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Row hotting up among mobile operators

NEW DELHI: The acceptance of the Telecom Regulatory Authority of India (TRAI)’s recommendations by the Department of Telecommunication (DoT) last week — including dual use of technology (both GSM and CDMA) by an operator, and subscriber-linked criterion for spectrum allocation — would increase the rift among existing mobile operators.

GSM operators had been opposing use of dual technology by a single operator, while companies using the CDMA technology had been lobbying hard for it. Similarly, GSM operators, who enjoy a clear lead in the race for mobile subscribers, want preference in frequency allocation, but CDMA operators have been pressing for parity. Now with the new guidelines, this tussle is going to intensify.

The trade body representing GSM operators – Cellular Operators Association of India (COAI) – has opposed the DoT’s decision arguing that it would hurt the existing GSM players who have already invested huge sums of money on their network. Any change in guidelines at this crucial juncture when spectrum allocation is awaited would hurt its interests.

The COAI has approached the Prime Minister’s Office (PMO) seeking a fair deal in spectrum allocation to existing players and objected to any move allowing CDMA operators to hold a crossover allocation of spectrum. It is also planning legal recourse to safeguard the interests of GSM players.

However, CDMA operators, particularly Anil Ambani-owned Reliance Communications, have welcomed the DoT’s move stating that it would lead to greater competitive environment in the volatile telecom market making the service more affordable and boost the tele-density.

Immediately after the announcement by DoT, Reliance Communications, which is largest CDMA operator, announced commencing its GSM service soon.

It has not only paid the licence fee worth Rs. 1,650 crore but also applied for additional spectrum for starting its GSM service.

Another reason behind the GSM operators’ worry is the submission of over 500 new applications for licences with the DoT. While the Government is still struggling to get spectrum vacated from the defence forces, GSM operators who are finding it difficult to expand their network due to lack of radio waves and awaiting roll-out of new services, fear that new operators would dent their chances of getting additional spectrum.

The COAI believes that the DoT’s decision to follow subscriber-linked criterion for spectrum allocation would lead to most of the existing players failing to get additional spectrum.

No cap on the number of operators in a telecom circle will make the situation more complex.

Terming the move against the existing telecom policy, the COAI has told the DoT that “such crossover or dual allocation of spectrum cannot and should not be permitted.”

“Even if the same were to be allowed, it can only be done through change in both policy as well as licence as also after following the process of law,” it has said.

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