On Wednesday, the Union Cabinet cleared the auction of 5G spectrum<\/a> scheduled to start in end-July. Till then, policymakers, telecom companies and industries eagerly await the windfall to be gained from 5G-capable networks providing massive machine type communication (mMTC<\/a>), enhanced mobile broadband (eMBB) and ultra-reliable low-latency communication (URLLC<\/a>). Simultaneously, the new technology poses thorny riddles: the setting of reserve prices for spectrum in the wake of failed auctions; demands by industrial entities to be made licensees; and the call for the use of indigenous technology.

India is a large and heterogeneous market with varying income levels and communication needs. While telecom has been a great equaliser with mobile and internet penetration at 84% and 60% respectively, each of the 22 designated
telecom licence<\/a> service areas (LSAs) continues to be quite heterogeneous in terms of the willingness and ability to pay across the range of digital services from voice telephony to gaming. This has made it difficult for licensees to come up with customised solutions for different market niches, a problem exacerbated by the three-firm structure - four-firm, if you include a rather vapid government operator.

5G<\/a> offers an opportunity for a closer alignment between market characteristics and technology capabilities. With support for diverse range of services like the Internet of Things (IoT), machine-to-machine communication, gaming and augmented reality (AR), the heterogeneity of the market is only likely to increase. Simultaneously, by using high-range frequencies, 5G enables short-range, data-intensive communications. This makes it feasible to carve out 'microcells' catering to areas characterised by high-intensity usage. This means that technology can now mimic the heterogeneities of the market.

In general, when carving out market geographies, policymakers need to consider the profit potential and provision of universal service, besides logistical constraints such as administrative boundaries. The carving of the 22 LSAs in 1995 and their categorisation as metros, Categories A, B and C were based on revenue-earning potential and extant state boundaries. It is time to move to a finer granulation of the market, as the minimum viable area - the smallest area compatible with profitable operations - has shrunk significantly. A finer division will optimise the balance between economies of scale that flow from homogeneity, and inclusivity that flows from the trickle-down effect of the growth of the market.

Splitting circles will reduce barriers to entry and promote competition and innovation. New entrants such as cable service providers, internet service providers, WiFi access providers and even virtual mobile network operators will develop niche offerings. It will make bidding easier as markets will be homogenous.

Today, with a huge bank guarantee submission at the beginning of the auction, bidders are staring at bidding for large
LSA<\/a>s that include very few 1 million-plus population cities such as Patna LSA and large semi-urban and rural areas. Left with no choice, and to meet the high reserve price requirements, the operator ends up bidding at higher than true valuation, or not bidding at all. With smaller LSAs, the demand prediction becomes more accurate and the business decision to bid can be more rational. Accordingly, the methodology for fixing reserve prices can also be robust and realistic. It will lead to faster adoption and higher government revenues.

While most countries are too small to have many LSAs, the US pioneered this effect by creating five types of market areas for the allocation of spectrum licensing: cellular market areas (CMAs), basic trading areas (BTAs), basic economic areas (BEAs), major trading areas (MTAs) and regional economic areas (REAs). A typical CMA covers only 3-4 counties and a BEA roughly 15, while an REA can cover hundreds of counties and span several states. The US is divided into 734 CMAs, 176 BEAs and 12 REAs. The
Federal Communications Commission<\/a> (FCC) carefully balances geographic coverage associated with a licence and its allotted bandwidth to avoid market power concentration, and to induce entry into high-cost, sparsely populated rural areas.

However, a number of initiatives have to go hand-in-hand with the proposed redesignation. These include the process of migration of the existing licences to the new LSAs; the licensing terms and conditions, such as rollout and service delivery obligations; and flexible sharing and leasing arrangements for effective use of spectrum.

One of the drawbacks of the proposed model is that administrative overhead in spectrum allocation and management, auditing rollouts and measuring quality of service across LSAs is likely to increase. But not trying it out would limit 5G to incremental gains and chain its transformative potential.

Prasad is professor of economics, Management Development Institute (MDI), Gurgaon, and Sridhar is professor, International Institute of Information Technology (IIIT), Bengaluru

<\/p><\/body>","next_sibling":[{"msid":92241876,"title":"FCC cites deficiencies in requests for funds to replace telecom equipment from Chinese companies","entity_type":"ARTICLE","link":"\/news\/fcc-cites-deficiencies-in-requests-for-funds-to-replace-telecom-equipment-from-chinese-companies\/92241876","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"92238377","title":"5g-afp-2","entity_type":"IMAGES","seopath":"opinion\/et-commentary\/view-5g-spectrum-split-circles-cut-the-knot\/5g-afp-2","category_name":"View: 5G spectrum, split circles, cut the knot","synopsis":"Prasad is professor of economics, Management Development Institute (MDI), Gurgaon, and Sridhar is professor, International Institute of Information Technology (IIIT), Bengaluru","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-70408\/92238377.cms?width=150&height=112","link":"\/image\/opinion\/et-commentary\/view-5g-spectrum-split-circles-cut-the-knot\/5g-afp-2\/92238377"}],"msid":92241899,"entity_type":"ARTICLE","title":"View: 5G spectrum, split circles, cut the knot","synopsis":"India is a large and heterogeneous market with varying income levels and communication needs. While telecom has been a great equaliser with mobile and internet penetration at 84% and 60% respectively, each of the 22 designated telecom licence service areas (LSAs) continues to be quite heterogeneous in terms of the willingness and ability to pay across the range of digital services from voice telephony to gaming.","titleseo":"telecomnews\/view-5g-spectrum-split-circles-cut-the-knot","status":"ACTIVE","authors":[{"author_name":"Rohit Prasad","author_link":"\/author\/479258001\/rohit-prasad","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479258001.cms?width=100&height=100","author_additional":false},{"author_name":"V Sridhar","author_link":"\/author\/479256614\/v-sridhar","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479256614.cms?width=100&height=100","author_additional":false}],"analytics":{"comments":0,"views":396,"shares":0,"engagementtimems":1980000},"Alttitle":{"minfo":""},"artag":"ET CONTRIBUTORS","artdate":"2022-06-16 07:38:38","lastupd":"2022-06-16 07:39:27","breadcrumbTags":["5G spectrum auction","federal communications commission","5g spectrum","split circles","knot","URLLC","LSA","telecom licence","mmtc","5G","5G auctions"],"secinfo":{"seolocation":"telecomnews\/view-5g-spectrum-split-circles-cut-the-knot"}}" data-authors="[" rohit prasad","v sridhar"]" data-category-name="" data-category_id="" data-date="2022-06-16" data-index="article_1">

观点:5 g频谱,分裂的圈子里,快刀斩乱麻

印度是一个巨大的和异构市场不同收入水平和沟通的需要。而电信一直是一个伟大的进球移动和互联网普及率分别为84%和60%,每个22指定电信牌照服务领域(lsa)仍然是相当异类的意愿和支付能力的范围从语音电话游戏数字服务。

罗希特普拉萨德 V bloom
  • 更新在2022年6月16日07:39点坚持
阅读: 100年行业专业人士
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周三,欧盟内阁扫清了拍卖5 g频谱将从今年7月开始。直到那时,政策制定者、电信公司和产业急切地等待获得的暴利是款5 g网络提供巨大的机器类型通信(mMTC),增强移动宽带(eMBB)和飞船稳定性极强,低延迟通信(URLLC)。同时,新技术提出了棘手的谜语:储备的设置频谱拍卖失败后的价格;要求的工业实体进行许可;并呼吁本土技术的使用。

印度是一个巨大的和异构市场不同收入水平和沟通的需要。而电信一直是一个伟大的进球移动和互联网普及率分别为84%和60%,每个22指定电信牌照服务领域(lsa)仍然是相当异类的意愿和支付能力的范围从语音电话游戏数字服务。这使得许可很难想出定制解决方案不同的市场定位,一个问题加剧了第三大公司结构——四个公司,如果包括政府相当乏味的运营商。

广告
5克之间提供了一个机会仔细对准市场特点和技术能力。支持各种各样的服务,比如物联网(物联网),机器对机器通信、游戏和现实增强(AR),市场的异质性只会增加。同时,通过使用高幅度频率,5 g使短程、数据密集型的通信。这使它可行的开拓微蜂窝技术的餐饮区域的特点是高强度的使用。这意味着技术现在可以模仿市场的异构性问题。

一般来说,当开辟市场区域,政策制定者需要考虑的潜在利润和提供普遍服务,除了后勤行政边界等约束。雕刻的22 1995年直燃型溴化锂作为地铁及其分类,类别A, B和C是基于有利可图的潜在和现存状态的界限。是时候搬到一个更好的市场的造粒,作为最小可行的区域——最小的区域兼容有利可图的业务大幅萎缩。细的划分将优化的规模经济之间的平衡,从同质性、包容性,流动的涓滴效应增长的市场。

广告
分裂圆圈将减少进入壁垒,促进竞争和创新。新进入者如有线电视服务提供商来说,互联网服务提供商,WiFi访问供应商,甚至虚拟移动网络运营商将发展利基产品。它将简化投标市场将同质。

今天,在一个巨大的银行担保提交拍卖之初,投标人是盯着投标文理学院年代,包括很少1多人口的城市,如巴特那LSA和大型半城市和农村地区。剩下没有选择,满足高底价需求,运营商最终投标高于真实价值,或不投标。与小型直燃型溴化锂,需求预测变得更加准确和业务报价可以更理性的决定。因此,在储备定价的方法也可以强健的和现实的。它将导致更快的采用和更高的政府收入。

虽然大多数国家都太小,有很多直燃型溴化锂,美国通过创建五个类型的市场领域开创了这种效应的频谱分配许可:手机市场领域(mas),基本交易领域(bta)基本经济领域(比阿斯),主要贸易地区放在)和区域经济(rea)。典型的CMA只覆盖3 - 4个县和BEA大约15,虽然一个意图可以覆盖数以百计的几个州县和跨越。美国分为734服务,176比阿斯和12意图。的联邦通信委员会(FCC)仔细平衡地理覆盖与许可证及其分配带宽,避免市场权力集中,而使进入高成本,人烟稀少的农村地区。

然而,许多项目与重立名目拟议的携手并进。这些包括现有牌照的迁移过程新的直燃型溴化锂;许可条款和条件,如推广和服务交付义务;和灵活的共享和有效利用频谱租赁安排。

该模型的缺点之一就是管理开销在频谱分配和管理,审核发布和测量服务质量在直燃型溴化锂可能会增加。但不尝试将限制5 g增量收益和链的变革潜力。

Prasad是经济学教授,管理发展研究所(MDI),古尔加翁,bloom教授,国际信息技术研究所(IIIT),班加罗尔

  • 发表在2022年6月16日07:38点坚持

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On Wednesday, the Union Cabinet cleared the auction of 5G spectrum<\/a> scheduled to start in end-July. Till then, policymakers, telecom companies and industries eagerly await the windfall to be gained from 5G-capable networks providing massive machine type communication (mMTC<\/a>), enhanced mobile broadband (eMBB) and ultra-reliable low-latency communication (URLLC<\/a>). Simultaneously, the new technology poses thorny riddles: the setting of reserve prices for spectrum in the wake of failed auctions; demands by industrial entities to be made licensees; and the call for the use of indigenous technology.

India is a large and heterogeneous market with varying income levels and communication needs. While telecom has been a great equaliser with mobile and internet penetration at 84% and 60% respectively, each of the 22 designated
telecom licence<\/a> service areas (LSAs) continues to be quite heterogeneous in terms of the willingness and ability to pay across the range of digital services from voice telephony to gaming. This has made it difficult for licensees to come up with customised solutions for different market niches, a problem exacerbated by the three-firm structure - four-firm, if you include a rather vapid government operator.

5G<\/a> offers an opportunity for a closer alignment between market characteristics and technology capabilities. With support for diverse range of services like the Internet of Things (IoT), machine-to-machine communication, gaming and augmented reality (AR), the heterogeneity of the market is only likely to increase. Simultaneously, by using high-range frequencies, 5G enables short-range, data-intensive communications. This makes it feasible to carve out 'microcells' catering to areas characterised by high-intensity usage. This means that technology can now mimic the heterogeneities of the market.

In general, when carving out market geographies, policymakers need to consider the profit potential and provision of universal service, besides logistical constraints such as administrative boundaries. The carving of the 22 LSAs in 1995 and their categorisation as metros, Categories A, B and C were based on revenue-earning potential and extant state boundaries. It is time to move to a finer granulation of the market, as the minimum viable area - the smallest area compatible with profitable operations - has shrunk significantly. A finer division will optimise the balance between economies of scale that flow from homogeneity, and inclusivity that flows from the trickle-down effect of the growth of the market.

Splitting circles will reduce barriers to entry and promote competition and innovation. New entrants such as cable service providers, internet service providers, WiFi access providers and even virtual mobile network operators will develop niche offerings. It will make bidding easier as markets will be homogenous.

Today, with a huge bank guarantee submission at the beginning of the auction, bidders are staring at bidding for large
LSA<\/a>s that include very few 1 million-plus population cities such as Patna LSA and large semi-urban and rural areas. Left with no choice, and to meet the high reserve price requirements, the operator ends up bidding at higher than true valuation, or not bidding at all. With smaller LSAs, the demand prediction becomes more accurate and the business decision to bid can be more rational. Accordingly, the methodology for fixing reserve prices can also be robust and realistic. It will lead to faster adoption and higher government revenues.

While most countries are too small to have many LSAs, the US pioneered this effect by creating five types of market areas for the allocation of spectrum licensing: cellular market areas (CMAs), basic trading areas (BTAs), basic economic areas (BEAs), major trading areas (MTAs) and regional economic areas (REAs). A typical CMA covers only 3-4 counties and a BEA roughly 15, while an REA can cover hundreds of counties and span several states. The US is divided into 734 CMAs, 176 BEAs and 12 REAs. The
Federal Communications Commission<\/a> (FCC) carefully balances geographic coverage associated with a licence and its allotted bandwidth to avoid market power concentration, and to induce entry into high-cost, sparsely populated rural areas.

However, a number of initiatives have to go hand-in-hand with the proposed redesignation. These include the process of migration of the existing licences to the new LSAs; the licensing terms and conditions, such as rollout and service delivery obligations; and flexible sharing and leasing arrangements for effective use of spectrum.

One of the drawbacks of the proposed model is that administrative overhead in spectrum allocation and management, auditing rollouts and measuring quality of service across LSAs is likely to increase. But not trying it out would limit 5G to incremental gains and chain its transformative potential.

Prasad is professor of economics, Management Development Institute (MDI), Gurgaon, and Sridhar is professor, International Institute of Information Technology (IIIT), Bengaluru

<\/p><\/body>","next_sibling":[{"msid":92241876,"title":"FCC cites deficiencies in requests for funds to replace telecom equipment from Chinese companies","entity_type":"ARTICLE","link":"\/news\/fcc-cites-deficiencies-in-requests-for-funds-to-replace-telecom-equipment-from-chinese-companies\/92241876","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"92238377","title":"5g-afp-2","entity_type":"IMAGES","seopath":"opinion\/et-commentary\/view-5g-spectrum-split-circles-cut-the-knot\/5g-afp-2","category_name":"View: 5G spectrum, split circles, cut the knot","synopsis":"Prasad is professor of economics, Management Development Institute (MDI), Gurgaon, and Sridhar is professor, International Institute of Information Technology (IIIT), Bengaluru","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-70408\/92238377.cms?width=150&height=112","link":"\/image\/opinion\/et-commentary\/view-5g-spectrum-split-circles-cut-the-knot\/5g-afp-2\/92238377"}],"msid":92241899,"entity_type":"ARTICLE","title":"View: 5G spectrum, split circles, cut the knot","synopsis":"India is a large and heterogeneous market with varying income levels and communication needs. While telecom has been a great equaliser with mobile and internet penetration at 84% and 60% respectively, each of the 22 designated telecom licence service areas (LSAs) continues to be quite heterogeneous in terms of the willingness and ability to pay across the range of digital services from voice telephony to gaming.","titleseo":"telecomnews\/view-5g-spectrum-split-circles-cut-the-knot","status":"ACTIVE","authors":[{"author_name":"Rohit Prasad","author_link":"\/author\/479258001\/rohit-prasad","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479258001.cms?width=100&height=100","author_additional":false},{"author_name":"V Sridhar","author_link":"\/author\/479256614\/v-sridhar","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479256614.cms?width=100&height=100","author_additional":false}],"analytics":{"comments":0,"views":396,"shares":0,"engagementtimems":1980000},"Alttitle":{"minfo":""},"artag":"ET CONTRIBUTORS","artdate":"2022-06-16 07:38:38","lastupd":"2022-06-16 07:39:27","breadcrumbTags":["5G spectrum auction","federal communications commission","5g spectrum","split circles","knot","URLLC","LSA","telecom licence","mmtc","5G","5G auctions"],"secinfo":{"seolocation":"telecomnews\/view-5g-spectrum-split-circles-cut-the-knot"}}" data-news_link="//www.iser-br.com/news/view-5g-spectrum-split-circles-cut-the-knot/92241899">