Monday, February 15, 2016

Idea Cellular to Add 43,901 New Cell Sites in 2016

Idea Cellular plans to install 43,901 new cell sites in 2016, a clear response to new regulations imposing significant fines for call drops.

Some of us had argued that it would not take long to remedy the call drop problem identified by the Telecom Regulatory Authority of India. But it will take money.

Though it might not be an especially affordable solution, adding many new towers--or acquiring additional spectrum--are the two main tools available to address the problem. Other changes--such as substituting more-efficient antennas, or changing modulation schemes, take longer to implement.

To create incentives for change, TRAI has instituted new rules requiring user compensation for call drops at the rate of Re. 1 per call drop, up to a maximum of three calls per day.

Though it might take some time to add many new cell towers, a remedy many would agree is necessary, the Cellular Operators Association of India (COAI) argues operators already have taken measures to improve performance in just two months time.

“TRAI’s observation that there is no improvement in call drops after conducting the second drive test in September 2015, is not in consonance with the reports submitted to DoT by operators, which shows marked improvement in the operators’ networks over the past eight weeks,” says COAI.

The industry has added almost 70,000 additional cell towers in the last six months alone, COAI argues.

Lack of spectrum also is an issue. Compared to many countries, India has allocated less bandwidth per potential customer. According to at least one survey, consumers are more concerned about tmobile Internet access han call drops, though.


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