4G rivalry: BSNL may get nod to use 700 Mhz band, to take on Airtel, Reliance Jio

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State-run telecom operator Bharat Sanchar Nigam Limited is banking on allocation of the coveted airwaves in the 700 MHz band to launch high-speed fourth-generation or 4G services to take on rivals such as market leader Bharti Airtel and billionaire Mukesh Ambani’s Reliance Jio Infocomm.

The company has written twice to the Department of Telecom, first in September 2016 and more recently in early January this year, to allocate 5 MHz block in the 700 MHz band spectrum on a revenue-sharing arrangement, BSNL chairman Anupam Shrivastava told ET.

Spectrum in the 700 MHz band is considered to be most suitable for high-speed data services with greater network coverage that requires low capital spend for telecom operators on infrastructure deployment.

“We are hoping to get the 700 MHz band spectrum from the government through equity route. Whatever returns we get will be pumped back to the government,” BSNL Shrivastava said.

The newer band will help the company roll out its 4G-based products through the classical LTE mode pan-India, including rural areas, he said.

The telco, which has no suitable spectrum for 4G technology, is currently relying on its Wi-Fi offload strategy through which it claims to offer speed on a par with that of 4.5G network. Alternatively, it is looking to swap 3G service (2100 MHz band) with 4G in select cities.

“In a recent letter, we have again asked the telecom department to allow 5 MHz in the 700 MHz band so that we will have 2G, 3G and 4G services throughout the country,” Shrivastava said.

The company is looking to launch its 4G services by April through the traditional spectrum course with the premium airwaves in the 700 MHz band.

Private sector rivals such as Bharti Airtel, Vodafone India, Idea Cellular and Reliance Jio are investing heavily in high-speed data networks, thereby adding to BSNL’s woes.

As many as 40% devices worldwide support the airwaves in the 700 MHz band, Shrivastava said.

“It will not be a difficult task for equipment makers to quickly tune into 700 MHz band from the available 800 MHz, and once services are closer to launch, the ecosystem will develop,” he said.

Telecom secretary JS Deepak declined to comment on the matter.

In October 2016, the government had put up 770 MHz of the valuable spectrum for auction at a base price of Rs 11,475 crore per unit, but it went unsold as the service providers found the band too expensive.

Bharti Airtel chairman Sunil Mittal had termed the non-bidding of airwaves in the 700 MHz band as a “missed opportunity”, and in an earlier interview with ET, he said that the sector regulator Trai had “erred” in fixing the reserve price for the band.

4g rivalry: bsnl may get nod to use 700 mhz band, to take on bharti airtel, reliance jio, Telecom News, ET Telecom
 
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