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DoT accepts Trai's recommendation on spectrum allocation
By siliconindia
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Friday, 04 January 2008, 02:03 IST
New Delhi: The department of Telecommunication (DoT) has decided to accept telecom regulator Trai's recommendations on spectrum allocation issue. Trai had recommended that both GSM and CDMA players increase their subscriber base between two to six times (depending on the circle) before they are granted additional spectrum.
The DoT has also endorsed the official spectrum panel's recommendation that GSM operators be given additional spectrum in quantities of 1 MHz, as against the current norm where they are given additional radio frequencies in tranches of 1.8 MHz to 2.2 MHz.
At the same time, the DoT has decided that the Trai recommendations will only be an interim solution. It has set up a new committee consisting of representatives from its wireless co-ordination and planning arm, the sector regulator Trai, the Telecom Engineering Centre (TEC), the cellular industry, scientific community, and other government agencies to come out with a new policy for spectrum allocation. Sources said that this committee had been given a six month time to submit its report.
Wednesday's development is likely to be perceived as a boost for GSM operators. This is because, while Trai had proposed that telcos increase their subscriber base between 2 to 6 times -the TEC had suggested that GSM players increase their subscriber base up to 15 times- before they are given additional radio frequencies. If the TEC report had been implemented, none of the existing GSM players would have been eligible for additional spectrum for a couple of years.
"Even though Trai?s norms are stringent, several GSM players can still get additional spectrum in many circles. This is because our demands for additional spectrum have been pending with the government for close to two years and in the meantime our subscriber base in some circles have grown to the levels prescribed by Trai," said an executive with a leading GSM player. The Cellular Operators Association of India, the body representing all GSM operators, also welcomed the DoT move. "COAI views this as a practicable way forward though not a perfect solution," they said.
On the other hand, CDMA players slammed the government for not going by the TEC report. "Allocation of additional spectrum as per Trai norms to dominant private GSM operators is unnecessary and unwarranted concession by DoT. Norms recommended by TEC are as it is liberal, as TEC has not considered several spectrally efficient techniques. The DoT's move does not recognise that spectrum is a scarce resource and must be used optimally and efficiently," Reliance Communications said in a statement.
