Wednesday, November 21, 2012

New frequency policy in final stage.

KATHMANDU, NOV 20 - 2012

The government is at the final stage of preparations to introduce a provision that requires any spectrum that is technology-neutral to be auctioned. The Radio Frequency Policy Determination Committee, headed by Minister for Information and Communications Raj Kishor Yadav, is bringing a new frequency policy with this provision.

Telecom regulators across the world are now starting to grant the right to use spectrum irrespective of the type of technology being used. The premise of a technology-neutral approach is that a service should be provided through any type of technology in any frequency band, allowing the alteration of spectrum at any time.

Technology-neutral spectrum will allow service providers to choose services such as 2G, 3G or 4G in the frequency bought through the auction, removing the existing method of acquiring spectrum in different band for separate services. However, service providers would have to provide only the services permitted in their licence and they would not have right to transfer spectrum to another operators like in developed countries.

“Any technology-neutral spectrum will be auctioned as per the proposed new Telecommunications Radio Frequency Distribution and Pricing Policy,” said Ananda Raj Khanal, officiating chairman of the Nepal Telecommunications Authority (NTA). He informed that the committee would soon endorse the new policy.

With the government all set to come up with the new provision on frequency allocation, pricing and auctioning, the plan of auctioning WiMax spectrum will also be changed. Even though the WiMax technology is capable of providing wireless voice and high-speed data service, it is considered as a ‘dying technology’ with international operators switching to long-term evolution (LTE) or 4G.

A source at the Communications Ministry says there is no meaning of auctioning the WiMax airwaves if the government introduced auction provision of technology neutral frequencies in high-value band. “Technology-neutral or common spectrum can provide wireless broadband service, mobile broadband and voice service,” the source added.

About one and a half years ago, the same frequency determination committee had decided to auction WiMax spectrum to a private telecom operator and an internet service provider. Based on that decision, the NTA is making final preparation to call notice for WiMax section auction. Nepal Telecom, which had been assigned 30 MHz airwave for WiMax service without competition, recently launched the service in Kathmandu.

In the new policy, the government will also set minimum and maximum frequency threshold with certain annual fee to discourage hoarding by operators. According to Communications Ministry officials, the policy will decide to utilise the digital dividend (700 MHz band), the spectrum that is yet to be freed after switching from analogue TV broadcasting to digital, for mobile and broadband internet services.

The new frequency policy will replace the existing Telecommunications Radio Frequency Distribution and Pricing Policy 2011 endorsed by the frequency determination committee last year. The Ministry of Communications is showing urgency to bring the new policy as per the direction of the dissolved parliament’s Public Account Committee to formulate new policy and adopt frequency auctioning provision.

Source: The Kathmandu Post

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