Ronnie05's Blog

Digital Dividend: The future in Mobile Communications

Posted in The Technology Ecosystem by Manas Ganguly on October 18, 2009

The govt of India, Telecom  Regulatory Authority of India (TRAI), Cellular operators association of India (COAI), Association of Unified Services Providers of India (AUSPI), Broadband wireless consortium of India (BWCI) and may industry apex bodies are single minded persuing three point agendas in the Indian telecom ecosystem.

1. Mobile Penetration

2. Lowering the costs associated with mobility / Allowing population to go “mobile”

3. Bundling services for the masses through mobiles.

According to studies by Telecom researchers and consultants, Thrust in rural telecom sector can increase GDP by $520 billion in next 8 years. ALso, a 10% increase in broadband penetration can deliver a 1.4% growth in GDP. Currently it is the best available opportunity of bringing 70% of Indian Population who love in far scattered rural areas to the mainstream. Thus the necesssity of a communications model which will reach out to the remotest rurak citizen at lowest capital and operational costs.

As with many other countries, Spectrum limitation and exponentially growing telecom subscribers are putting a lot of pressure on the existing spectrum (900/1800 MHz). The 2.1 and 2.5/2.6 GHz spectrum will have utilities more in 3G and higher end technologies. It is here, that a parallel innovation promises a lot of help. Traditionally TV spectrums have been very wide because of the fact that most of it is analogue. With the coming of Digital age, a large amount of spectrum will be freed up in case of switch over from analogue to digital signals. Digital compression technologies and coding systems make it possible to squeeze much more information into a radio signal than in the case of analogue technology.

Digital DividendDigital broadcasting is roughly six times more efficient than analogue, allowing more channels to be carried across fewer airwaves.The surplus spectrum not required for the Digital transmission is called the Digital Dividend.

  1. It is approximately 70% cheaper to provide mobile broadband coverage in the 698-806MHz band than at 2100MHz.

DD 2

      2.     Lower the spectrum, more the coverage per BTS, in effect reducing the number of BTSs required for an area coverage, which reduces the capex costs.

DD3

Both the reasons considered, a 700 MHz is twice the coverage of 3500 MHz at roughly 20% the cost. Indian Government willing, the Digital dividend could be the next step in connecting the masses in India and reaching out to them with information, technologies that would empower them and allow them to become “mainstream”.

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