DoT open to auctioning 3G spectrum for CDMA too

The Department of Telecommunications ( DoT) has said that it is open to the option of going in for auctioning of 3G spectrum for the CDMA players also.

“If there is adequate representation and if the contention is that an operator would have a monopoly then we will make sure that there is a level playing field and will revise the guidelines,” a senior DOT official pointed out.

He also put to rest apprehensions among some players that a CDMA spectrum in 3G will also be reserved for BSNL and MTNL (which also run CDMA services apart from GSM) as has been done to them in GSM. BSNL and MTNL have already been issued spectrum in the 1800 band and will pay for the spectrum later on after the auction is completed.

The DoT guidelines state that the price of the 1.25 MHz block available in the 800 band, which can be used by CDMA operators, will be determined by the price of auction of 3G spectrum in the 1800 MHz band (it will be one fourth that price).

While the number of blocks of spectrum available in this band is still being determined, the policy states that in case of availability of only one block now, the CDMA operator with the highest subscriber base will be given the spectrum. Simply, in most of the cases that will be Reliance Communications.

The Telecommunications Regulatory Authority of India (Trai) pointing out that there are already more than two players — Reliance, Tatas, Shyam, BSNL or MTNL — who have been given CDMA licence auction should be the best option. Many operators also say that the policy is beneficial to just one player and will create a CDMA 3G monopoly.

A DoT official, however, said that the guidelines were made in accordance to the recommendations made by the regulator at a time when there were only two CDMA operators. However the scenario has changed and there are around four operators now.