The Hindu : Business : CDMA companies unhappy over frequency allocation delay

Online edition of India's National Newspaper
Thursday, Feb 24, 2005

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Business

CDMA companies unhappy over frequency allocation delay

By Our Special Correspondent

NEW DELHI, FEB. 23. The CDMA industry today closed ranks to call upon the Government for an `equitable' policy for allocating airwaves to the industry.

The CDMA operators (who run limited mobility phones) and the equipment manufacturers implied that the imbroglio over allocating an appropriate frequency spectrum was not only delaying the introduction of broadband services by Reliance and Tatas, but was also preventing the subscribers from accessing cheaper hand held phones.

At a joint press conference today, some of the world's top makers of telecom equipment, including Lucent, Nortel, Ericsson and LG along with India's two leading service providers of CDMA phone service, Reliance and Tatas, commended the Communications Ministry and the Telecom Regulatory Authority of India (TRAI) for taking initiatives that have led to a boom in the mobile segment, both GSM and CDMA.

At the same time, they hoped that more spectrum would be released to service providers of both the technologies so that the expansion continued unabated.

"If the frequency allocated in India to CDMA companies is consistent with that in North American markets, the price of handsets would come down because of higher volumes. In addition, there would be more variety available.

The TRAI should be technology neutral but should also provide equal opportunities to CDMA operators," said a senior official from Lucent's U.S.-based Bell Labs.

"There is need to make additional spectrum allocation to both CDMA and GSM operators," concurred Rajan Mehta of Nortel.

"The TRAI has done a great job for the growth of telecom, in the country. We hope that the right decision (in allocating spectrum) would be taken for both types of operators," observed Sanjiv Pandit of Ericsson.

Speaking for the operators, B. B. Anand of Reliance pointed out that they were not asking for any extra favour.

"We should get what is given internationally according to international practices. The CDMA operators will not be able to grow their networks in case 1900 MHz band is not allocated to them in addition to existing 800 MHz band.

"The 1900 MHz band is only one in which large number of vendors are available for dual band handsets compatible with 800 MHz band. The examples of a few countries that are doing without this combination does not apply to India."

The operators argued that there are no vendors making dual band handsets for CDMA in any other band and allocation of any other band will only lead to dependence on a single vendor.

Apart from the time factor, it will also mean that the handsets will be costlier due to low volumes meant only for the Indian market.

"CDMA operators expect the Government and the regulator to consider this genuine demand to enable both CDMA and GSM technologies grow in a technology neutral manner and equal opportunity is provided for both the technologies," added Mr. Anand.

Greg Young of the Tatas said the company was prepared to launch broadband services the day proper frequencies were allocated.

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