DoT backs regulator's 2G plan

The Department of Telecommunications (DoT) has endorsed sector regulator Trai’s view that GSM operators with 4.4 MHz of start-up spectrum be given top priority when allocating additional frequencies. This will come as a bonanza for Reliance Communications, which has start-up spectrum across the country and now seeks an additional 1.8 MHz after meeting the subscriber criterion.

However, such a move will hit new operators like Tata Teleservices, Uninor, Loop Telecom and Datacom, which have still not received start-up spectrum in Delhi and various other circles. CDMA players Reliance Communications and Tata Teleservices started offering GSM mobile services under the government’s 2007 dual-technology policy.

Giving his opinion on prioritisation for the allocation of available spectrum in various circles, DoT’s legal advisor said cognisance had been taken of the Telecom Disputes Settlement & Appellate Tribunal order of March 31, 2009. This states that the maximum assured spectrum for a Unified Access Service Licence is 6.2 MHz.

It also considered Trai’s May recommendations on 2G spectrum, which gives top priority to operators already allocated start-up spectrum, but now need more. Second priority would be operators that want more than the contracted 6.2 MHz. The lowest priority would be those who have not received their entire start-up spectrum.

Based on these observations and directions, DoT’s legal advisor is of the opinion that GSM licensees that have received the initial start-up spectrum of 4.4 MHz and meet the eligibility norms for the grant of additional spectrum of up to 6.2 MHz may be given top priority, as this is the assured spectrum they had been promised under the licence agreement.
 

SPECTRUM CONUNDRUM

WHAT DOES TRAI SUGGEST?
Those with start-up spectrum, but need more, should get priority allocation

WHO STANDS TO GAIN?
RCom, which seeks additional 1.8 MHz after meeting subscriber norms

WHY IS IT OPPOSED?
Operators still awaiting start-up spectrum say this is would create uneven field

The priority listing has, however, come under enormous opposition from operators like Tata Teleservices, which contend that this would not create a level playing field, as they are being denied even start-up spectrum in such key markets such as in Delhi.

These operators say their legitimate needs are being ignored at the expense of rivals such as Reliance Communications. Apart from Delhi, new operator Uninor, for instance, does not have spectrum in key circles like Jammu & Kashmir, Rajasthan, Assam and the northeast.

The telecom regulator, however, argues that given the shortage of spectrum in several circles, it would be unfair to stifle the growth of operators that have been given start-up spectrum, but now require more bandwidth to expand their services.

Trai had also suggested that the price of the additional spectrum be linked to the price of 3G spectrum discovered through an auction held recently. However, this recommendation was criticised by many existing operators.