Indian Railways starts signalling bid before spectrum allotment

Indian Railways has jumped the gun by tendering its signaling equipment to be used for the 700 MHz premium spectrum even before being allotted 5MHz of the premium airwaves by the Centre.

According to sources, the railways had floated a tender as part of its ongoing plan to execute the European Train Control System (ETCS level-2) along its network. The highlight of the ETCS level-2 is its automatic train protection system with the help of radio-based train spacing.

“It is a suggestion made by TRAI (Telecom Regulatory Authority of India) and we are yet to decide whether it can be allotted to the railways free of cost. The matter will be taken up at the DCC (Digital Communications Commission) meeting, which will give its final stamp of approval,” a department of telecom (DOT) official told Business Standard.

TRAI had recommended that the railways be given 5MHz of spectrum in the 700 MHz frequency band free of cost for its captive use to offer services like public safety and security, but cannot use the airwaves for commercial purposes.

Five MHz premium spectrum costs about Rs 35,000-40,000 crore at the base price and giving it for free could mean losing out on the revenue, the official said. It is learnt that the railways has sealed the tender and would announce the winner soon.

“This was an ongoing process and we have ordered whatever quantity required as part of this tender. This level-2 technology is being done on a trial basis in four different sections and RAILTEL-arm Railtel Enterprises (REL) has floated it,” said a source close to the development. 

The tender is worth around Rs 1,000-1,500 crore. Though the bid was opened on October 15, the names of successful players are yet to be announced. At the REL website, a tender on the modern train control system, based on the mobile train radio control communication system (MTRC), was seen as opened on October 15. 

It stated that the tender was floated for four sections – the Renigunta-Yerraguntla section of South Central Railway (165 route km or RKM), Vizianagaram-Palasa section of East Coast Railway (145 RKM), Jhansi-Bina section of North Central Railway (155 RKM) and Nagpur-Badnera section of Central Railway (175 RKM).

At present, 1.6 MHz (paired) spectrum in the 900 MHz band has been assigned to the railways on an administrative basis for captive usage for its GSM-R based network. Apart from ETCS level-2, the new spectrum is expected to play a key role in enhancing WIFI reach to passengers in trains and stations. It will also improve safety infrastructure and capacity to carry more traffic through the introduction of new technologies.

In October, TRAI had suggested allocating 5MHz of spectrum in the prime 700 MHz band to the railways. 

There was a caveat that spectrum charges be levied on a formula basis as prescribed by the telecom department for royalty charges and licence fee for captive use.

Of the 35 MHz (paired) spectrum available in the 700 MHz band, 5 MHz (paired) may be allocated to the railways. This will be for implementing voice, internet of things-based asset monitoring services, passenger information display system and live feed of video surveillance of a few coaches at a time. The remaining 30 MHz in the 700 MHz band may be put up for bidding in the forthcoming auction, TRAI had said. The railways had asked the telecom department to reserve 15 MHz of spectrum in the 700 MHz band and be allotted 10 MHz initially free of cost. The railways had emphasised that the proposal was devoid of any commercial gain, and instead aimed at enhancing security and passenger amenities.