Presentation to

The Expert Committee on Spectrum

Date: 26
th
Nov 2007
confidential
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1. About RCOM
2. What is the real issue?
3. Spectrum Allocation
4. Spectral Efficiency innovations & TEC Report
5. Re-farming, Re-alignment of Spectrum & Capital Efficiency Measures
6. Summary & Recommendations
Presentation Flow
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Reliance Communications

Largest fully integrated private sector communications
company in India
5
th
largest company with market cap of over Rs. 1,50,000 Cr
Second largest customer base serving 40 Mn customers.
Only operator providing both CDMA & GSM services
CDMA Pan India
GSM 8 circles mainly in Eastern India
Received approval for pan India GSM rollout services
Paid an additional fee of Rs. 1650 Cr. for GSM services
RCOM has paid the highest fee Rs 3100 crore for operating
mobile services.
Indias largest and only Next Generation & IP based network
pan India
Fully committed to the Nations telecom growth in the entire value chain
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Parameter UoM
Last 4
years
Current
Year
March 08
Aggregate
Population
Covered
% / Nos.
Crs.
50 %
55
40%
44
90%
99
Towns
Covered
Nos. 10,000 13,000 23,000
Sites Nos. 14,000 26,000 40,000
Investment Rs.Crs. 32,000 20,000 52,000
RCOM Exponential Growth Plan
RCOMs Growth Plans Significant contributor to Indias GDP Growth
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Widest Coverage Plan for 07-08
Worlds largest Wireless Network Rollout in a year
Will cover all locations with over 1000 population with Voice & Data
Coverage UoM Oct - 07 Mar-08
Towns Nos. 10,000 24,000
Villages Nos. 300,000 500,000
Population % 55 90
Key Religious
Sites
Nos. 333 677
Railway Track
Kms
%
48,000
65 %
63,000
85 %
National Highways
Kms
%
35,000
60 %
55,000
95 %
State Highways
Kms
%
85,000
45 %
153,000
80 %
Rs. 20,000 Crs Capex
Largest
USO Roll ou
7230 sites
What is the real issue?
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Adoption of spectrum allocation criteria which:
1. Promotes spectral efficiency
2. Maintains and ensures the quality of service
3. Increases competition leading to achieve government targets.
What is the real issue?
What GSM Operators got / want
1. Received spectrum above 4.4 MHz almost with out any policy guidelines till 2006.
2. Received spectrum above contracted spectrum of 6.2 MHz
3. Continued to enjoy spectrum free
4. The March 06 WPC criteria was too low, necessitating revision
5. Both TRAI & TEC criteria in 2007, based on scientific inputs, now being contested - for
cornering & hoarding spectrum, & restricting competition.
6. Forcing the current framework to maintain oligopolistic interest.
What India needs
Need of the hour Scientific approach for Spectrum Allocation norms
Spectrum Allocation
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Evolution of allocation criteria
No SUBSCRIBER CRITERIA till Feb.02 Adhoc Approach
Spectrum Charges Policy issued for 4.4 MHz and 6.2 MHz.
Spectrum allocated up to 6.2 MHz without any policy framework
almost free till Feb.02.
February
2002
Spectrum Charges Policy issued for 8 MHz and 10 MHz.
Spectrum allocated up to 10 MHz without any policy framework
almost free till Mar.06.
Spectrum allocation linked to Subscriber Criteria based on Metro &
Circle Category .
Criteria abysmally low - Operators continue to serve 2-5 times more
subscribers vis-a-vis the criteria, without difficulties.
Over 50 Million subscribers added by the private dominant GSM
players within 18 months, without any additional spectrum.
April 2002
March 2006
No policy and lenient criteria led to cornering of spectrum
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To refund 32 MHz*
excess spectrum
Evolution of allocation criteria
Aug.2007 Oct.2007
Allocation
Criteria
Case for
Refund@
Spectrum
Availability
Revised & tightened
by TRAI
Further revised by TEC Report
Start-Up Spectrum available for 3-4 new operators.
To refund 56 MHz**
excess spectrum
*Based on TRAI Norms
**Based on TEC Report
Adoption of TEC Criteria at the minimum Right way forward
@ Across all Circles by all operators
First time
Scientific approach
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Spectrum allocation without Policy
Operators allotted 10 MHz with out policy
framework
S.N. Operator Circle Date w.e.f
1 Aircel Tamilnadu Dec-04
2 Bharti Delhi Jul-03
3 BPL Mumbai Sep-04
4 Vodafone Delhi Oct-03
5 Vodafone Mumbai Oct-03
6 Bharti Mumbai Jan-06
7 Bharti Karnataka Jan-04
8 Vodafone Gujrat May-05
9 Idea Maharastra Apr-04
Operators allotted 6.2 MHz with out
policy framework
S.N. Operator Circle Date w.e.f
1 Aircel Haryana Jan-01
2 Aircel Rajasthan Jan-01
3 Aircel UP(East) Jan-01
4 Bharti AP Apr-00
5 Bharti Chennai Aug-99
6 Bharti Delhi Aug-99
7 Bharti Karnataka Apr-00
8 BPL Mumbai Aug-99
9 Aircel Chennai Mar-00
10 Spice Karnataka Apr-00
11 Spice Punjab Apr-00
Arbitrary & Adhoc approach allowed cornering & hoarding of
spectrum beyond eligible & contracted 6.2 MHz
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WPC Criteria v/s Actual Subs.
Leading Operator - Mumbai
15
20
30
1.5
2
3
0
5
10
15
20
25
30
35
Mar'05 Mar'06 Oct'07
S
u
b
s

(
m
n
)
0
0.5
1
1.5
2
2.5
3
3.5
4
S
u
b
s

(
m
n
)

/

M
H
z
Subs (Lakh) Subs (Lakh)/MHz
Leading Operator - Delhi
16
20
36
1.6
2.1
3.6
0
5
10
15
20
25
30
35
40
Mar'05 Mar'06 Oct'07
S
u
b
s

(
m
n
)
0
0.5
1
1.5
2
2.5
3
3.5
4
S
u
b
s

(
m
n
)

/

M
H
z
Subs (Lakh) Subs (Lakh)/MHz
WPC criteria outdated, to be replaced at least by TEC Report norms
Subscriber / MHz
2 to 5 times higher
than WPC criteria
2.2 1.4 10 38 Idea Maha.
5.0 0.8 8 38 Vodafone UP (E)
2.2 0.6 9.8 16 Vodafone Kolkota
3.0 0.5 8.6 16 Aircell Chennai
2.4 1 10 30 Vodafone Mumbai
2.9 1 10 36 Airtel Delhi
Actual vs
WPC
Criteria
VLR Criteria
Subs (Lakh) /
MHz
Spectrum
MHZ
Customers
(Lakh)
Leading
operator
Key
Circles
VLR:80% of subs
2.2 1.4 10 38 Idea Maha.
5.0 0.8 8 38 Vodafone UP (E)
2.2 0.6 9.8 16 Vodafone Kolkota
3.0 0.5 8.6 16 Aircell Chennai
2.4 1 10 30 Vodafone Mumbai
2.9 1 10 36 Airtel Delhi
Actual vs
WPC
Criteria
VLR Criteria
Subs (Lakh) /
MHz
Spectrum
MHZ
Customers
(Lakh)
Leading
operator
Key
Circles
VLR:80% of subs
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Myths Propagated by GSM
operators related to Spectrum




1. Poor network QoS due to paucity of Spectrum
2. Low ARPU and operators unable to afford additional capex
3. Indian operators require more spectrum as
a) Have lesser spectrum relative to Global Operators
b) Higher MOU per sub in India
c) already deployed available spectral efficiency enhancing technologies,
All the above continue to lead to excess & ineligible allocation of Spectrum
to private dominant GSM operators
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Myth 1 - Propagated
by GSM operators
95% operators meet the benchmark
In Metros, 100% of the private operators
have met benchmarks
QoS parameters needing attention are
POI congestion & Help line, which are
not related to spectrum
On the Contrary, QoS showing improving
trend over last 8 quarters
Spectrum availability is only one of the
many factors for QoS improvement
Source: Network QoS report by TRAI Sep 2007
50
60
70
80
90
100
Jul-
Sep-
05
Oct-
Dec-
05
Jan-
Mar-
06
Apr-
Jun-
06
Jul-
Sep-
06
Oct-
Dec-
06
Jan-
Mar-
07
Apr-
Jun-
07
Accumulated down
time (<24 hrs)
CSSR (>95%)
Service access delay
(<15 secs)
SDCCH / Paging
channel congestion
(<1%)
TCH congestion (<2%)
Call drop rate (<3%)
% connections with
good voice quality
(>95%)
QoS has improved over last 8 quarters due to availability of Spectrum
Poor network QoS due to paucity of spectrum
Reality
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Spectrum Availability is a low priority criteria for maintaining QOS.
Network Planning to meet Coverage & Capacity Objective
Optimal Frequency Plan using
Adhoc Technique
Availability of spectrum
Site Database Audit
& correction.
Network Performance Requirements
P
r
i
o
r
i
t
y



Network Optimization Drive Testing/ Analysis & Corrective action

Implementation of new features
to improve network quality and capacity
Availability of Skilled Man power for Planning & Optimization
Highest
Lowest
Spectrum is one of the low priority
requirements to determine QoS
Myth 1 - Propagated
by GSM operators
7 dimensions of QOS
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10%
15%
20%
25%
30%
35%
40%
2003 2004 2005 2006
E
B
I
T
D
A
(
%
)
Australia Hong Kong India UK US Brazil
EBIDTA margin in India higher than any of the
developed countries in the world e.g. UK, USA, Hong
Kong, Brazil, Australia, Spain.
Highest EBIDTA expansion in the world during 2003-
2007. 17%-38%
Analysts forecast future EBIDTA margin expansion in
spite of falling ARPU
Indian Telecom Companies highly valued with
EV/EBIDTA multiple of ~15 by analysts - UBS,
Macquarie, Lehman Bros, Merrill Lynch
Over Rs. 50000 crore committed capex spends by
Wireless industry this year as Outlooks are healthy
Indian TelCos valuations & EBIDTA margin among top 5 in the world
Source : ML wireless Matrix, Q 4 2006
Myth 2 - Propagated by GSM operators
EBIDTA Margin Comparison
EBIDTA Margins (Q2, FY07-08)
RCOM : 43%
Airtel : 43%
Low ARPU and operators unable to afford additional capex
Reality
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Timing of network rollout & innovation availability & outlook different for developed markets & India
India needs to deploy spectrally efficient solutions more aggressively due to low teledensity and its
unique demographic profile
Indian telecom market is growing when technology is available for increasing spectral efficiency
many folds.
Operators in USA, Hong Kong with lesser spectrum serve markets with much higher traffic density
Higher CAPEX can be easily afforded by operators.



Source : Interconnect associates, Telecordia
Indian operators have relatively lesser spectrum, higher MOU per sub & have
already deployed available spectral efficiency enhancing technologies, hence
require more spectrum
In France, Netherlands, Germany, Spain, UK have 100 MHz amongst 3-4 operators
China has 60 MHz among 2 operators
Reality
Myth
Myth 3
GSM operators want to enrich themselves at the cost of national objectives by demanding more spectrum
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Bharti Case Study
28 Mn subscribers added over a
base of 23 Mn subscribers
(120% of base) added without
additional spectrum in last over
18 months

S
No.
Circle
Current
Spectrum
held
Spectrum
issued
date
Subsribers as
on Eligibility
date as per
WPC criteria
for next
tranche (Mn)
Subscribers
added without
additional
spectrum as
per current
criteria
(Mn)
Spectrum
in excess
beyond
6.2 MHz
Additional
Spectrum
as per WPC
criteria
1 AP 7.8 Feb-04 1.8 3.16 1.6 7.2
2 Gujarat 6.2 Apr-02 1.0 1.06 3.8
3 Karnatka 9.8 Jan-04 2.6 3.33 3.6 5.2
4 Maharashtra 6.2 Apr-02 1.0 2.47 8.8
5 Tamil Nadu 6.2 Mar-02 1.0 2.16 6.2
6 Haryana 6.2 Apr-02 0.8 0.08 1.8
7 Kerala 6.2 Mar-02 0.8 0.56 3.8
8 MP 6.2 Apr-02 0.8 1.48 6.2
9 Punjab 7.8 Feb-04 1.3 1.65 1.6 7.2
10 Rajasthan 6.2 Aug-00 0.8 2.11 8.8
11 U.P.(E) 6.2 Mar-05 0.8 1.61 6.2
12 U.P.(W) 6.2 Apr-02 0.8 0.55 3.8
13 WB 4.4 Mar-04 0.4 1.11 5.6
14 Assam 6.2 Mar-05 0.5 0.21 1.8
15 Bihar 8.0 Mar-06 0.9 2.45 1.8 7.0
16 HP 6.2 Sep-03 0.5 0.20 1.8
17 J & K 6.2 Mar-06 0.5 0.24 1.8
18 North East 4.4 Dec-04 0.3 0.10 1.8
19 Orissa 8.0 Mar-06 0.8 0.56 1.8 4.4
20 Delhi 10.0 Jul-03 2.0 1.60 3.8 5.0
21 Mumbai 9.2 Jan-06 2.0 0.15 3.0 3.2
22 Kolkata 8.0 Jan-05 0.8 0.72 1.8 4.4
23 Chennai 8.6 Jan-06 0.8 0.62 2.4 3.8
Average 7
MHZ
23 28 21 110
Bharti
Criteria MHz
Refund*
TEC 21
TRAI 11
Additional
Allocation*
Demand
WPC 110
WPC+25% 78
WPC+50% 58
*Across all Circles
Demand for additional Spectrum Invalid
Fit case for refund of 21 Mhz
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Vodafone Case Study
18 Mn subscribers
added over a base of 19
Mn (100% of base)
added without additional
spectrum in last over 18
months
S
No.
Circle
Current
Spectrum
held
Spectrum
issued
date
Date of
Eligibility for
next tranche
as per current
criteria
Subsribers as
on Eligibility
date as per
current
criteria for
next tranche
(Mn)
Subscribers
added without
additional
spectrum as
per current
criteria
(Mn)
Spectrum
in excess
beyond
6.2 MHz
Additional
Spectrum
as per WPC
criteria
1 AP 6.2 Mar-02 Jul-06 1.0 1.09 1.8
2 Gujarat 9.8 May-05 May-06 2.6 2.66 3.6 5.2
3 Karnatka 8.0 Jan-05 Apr-07 1.8 0.62 1.8
4 Maharashtra 6.2 Dec-99 Oct-06 1.0 0.87 1.8
5 Tamil Nadu 6.2 Dec-99 Mar-07 1.0 1.19 1.8
6 Haryana 6.2 Jan-01 Mar-07 0.8 0.31
7 Kerala 6.2 Dec-99 Nov-06 0.8 0.80 1.8
8 Punjab 6.2 Jan-04 Jul-06 0.8 0.73 1.8
9 Rajasthan 6.2 Jan-01 Jul-06 0.8 1.55 3.8
10 U.P.(E) 8.0 Jan-06 Feb-06 1.3 2.48 1.8 4.4
11 U.P.(W) 6.2 Mar-05 Jun-06 0.8 1.52 3.8
12 West Bengal 4.4 Mar-04 Jan-06 0.4 1.75 5.6
13 Delhi 10.0 Oct-03 Aug-06 2.0 0.99 3.8 2.4
14 Mumbai 10.0 Oct-03 Mar-06 2.0 0.99 3.8
15 Kolkata 9.8 Jul-06 Mar-07 1.3 0.36 3.6 0.2
16 Chennai 8.0 Jun-06 May-07 0.8 0.21 1.8
Average
7.35 MHZ
19 18 20 34
Vodafone
Criteria MHz
Refund
TEC 20
TRAI 9
Additional
Allocation*
Demand
WPC 73
WPC+25% 50
WPC+50% 34
Demand for additional Spectrum Invalid : Fit case for refund of 20 MHz
*Across all Circles
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Idea Case Study
7 Mn subscribers
added over base of 12
Mn (60% of base)
added without
additional spectrum in
last over 18 months

S
No.
Circle
Current
Spectrum
held
Spectrum
issued
date
Date of
Eligibility
for next
tranche as
per current
criteria
Subsribers as
on Eligibility
date as per
current criteria
for next
tranche (Mn)
Subscribers
added without
additional
spectrum as
per current
criteria
(Mn)
Spectrum
in excess
beyond
6.2 MHz
Additional
Spectrum
as per WPC
criteria
1 AP 8.0 Sep-04 Mar-07 1.8 0.83 1.8 4.4
2 Gujarat 6.2 Aug-00 Mar-06 1.0 1.15 3.8
3 Maharashtra 9.8 Apr-05 Dec-06 2.6 1.25 3.6 5.2
4 Haryana 6.2 Dec-99 Jan-07 0.8 0.08 1.8
5 Kerala 8.0 Mar-05 Oct-06 1.3 0.99 1.8 4.4
6 MP 8.0 Nov-06 Nov-06 1.3 1.11 1.8 4.4
7 Rajasthan 6.2 Dec-05 Not Eligible Not Eligible
8 U.P.(E) 6.2 Feb-06 Not Eligible Not Eligible Not Eligible
9 U.P.(W) 8.0 Jan-06 Sep-06 1.3 0.69 1.8 4.4
10 HP 4.4 Mar-02 Not Eligible Not Eligible
11 Delhi 8.0 Dec-05 Nov-06 1.3 0.52 1.8 2.0
Average
7.2 MHZ
11 7 13 30
Idea
Criteria MHz
Refund
TEC 13
TRAI 11
Additional
Allocation*
Demand

WPC 30
WPC+25
%
14
WPC+50
%
12
*Across all Circles
Demand for additional Spectrum Invalid : Fit case for refund of 13 MHz
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BPL Case Study
Criteria MHz
Refund
TEC 3.8
TRAI 3.8
Additional
Allocation*
Demand
WPC 0
WPC+25% 0
WPC+50% 0
S
No.
Circle
Current
Spectrum
held
Spectrum
issued
date
Date of
Eligibility for
next tranche
as per
current
criteria
Subsribers as
on Eligibility
date as per
current criteria
for next
tranche (Mn)
Subscribers
added without
additional
spectrum as
per current
criteria
(Mn)
Spectrum
in excess
beyond
6.2 MHz
Additional
Spectrum
as per WPC
criteria
1 Mumbai 10.0 Sep-04 Not Eligible Not Eligible 0.00 3.8 0.0
BPL
Fit case for Refund of 3.8 MHz
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Reliance GSM Case Study
1.3 Mn subscribers added
over a base of 4 Mn (32%
of base) added without
additional spectrum in last
over 18 months
S
No.
Circle
Current
Spectrum
held
Spectrum
issued
date
Date of
Eligibility for
next tranche
as per
current
criteria
Subsribers as
on Eligibility
date as per
current criteria
for next
tranche (Mn)
Subscribers
added without
additional
spectrum as
per current
criteria
(Mn)
Spectrum
in excess
beyond
6.2 MHz
Additional
Spectrum
as per WPC
criteria
1 MP 6.2 Jan-01 Oct-06 0.8 0.44 1.8
2 West Bengal 6.2 Feb-04 Dec-06 NE
3 Assam 6.2 Oct-03 Jun-07 0.5 0.15 1.8
4 Bihar 8.0 Oct-06 Oct-06 0.8 0.56 1.8 4.4
5 HP 6.2 Aug-05 NE NE
6 North East 6.2 Jan-06 NE NE
7 Orissa 6.2 Sep-01 Jul-07 0.5 0.12 1.8
8 Kolkata 6.2 Mar-02 NE NE
Average
6.4 MHZ
Total 1.3 2 10
RTL
Criteria MHz
Refund
TEC 1.8
TRAI 1.8
Additional
Allocation*
Demand
WPC 9.8
WPC+25
%
7
WPC+50
%
3.8
Willing to return excess spectrum in Bihar in line with policy framework applicable to all
*Across all Circles
1.8
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Reliance CDMA Case Study
RCOM - CDMA
Does not hold beyond 5
MHz contracted spectrum in
any of the circles
RCOM willing to consider its
claim to forego 13.75 MHz
of spectrum as per WPC
criteria
S.N. Service Area
Current
Spectrum
held (MHz)
Spectrum
in excess
beyond 5
MHz
Additional
Spectrum
as per
WPC
criteria
1 Andhra Pradesh 5.00 1.25
2 Gujarat 3.75 1.25
3 Karnataka 3.75 1.25
4 Maharashtra 5.00 1.25
5 Tamil Nadu 5.00 1.25
6 Haryana 3.75 0.00
7 Kerala 5.00 0.00
8 Madhya Pradesh 5.00 0.00
9 Punjab 3.75 0.00
10 Rajasthan 3.75 1.25
11 U.P.(E) 5.00 1.25
12 U.P.(W) 5.00 0.00
13 West Bengal 3.75 0.00
14 Bihar 5.00 2.50
15 Himachal Pradesh 2.50 0.00
16 Jammu & Kashmir 2.50 0.00
17 Orissa 3.75 0.00
18 Chennai 5.00 0.00
19 Delhi 5.00 1.25
20 Kolkata 5.00 0.00
21 Mumbai 5.00 1.25
Average
4.35 MHz
13.8
RCOM
No additional Spectrum granted
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Tata CDMA Case Study
No additional Spectrum granted
S.N. Service Area
Current
Spectrum
held (MHz)
Spectrum
in excess
beyond 5
MHz
Additional
Spectrum
as per
WPC
criteria
1 Andhra Pradesh 3.75 1.25
2 Gujarat 3.75 0.00
3 Karnataka 3.75 0.00
4 Maharashtra 3.75 1.25
5 Tamil Nadu 2.50 1.25
6 Haryana 3.75 0.00
7 Kerala 3.75 0.00
8 Madhya Pradesh 3.75 0.00
9 Punjab 3.75 0.00
10 Rajasthan 3.75 1.25
11 U.P.(E) 3.75 0.00
12 U.P.(W) 3.75 0.00
13 West Bengal 2.50 1.25
14 Bihar 3.75 1.25
15 Himachal Pradesh 2.50 0.00
17 Orissa 2.50 1.25
18 Chennai 3.75 0.00
19 Delhi 5.00 2.50
20 Kolkata 3.75 1.25
21 Mumbai 5.00 0.00
Average
3.63 MHz
12.5
Tata
Tata - CDMA
Does not hold beyond 5
MHz contracted spectrum in
any of the circles
Eligible for 12.5 MHz of
spectrum as per WPC
criteria
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Comparison: TRAI to WPC criteria
Circle 6.2 MHz 8 MHz 10 MHz
Metro( D/M) 1.6 2.5 2.0
Metro (C/K) 2.5 3.8 3.3
A 2.0 3.8 3.6
B 2.7 5.0 5.0
C 3.0 5.0 6.7
TRAI criteria is 1.6 times to 6.7 times of WPC March 06
Average 4 times of WPC criteria
Multiple : TRAI to WPC
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Comparison: TEC to TRAI criteria
Circle
Category
6.2 MHz 8 MHz 10MHz
Range Average Range Average Range Average
Metro
(DL/MU)
1.2 to 1.4

1.3
1.3 to 1.5

1.4
1.7 to 2

1.9
Metro
(CH/KOL)

1.0 to 1.2

1.1 1.1 to 1.3 1.2 1.5 to 1.8 1.7
A 1.1 to 1.7 1.5 1.0 to 1.4 1.3 1.0 to 1.5 1.3
B
0.5 to1.6

1.2 0.4 to 1.4 1.0
0.4 to 1.5

1.0
C 0.3 to 2.0 1.2 0.3 to 2.0 1.2 0.3 to 2.8 1.2
TEC criteria lower than TRAI in 6 circles- HR, KL, PJ, HP, J&K, NE
TEC criteria is Average 1.2 times of TRAI criteria
Multiple : TEC to TRAI
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Internationally, Regulators have taken back / reallocated spectrum
In October 2007 Ofcom has initiated the re-farming of 15 MHz to 20 MHz
of spectrum in 900 MHz band from Vodafone & O2. This spectrum was
allocated in 1985
Returned Spectrum will be allocated to new / other eligible operators
Value of returned spectrum estimated at Rs. 50000 Cr ( 6 Bn)
UK
Re-farming of 10 MHz inter-se operators is practiced and implemented
In 2004, Regulator directed spectrum re-farming between AT&T & T-
Mobile in New York & California states
USA
Excess Spectrum 20 to 35 MHz held by MovieStar was directed to be
returned in 2005.
Argentina
/ Chile /
Peru
Global practices for excess spectrum
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Summary Spectrum Allocation
At the minimum, subscriber allocation criteria recommended by TEC be
accepted or appropriately revised upwards based on further scientific
inputs.
Existing dominant GSM operators have been allocated spectrum without a
policy framework and are using excess spectrum which is also beyond
contracted amount of 6.2 MHz. Should be directed to refund the spectrum.
All new licensees or licensees having paid the prescribed fee for the
alternate technology should be allocated start up spectrum of 6.2 MHz.
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Summary Spectrum Allocation
The available spectrum will allow commencement of services by minimum
4 operators/ licensees. This will yield for the Government of India
- Rs 6500 Cr as Entry Fee
- Upto Rs 20000 Cr as direct and Indirect taxes on full rollout of network
by new operator
The increased competition will benefit the country and consumers.
- Accelerated growth in telecom penetration
- Lower tariffs
- Better coverage including rural coverage.
- Better quality of services

Spectral Efficiency Innovations & TEC Report
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TEC subscriber criteria
Let us examine in light of available spectral efficiency technology innovations
Justified ?
Liberal ?
Stringent ?
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Continuous increase in teledensity will require deployment of more BTS, leading to increase in network capacity,
without additional spectrum
Spectral Efficiency Basic Principle

Coopers Principle on Wireless Networks:
Capacity enhancement is coming through reduction in Cell size


Shrinking Cell Size provides
2700 times more capacity as
compared to additional
spectrum which provides
only 15 times capacity
enhancement
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Shannons Principle:

There is a limit to capacity









Spectral Efficiency Basic Principle
Capacity increase can be achieved by reducing interference by using spectral efficiency enhancement
techniques
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Parameters for determining
Subscriber based spectrum allocation criteria
1. Morphology
- Dense urban / urban / Sub-urban / Rural
2. Subscriber / traffic density distribution in
different morphology
3. Spectrum allocated
4. Number of sites to cater specified traffic
5. BTS capacity utilization
6. Inter site distance
7. Spectral efficiency innovations

Quantum of Spectrum allocated is just one of the parameters
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TEC work flow chart -
Subscriber Based Spectrum Criteria
TEC Criteria can be further improved when gains due to spectral efficiency innovations are included
Estimated BTS configuration with Capacity
Allocated Spectrum
6.2MHz 8MHz 10MHz 12.4MHz 4.4MHz
S444
S566
S778
S332
Sync N/W
DFCA
6 sector
AMR
SAIC
Femto Cell
IBS
No. of subs
per site
Metro / Circle Morphology Distribution as per
Satellite Image (Km)
U SU RU DU
U
SU
RU
DU
x %
y %
z %
w %
BTS Utilization
per Morphology
Target
Subs as per
Recommendations
Metro D & M
Metro K & C
Class A Circle
Class B Circle
Class C Circle
Sub Density Ratio
U SU RU DU
Traffic
Distribution
Required No. of
sites & Estimated
Subs per
Morphology
Inter-Site distance per
morphology.
Subs Density
No
Yes
7 Key
Technology
Innovations
Excluded by TEC
while framing Subscriber
based Criteria policy
Source: TEC Presentation on Spectrum Efficiency. Dtd 20.09.07
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Spectral Efficiency Innovations
India cant afford to ignore use of these innovations
1. Synchronized Network
2. DFCA (Dynamic Frequency & Channel Allocation)
3. 6 Sector BTS
4. AMR (Adaptive Multi Rate)
5. SAIC (Single Antenna Interference Cancellation)
6. Femto cell solution
7. In Building Solution
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Technology Innovation - 1
Synchronized Network
Enhances Radio Network Capacity by 20%.
Pre-requisite to use features like DFCA for further capacity gains.
BTS are synchronized using GPS or software.

TDMA Bit Offset of BTSs are aligned with each other.

Improvement of C/I by 3~5dB.
25 26
BTS 1
BTS 2
25 26
BTS 1
BTS 2
Asynchronous Network
Synchronous Network
Source: Huawei ,Ericsson and Nokia-Siemens
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Conventional Frequency and Channel Allocation
Dynamic Frequency and Channel Allocation
Technology Innovation - 2
DFCA (Dynamic Frequency & Channel Allocation)

Source: Huawei and Nokia-Siemens
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
F2 F2
F3 F3
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
F2 F2
F3 F3
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
0
1
2
3
4
5
6
7
F1
F2 F2
F3 F3
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
0
1
2
3
4
5
6
7
F1
F2 F2
F3 F3
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
F2 F2
F3 F3
Enhances Radio Network Capacity by 60 ~ 90%.
Parameter Conventional DFCA
Frequency Collision
Possibilities
Yes No
Synchronization required No Yes
Co and Adjacent frequencies
reuse in Adjacent Cell
Not possible Possible
Frequency Hopping Fixed pattern
Dyanacmic based on mobile
location
Thru
Software
upgrade
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6
10 2
12 4
8
9
10 2
6
12 4
8
11 3
7
10 2
6
12 4
8
9 1
5
11 3
7
10 2
6
12 4
8
9 1
5
11 3
7
1
5
11 3
7
9 1
5
5
1
5
1
9
1 9
1
7
7
3 11
3
6
6
2
8
8
4 11
10
2
10
4
12 12
5
1
5
1
9
1 9
1
7
7
3 11
3
6
6
2
8
8
4 11
10
2
10
4
12 12
5
1
5
1
9
1 9
1
7
7
3 11
3
6
6
2
8
8
4 11
10
2
10
4
12 12
5
1
5
1
9
1 9
1
7
7
3 11
3
6
6
2
8
8
4 11
10
2
10
4
12 12
3 Sector BTS
6 Sector BTS
6 sector BTS provides twice the capacity of 3 sector BTS at
same spectrum.

Improvement due to use of Asymmetric antenna which have
more then 30dB front to back ratio for 180
0
azimuth.

Source: Ten XC, Canada
Technology Innovation 3
6 Sector BTS
TRx
(No)
Traffic
(Erlang)
TRx
(No)
Traffic
(Erlang)
4.4 3 45 3 89 100%
6.2 4 66 4 131 100%
8 7 129 6 245 90%
10 8 149 8 298 100%
3 Sector
Spectrum
(MHz)
6 Sector
Capacity
incerase
(%)
Enhances Radio Network Capacity between 90% to 100%.
Reliance CDMA has over 200 six sector sites operational & in Reliance GSM network at Guwahati.
Vodafone has in Hyderabad.
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Technology Innovation 4
Adaptive Modulation Rate (AMR)
All handsets manufactured since
2003 are AMR enabled.

AMR penetration level of 60% has
resulted in 70% increase in capacity.
Soon to increase to 100%

60-75% of current traffic is generated
by AMR enabled handsets.

Over 110 Mn AMR enabled handsets
are in use
AMR Penetration & Capacity Increase
Source: GSM,GPRS AND EDGE PERFORMANCE by Halonen,Romero,Melero of Nokia (John Wiley & Sons)
100% AMR penetration will result in nearly 150% Radio Network capacity increase at zero cost expected by 2009
TCH FER Based Capacity Gain
0
20
40
60
80
100
120
140
160
0 25 50 75 100
AMR Penetration [%]
C
a
p
a
c
i
t
y

G
a
i
n

[
%
]
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Technology Innovation 5
Single Antenna Interference Cancellation (SAIC)
SAIC is a software feature in the handset for increasing
downlink spectrum efficiency of GSM networks.

SAIC uses technique to cancel or suppress interference
by means of signal processing without using multiple
antenna.
Provides 50 ~ 60% additional capacity gain with 100% penetration of SAIC mobiles at no cost
Source: Nokia-Siemens and 3GPP TR 45.903 V7.0.1 (2007-08)
SAIC Penetration & Capacity Increase

SAIC Handsets are available in
market from 2004

Majority of Nokia phones are
SAIC compatible. Nokia market
share is ~ 70%


Ultra Low
end
handset
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Technology Innovation 6
Femto Cells
Backhaul: ADSL, Ethernet
GSM
FEMTO cells improves spectral efficiency by release of BTS capacity for outdoor use.



Small form factor and affordable price point will
ensure mass deployment

Size ~ 200 x 140 x 40 mm, 0.2kg

Small Form Factor
Source: Ericsson & ABI-Research

Over 100 Million
Femto cells are projected
by 2011
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Antenna
Splitter / Coupler
RF Feeder
Splitter / Coupler
Base Station
Technology Innovation 7
In Building Solutions

As per TRAI survey 70% calls in a
cellular network are from In Building

Seamless indoor and outdoor
coverage

In building coverage generates traffic
and revenue

In Building solutions help in offloading the traffic from outdoor base stations
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Technology Innovation
Summary
Capacity increases by 7 times by using 4 of the Technology innovation.
Further improvements feasible on use of 6-sector, Femto & IBS.
1. Synchronized Network: Improves
capacity by 20%
2. DFCA (Dynamic Frequency and
Channel Allocation): Enhances
Capacity by 60 ~ 90%.
3. 6 Sector*: Enhances capacity up to
100%
4. AMR: 100% AMR mobile penetration
will improve the network capacity by
150%.
5. SAIC (Single Antenna Interference
Cancellation): SAIC improves
capacity by 50 ~ 60%.
6. Femto Cell*: Unlimited capacity for
SOHO segment.
7. In Building Solutions*: Offloads
traffic from outdoor BTS
Source: Nokia-Siemens and 3GPP TR 45.903 V7.0.1 (2007-08)
* 100 % SAIC and AMR considered with Synchronous network
Basic GSM
AMR*
DFCA
SAIC/SN*
* At
Zero
cost
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Technology Innovation
Deployment Status in India
Innovative techniques grossly under-deployed in Indian market.
Techniques
All OPERATORS
Synthesized Frequency Hopping
(SFH)
Tighter Frequency Reuse Plan (TFR)
Discontinuous Transmission (DTX)
Dynamic Power Control
IBS & Micro Cell
Dynamic SDCCH
Under Trial Stage
Conventional
Advanced
Innovative
Used by
Synchronized Network
Dynamic Frequency and Channel Allocation
(DFCA)
6 Sector BTS
Single Antenna Interference Cancellation (SAIC)
Interference Rejection Combining (IRC)
Femto Cell

Intelligent Directed Retry (IDR)
AMR-HR
Antenna Hopping - One Operator
5 OPERATORS
Source: COAI submission to TRAI and from various GSM vendors.
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0.0
5.0
10.0
15.0
20.0
4.4 6.2 8 10 12.4
Spectrum Allocation (in MHz)
S
u
b
s

C
a
p
a
c
i
t
y

(
i
n

M
n
)
TEC
30% AMR-HR
Technology Innovations
30% AMR-HR
Technology
innovation
4.4 1,500 538 1.40 3.0
6.2 2,000 466 1.36 3.0
8 2,400 426 1.37 2.8
10 2,509 416 1.36 2.6
12.4 2,560 412 1.34 2.6
Spectrum
Allocation
(MHz)
No. of Times Subscriber
Capacity w.r.t TEC No. of
Sites
Site to Site
distance
(in Mtr.)
Morphology & traffic
distribution as outlined
by TEC.


Technology
innovations like Femto
& IBS not considered
in mathematical
modeling.

TEC Criteria can be enhanced by over 3 times using Technology innovation
Increase in TEC Subscriber criteria
Due to technology Innovations
GSM Case study for Delhi
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Technology Innovations - CDMA
New Techniques which will improve the spectral efficiency.

1. 6 Sector BTS
2. 4 GV vocoder
3. Pilot interference cancellation
4. Femto cell solution
5. In Building Solution
CDMA operators should accelerate deployment
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Capacity of CDMA
for 2.5MHz spectrum
is 6 times than that
projected by TRAI

Similar observation
is for other
allocations.

0.00
5.00
10.00
15.00
20.00
25.00
2.5 3.75 5 6.25
Spectrum Allocation (in MHz)
S
u
b
s

C
a
p
a
c
i
t
y

(
i
n

M
n
)
RCOM Estimate
4GV Vocoder
Innovation Techniques
TRAI Criteria can be enhanced by more than 5 ~6 times using Technology innovation
Increase in TRAI Subscriber criteria (CDMA)
Due to technology Innovations Case study for Delhi
4GV
Vocoder
Innovation
Techniques
4GV
Vocoder
Innovation
Techniques
2.5 0.5 1.6 3.1 3.2 6.2
3.75 2.0 7.1 13.7 3.6 6.9
5 3.0 9.5 18.3 3.2 6.1
6.25 5.0 11.8 29.0 2.4 5.8
Spectrum
Allocation
(MHz)
TRAI
Criteria
Subscriber Nos.
( in Mn)
No. of times w.r.t
TRAI Criteria
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Summary - TEC subscriber criteria

The TEC criteria is liberal



It can be further increased with gains by use of spectral
efficiency technology innovations


TEC subscriber criteria to be revised upward by over 3 times leading to increased availability of spectrum

Re-farming, re-alignment of spectrum
and
Capital efficiency measures
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900 MHz Vs1800 MHz Spectrum
Anomaly & imbalances
For a new operator, initial National Coverage
with 900 MHz spectrum can be achieved with
30,000 BTS sites as against 60,000 BTS sites
of 1800 MHz

Initial Capex saving of Rs. 15,000 Cr

Opex saving of Rs.1500 Cr per Year

On ongoing basis a 900 Mhz network provides
Capex advantage of Rs. 3,000 Cr & annual
Opex savings of Rs. 300 Cr as compared to
1800 MHz network

Spectrum beyond 4.4 MHz in 900 MHz band
does not give any additional advantage

Cap of 4.4 MHz to be introduced in 900 MHz
band
Spectrum in 900 MHz Band should be re-farmed & equally allocated to existing as well as new Operators
Airtel Hutch Idea RTL
Delhi 8 8 6.2
Mumbai 8
Chennai 6.2
Kolkata 6.2 6.2
AP 7.8 6.2
Gujarat 7.8 6.2
Karnataka 7.8
Maharashtra 6.2 7.8
TN 6.2
Haryana 6.2 6.2
Kerala 6.2 6.2
MP 6.2 6.2
Punjab 6.2
Rajasthan 6.2 6.2
UP (E) 6.2 6.2
UP (W) 6.2 6.2 6.2
WB 4.4 4.4 6.2
Assam 6.2
Bihar 6.2 6.2
HP 6.2 4.4
J&K 4.4
NE 4.4 4.4
Orissa 6.2 6.2
Spectrum in 900 MHz
Existing GSM Operators with up to 8 MHz spectrum in 900 MHz bad have an unfair advantage over new entrants
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Re-farming spectrum
Inter-se 900 MHz 1800 MHz
Both existing and new operators as per policy are to be given level playing
field in non-discriminatory manner

This necessitates correction of current anomaly and imbalance of allocated
spectrum in 900 &1800 MHz

Need to cap allocation of spectrum in 900 MHz to each operator both
existing and new entrants

Internationally re-farming has been implemented
Policy framework to be implemented to achieve non discriminatory level playing field for all operators
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Internationally, Regulators have re-farmed spectrum to ensure non discriminatory level playing field & consumer
benefits
In October 2007 Ofcom has initiated the re-farming of 15 MHz to 20 MHz
of spectrum in 900 MHz band from Vodafone & O2. This spectrum was
allocated in 1985
Returned Spectrum will be allocated to new / other eligible operators
Value of returned spectrum estimated at Rs. 50000 Cr ( 6 Bn)
UK
Re-farming inter-se operators is practiced and implemented .
In 2004, Regulator directed spectrum re-farming between AT&T & T-
Mobile in New York & California states
USA
Global practices of re-farming of spectrum
confidential
870.03 871.26 872.26 873.99 875.22 876.45 877.95 879.18 880.41 881.64
883.67 MHz 890 MHz
869 MHz
BSNL TATA RCOM
GB
1.4 MHz
GB
GB
879 MHz
890 MHz
6.33 MHz
Realignment of Spectrum 4 Carrier Scenario
871.26
881.21 MHz 890 MHz
869 MHz
879 MHz
870.03 872.26 873.99 875.22 876.72 877.95 879.18
BSNL TATA RCOM
GB
1.4 MHz
GB
GB
890 MHz
8.80 MHz
Realignment of Spectrum 3 Carrier Scenario
Note: All the frequencies are in MHz
RCOM & TATAs to also offer GSM,
Realignment will Improve availability of spectrum
Realignment of spectrum
880 890 MHz Band
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Capital Efficiency Measures
recommended
Mandate passive infrastructure sharing with price cap
TRAI recommendations of Apr 2007 on sharing of active infrastructure
to be accepted & implemented
DOT to make reference to TRAI for sharing of spectrum
- Internationally active infrastructure sharing & spectrum sharing is done
to deploy network in rural areas to reduce CAPEX,
DOT to make reference to TRAI Mandate Inter & Intra circle roaming in
GSM and CDMA


These measures will be in further overall interest of consumers
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Summary
Re-farming & Capital Efficiency measures
Inter-se re-farming of spectrum in 900 & 1800 MHz bands.
Realignment within 800 MHz band
To improve capital productivity, capital efficiency measure such as
- Sharing of passive and active infrastructure and spectrum sharing

Win-Win-Win for all stake holders Customers, Government & Operators
Improves availability of spectrum
Optimum utilization of spectrum
Promotes quality
Accelerates with increased competition
Achieves capital productivity
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Summary - Recommendations
Reliance fully supports TEC criteria for spectrum allocation
TEC criteria should be the base & further tightened
Start up spectrum of 6.2 MHz to be allocated to all new GSM entrants
Refund of excess spectrum by the existing operators as determined by TEC
and beyond contracted 6.2 MHz
Inter-se re-farming of spectrum in 900 & 1800 MHz bands
Allocate maximum 4.4 MHz of spectrum in 900 MHz band to all existing
operators & new entrants.
Realign spectrum within 800 MHz band to increase the availability of
spectrum for GSM for RCOM & TATAs
Annual spectrum charges should be increased at least to the level
recommended by TRAI to ensure efficient use of spectrum scarce resource.
Mandate passive infrastructure sharing
Accept TRAI recommendation on active infrastructure sharing.
DOT to make reference to TRAI for sharing of spectrum and Mandate Inter &
Intra circle roaming in GSM and CDMA

Thank You

Back Up Slides
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RCOM estimation on TEC Subscriber Criterions
Calculation Process - Delhi Case study
Various deliverables as outlined in the workflow diagram of TEC recommendation
Morphology
Area
(in Km)
Traffic
Density
(w.r.t. DU)
Traffic Ratio
(Area * Traffic
Density)
Sites
Distribution
(in %)
No. of Sites
Subs
Capacity
(in Mn)
Resulting
cell range
(Km)
Intersite
Distance (Km)
Subs
density (Per
Km)
Dense Urban 37.7 100% 12% 10% 235 0.43 0.29 0.430 11517
Urban 188.3 40% 24% 20% 470 0.77 0.45 0.680 4095
Sub Urban 753.2 12% 29% 40% 940 1.35 0.64 0.962 1792
Rural 903.8 12% 35% 30% 705 0.58 0.81 1.216 640
Total 1883 100% 100% 2,350 3.13 0.55 0.823 1664
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Spectral Efficiency in Cellular network
Spectral
Efficiency
Benefits
2. Maintain desirable
QoS for the growing
Network.
4. Avoid site
acquisition related
delays for capacity
built-up.

3. Optimized Capex & Opex due to
addition of new sites.
1. Address the capacity demand with
available spectrum
Spectrum efficiency techniques should be implemented voluntarily by the operators rather then being enforced by
Regulatory Authority .
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KPI Asynchronous Synchronous DFCA
Effective Frequency Load 12% 16% 21%
Total max Traffic/sector 68.5 90.9 113
Capacity Gain wrt Asynchronous
Network
-NA- 33% 65%
Source: Nokia-Siemens
Technology Innovation 2 (Cont.)
DFCA (Dynamic Frequency and Channel Allocation)
Commercial Deployment:
- Key operators who have implemented DFCA commercial network.
T-Mobile (USA),
AT&T (USA)
Conecell (Ecuador)
China Mobile
Telefonica (Columbia)

- Typical improvement statistics shown in table. (Huston)
In live commercial network capacity enhancement of 65% observed.
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Capacity of CDMA
for 2.5MHz spectrum
is 6 times than that
projected by TRAI

Similar observation
is for other
allocations.

0.00
5.00
10.00
15.00
20.00
25.00
2.5 3.75 5 6.25
Spectrum Allocation (in MHz)
S
u
b
s

C
a
p
a
c
i
t
y

(
i
n

M
n
)
RCOM Estimate
4GV Vocoder
Innovation Techniques
TRAI Criteria can be enhanced by more than 5 ~6 times using Technology innovation
Increase in TRAI Subscriber criteria (CDMA)
Due to technology Innovations Case study for Delhi
4GV
Vocoder
Innovation
Techniques
4GV
Vocoder
Innovation
Techniques
2.5 0.5 1.6 3.1 3.2 6.2
3.75 2.0 7.1 13.7 3.6 6.9
5 3.0 9.5 18.3 3.2 6.1
6.25 5.0 11.8 29.0 2.4 5.8
Spectrum
Allocation
(MHz)
TRAI
Criteria
Subscriber Nos.
( in Mn)
No. of times w.r.t
TRAI Criteria
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Peak Configuration:
S2/2/2
25 Erlang /site
Peak configuration:S3/3/3

99 Erlang/site
Uplink/downlink DTX
Uplink frequency scan
Uplink interference band
measurement
Dynamic power control
Frequency hopping


Dynamic MAIO
Tight BCCH Reuse
AMR FR/HR
Antenna hopping


SAIC
Synchronized Network
DFCA
AMR 100%
Interference Counteract Combining
Repeated FACCH /SACCH
Advanced Power control
Standard
2001
Advanced
2007
Innovative
Q2 2008
Peak configuration:S4/4/4

143 Erlang/site
Technology Innovation
Application on 4.4MHz
6times capacity improvement in 4.4MHz band.
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International Case Study-
Re-farming spectrum to reduce from 20MHz to 10MHz
Re-farming of the Spectrum can be implemented seamlessly
Source: T-Mobile, USA
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2/2/2 4/4/4 6/6/6 8/8/8 10/10/10 12/12/12
BTS Configuration
N
o

o
f

S
i
t
e
s
No of Sites in 20MHz No of Sites in 10MHz
BTS configuration
not applicable for
10MHz.
T-Mobile (NY) was serving
3 million subs using 20 MHz .

10 MHz be surrendered
owing to contractual obligations

T-Mobile had no option but
to opt for innovative techniques
to support the growing subscriber
base.


Solutions Implemented :
100% AMR-HR introduction
Introduction of Synchronized Network
SAIC
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900 band spectrum advantages over
1800 band Spectrum

Higher Range : (Better Coverage)
- Lower the radio frequency, higher the transmission range
- Achievable by GSM 900 cell is double of GSM 900 cell
1


Less no. of Sites: (Substantial reduction in Capex)
- For equivalent coverage, site requirement with GSM 1800 is 4 times of GSM
900
2
.

Better Indoor coverage: (Improve QoS)
- much better in 900 Mhz than 1800 Mhz , to provide equivalent levels of deep,
dense urban coverage, more cells are required at 1800 MHz than at 900
MHz
1

Better Operation at high speed
1
: (Improve QoS)
- The specifications for GSM 900 and GSM 1800 include an upper speed limit
for the handset, above which the radio connection is not guaranteed. For
GSM 900 this is 250km/h, and for GSM 1800, 125km/h.
1. OFTEL
2. Denmark Regulator
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Spectrum charges
It is almost impossible for regulation to keep pace with technology
advancement
In addition to appropriate spectrum allocation criteria, there is need for
mechanism to ensure efficient spectrum utilization on ongoing basis.
Current recurring spectrum charges as well spectrum charges recommended
by TRAI have lower per MHz charges beyond 8 MHz
Spectrum charges for 900 MHz band spectrum should be 20% higher than
charges for 1800 band spectrum
Spectrum in MHz 4.4 6.2 8 10 12.4 15
Existing Charges 2% 3% 4% 4% 5% 6%
Charge/MHz 0.45% 0.48% 0.50% 0.40% 0.40% 0.40%
TRAI Recommended 2% 3% 4% 5% 6% 7%
Charge/MHz 0.45% 0.48% 0.50% 0.50% 0.48% 0.47%
Proposed 2.0% 3.0% 8.0% 10.0% 12.4% 15.0%
Charge/MHz 0.45% 0.48% 1.00% 1.00% 1.00% 1.00%