Spectrum issues in Nepal
P. Khanal
Nepal Telecommunications Authority
[email protected]
Director Admin,HR, Finance and Rural telecom
Africa Asia Regulatory conference
Colombo, Sri-Lanka
Over view of the country and telecom sector in brief.
Spectrum allocation legislation and statistics of allocation of
Spectrum in Nepal.
Public Account Committee (PAC) investigation and its
recommendation on Spectrum matter.
3
NEPAL
Humla
India
Sim ikot
Darchula
Darc hula
Bajhang
China
Mugu
Chainpur
Baitadi
Gangadhi
Bajura
Baitadi
Martadi
Dipayal
Dadeldhura
Dadeldhura
Doti
Silgadhi
Jum la
Kalikot
Mangalsen
Achham
Jumla
Manm a
Dolpa
Mustang
Mahendra Nagar
Kanchanpur
Dailekh
Dailekh
Dunai
Jajorkot
Jomsom
Jajarkot
Rukum
Manang
Jum likhalang
Birendra Nagar
Cham e
Myagdi
Salyan
Parb
a
Pyuthan
Tulsipur
Gulmi
Pyuthan
Syangja
Sandhi Kharka
Arghakhanchi
Gorkha
lamjung
Bensi Sahar
Rasuwa
Dhunc he
Syangja
Tam ghash
Ghorahi
Dang
Pokhara
Palpa
Gorkha
Damauli
Tanahu
Palpa
Nuwakot
Sindhupalchowk
Bidur
Dhading Besi
Chautara
KTM
Rupandehi
Bhairahawa
Nawalparasi
Parasi
Bharatpur
Makawanpur
Chitwan
Bhim phedi
Solokhumbu
Charikot
Dulikhel
PATAN
Taulihawa
Dolakha
BHK
Butawal
Lalitpur
Ramechhap
Ra
m
Hetaunda
Salleri
Khandbari
Okhaldhunga
Okhaldunga
Bhojpur
Ditel
Sindhulimadhi
Bhojpur
h
Te
Malangawa
Gaur
260 22' to 300 27' N Latitude
800 4' to 880 12' E Longitude
Area:
147,181 Sq Kilometer
Length:
885 Kms east to west
Breadth:
145 to 241 Kms north to south
Population:
About 26.6 Millions
Te
India
Fidim
Panchthar
Dhankuta
Illam
Dhankuta
Udayapur
Dhanusa
Janakpur
Siraha
Siraha
Gaighat
Saptari
Dharan
Illam
Morang
Sunsari
Inarawa
Rajbiraj
Location:
um m
th thu
ra hra
Sarlahi
M
ah
ot
ta
ri
Ra
uta
ha
t
Bara
Kalaiya
Jalesowor
India
Birgunj
Taplejung
Khotang
Sindhuli
Parsa
Sankhuwasava
Taplejung
Kavre
ec
Kapilbastu
ap
Nepalgunj
t
Kus
h
Baglung
Banke
Kaski
Beni
Baglung
Liwang
hh
Salyan
Gulariya
g
Rolpa
ma
Bardia
di
n
Kailali
Surkhet
D
ha
Dhangadhi
at
Bir
g
na
ar
Jhapa
Jhapa
Geographical Divisions:
The Himalayan Region
–Altitude ranges from 5000m to 8848m
–Composed of Himalayas and snowy mountains
–Covers 15% of total area
The Hilly Region
–Altitude ranges from 300m to 5000m
–Consists of hills, green woods and fertile valleys
–Covers 68% of Total Area
The Terai (Plain) Region
–Altitude ranges from 300m or less
–Rich in agricultural production
–Covers 17% of total area
Administrative Divisions:
–5 Development Regions
–14 Zones
–75 Districts
–58 Municipalities & 3914 Village Dev. Committees
Base camp of Mount Everest Namchebazar
Telecommunications Sector at a glance
MOIC
Telecom ACT
Telecom Regulation
Telecom Policy
NTA
Telecom Sector
Major Telecommunications services in Nepal
Nepal Telecom
Fixed, Cellular Mobile based on GSM and CDMA,
services throughout the country.
Ncell Pvt. Ltd.
Cellular Mobile Service based on GSM technology.
United Telecom Ltd..
Basic service WiLL, using CDMA technology.
STM Telecom
STM is providing VSAT based PCO in EDR.
Nepal Satellite
Nepal Satellite has started its service in the MWDR
Smart Tel Pvt. Ltd
Smart Tel has started its services in the remote
VDCs of the all development regions other than
the EDR.
The overall telecom Scenario and telecom penetration
Operators
Available Voice Telephony Services
Fixed
Service
Mobile
PSTN WLL
GSM
NDCL
612,720
153,469 5,646,682
UTL
-
71,072
NCELL
STM
Others
CDMA
LMS
856,234
-
2,575
598
618,426
227,116
12,498,243 856,234
7,269,105
591,511
6,851,561
155
5263
109,330
111,905
202,442
203,040
GMPCS
Total
-
520,439
5,108
Total
GMPCS
6,851,561
NSTPL
Smart
9
832,366
1,742
1,742
1742
15,034,127
Tele-Density
•
•
•
•
Services
Penetration Rate
Fixed
3.17%
Mobile
50.16%
Others (LM, GMPCS)
3.13%
• Total
56.46%
Note: Projected Population for 2011 is 26,620,809 (Source : cbs.gov.np)
Source: MIS NTA
Legislation, Statistics of allocation
and
PAC investigation on Spectrum
Following are the allocated Radio spectrum band to Nepal by ITU
GSM 900:
887.6-915 MHz Paired with 932.6-960
MHz
GSM 1800:
1710-1755 MHz paired with 1805-1850
MHz
CDMA 800:
824-841.25 MHz Paired with 869-886.25
MHz
CDMA 1900:
1850-1880 MHz paired with 1930 1960
MHz
IMT 2000(3G):
1960-1980 MHz paired with 2150-2170
MHz
Spectrum allocation system in Nepalese
Apex entity
Radio Frequency Policy Determination Committee (RFPDC)
The committee is chaired by Minister of information and Communications
and the member s of committee are as follows: (a) Minister or Minister of State,I nformation and Communications –
Chairman
(b) Secretary, Ministry of Home – Member
(c) Secretary, Ministry of Defense – Member
(d) Secretary, Ministry of Tourism and Civil Aviation – Member
(e) Secretary, Ministry of Information and Communications – Member
(f) Chairman, Nepal Telecommunications Authority – Member
(g) At least Gazetted first class or expert Officer equivalent there to
designated by Nepal Government - Member - Secretary
Functions, duties of the committee
(a) To determine the policy relating to radio frequency.
(b) To fix and allocate the radio frequency for different
services .
(c) To determine the pricing policy of radio frequency.
(d) To determine the policy for international and multi
purpose coordination of radio frequency.
(3) Other functions, duties and powers and procedures relating
to the meeting of the committee shall be as prescribed.
Mode and Procedure of Fixing and Allocating/ Distributing
Radio Frequency
The Committee shall fix and allocate radio frequency for different
services, subject to the frequency allocated by the International
Telecommunications Union (ITU).
It shall be the function of the Ministry to make coordination in consonance
with the policy on international and multipurpose coordination of radio
frequency formulated by the Committee.
NTA’s Responsibility
NTA shall carry out the act of prescribing and distributing
the frequency to be used for the telecommunications service
subject to the frequency fixed and allocated by the RFPDC.
Prescription of terms while distributing frequency :
The Authority shall prescribe the terms to be observed by the Licensee
while using the frequency in operating the telecommunications service.
The Authority shall have the powers to inquire and monitor as to whether
the Licensee has used the frequency in consonance with the terms prescribe
under telecom rule.
while conducting inquiry or monitoring ,if the Licensee has not used the
frequency in consonance with the terms, the Authority shall provide a
reasonable period of time as well as an opportunity to the Licensee to
use the frequency in accordance with the terms.
If the Licensee fails to use the frequency in consonance with the terms
even within the period of time so provided, the Authority may prohibit
the frequency used by him.
Provision of telecom Policy 2004 regarding
spectrum fees
The License and Radio Spectrum fee including other fees shall
be collected only for sufficiently covering the overhead
(Operation) cost of the body working thereof.
Payment of Fees :
The Licensee shall have to pay the fees while using the
frequency prescribed by the Committee in connection with
the operation of the telecommunications service.
NTA shall have to deposit the fees received above to Nepal
Government.
Initial spectrum fees
Decision of RFPDC for the GSM, CDMA frequency fee in 2002 was as
follows:
GSM/CDMA Cellular Mobile System fee
Radio Frequency Fee = C ∑ No. of pair of spot frequency for station n.
n =1, 2, 3,………
Where,
n is any integer subjected to no. of Fixed station.
C is a fixed number in accordance with Appendix 7,6 (b) 4 of the Radio
Communications (License) regulation, 2049. This constant C is amendable as
per the clause 24 of the above mentioned Regulation by the Ministry of
Information and Communications.
The value of C is currently fixed at Rs. 6,000.00 (Six Thousand) Rupees.
NTA’s Recommendation to the govt. to formulate new
pricing policy on spectrum
With consultation with the international experts NTA requested
govt. to formulate new frequency pricing policy in 2008
The main features in the recommendations were:
• Proper utilization of the scarce resources.
• The recommendation was to encourage licensee to use
spectrum to fulfill their actual needs only.
•Provision to discouraged to hold spectrum . (More Charge )
•To contribute govt . Revenue as well
Assignment of spectrum
After above recommendation, meeting of the RFPDC could not
arranged for two years i.e. up to 2010 due to various region.
In the absence of the committee ,Minister and MOIC instructed NTA to
assign 3G spectrum to the incumbent operator , subject to pay fees from
the initial phase of the uses when RFPDC decides on it.
And to provide equal level playing field ,NTA it self assigned 3G
frequency under above condition to the private telecom operators as
well.
Frequency allocation status in Nepal
S.N
Allocated
Band operator
NDCL
CDMA
800
900
GSM
1800
16
27.4
45
8
7.2+2.4*
6+2*
SNPL
UTL
GSM
30
IMT
2000
141
9+6*
10
42.6
9+2*
10
29
1.25
NSTPL
4.4
STM
2.4
Total
20
3.75
SMART
CDMA 1900
5
9
18.4
2.4
3
Total Grand
11.75
27.4
3
Guardband
38
Free Band
3.25
0.0
7
1.25
20
103.4
28.75
0
37.6
NTA’s Recommendation to the govt. to formulate new pricing policy on
spectrum contd…….
With close consultation with the experts and stakeholder NTA again requested
govt. to formulate new frequency pricing policy again in 2010. and then RFPDC
approved new pricing policy in 2011 (except 3G )
Spectrum Assignment Criteria for GSM and CDMA Annex-1
A. Bandwidth for Initial Assignment
Technology
BW for Service in rural areas
(MHz)
BW for Service including Urban
areas (MHz)
GSM
2x2.4*
2x4.4
CDMA
2x2.5
2x2.5
B. Bandwidth Criteria for GSM and CDMA
Subscriber or Revenue Bases criteria (whichever is selected by the licensee)
satisfies for required spectral Bandwidth) for Assignment of GSM and
CDMA spectrum which will be followed as a measure to determine
necessary bandwidth for the provision of service
Bandwidth
(MHz)
teria
for GSM
Subscriber
Base ('000)
Revenue Base
Rs ('000)
Bandwidth
(MHz)
2x2.4*
2x4.4
2x6
2x7.2
2x8
2x9
80
500
900
1,200
1,400
1,800
288,000
1,800,000
3,240,000
4,320,000
5,040,000
6,480,000
2x9.6
2x11
2x12
2x15
for BW>15
MHz
200/MHz or
Subscriber
Base ('000)
2000
2500
3000
4,500
Revenue Base
Rs ('000)
400/Paired
MHz)
3.6 x number
7,200,000
9,000,000
10,800,000
16,200,000
of subscribers
Criteria for CDMA
Bandwidth (MHz)
2x2.5
2x3.75
2x5
2x6.25
Carriers
Subscriber Base
('000)
Revenue Base Rs
('000)
(2 Carriers)
(3 carriers)
(4 Carriers)
(5 Carriers)
500
800
2,500
5,000
1,800,000
2,880,000
4,320,000
6,120,000
* * For Rural Operators, based on coverage attained,
additional bandwidth may be assigned as refarming progresses. If
spectrum in addition to the spectrum in one band is assigned first and additional bandwidth is to be provided in
another band, for the initial additional spectrum 2x4.4 MHz will be provided.
Note
Bandwidth shown in the table is the sum total of bandwidths assigned in different frequency ranges for the same type
of services (GSM or CDMA).
Subscriber Base: These are the figures of active subscribers (VLR) averaged over a month.
Revenue Base: Audited Annual Revenue
The spectrum assignment would be based on carrier BW (i.e 2x1.25 MHz for CDMA and 2x 0.2 MHz for GSM) subject to
availability of spectrum.
GSM bandwidth taken as next higher multiple of 2 x 200 KHz (one carrier), and CDMA of 2 x 1.25MHz (one carrier)
For example calculation of required bandwidth in GSM between 2x12 MHz and 2x15 MHz may be done as follows:
Let the subscriber number be: 3,700,000. The essential bandwidth is:
2x[12+(15-12)/(4,500-3,000)*(3,700-3,000)] = 2 x 13.4 MHz =26.8 MHz
Formula-1 annex-2
(2BWL + BWU)
Annual Spectrum Fee (Rs.) = [P] X [AGR] X
BWT
Where
 P:
Percent figure. The value is currently fixed 0.7%. Radio Frequency Policy
Determination Committee may review the value of P as and when deemed
necessary.
 AGR: Annual Gross Revenue
 BWL: Total Spectral Bandwidth assigned to the licensee in Lower Frequencies
(e.g. CDMA800 and GSM/EGMS900)
 BWU: Total Bandwidth assigned to the licensee in Higher Frequencies (e.g.
CDMA1900 and GSM1800)
 BWT: Total Bandwidth Assigned to the licensee = BWL +BWU
Formula-2
(2BWL + BWU)
Annual Spectrum Fee (Rs.) = [P] X [AGR] X
BWT
+ R X (BWT - BWE) X α
Where
 P:
Percent figure. The value is currently fixed 0.7%. Radio Frequency Policy Determination
Committee may review the value of P as and when deemed necessary.

AGR:

BWE: Bandwidth Essential for the service, determined based on the Spectrum Assignment Criteria for
GSM & CDMA (Annex-1, )

Total Bandwidth is the sum of all the 2G / 2.5 G (GSM and CDMA) Bandwidth.

BWL: Total Spectral Bandwidth assigned to the licensee in Lower Frequencies (e.g. CDMA800 and
GSM/EGMS900)

BWU:
Total Bandwidth assigned to the licensee in Higher Frequencies (e.g. CDMA1900 and GSM1800)

BWT:
Total Bandwidth Assigned to the licensee = BWL +BWU
Annual Gross Revenue

R:
Annual Rate of Spectrum Charge (Rs/MHz) for Extra Bandwidth,
Currently the value of R is fixed at Rs. 7,000,000/MHz and shall increase by Rs. 25 millions every two years.

α
Regional Coefficient: α = 1 as clarified overleaf in ponit 3 in page 2 of this Annex.
Main feature of the pricing policy
Fee for GSM and CDMA
Spectrum
On the basis of (bandwidth +
Certain percentage of Revenue)
Fee for GSM 900 and 3G
Double and triple than GSM 1800
respectively
Holding spectrum more than
requirement
Pay more fees as per formula no.2.
PAC has Investigated the entire spectrum allocation processes
and gave its report for the immediate implementation.
 Issues raise by PAC
Spectrum is scarce resources of
country
spectrum were provided by
adhock decision
 Instruction of PAC
Prepare transparent and scientific
policy on it instead of previous one.
Detail investigation should be carried
out by proper authority
Operators are holding more
than necessary spectrum
Withdraw the more spectrum
Country is loosing money
Make necessary arrangements for
auction
Difficulties to auction the Spectrum.
1. First mobile license was issued in 2000 to incumbent as per govt
directives with condition to pay fees i.e. equals to the Pvt. Operator when
determined by auction.
2. Second mobile license was auctioned in 2004 as per telecom act.
In above auction the cost of license was more than 20billion for ten
years. Renewable in every five years up to 25 years.
Telecom operators are asking for remove them from the potential
double standard bidding .
Provision of act to auction license only not spectrum.
Thank you