fish auctionfish auctionHigh reserve protected against giveaway pricing. The telcos got the spectrum they can put to use for $10B, about all they could spend. In two to four years, the government likely can re-auction the unsold spectrum for a much higher price.  Normally, it's a good thing to put spectrum to use. In this case, most would have gone unused if transferred to the carriers.

 Manoj Gairola echoed other reporters in Spectrum auction fiasco: DoT should come out of denial mode and introspectI disagree that "The latest Spectrum auction has failed." Nearly all analysts agree that companies like Bharti and Idea are facing serious issues with their balance sheets. Vodafone had to pump $7B in Vodafone India. They didn't have the cash to bid much more. They couldn't have afforded to spend more. The Indian telcos are struggling to finance the buildout on the spectrum they have bought; it would be impractical for them to buy and then build the 700 MHz band. Goldman Sachs had predicted the companies wouldn't spend more than $7B. "Higher debt levels following the auction and lower profitability from pricing pressure will likely raise industrywide leverage,” Annalisa Di Chiara of Moody's concluded.

Sunil Bharti Mittal, head of India's largest phone company, agrees the companies got what they needed. “Spectrum was one of the biggest issues that has been resolved to a very large degree. Lots of spectrum was put up on the table. Most has been picked up and more will be picked up. I think the rollout is now accelerating.“ Minister Sinha adds,  “I totally disagree with the statement that this spectrum auction was a `failure' (according to newspapers) ... I think Digital India will get momentum after this spectrum auction.“ 

The financially stretched companies would have had to spend $biliions for spectrum they would barely use for years. They can spend their limited funds on building today's networks.

In two to four years, the companies should be ready to put the spectrum to use. The government can look forward to a much better return. The shortfall is an issue for this year's budget, but a tax amnesty raised more than expected and will cover most of the extra deficit. The revenue foregone will be more than made up in a few years.

Reliance Jio signed up 16M 4G customers in 26 days, a kickstart to India's broadband. 

Quote from Moody's added 10/13

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 Gig LTE & Massive MIMO ushering in the Age of Wireless Abundance

Wireless Abundance is here: What the new tech means http://bit.ly/Wirelessabundance
Sprint & T-Mobile Charge to be 1st in U.S. to Gig LTE bit.ly/STMOgig  AT&T bit.ly/ATTGIG2016
Kitahara of Softbank “I am crazy about Massive MIMO” http://bit.ly/MMIMOCrazy
20 Gig mmWave, Massive MIMO & Gig LTE at the Huawei MBBF http://bit.ly/Huawei20
LTE gets to the gigabit explained for non-engineers http://bit.ly/GigLteexplained
Massive MIMO explained. http://bit.ly/WHMassiveMIMO
2017's Big Gigabit story: Qualcomm 835 is ready http://bit.ly/BigGigLTE
Doubling speed with 4x4 MIMO & 256 QAM at T-Mobile http://bit.ly/2k1gEOQ
Netgear Nighthawk M1, Telstra do "gigabit class" LTE http://bit.ly/2k1s5Gq
Spectrum price down by half http://bit.ly/Spectrumhalfoff
Dish and the telcos see big asset cut http://bit.ly/auctionlosers
Shorts on 3GPP,  NYU research, Ralph de la Vega, 5G new radio

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5GW News

dave right5G? 4G? Whatever the name, wireless is going to a gigabit, soon.  I've reported broadband since 1999 and now is the time for gigabit wireless. Catch a mistake or have news? Email me please. Dave Burstein

 

Stories worth writing

Starry may match Verizon 5G at half the cost
OFCOM in UK: Share all spectrum, even licensed
OFCOM's Boccardi: 26 GHz worldwide: U.S. goes 28 
Verizon 5G fixed tests will be only 100's of homes
Massive MIMO FD at China Uni, Tele, Huawei, ZTE

 

 

 

Datapoints

Verizon and AT&T burying price increases in fees. 

Huawei's Richard Yu intends to pass both Apple & Samsung in smartphones in five years. 

The 3,000,000,000 transistor Qualcomm 835 is a revolution. Gig LTE, incredible cameras, better VR & AR, & ... State of the art CPU, DSL, GPU, ISP tightly integrated

1,000 T-Mobile small cells 2016, 6,000 more coming. Tech Life

New $84 Reliance Lyf Wind 7S has a 5" screen, a quad-core Snapdragon, an 8 megapixel camera, and some extras. Not state of the art, perhaps, but completely usable at a modest price. 

Orange/FT 4G covers 97% of Poland, 96% of Moldova, but only 84% in France, Q3 2016. They have 113.5 mobile customers in Africa compared to 25.5M in Europe.

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