TRAI demands CDMA companies to bid for 3G spectrum

By siliconindia   |   Wednesday, 13 August 2008, 19:30 IST
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Kolkata/New Delhi: The CDMA 3G spectrum policy has aroused immense concern on the bidding phenomena with Telecom Regulatory Authority of India (TRAI) voicing their opinion to make bid mandatory even for CDMA. According to TRAI Chairman Nripendra Misra, “The government must take the auction route to allot 3G frequencies in the 800 MHz band for CDMA players as well,” as reported in Economic Times. With the limited availability of the 3G frequencies, the policy provides CDMA operators with only ‘one’ slot in the 800 MHz band, and the ones with the largest subscriber base stands with an edge over the others. Thus, big players like Reliance Communication will have a greater advantage over the new players like BSNL, MTNL and Tata Teleservices as it enjoys the largest subscriber base in all circles except in Delhi and Maharastra. So, going on these lines, Misra pointed “Since various service providers have been given licenses in different service areas at different time periods, TRAI believes that keeping the subscriber base as the criterion for deciding the priority of spectrum allotment shall go against the level-playing field and the principle of equity. The subscriber base of the CDMA network of a service provider in any service area is a result of different environments, and cannot muster the test of fairness if it was to become the basis of priority. ” Moreover, the bidding option in the 450 MHz and 1900 MHz couldn’t change the opinion of the telecom regulator, who clarified that 800 MHz is the best band for the operators since they already provide the 2G services in the same band. So, the most awaited policy couldn’t turn up with satisfactory outcome, and probing it the telecom department can end up being struck for the inequality phenomena.