The Hindu : Business : GSM, CDMA players asked to end row

Online edition of India's National Newspaper
Tuesday, Nov 15, 2005

Business

Business

GSM, CDMA players asked to end row

Special Correspondent

Dispute affects economy, feels Finance Ministry

NEW DELHI: Efficient and optimal utilisation of spectrum being crucial for the growth of the telecom sector and the country's economy as a whole, the Finance Ministry has advised the GSM and CDMA-based players to end their bitter row over the spectrum allocation policy at the earliest.

Suggesting an amicable solution, the Ministry, in a strategy paper, has said: "The GSM vs CDMA controversy needs to be resolved urgently. While technology neutral judicious allocation of spectrum to all service providers in a non-discriminatory manner is needed, the policy should be based on the greater benefit for the country and optimal use of available resources."

At the same time, the Ministry has favoured strict action against inefficient use of spectrum. As a check in this regard, it has suggested that the wireless planning wing of the Department of Telecom (DoT), as also other agencies concerned should review annually the utilisation of the spectrum allocated to various players.

Owing to the differences over spectrum allocation, the telecom sector is split into two lobbies. One one side are the GSM operators led by players such as the Bharti group, Hutch and Idea and on the other are the CDMA players with heavyweights such as Reliance and the Tatas. Squabbling over the quantum and method of spectrum allocation, both groups have been demanding a technology neutral approach for the distribution.

The Ministry felt that the National Frequency Allocation Plan should be reviewed at frequent intervals, at least once every two years, so as to incorporate the latest in radio and wireless technologies.

In a bid to end the row Minister for Communications and IT Dayanidhi Maran had held a number of meetings with the authorities concerned to evolve a policy acceptable to all. He also had separate meetings with the two groups, but to no avail.

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