hardware and manufacturing in this sector in the last two years and there continues to be heightened interest, Mr Nambiar said.

Addressing participants at a meeting hosted by the Indian Semiconductor Association, Mr Nambiar said that these clusters would be spread across 40-50 square km and it all depends on how various States respond to such an initiative. This would be a co-ordinated effort of the Central and State Governments.

Later speaking to newspersons, Mr Nambiar said that the hardware manufacturing policy is aimed at bringing about convergence with the semiconductor policy and its guidelines announced recently.

Taiwan cos keen

Companies from Taiwan both hardware manufacturers and semiconductor companies have approached the Government expressing interest in setting up manufacturing bases in India and sought necessary support.

The Government was keen that this sector received the necessary encouragement and support so that all these projects could be taken up with public-private participatory model.

“Our analysis of some of the countries such as Korea, China and Japan had shown that all of them have grown with the support on incentives and infrastructure developed by the Government and we need to do the same to this sector,” he said.

The electronics market is projected to grow to over $320 billion by 2015 and has the potential to far outpace the oil import bill. Therefore, this presents a case of rapid development of the electronics and manufacturing hardware in the country, he said.

Ms Poornima Shenoy, ISA President, said that after the recent policy announcement for semiconductor industry, there has been positive response as there is potential for manufacturing in India. The semiconductor revenues have gone up from $2.69 billion in 2006 and is poised to touch $5.49 by 2009.

Representatives from the semiconductor industry also highlighted how companies in Taiwan, for instance, have access to cheaper working capital at about 2 per cent interest as against 13 per cent in India.

CDMA 3G trials on 1900-band done under DoT watch

Thomas K Thomas

New Delhi, Oct 14 In a bid to get a favourable third generation mobile policy, the Division Multiple Access (CDMA) players have completed trials using the controversial 1900 Mhz band in the presence of senior officials from the Department of Telecom and the Telecom Regulatory Authority of India. The trials were conducted in Andhra Pradesh on Friday and Saturday.

The trials being conducted on Tata Teleservices’ network is being undertaken to check whether 3G services in the 1900 Mhz band causes interference to the services offered by cellular operators using the GSM technology.

While CDMA operators claim that there is no interference, GSM operators are blocking the allotment of the 1900 Mhz band on the ground that their 3G plans using the 2.1 Ghz will be disturbed. The inspectors from DoT will present their report to their Government verifying claims made by both sides.

Though the DoT is considering allowing CDMA players to offer 3G services in the 800 Mhz band, the cost of offering third generation services in 1900 Mhz frequency band is much lower, according to CDMA industry experts. On the other hand, if the claim from the CDMA camp is found to be baseless, it will be major victory for GSM operators who can then push their 3G services.

However, neutral technology providers, which offer both CDMA and GSM third generation solutions, said that though 1900 Mhz band will provide an edge to CDMA operators, they will still be able to offer 3G services at competitive rates in other available frequency bands in case DoT decides to disagree with the CDMA operators’ claims.

Policy impact

While the trial had begun in September, the feedback given by the DoT officials will be used to formulate 3G policy. Most of the spectrum-related discussions at present within DoT are taking place around the 2.1 Ghz for GSM operators. Even the discussions with the Defence Ministry for vacating radio frequency does not mention spectrum for CDMA players.

Source: The Business Line

Telecom arm faces spectrum allocation disparity

New Delhi, Oct. 14: Sharp differences are believed to have emerged in the Department of Telecom over Trai’s proposal to change existing subscriber-linked criteria for allocating additional spectrum, with communication minister A. Raja in favour while the Telecom Commission opposing it.

According to sources, Telecom Commission, headed by telecom secretary, has taken a final view on Trai’s recommendations with regard to spectrum allocation, number of players in each circle and other issues.

There is unanimity on most of issues especially on not capping the number of players, but on spectrum allocation, the minister, sources said, may overrule Telecom Commission which has rejected the telecom regulator’s recommendation.

Trai had suggested nearly five-fold increase in subscribers base to become eligible for additional spectrum.

If the regulator’s proposal is accepted, none of the existing mobile operators, be it Bharti Airtel, Vodafone-Essar or others, would be eligible for additional spectrum.

Cellular Operators Association of India (COAI), a lobby group of private GSM mobile operators, has already rejected Trai’s suggestions and termed them as erroneous and legally untenable.

The Telecom Commission, which held a series of meeting during the last two weeks and also met cellular operators twice to take final view on Trai’s proposals, is likely to send its view to the minister in next two days.

Sources said that the commission has accepted the proposal that there should not be a cap on number of operators in a circle.

On the issue of auctioning of additional spectrum, the commission did not find the proposal viable, considering the affordability and low tele-density.

Some of the recommendations which have also been accepted include bringing down the combined subscriber base criteria from 67 per cent to 40 per cent in the merged entity in case of merger and acquisitions, sources said. (PTI)

Can WiMax take on 3G?

Banikinkar Pattanayak
Posted online: Monday , October 15, 2007 at 0140 hrs IST

 

Today, you could catch leading telcos’ top-notch officials chewing nails. Fingers are crossed as Radio-communication Assembly of the 191-member International Telecommunications Union (ITU)—the global industry body that approves the use of various technologies in telecom—is debating on WiMax (Worldwide Interoperability for Microwave Access).

Stakes are high as WiMax, that promises high-speed next-generation internet services could shake up the wireless tech industry. If approved by the ITU, it could cause a split in the middle of the industry by taking on the 3G mobile segment.

The Assembly will now meet to decide on WiMax’s inclusion in the 3G (third generation) family. Decision is important for proponents as well as detractors in India as several fortunes ride on it. Firstly, an IMT2000 certification, or lack of it, is likely to boost or shake the confidence of operators that are planning to roll out WiMax services. Secondly, standard specification will allow mobile operators to offer mobile WiMax service. Lack of certification could play spoilsport for 3G services too.

However, if the technology gets the ITU approval, it could see a clash with other 3G technologies. “Compared to 3G, WiMax reduces cost by a tenth and ensures speed that is three times faster than 3G,” says Mallikarjun Rao, director (wireless) at Nortel. “In most cases, operators wishing to offer both mobile communication services and internet access will find 3G/HSPA to be the most cost-effective option,” counters Tom Phillips, chief government and regulatory affairs officer, GSMA, an association of over 700 GSM mobile phone operators across 218 countries. “WiMax is still a lab technology while there are nearly 400 3G operator networks deployed in 135 countries with millions of subscribers,” adds Parag Kar, senior director (government affairs), Qualcomm India and Saarc.

While WiMax boasts of a data transfer capacity of 10 megabits per second (Mbps), many of today’s 3G networks, which have been upgraded with HSPA software, offer typically a range from 500 kilobits per second to 3 Mbps.

The moot question is—does it make sense for Indian operators to deploy WiMax? And the response varies from silence to ‘no comments’, from ‘let’s wait and watch’ to ‘we are serious about it’.

However, WiMax’s proponents are bullish as ever. A Nortel executive says 10-12 million of the 20 million broadband connections expected by 2010 will be covered through WiMax. Confidence over a technology, which has witnessed only two successful trials

Source: The Financial Express

Screening of Applications
DoT may seek help from other ministries 

New Delhi, October 14
With over 35 companies’ license applications waiting to be screened, the Department of Telecom (DoT) is open to seek help from other ministries to track down the actual promoters of these companies along with shareholding pattern and source of funding.

“The processing of these applications will start very soon. Once it starts and during the scrutinisation, it is felt that the actual ownership, shareholding patterns and source of funding are prima facie doubtful and beyond our normal investigation, we will certainly take help of other ministries,” official sources said.

Cellular Operators Association of India (COAI) had written to the DoT that some of the applicants may be acting as proxies for existing operators to circumvent the norms.

Although officials did not specify which ministry (ies) could be of help in this regard, they said it was the ministry of corporate affairs, which checks into the ownership and funding issues after being referred by another ministry.

The FIPB wing of the ministry of finance can check the veracity of only those applications, which have a foreign equity component.

The queue of licenses is headed by Switzerland-based ByCell, which has applied for licenses in five circles in January 2006, followed by Spice for 20 circles (August 2006), after which come Swan Telecom, Cheetah and HFCL. Both Swan and Cheetah have been linked to Reliance Communications, AT&T and host of real estate companies.

There is an internal committee of the DoT looking into the applications, which would adopt a two-stage screening process.

Initial indications from the preliminary meetings of the committee say that spectrum might not come along with the licenses for these new applicants and the DoT may continue with the current first-come-first serve policy, where existing players would stand to get radio waves first to start operations. — PTI 

Difference of opinion

Sharp difference are believed to have emerged in the DoT over TRAI’s proposal to change existing subscriber-linked criteria for allocating additional spectrum, with communication minister A Raja in favour while the telecom commission opposing it.

According to sources, telecom commission, headed by telecom secretary, has taken a final view on TRAI’s recommendations with regard to spectrum allocation, number of players in each circle and other issues.

TRAI had suggested nearly five-fold increase in subscribers base to become eligible for additional spectrum.

If the regulator’s proposal is accepted, none of the existing mobile operators, be it Airtel, Vodafone-Essar or others, would be eligible for additional spectrum.

Cellular Operators Association of India (COAI) has already rejected TRAI’s suggestions and termed them as erroneous and legally untenable. 

Source: The TribuneTop