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News >> Technology >>
GSM operators resist entry-fee for 3G spectrum
By agencies
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Tuesday, 21 June 2005, 19:30 IST
NEW DELHI: GSM mobile telephony operators have resisted any move to levy entry charge for 3G spectrum from existing operators, even as they opposed allocation of additional spectrum to CDMA-based mobile service providers.
Flaying most of the recommendations of the telecom regulator TRAI on spectrum, the Cellular Operators Association of India (COAI) in a presentation to the Department of Telecommunication (DoT) argued that there should be no entry fee or one-time charge for 3G because as UAS license entitles them to provide all types of mobile services including video conferencing.
The association, which represents GSM operators, also said any move to levy upfront lump sum fee for IMT-2000 spectrum would result in increase in cost of service, impeding the government's objective to reach out to rural areas and achieve the target of 250 million subscribers by 2007.
"Government may kindly consider that overall cap for spectrum usage charges be set at 2 per cent of revenues and within this overall cap of 2 per cent, the government may adopt a stepped approach (for both GSM & CDMA) of say increments of 0.2 or 0.25 per cent, for increased levels of spectrum allocation," it said.
"TRAI's recommendation of 'technology neutral' spectrum (allocation) will result in gross under utilization of this scarce resource...This will give CDMA operators carte blanche to use their spectrum in the most inefficient manner and continue to install far lesser number of cellsites as compared to GSM operators, thus giving them a huge cost advantage." On TRAI's recommendation to allocate 450MHz to CDMA players, the COAI said whenever 450MHz band is opened up, it should be equally available to GSM as well as CDMA operators and 1800MHz band should not be available to CDMA operators merely at their request.
It said CDMA operators should also be subject to subscriber-linked criteria for assignments from the 1800MHz band.