India Running Out of 2G Radio Spectrum in Some Areas

India is running out of radio spectrum for its existing 2G network operators and has exhausted all the available spectrum in some of its license circles. According to an internal analysis by the department of telecom, seen by The Economic Times, 10 of the circles are now dependent on the military to vacate its radio spectrum if any additional capacity is to be made available.

The circles where all GSM/CDMA spectrums have been exhausted include Maharashtra, Gujarat, Kerala, Punjab, Haryana, UP( West & East) Rajasthan Madhya Pradesh and Jammu & Kashmir.

The military is due to release 20Mhz of additional radio spectrum for 2G services, but the program of migrating its own services is slated to take up to three years. The Defense Ministry agreed to also release more 3G radio spectrum, although this decision is now being used to permit more 3G licenses to be sold, rather than fewer with more spectrum per winner.

At the moment, the telecoms regulator has frozen all further radio spectrum allocations until after the 3G (and WiMAX) license auctions due towards the end of the year. It can be presumed that 3G license holders will be discouraged from seeking additional 2G spectrum as well.

Following the 3G auction, 2G spectrum will be linked to market valuation and priced in relation to the 3G licenses.

On the web: Economic Times

Posted to the site on 31st July 2009