3.5 GHz Band’s Restrictions— What can Bharti and VI do to unlock value?
India recently concluded the 5G auction, but the band where a large proportion of the operator’s focus will be is the 3.5 GHz band. Why? As this band has the maximum quantum of airwaves with a reasonable propagation characteristic compared to any other band, be it 700 MHz or 26 GHz. However, this band is not fully clear to use in some circles for both Bharti and VI. In this note, we will talk about the strategies that Bharti & VI can adopt so that their flexibility of usage in these circles is greatly increased and the consumers’ experience is not hampered in any way.
3.5 GHz Band’s Encumbrances
The figure below is the band plan for the 3500 MHz.
Note of the total 300 MHz spectrum that is available, only 170 MHz is clean without any encumbrance. This means that the two other blocks, 3.40 to 3.43 GHz (30 MHz) and 3.30 to 3.40 GHz (100 MHz) have some form of encumbrances.
Type 1 — The block 3.40 to 3.43 GHz (30 MHz) is not available in 6 service areas (Karnataka — Hassan; Kerela — Trivandraum; M.P- Bhopal; North East — Shilong; Rajasthan — Jodhpur; West Bengal — Port Blair). Please note that the nonavailability will not just get restricted in these cities but will also spill over a much larger jurisdiction beyond these cities, and that may run in hundreds of square km (DoT will provide these details later).
Type 2 — The other block 3.3 to 3.4 GHz (100 MHz) is not available in 6 LSAs- namely Himachal Pradesh, Gujarat, Jammu & Kashmir, North East, Rajasthan, and Uttar Pradesh (West) within 50 km from the international border.
Circle Wise Operator’s Holdings
This is clearly visible in the following chart.
From the above picture, it is clear that Bharti (Green) has airwaves free from any encumbrance in 14 of the 22 circles — From 3.40 to 3.50 GHz. But in the remaining 8 circles, it will have to face challenges.
Bharti will face “Type-1” encumbrances in KA, KE, MP, NE & RA (5 circles) in a 30 MHz block that lies right within its band marked with “Red” borders.
Bharti will also face “Type-2” encumbrances in HP, JK, NE, RA & UPW (5 circles) in 30 MHz of their total 100 MHz on the lower edge of its band marked with “Pink” borders.
Solution
In HP, JK & UPW (3 circles), Bharti will have no choice but offer 5G services in only 70 MHz of its spectrum in the border areas where the services are restricted (50 Kms within the international boundary).
In Karnataka, Kerala, and MP (3 circles), Bharti can share airwaves with VI and create a continuous block of 80 MHz in areas where the services are restricted. Else it will get restricted to 40 MHz only, as the other 30 MHz block of the clean spectrum will get separated out by a guard band of 30 MHz.
In NE (1 circle) Bharti will get restricted to only 40 MHz in areas where both “Type-1” and “Type-2” encumbrances overlap. OR it can also decide to harmonize its spectrum to 3.30 to 3.40 GHz. This will depend upon the type which will cause a larger impact.
In Rajasthan (1 circle) Bharti will have either live with only 40 MHz in areas with both types of interference or decide to share spectrum with VI to drive a larger block of 80 MHz.
Conclusion
In nutshell, Bharti will be able to use the full 100 MHz of the 3.5 GHz band in 14 of the 22 circles. In 3 circles (HP, JK & UPW) it will be able to use only 70 MHz in areas with “Type-2” encumbrances. In 3 circles (KA, KE & MP), Bharti has only 40 MHz of continuous clean spectrum in the 3.5 GHz band, but it will also be able to create an 80 MHz block of the clean spectrum (with no encumbrances) by sharing spectrum with VI. However, for Bharti, Rajasthan will be a challenge as it has both “Type-1” & “Type-2” encumbrances, and it is left with only 40 MHz of clean spectrum. However, it can share airwaves with VI to drive to unlock some more value. But 1 circle (NE) will pose a severe challenge to Bharti, as here there is no VI. Hence, depending upon the gravity of the problem (between Type1 & 2), Bharti might decide to harmonize its spectrum into the block where only “Type-2” restriction exists. Note, that VI will only gain from sharing spectrum with Bharti.
(Views expressed are of my own and do not reflect that of my employer)
PS: Find the list of other relevant articles in the embedded link.
