The Hindu : National : Spectrum allocation: Raja meets PM

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Thursday, Nov 15, 2007
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Spectrum allocation: Raja meets PM

Sandeep Joshi

NEW DELHI: Two days after announcing major initiatives in the booming telecom sector – release of spectrum for 3G (third generation) networks and launch of number portability — Communications and Information Technology Minister A. Raja met Prime Minister Manmohan Singh and apprised him of the recent developments in the telecom sector.

Wednesday’s meeting holds significance as the Cellular Operators Association of India (COAI) that represents the GSM service providers recently petitioned the Prime Minister seeking his intervention in the spectrum allocation and other controversial issues.

The COAI has been accusing the Department of Telecom (DoT) of hurting the interests of the existing GSM operators and favouring new entrants and CDMA operators.

It is learnt that Mr. Raja clarified his Ministry’s role in the current scenario and the steps he has been taking to ensure that the telecom sector continues to grow fast and the interests of service providers are not undermined. Only last week did he write to Dr. Singh stating that the COAI was misleading the nation against the “scientific approach” to spectrum allocation.

On the other hand, the COAI had accused the DoT of carrying out the entire process of spectrum allocation in a non-transparent manner. It objected to the go-ahead given for the use of dual technology — both GSM and CDMA — by a single operator, besides expressing its worry over a large number of applicants seeking new telecom licences.

The COAI has also moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on the issue. On Wednesday, it protested against the DoT’s plans to issue Letters of Intent (LoI) to all prospective licensees, saying that it would further complicate things and affect the investment environment in the country.

“It is submitted that investor confidence and investment environment have already been severely affected. If Letters of Intent, devoid of intent, are issued, it would lead to total chaos,” the COAI said in a letter to Telecom Secretary D.S. Mathur.

The entry fee of Rs.1,651 crore for a pan-India licence, as fixed by the DoT is for spectrum bundled with licence. Once the payment is collected by the DoT, the LoI will convert it into a licence, which necessarily carries with it an assurance or guarantee of spectrum.

“This would be absolutely incorrect, arbitrary, illegal and untenable for the government to collect non-refundable fee from a licensee applicant and give no guarantee for spectrum, which is the resource that the applicant is actually paying for,” the COAI said.

The COAI said the existing licensees were being denied their statutory and contractual rights to spectrum. The dual licence and spectrum proposed to be given on priority basis to select operators was in violation of policy and licensing restrictions. Nowhere in the world had the important infrastructure of telecom been treated in such a fashion as it was being done in recent months, it alleged.

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