INDIA BUSINESS WORLD - AUGUST 2006
THE MONTH THAT WAS...

NOW, CABLE OPERATORS DEMAND 3G SPECTRUM FOR NEW SERVICES

EVEN as GSM and CDMA mobile operators are jousting for a slice of radio spectrum for 3G services, a new claimant has emerged on the scene. Cable TV operators in India want their share of 3G spectrum for offering new services such as mobile TV and broadband.

At least one cable TV and broadcasting player — Zee Network — has already told the Telecom Regulatory Authority of India (Trai) that 3G spectrum should not be limited to telecom operators. One of the principal utilities of 3G services is mobile TV. Technology convergence is tempting telecom companies to turn distributors of broadcast signals, and not just through Internet-based IPTV. In Punjab , for example, telecom service provider HFCL is already among the biggest multi-system cable operators. For cable companies, access to the latest forms of distributing broadcast content, including wireless, is a matter of survival. In the process, they could turn generalised communications providers as well. Asianet's cable division is also a major provider of Internet access in Kerala.

Zee Network has written to Trai demanding 3G spectrum be allotted through auction. It has sought the inclusion of broadcasters and cable TV operators in the bidding process, without any preference for telecom operators. Zee's move comes in the wake of the $2.2-billion bids so far by peers like Time Warner and Comcast for advanced wireless services spectrum in the US .

ASC Enterprises, another Zee group company providing DTH services, has also expressed similar views. Sources said other large cable TV operators may soon follow suit.

“Zee Network will like to assert that the new generation spectrum, which also includes IMT 2000 spectrum, is allocated to all potential users. We would like to assert that the existing 2G operators have no inherent right on this spectrum without auction. The 3G operators, which emerge after auction, should be the ones who get right to provide new services,” said Zee Network, in response to a Trai consultation paper on 3G services.

Cable TV operators in the US and Europe provide broadband, e-commerce, video on demand and interactive entertainment services, besides the staple TV channels. Wireless provides them an opportunity to offer services to consumers even when they are mobile.